The goal of this article is to provide an independent Ignite Energy review. Please know that I am not affiliated with the company in any way and never have been in the past. All information was conducted from independent research online. Ignite Energy is a registered trademark, owned by the company.
About the Company
Ignite Energy, also known as Stream Energy, is a multi-level marketing company that specializes in energy services such as gas, electricity, identity protection and credit monitoring.
Since the de-regulation of the energy industry in the United States, consumers now have a choice about who they purchase their energy from. Although the energy is still delivered to the consumer the same way, consumers can shop around with different utility companies to find the best price.
One of those new utility companies is Ignite Energy, a subsidy of Stream Energy.
Ignite doesn’t manufacture any product or produce energy itself. Instead, it buys energy at wholesale prices and allows its independent sales force to sell the energy via the direct sales business model. The independent consultants focus on finding new customers and distributors, while the company processes the orders, sends out invoices and bills, tracks commissions and pays its distributors.
Ignite Energy started in 2005. In its first year, the company grossed $70 million in revenue. Since its inception, it has achieved phenomenal success. In 2009, the company revenue was $845 million. The company is well on its way to reaching $1 billion in gross revenue. Personally, I find that amazing. Very few companies reach $1 billion in revenue in that short of a time.
Not many MLM Companies reach $1 billion in annual sales. What makes that feat even more amazing is that they only do business in six states and Washington D.C. Those states include Texas, Georgia, Maryland, New Jersey, New York and Washington D.C.
What’s Great About the Company
What’s great about the company is that there are no products to inventory or sell. Instead, you simply get people to switch their utility company to Ignite Energy. Even better, just about everyone has an energy bill. And regardless of how bad the economy gets, most people will still pay their energy bill in order to keep their electricity working.
In most other MLM Companies, when money gets tight, distributors and customers will cancel their monthly auto-ship. Items such as pills, potions, shakes, and juices are luxury items. Yes, they’re good, but they are a “want” item not a “need” item. On the other hand, your utility bill is a commodity, must have item!
Additionally, the energy industry is a $500 billion industry. That means that Ignite Energy has the potential to become a multi-billion dollar company. The company only operates in a few states. Just think how big the company will be when it operates in all fifty states. In my opinion, this is a ground-floor opportunity with unlimited potential.
What I Don’t Like About Ignite Energy
The only thing I don’t like about the company is the $300+ fee to join plus the $29 ongoing website fee. I personally believe that both of these things should be free for reps. Some people might even argue that most of the commissions paid out are from people paying this large sign up fee and not from the monthly utility bills.
Another thing I don’t like is that the reps are so recruiting focused. I know this has nothing to do with the corporate team itself, but the distributor “culture” is all about recruiting new distributors, not finding customers. Obviously, it’s more profitable to the distributor to recruit another distributor, rather than find a new customer.
I’m by no means knocking the company. No MLM Company, or regular business, is perfect. Every company has good and bad things about it.
How to Get Started
How do you get started with Ignite? To get started as a distributor, you need to find a god sponsor. Your sponsor is the person who shares the Ignite business opportunity with you and agrees to train and motivate you. In essence, they are your own personal Ignite coach.
Next, you agree to pay the $300 sign up costs (approximate) and also agree to abide by the company’s terms and conditions. Once you do that, you own your own business. Even better, you are in business for yourself, but not by yourself. You have support team to guide you and coach you.
Most new distributors are taught to initially work with their warm market, by making a name list of all of their friends and family. They are then taught to contact these folks by phone, email or in person to introduce them to the business.
How You Make Money
How do you earn money with Ignite? It’s really simple. Your primary goal is to educate consumers about Ignite and get them to switch their utility account to Ignite. When they do that, you earn an immediate commission and you also earn residuals each month they continue to keep Ignite as their utility company.
You want to teach people why they should consider switching their utility companies. I believe most people will be open minded; especially if you can show them a way to save money.
The next thing you need to do is find people to personally sponsor as an Ignite distributor. As you sponsor new distributors, your goal is to help them find customers and downline distributors. As you grow your sales organization, you earn commissions and overrides off your group’s sales volume. The larger your group sales, the more money you earn. As you progress through the Ignite achievement levels, the company also offers leadership bonuses, cash incentives and other rewards.
The most successful Ignite distributors and top earners find lots of personal customers (at least 50 to 100) and build a large downline of distributors. They combine offline and online recruiting efforts to build their business. In addition, they treat their Ignite business as if they had millions of dollars invested in it. They work their business consistently every week, always looking for potential customers and distributors to partner up with.
Ignite Class Action Lawsuit
In 2014, there was a class action lawsuit placed against Stream Energy claiming that they sell through a pyramid scheme in violation of federal racketeering laws. I have searched online and could not find the results of this case. Here is the article that explains it in greater detail.
You can also read a post I did about the top 7 MLM Energy Companies.
Some of the top leaders in the company include Presley and Jeanie Swagerty, Steve and Diane Fisher, Greg and Heather McCord, and Randy and Marcie Hedge. These leaders are all Presidential Directors, the highest rank in the company. You can read more about them here.
Third Party Reviews
After doing some research online about Stream Energy, here are some things I found:
- They have an A rating with the Better Business Bureau
- As of October 2014, they have a 2.5 of 5 rating with 10 reviews on Yelp
- Here is a page I found with lots of good and bad reviews of the company
Ultimately, it’s hard to find unbiased reviews online. Many reviews are written by reps or by distributors in other companies, so they are either extremely positive or extremely negative.
The best thing you can do is trust your own intuition and do your due diligence. Be an educated consumer.
After reviewing the company, I believe it is a great business opportunity for someone who is willing to get involved, work hard, be open minded and think long-term. My best advice is to start out as a customer for your first 90 days. Try out the service and make sure that you like it and save money on your utility bill BEFORE you decide to become a distributor.
If you think the service provides a good value then you should consider becoming a distributor. If you decide to become a distributor, pick your sponsor wisely. Team up with someone who has been with the company for a while, knows what they are doing and is willing to help you succeed.
Finally, come up with a game plan, make a commitment and get focused. This is not some type of get rich quick plan. You have to work hard, be consistent and stick with it for a few years. Rome wasn’t built in a day.
On a side note, if you are currently (or formerly) involved with Ignite as a customer or distributor, I would love to hear your story. Share a product testimonial or success story by leaving a comment below.