New Age Power Brokers and Glacial Energy not an MLM Company

New Age Power Brokers sounds a bit uhh? new age I guess ūüôā So they have a little bit of a hippie name so what lets learn more about this company. Apparently from what I can tell New Age Power Brokers primarily sells for Glacial Energy which is licensed to do business in quite a few states. Altogether it looks like they can sell natural gas and electricity service in the following states:

New York Connecticut Illinois Michigan
Texas Rhode Island Washington DC Pennsylvania
Maryland Massachusetts Delaware Coming Soon: California
New Jersey Maine New Hampshire Coming Soon: Ohio

Not an MLM Energy Company, More Like a Power Brokering Opportunity

New Age Power Brokers and Glacial Energy Brokering MCPE Prices for Commercial Businesses in Texas

New Age Power Brokers and Glacial Energy Brokering MCPE Prices for Commercial Businesses in Texas

New Age Power Brokers offers an opportunity that they say is not an MLM opp but instead 40% on the commission they receive when a sales associate of their’s brokers a commercial electricity deal for Glacial Energy through New Age Power Brokers. So basically it appears that New Age Power Brokers is building a large work from home commercial energy sales force using a straight forward business model of paying these sales associates a percentage on the commission Glacial Energy or another provider gives them. My only concern is that as a “broker” New Age Power Brokers should be going out to more electricity providers than just Glacial otherwise the term “broker” is a little misleading. We assume that New Age Power Brokers receives bids from several REP’s in the pricing process but the concern is not out of place as many brokers in Texas end up just being a shil company for one or two electric companies. We looked around on the web and found that Glacial Energy is the main brand being offered by New Age Energy Brokers and would like to know other REP’s they offer when pricing electricity rates for their customers. It is important that when using a broker a Texas business receives multiple bids to get a complete shopping experience.

After a closer examination it looks like they have a compensation plan they call a business to business referral program and according to commenter Stacy in the comment section below she explains that the New Age compensation plan is a “Direct Marketing Business Model”. “New Age is not an MLM because while they do earn a commission on sales, it is a set rate ALL the time. There are no levels. That is called a Direct Marketing business model.” The obvious thing people look at are the levels going down to 7 but what sets New Age a part from an MLM business plan is that there are no requirements for earning commissions on different levels. If your business referrals stretch down multiple levels you get paid on those without having to meet any additional requirements. The fact that¬†it goes down to 7 levels which sounds a lot like several MLM companies I have heard about does not make it an MLM business plan but does share in the “direct marketing” aspect that both MLM and New Age’s compensation plan use. My previous question about how is this not an MLM company, am I missing something has been answered by Stacy in the comment section below? As you can see New Age does not offer an MLM compensation but a direct marketing sales compensation plan. The example chart showing a perfect world scenario of what the commissions could turn into do look a little sensational, I think everyone can agree that direct marketing will never have a perfect world result as in the example below.

To watch an educational video of what an MLM or pyramid related business is feel free to watch below.  Also look at their compensation plan and see how as the numbers get bigger the chart starts to resemble a pyramid. Although the New Age compensation plan does not fit in the MLM category you can see that the compensation structure looks a bit like a pyramid in their business direct marketing payment structure.
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How is this not an MLM Pyramid?

How is this not an MLM Pyramid?

Glacial Energy Offers MCPE Rates Which is a Texas Variable Electricity Price

Glacial Energy can be easily mistaken as Glacier Energy like the thing the Titantic ran into. Most people will need a reminder as it isn’t often that people refer to things as being “Glacial”. Another possible source of confusion is what exactly 40% of what is the commission a sales associate is paid? 40 percent commission is 40 percent of usually 3 mils if they charge industry standard commission. Some brokers charge whatever they can get away with although 3 mils is pretty standard. So lets figure out commission on a business using 400,000 kilowatt hours a year. We take .003 and multiply that times 400,000 = $1,200. The sales associate with New Age would get 40% of that which would be $480. If the sales associate signed up a commercial business like a hair salon or paint supply store the usage would be more like 40,000 kilowatt hours on the high end. Lets figure the commission on that. 40,000 kWh x .003 = $120. New Age will pay their sales associate 40 percent of that which would be $48. They will probably pay this out over the course of the year which means 48 divided by 12 months is $4 a month for a small retail store. If your not planning to sign up large commercial facilities you might get discouraged signing up the little retail shops like this.

Unbelievable Wholesale Prices or Just Your Standard High Risk MCPE Price?

Glacial Energy has unbelievable electricity prices as low as 4 – 5 cents per kWh according to what an energy consultant told me today that he heard from someone who just spoke with a Glacial rep. I also spoke with an MLM work from home junkie who mentioned the name Glacial Energy as a “wholesale electricity company” offering 4 cent rates and said that this is a new opportunity that pays 40% commission. Glacial Energy’s customer that called today believed they were on a fixed electricity price at around 4 cents per kWh. We were quite amazed as this is way outside the retail margins of the most business savvy Texas electricity provider. The company also offers no deposit commercial energy in Texas. Needless to say most of the energy consultants in the office made some kind of remark that the rates smell of something fishy. Giving Glacial Energy the benefit of the doubt we must assume their customers might be misunderstanding something. After closer examination it appears the 4.5 cent per kWh rate is an MCPE variable price. These prices fluctuate with the balancing energy market and can double and triple in price in just a few days. Last summer they doubled and tripled in price and stayed there for 3 – 4 months. When signing a customer to an MCPE price there are also TDSP charges and line loss and ancillary charges. I am not sure if Glacial Energy is including line losses or ancillary charges in their quoted price but we will assume they are unless we hear otherwise. MCPE is a great thing to sign up for as a commercial business but you definitely want to make sure you know the risks and what options are available to blend the MCPE price with a fixed rate. You could also lock in something called “heat rate” or lock in “natural gas” prices which is 45% of the fuel that generates Texas electricity. By doing a little hedging when signing up for a variable electricity price like MCPE a large commercial or industrial business can limit the amount of exposure of an MCPE electricity price.

More About MCPE Prices and Additional TDSP Charges

Usually when we get several customers calling us saying that they are receiving a too good to be true offer from a provider we see a few months later that customers are calling instead saying how they have been ripped off by that provider. It takes a few months for the customer to get the bill and notice that the price they thought they had is quite a bit higher. We see that Glacial Energy really is offering Texas electricity rates that are this low which is good news for those considering signing up with Glacial Energy. Based on what you can hedge energy for, 4 cents seems out of the ballpark unless it is an MCPE electricity rate. Since we now know Glacial Energy is advertising an MCPE rate we can recommend to potential electric customers that it is ok to sign up with Glacial on an MCPE price provided you understand the risks and check on what TDSP charges, line loss charges, and ancillary charges have been included in their rates. One way to check on these additional charges to be bundled onto the MCPE electricity price is to get a break down of their “energy only” price all “TDSP charges” and then the total “bundled electricity rate “including all fees and charges. Make sure anything that is obscure in the contract is explained in a dollar amount. ¬†A provider should be able to break down all charges although the TDSP charges will be a very close estimate based on your previous years usage history or a close estimate on estimated usage if you are a new company just starting up.

Learn More About a Reverse Auction Process That Puts a Businesses Usage in a Competitive Bid Process

We encourage Texas electricity customers to check out Glacial Energy and see what their total bundled electricity price looks like compared to a few other providers. It could be that Glacial is offering an MCPE rate that is low cost by nature when fuel prices are low. The issue with MCPE is that if not combined with a fixed rate product can spiral out of control. Last summer (summer of 2008) MCPE prices reached triple their average prices. Texas commercial businesses that were not combining their MCPE rate with a fixed rate paid dearly. A risky MCPE electricity rate can be low risk for some smaller businesses that will only see a few hundred dollar price increase per month in their electricity costs but for a large business it could be several thousand dollars in unprepared for energy costs.

To learn more about wholesale electricity rates in Texas please visit our Texas commercial energy page and fill out our form. An energy consultant would be happy to take your commercial electricity usage through a reverse auction process with 10 – 15 different Texas electricity companies that will compete to win your business.

Ambit Energy a Scam or a Great Opportunity?

Texas Electric Company Deregulation

Electricity deregulation in Texas has provided some great opportunity to investors and small business owners in the state looking for a new way to make some money. Ambit is one of over 40 Texas Retail Electric Providers in the state selling retail commercial and residential electricity.

 

Ambit Energy Electric Company

The problem is not so much of an issue for those needing to have their electricity turned on or even by the company Ambit Energy but by those who think they have a good chance of becoming a millionaire or at least rich after the process of signing up to become an independent representative for Ambit Energy, Ignite, Affordable, or any of the other direct sales and MLM companies out there selling electric service in Texas.

The danger in this way of thinking is that if it is supported by some of the company’s spokesman it allows the beginning people in the MLM company to become wealthier while the new people signing up make more for their sponsor’s then they will for themselves. A better approach is to see this as a part time thing you might be able to make some extra cash with. An income report from the company showing just how many people make over six figures with an MLM company is a great way to decide if you have a statistical chance of making an opp like this work even if giving it 40 hours a week.

Not all Ambit Energy sales reps profit through their compensation plan in a dishonest way by promising new recruits hundreds of thousands and millions of dollars. If you do want to sign up with Ambit Energy we  encourage you to sign up with Ambit through a sales consultant of theirs that approaches the business in an honest and ethical manner. Our opinion is that you should sign up on their affiliate program which offers you the opportunity to sign up electric service customers directly without the need to build a downline. We believe you will save yourself much time and money by going directly for the customers rather than trying to make the MLM downline work in your favor. We have met and talked to a few Ambit Energy people that are honest and ethical about this opportunity and do not make outrageous claims. We believe these are the people you should associate yourself with if you decide to do this opportunity.
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What you will not find in the Ambit training material are some of the tricks of the trade that some of the seasoned MLM’ers use to make the MLM opp work. Many successful MLM’ers stack sales representatives and put customer’s under them if necessary to make the whole MLM sales structure pay out correctly so that you do make money. This idea is not discussed by Ambit Energy’s corporate offices as it is borderline illegal to structure the business to primarily build up independent sales reps with no emphasis on customers. The truth is although some of the top guys stack reps under other reps to build up their sales commissions they rely on these sells reps to sign up their friends and family. All of this primarily helps these super MLM sales people. If a new Ambit Energy sales rep wants to make the kind of money these guys make they would need to pull off some of the same type of stunts. Traveling the state, stacking reps and being that charismatic spokesman for the company is usually what it takes. The problem is that these techniques are not always explained ¬†in the sells pitch and most people walk away thinking that the business will be easier than it really is. The truth is that the time it will take to make a truly successful business with Ambit through an MLM downline could be better spent starting a more traditional business or signing up on Ambit Energy’s affiliate plan and just sign up customers. The typical example pyramid chart showing what could be possible in a perfect world scenario is not an accurate representation of what someone in an MLM opp can expect. An income disclosure statement showing exactly how many people make over six figures would be a helpful guideline in deciding if this is right for you.

Many See the Ambit Energy Pyramid Scheme as Old Hat Hyporama

The Office scene about a calling card pyramid business shows that the amazingness of the MLM compounding effect has lost some of its luster as many have tried and been burned by pyramid schemes. The law on what denotes a pyramid scheme and what does not is open for interpretation but as a rule to make it legal a genuine product is required. The¬†Ambit Energy Company opportunity is a great way to make money if you are realistic about how much you can make with something like this and it helps if you go ahead and decide if the affiliate or MLM based business model is best for you. In our opinion Ambit’s affiliate option is the best way to go.

Reality is Many MLM Companies Like Ambit Don’t Make It

Many of these types of MLM companies go out of business or bankrupt due to a concentration on recruiting reps while the customers dry up. Excel Telecommunications was one of the more successful MLM companies of the last 20 years in a deregulated industry and is a perfect example of an MLM company growing into a thriving success only to eventually implode on itself later. By having a concentration focused on recruiting new reps the whole MLM may topple down. Because there is a high percentage of this risk you could very easily be wasting 5, 10, 15 years building a business that will have nothing to show for you when it finally goes out. This is a warning when working with any MLM company including  Ambit, Affordable or Ignite Energy, Amway, Quickstar, Mary Kay and so on. You can make money with these companies but is it really worth the investment in time and personal relationships that could become ruined in the process by promising riches? If you choose to sign up with one of these MLM companies we encourage you to concentrate your efforts in signing up electric service customers and consider the downline part of the business an added bonus. By concentrating most of your efforts on building a downline you will find that most people in the business do not make enough money to justify the time spent in building their MLM structured sales team.

The downline you create may pay out decent money to some of the top people in your up-line but you or those you recruit will not see most of this money in most MLM type businesses. Instead of making money through sales associate recruiting we recommend just signing up people to the product or service in this case it being Texas electricity service.

Some other MLM or Direct Sales companies in Texas are, Zurvita Energy, Ignite Energy , Affordable Energy, and New Age Power Brokers.

Some other traditional Texas electric companies: Bounce Energy, Spark Energy, Champion Energy, Startex Energy and many more.

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