Is Stream Energy a scam or not? Can users and members really save money with their energy plans and make money by promoting the business to others?
Let’s take a look and find out….
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Company Name: Stream Energy
Owner: Mark Schiro
Price To Join: $329 + $29/Month
My Rating: 5/10
~ Stream Energy Reviews ~
What Is Stream Energy?
Founded by Mark Schiro in 2005, Stream Energy started out as a way of supplying consumers with both cheaper electricity supplies as well as natural gas. Over the years since its inception, the company has added other services to the list, which we’ll discuss more in the next section.
Stream Energy has adopted the ever-popular multi level marketing method to distribute its services. This means people can jump on board with the company and strive to earn an income. Primarily that’s what this review is about; whether it’s a viable way to make some decent money or not. Take a look at my top recommendation for other ways to make money besides MLM.
Stream Energy Products
Let’s quickly look at the product/service range that Stream Energy offers.
For starters there are 2 types of Stream customers: ones that buy the services to save money, and those that jump aboard the business opportunity as well.
At Stream Energy customers can sign up for:
- Energy – This includes savings plans for both electricity and natural gas supplies. Not all US state are eligible.
- Phone Plans – Available right across the US, Stream offers cell phone plans with Wi-Fi and data coverage for both individual and shared plans.
- Protective – This is an all-round protection service, which includes things like roadside assist, credit monitoring and medical cover.
- Home Services – This includes digital voice services, accessible the home from anywhere with smart safety alerts, as well as a smart thermostat for energy savings.
The idea is to save money with these services. All prices vary depending on your location. Everything is charged at monthly rates.
The Stream Energy Compensation Plan
As a “Sales Associate” of Stream Energy you have 2 options for earning money:
- Sign up new customers for the company
- Recruit new members and earn from them
It’s a typical MLM setup in that regard. Make money at a retail level and earn more by recruiting, building downlines and sharing in the profits of your recruits.
After you enrol at least 3 people for a Stream Energy product, you then become eligible to earn monthly commissions from your sales. These commissions are residual and are paid every month for as long as your customers remain enrolled.
With the MLM side of the deal, if you can actively recruit others into your downline, you stand the chance of earning commissions from your recruits, as well as qualifying for various individual and team bonuses.
Some bonuses include:
- Personal customer bonus
- Team customer bonus
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When you start recruiting you will receive a $100 bonus for each of your first 3 recruits. Once you have 3 active recruits, you’ll also receive an additional $500 bonus on top of that. There are also residual commissions to be earned from those in your downline.
You start off as a Sales Associate, after which there are five more ranks you can achieve, and these are:
- Regional Director
- Managing Director
- Senior Director
- Executive Director
- National Director
For more detail regarding the Stream Energy compensation plan, click here to read their PDF.
The MLM Business Opportunity
MLM is a popular choice for businesses because of all the advantages it offers the company. For starters they don’t have to pay massive amounts of money in wages. Everyone essentially works for free until they earn commissions or bonuses (which aren’t immediately paid).
The army of distributors repping for any MLM company are doing virtually all the work. They buy products, sell the products, and also promote and grow the business by the need to recruit new people.
MLM is deliberately designed in such a way that distributors need to recruit like crazy to have a chance of making decent money. This is great for the company as often distributors are the main source of customers. Companies often require that their distributors purchase X amount of product every month. Tie that in with the necessity to recruit and you are growing both your ready customer base and sales team all at the same time.
This is a beautiful setup for the company, but usually a very poor deal for distributors.
Plus, despite what they say, you never own your own business with MLM. You have no control. You can’t “sell” your business because you don’t actually have one to sell. That’s just a sales pitch and nothing more.
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Is Stream Energy An Illegal Pyramid Scheme?
As Stream Energy has real products and services, it cannot be classified as an illegal pyramid scheme, despite the pyramid structure of its compensation plan. Illegal operations earn their money entirely from recruitment and no other means.
What I Like
- At least Stream Energy is offering something outside of the mega saturated health and wellness niche, which seems to be proliferating MLM ventures all over the planet these days
- They have a fairly generous bonus scheme
- Their compensation plan is a little more simple than some other MLM schemes
- You get a website to help with sales and recruiting
What I Don’t Like
- Their services are only available in the US, and then not in every state
- To really save money as a “customer”, it’s almost essential to become a seller and recruiter for Stream
- This is typical MLM, where all the benefits go to those at the very top of the pyramid while the vast majority are doing all the work for a few scraps
- This deal requires mass recruitment to make money, and that’s where almost a hundred percent of people fail with MLM
- They make earning money with them sound a lot easier than what it is
- According to their 2015 income disclosure, almost 45% of sales associates only managed to earn an average of $61 a year. The other 55% didn’t earn a cent
How Much Does Stream Energy Cost To Join?
To become a Sales Associate you first have to pay a joining fee of $329. After that there is a $29 account administration fee payable every month.
Is Stream Energy a Scam?
It’s not a scam. Their services are real and they do offer some pretty quick bonuses if you can get sales and recruits. You also have the chance of earning free energy, trips and cars as bonuses.
However, this is a typical MLM venture, where all the benefits go to the company while the distributors put in all the hard yards for little to no reward. The lavish lifestyles these companies always promote in order to lure in new recruits is something that is only ever experienced by very few people in any MLM business, generally less than 1%.
You also don’t own your business and are merely working for the company as a rep and not an independent business owner, as they would have you believe. You are working to make Stream Energy rich, not yourself. You don’t own an asset. Even your replica website is not yours to sell, which is the exact opposite of an affiliate marketing website like the ones I own.
Forget MLM – Try Affiliate Marketing Instead
Seriously, affiliate marketing is a way better deal than anything MLM can offer. For starters, you don’t need to recruit people to make money. As an affiliate, you can practically promote and earn commissions on any product you like, rather than being forced to promote the select few available in a MLM venture.
I’ve done both MLM and affiliate marketing and I can say with all honesty that affiliate marketing is hands down the winner between the two in every way. So long as you learn how to do it properly and put the effort in, you will see success. And most of your monetary success is pure profit, as there are very few expenses involved in an affiliate marketing business (unless you get into paid advertising).
I’ve written a guide on how to get started with affiliate marketing and you can access it by clicking on the banner below. It only takes 5 minutes to read and is well worth your time.
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