Borrowing a page from Mary Kay Inc. and Amway Corp., a Dallas company is selling electricity through a corps of volunteers eager to earn commissions.
Chris Domhoff, one of Stream Energy’s founders, says the business plan is viable as long as Stream continues to grow. Stream Energy is bringing multi-level marketing – in which sales agents make more money by enlisting other agents – to Texas’ deregulated electricity market.
To sales agents, it’s a way to start a home business and make extra money. To some business experts, it’s a scheme doomed to collapse once growth stops. To state regulators, privately held Stream is a product of deregulation – and something to keep an eye on.
Chris Domhoff, a company founder, said the business plan is viable as long as Stream grows.
“Yes, there will be a saturation point over a two-year period,” he said. “By that point, we hope to launch in other states.”
Mr. Domhoff and other executives with Stream’s marketing arm, Ignite, previously worked for Excel Telecom, the multi-level marketing company that sold telecom services, merged with VarTec and went bankrupt last year.
Stream operates like any other licensed electricity provider in Texas. Its 91 employees answer customer calls, buy power and keep the office running. What’s different is that customers can sign up only through salespeople, called independent associates, who pay $329 each to enter the organization.
Texas Electricity Firm Betting on MLM
December 19, 2005 by Ty | 2 Comments
In Network Marketing Companies, Network Marketing News
nuwave06 on March 29th, 2008 at 12:27 pm
Interesting article. I looked closely at both the Ambit and Ignite opportunities, but felt the start-up costs were just too step. I decided to go with Affordable Energy, similar concept, good compensation plan, start-up cost was only $49.95.
nuwave06 on May 4th, 2008 at 3:17 pm
Affordable Energy is soon expanding business to all 50 states with an addition to their product line, which will help residential air-conditioning units to operate at a better efficiency, using less energy, and saving consumers money on their electric bill.