Saturday, April 14, 2007

Igniteinc Powering Up Texas Follow Up

Back in November I switched my electric over to
Igniteinc / Stream Energy. We have been really happy with the service, the switch was seamless, and to boot we have had the lowest power bills in 4 years!

Ignite has grown and grown in Texas. Currently Texas is the only state you can promote this in, but there are rumors that more states will be coming online in the future

Heres part of what I wrote about this back in November:

Stream has adopted a Network Marketing Model through its Ignite Inc marketing team. A recent article in the Dallas Morning News quotes Stream's Managing Director Alex Rodriguez, "As long as we can create a unique environment where we are offering our services, customers will switch. They just need someone to hold their hand during the process."

Stream Energy/Ignite are one of those rare cases where rapid growth became a big problem for them. According to a press release on their site, it was a $10 million dollar cash infusion from an outside investor that kept the "lights on."

The reason for the capital infusion was that Dallas-based Stream was becoming a victim of its own marketing success. The company buys power from utility companies and then sells that power to retail consumers. The issue, for Stream, is that it has to buy power in advance of getting the initial payment from its customers.

That lag between Stream's power purchase and the payment from its own customers would have been manageable if Stream hadn't signed up so many people (150,000 in the 11 months that the company has been in business), Snyder said. And he projects that Stream's revenue could reach $350 million by the end of the year.

The company has been able to gain ground quickly by relying on a multi-level marketing platform similar to that used by Avon Products Inc. and Mary Kay Inc. Instead of cosmetics, Stream sells power.

The company set up a marketing subsidiary,
Ignite Inc., and for $329 and a crash-course in the Texas energy market after deregulation, anyone can begin selling Stream's power services.

It's a model that generates a lot of skepticism from the public and from potential investors. A lot of network marketing firms (where they make money) stick their associates with inventory that the associate has trouble selling, said Snyder. However, energy, by contrast, is the perfect network marketing product, he said. All our associates are really doing is educating.

Full Press Release

Local Texas Leads For Ignite Reps


Dan Bryant said...

This article was back from the early part of 2006. Stream exceeded the $350 million in revenue last year that was projected in this article. The company is on pace to reach $1 billion in sales in 2007 in only its 3rd year in business. This will be a US business history record currently held by Google that reach $1 Billion in 6 years.

Joe said...

Dan that is great news, when are they going to get around to posting this information on the site? The last news the posted was in 8/2006 Where is the information you quoted coming from?