Electricity deregulation in New Jersey has been a sleeping giant for network marketers who have patiently awaited the arrival of energy suppliers that provide a great value to the consumer and a great business opportunity for representatives. While energy has been deregulated in New Jersey since 1999, the New Jersey Board of Public Utilities estimates that fewer than 5% of New Jersey’s 2.6 million residential customers have taken advantage of electricity deregulation in New Jersey and switched to an alternate electricity service provider. There are two primary reasons for this. Until recently, electricity deregulation in New Jersey was a business sector that had been marketed primarily to commercial and large industrial customers. Very few energy providers were offering services to residential customers. But more importantly, residential customers in New Jersey lack an awareness and understanding of electricity deregulation and the benefits of electric choice. Simply put, they are unaware that they can potentially save 15% or more on their electric bill by choosing a third party supplier. Electricity deregulation in New Jersey is a HUGE business opportunity for network marketers.
Fact: Residential Customers are Influenced by People They Know and Trust
The beautiful thing about electricity as a network marketing opportunity is that the “product” is essential for every homeowner and renter and customers expect to receive and pay a monthly electric bill. The value proposition with electricity deregulation in New Jersey is that customers have the opportunity to pay LESS for their electricity and still receive the same service and bill from their utility. The problem is that for the naïve consumer, it sounds just too good to be true. Many distrust that their service will not be affected. This is why “network” marketing is so powerful. Homeowners are able to learn about energy choice from a trusted friend or acquaintance who can personally testify to the benefits of choosing the alternate electric supplier. That new customer then has the opportunity to spread the word to others in their warm market circle and get other referrals. One person who tells twenty people, who each tell ten people, and so on, quickly begins to compound to a huge network marketing organization.
In Connecticut, energy choice had been marketed to residential customers for 4 years by over a dozen direct sales organizations, yet only about 15% of residential customers had switched to an alternate electric supplier. In early 2010, a new supplier, North American Power, launched in CT with a network marketing model and began to penetrate the residential market at an astounding pace due to its “warm” market customer acquisition approach. North American Power was the fastest growing company in CT during it’s first year of business.
How to Evaluate Opportunities with Electricity Deregulation in New Jersey
When evaluating and comparing business opportunities with electricity deregulation in New Jersey, the following are some key points for you to research and consider:
- Is there a fee to be a representative? (some companies do NOT have a fee to become a rep)
- Will the company charge a monthly fee for website access?
- How do the company’s rates compare to the public utilities? Are they competitive? Do they provide savings to the consumer?
- How many other deregulated states does the company service? Will they continue to expand at a rapid pace?
- Does the company also have an electricity product that you can market in non-deregulated states?
- Does the company currently market or have plans to market natural gas as well?
- Does the company offer representatives the opportunity to market to residential and commercial customers?
- What is the background and reputation of the leadership of the company? Are they experts in the energy business?
- Is the company well funded?
- Does the company offer a strong compensation plan?
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To Your Success!
Area Director, North American Power
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