Essential Tips for Starting Your Own Energy Brokerage
As the deregulated energy market grows, energy brokers gain new and better opportunities to make huge commissions. In the past, many brokers worked under the umbrella of a larger firm. This allowed them to operate using the firm’s suppliers and licensing. But it also cost them a large chunk of their commissions.
But now more than ever, brokers can access all top suppliers without losing out on their commissions. It’s not surprising that many brokers are now seeking independence by starting their own firms. Below, you’ll find some essential tips for starting your own energy brokerage, so you can maximize your profits from day one.
Why Isn’t Everyone Starting Their Own Energy Brokerage?
Many energy brokers are drawn to the perks of going out on their own which include more commissions, more freedom, and maybe even better opportunities. However, they are taken aback by the challenges they could face when trying to do so; The market is competitive, and it takes time, patience, and strategy to succeed.
Independent Broker Challenges and Tips to Overcome Them
The problem is that administrative work, such as manually obtaining pricing, can take a huge chunk of time out of your day. You should be able to spend this time selling, not pushing papers.
- Instant Pricing for Simpler Deals
- Contact Creation Software
- Digital Signatures to Close Deals Faster
The problem is that you need access big-name suppliers to sell more, but you need to sell more to build relationships with those same suppliers. Many major suppliers only accept well-established broker shops. Individual brokers and smaller shops are left in the dust.
- Take what you can get and hope you become a well-established broker
- Partner with someone who has those big-name supplier relationships
Leaving Room for Growth
The problem is that many brokers start their business without a plan for growth. Moving into new territories can be expensive and time-consuming – requiring bonds and piles of paperwork.
- Partner with someone who has the licenses so you can piggy-back on them, also saving you the cost of licensing each member
Cash Flow Requirements
The problem is that energy brokers can’t accommodate their immediate cash flow requirements. Only major suppliers offer upfront payment plans, but they are not taking on new, small brokers. Energy brokers are stuck with a bad deal from uncompetitive suppliers.
- You can build your reputation up with uncompetitive pricing – hoping you can get better suppliers letter
- Partner with someone suppliers trust and access all top suppliers, the best rates available and flexible commissions
Start Your Own Energy Brokerage with Broker Online Exchange
There are many aspects to becoming an Independent energy broker; While there are many benefits, there are also many risks. One way to mitigate your risks and allow you to focus on growth is by partnering with the biggest name in the industry, Broker Online Exchange. When you partner with BOX you gain access to 90+ top suppliers, upfront and residual commissions, licensing in all deregulated markets, instant supplier pricing, the industry’s top energy broker platform, and world-class support and commission teams. Contact us to start growing your energy brokerage today!