Why It’s Hard to Partner with National Energy Suppliers
It’s not just you. The big national energy suppliers just aren’t accepting agreements with energy brokers like they used to.
In the last few years, the deregulated energy sector has grown tremendously. That means more brokers, more suppliers and more buyers. That’s great for the market, but the rapid growth has uncovered an enormous risk for suppliers: energy brokers.
When a supplier takes on an energy broker, they’re also investing time and money in them. For each broker, there’s an onboarding process. There are support calls and training…It adds up quickly.
And do all the brokers pay off? Of course not.
Some brokers sign up, realize the industry isn’t for them and a supplier will never hear from them again. Or maybe they’re only using a supplier for a price check. Maybe they’re in it to scam people and suppliers alike.
There’s no shortage of reasons a broker might become a losing investment. But as more brokers enter the ring, suppliers face more risk of losing their investment than ever before.
What’s This Mean for Brokers?
It means a lot of brokers can’t build relationships with the big suppliers like Direct Energy, Engie, Constellation. You can try, but they might just turn you away.
You need to prove yourself to get in with the big names – a solid reputation and a huge client book are a start.
Unfortunately, for brokers who have recently gained independence this can be challenging. You haven’t built your empire yet, so you can’t prove yourself, but you need a national supplier to grow your business.
Are Smaller Suppliers an Option?
Sometimes. It really depends on your location and your prospects.
We’ve seen some big consumers demand a known, national brand even if their pricing is higher than a local company’s. Some people just find comfort in familiar brands.
In some markets, the national brands will provide pricing far superior than the local firms, so energy brokers that don’t have relationships.
We almost always recommend you have at least a couple big-name suppliers in your toolkit. If anything, just having the brand on your pricing proposals makes you look better to prospects.
So How Do You Work with Big Suppliers If They’re Closing Their Doors?
It’s simple: join an energy broker network.
An energy broker network like Broker Online Exchange will give you instant access to all the big national energy suppliers (plus most the local ones too!). This means you’ll have instant access to the best pricing and recognizable names.
For suppliers, Broker Online Exchange reduces risk. We invest in the brokers, help them close more deals and help them remain active. With our technology and backend support, our brokers have a competitive advantage than they wouldn’t if they worked directly with the supplier. So, it’s win-win for suppliers: they get more sales with none of the risks.
For brokers, BOX not only gives them access to 75+ top suppliers in North America, but we also provide the business support they need to streamline their business. When you partner with BOX, you get access to:
- Instant matrix pricing from 75+ suppliers in all deregulated markets.
- Automated contract creation software.
- A business manager to reduce your administrative paperwork.
- Monthly commissions reports.
- Flexible payment plans to suit business requirements.
So, for energy brokers, a partnership with BOX not only gives you access to all suppliers and all markets—it also lets you spend more time doing what you do best: selling energy.