Posted: 02/1998

By Dan Baldwin

First it was prepaid phone cards. Then along came residential long distance affinity programs. Now electric power generation? Just when you think you're able to focus your agent energies exclusively on selling long distance service to business customers, something else comes along to distract your time and attention.

Like you, I've heard about this "power thing" going on in the background for quite some time. But like a good soldier I've put off taking a look at it because I keep promising myself that I'll just stick to selling long distance this year. (Entrepreneurs like us tend to drive ourselves and our spouses mad from flitting around from flower to flower like bumblebees. If we could only stick to one idea we'd already be millionaires, right?) But I've now relented.

In search of some purely objective and unbiased information, I read a brochure put out by the California Public Utilities Commission (CPUC) and dialed into its web site at http://www.knowledgeispower.org (that's .org, not .com). Within 30 minutes I determined that:

• It's safe to switch electric companies
• Net savings to the end user could be anywhere from 5 percent to 20 percent
• Everyone from your neighbor to your grocer is going to hit on you within the next six months to switch electric companies

The only thing put out on the CPUC's site regarding channels of distribution was the fact that it may be possible to get lower pricing through group buying. (Did someone say 'affinity' or 'network marketing'?) However, many companies have contacted us at the One Plus Agent Association (OPAA) about sharing with our agents the opportunity to sell their long distance customers energy as well. I asked them the standard questions, "How much will the end customer save?" and, "How much will I, as the agent, earn?"

Beau Ferrari of PowerUSA (www.power usa.com) was quite informative. "There are many products that agents could try to sell to their existing customer bases, so why should they choose electricity? Simple. Many businesses have electricity bills that are even higher than their long distance bills. As it's a new pitch, they'd welcome any opportunity for a reduction in their electricity bills. This is the next logical step for most agents. What other product do people use without thinking how much it costs until they get the bill? You go into your office, you flip on the lights, but you don't think how much you are spending on electricity. As a PowerUSA agent, you will be able to show people how to save money on something they never knew they could."

Ferrari continued, "Electricity should be easier to sell than long distance because almost all customers in California are still with their local utilities. How many long distance companies are there with agent programs trying to take your customers? How many electricity companies are there with agent programs? The answer is simple: Imagine if you could have entered the ground floor of long distance when AT&T was deregulated.

"Our agents are focusing on many different types of customers, but our stellar agents are those who are signing bowling alleys, malls, etc., and we have one agent who thinks his future will be by selling primarily to tanning salons. As with telecommunication products there are many different marketing methods, but the most profitable will be the ones that focus on the small commercial to medium-sized business."

Ferrari said PowerUSA is specifically looking for agents who can turn large commercial electric customers, such as apartment buildings, condominiums, industrial parks, mobile home parks, office buildings and shopping centers.

Dan Ruffin, sales director of TMC Communications (www.tmccom.com) & TMC Energy Inc., agreed with the opportunity for long distance agents. "The value of the new pitch alone demands that agents get into this," Ruffin said. "After saving a company 15 percent on its electric bill, (an agent) could follow-up with his best 'Colombo' close: 'By the way, I've got a long distance opportunity here that can save you another 15 percent off your phone bill . . .'" Ruffin said his company looks for agents who can do large volumes of accounts, such as affinity groups or network marketing programs.

For those of you who prefer an affinity/network marketing opportunity, there is Boston-Finney (www.boston-finney-inc.com). Spokes-person Thera Wicarius said, "It's terrific! Finally, here's a product that everyone wants you to tell them about. I'm expecting conservatively to earn $10,000 a month within a very short period of time." Thera said she'd be happy to talk to anyone interested in getting involved in the opportunity.

So, what's the bottom line on potential commissions? My understanding is that monthly commissions vary from 1 percent to 5 percent of the customer's monthly bill. Both PowerUSA and TMC indicated there were opportunities for agents to become equity partners, entitled to a large payout that could approach 50 percent of what the electric customer was billing a month when (and if) the company was purchased.

So what's an agent to do next? Well, I'm going to take a good look at a few electric agent contracts. In fact, I'm looking over PowerUSA's now. I'll definitely sign one and switch a dozen or so of my customers' electric service over to it. If it seems like the real deal, I'll start pushing it in a serious way (using 20 percent to 30 percent of my time).

What should you do? Educate yourself. Dial into the CPUC's website. It has a list of more than 200 registered electricity service providers.

Dan Baldwin is president of his own sales agency, San Diego Telemanagement; US Wat's California agent sales manager; and a board member for the One Plus Agent Association (OPAA). Support the agent sales channel by joining OPAA as an agent or vendor member by calling (619) 522-6221. Contact Baldwin via e-mail at danbaldwin@pacbell.net.