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Is Stream Energy A Scam? The TRUTH About The Alleged Pyramid Scheme Disguise
Welcome to My Stream Energy Review!
Due to the pandemic, many people are forced to leave their jobs and stay at home ; meanwhile, there are those who are looking for ways on how to make extra cash online. Regardless of the reason, you probably found a “business opportunity” that you can do even without leaving your house.
Stream Energy Review Summary
Name: Stream Energy
Founders: Pierre Koshajki and Roby Snyder
Product Type: Multi-Level Marketing
Price: $299 To Become An Independent Contractor + $29 For The Website Fees Every Month + At Least $100-Worth Of Purchase Every Month
Quick Summary: Stream Energy is a company that sells gas and electricity. It also offers a business opportunity to interested individuals following the multi-level marketing structure. It’s legit however, it has received numerous complaints about its service and for being an alleged pyramid scheme.
Overall Rating: 1/10
Stream Energy -- that’s the opportunity we’re talking about. Founded in 2005, this multi-level marketing (MLM) brand has become popular for many reasons and one of which is for being an alleged pyramid scheme.
Nonetheless, it’s known for being able to provide a decent income online but what’s the TRUTH behind that? Is Stream Energy a scam? Can you really make money with it and if yes, how much?
Find all the answers you need by reading my honest Stream Energy review below.
What Is Stream Energy About?
Stream Energy, as the name suggests, is a multi-level marketing company that offers energy services. It was founded in 2005 by Pierre Koshajki and Roby Snyder and although it’s headquartered in Texas, it is available in other states, too like New Jersey, New York, Pennsylvania, Georgia, Illinois, and Maryland.
Stream Energy is also known as Ignite or Ignite Energy but after rebranding, the company stuck with Stream Energy.
Other than the energy services, it also offers a mobile phone service called Stream Wireless and because of its business expansion, in terms of products and market, it’s acquired a massive number of independent contractors (distributors). Sadly, it “lost nearly all their investments” and has been tagged as a pyramid scheme.
Why? I’ll discuss more of this below. For now, let’s talk about the services they offer.
Stream Energy Product Line
Unlike other brands, Stream Energy do not make their own products; rather, they buy electricity and gas from other providers at a wholesale price and sell this to their consumers and Independent Contractors.
The products they offer are divided into three categories that their clients can choose from. They offer their service to residences and businesses, and these include:
- Natural Gas
This is normally used when cooking or as car’s fuel.
This provides power to home or business establishments.
This is 100% renewable energy in solar power form
The brand offers Energy Plans for business and homes so their consumers can choose a plan that suits their budget and lifestyle.
As mentioned, they also have Stream Wireless -- their mobile phone service line.
Product-wise, it’s legit and as mentioned above, the company serves in seven states. However, the reviews about their service are not good; most clients complained about the poor customer service.
Other clients also complained about not receiving their bills on time so the company “could charge them late fees.” You can check the screenshot below and more feedback about their service in this link.
How To Make Money With Stream Energy?
When it comes to the opportunity and the services, Stream Energy is almost the same as Viridian Energy and ACN Inc..
Like any typical MLM companies, there are two main ways to make money. One is by selling their products -- gas and electricity -- and the other one is to recruit people.
Since you have access to their wholesale price, you can sell their products based on the suggested retail price, which of course is higher than the wholesale price. The difference between the two is your profit.
You can also earn $100 for every recruit but it’s not as easy as you think. Your invite should enroll 4 Energy Points (worth $100) within their first month so you can earn commission.
The percentage or commission you will get depends on your rank, too so you have to focus on increasing your level. The higher the rank, the bigger the earnings and you can do this by selling more products and inviting more people.
Daunting, isn’t it?
That’s usual for most, if not all network marketing companies.
Anyway, I will not bore you with the details of Stream Energy’s compensation plans but if you’re interested, you can watch the video below:
Is Stream Energy A Scam?
Despite the drawbacks, such as the overpriced membership rates, customer complaints against their products and customer service, and the accusations, Stream Energy is not a scam.
It’s a legit program accredited by the Better Business Bureau with an A+ rating but mind you, there are over 200 complaints so if you’re planning to join as an Independent Contractor, you should think twice.
Also, it might be good to know that the company has been accused of a pyramid scheme in 2014. There are also complaints about overcharging their customers, misleading advertisements, and wrongfully charging “early termination” fees worth $25 up to $100 in case their clients decided to switch to a new energy supplier.
I have to clarify a few things about MLM and pyramid schemes.
MLM -- or also known as multi-level marketing, networking, or network marketing -- is a legit business model. It offers tangible products and/or valuable services that their distributors can make money from by selling. There’s also a need to recruit people but you won’t get compensated by recruitment alone; you have to encourage your downline to make a sale so you can earn a percentage of it.
A pyramid scheme, on the other hand, is a downright scam. There are no real products or services to sell or even if they do, it’s poor quality and they just use this to conceal their true intention -- and that is to make money from you. Recruitment is required and you get direct commissions from it. Unfortunately, only those who are on top of the pyramid earn decent income.
However, even if the MLM company is legit, there’s a chance for it to be shut down by the Federal Trade Commission (FTC) because of unethical practices, such as the heavy emphasis on recruitment.
Looking at Stream Energy’s compensation plan, you’ll quickly realize that the brand mainly compensates those who can recruit and encourage their recruits to do the same.
To have access with their wholesale prices and of course, to be qualified for their commissions, you have to join Stream Energy and by doing so, you have to shoulder the following costs:
- $299 to become an Independent Contractor
- $29 every month for the website fees
Other than these, you are also required to sell at least $100-worth of energy service or obtain 4 Energy Points (EP) a month. This is necessary for you to keep your account active and eligible for commission.
So for a year, you have to spend more than a thousand dollars a month.
This is too pricey for a business model and beginners and seasoned MLM distributors can probably relate to this.
Let’s not forget that selling gas and electricity is not like selling personal care essentials. Most people will probably choose companies or the government for this kind of service. I mean, would you really purchase an energy plan from a stranger or even a friend or buy it directly from well-known companies?
And then there’s the recruitment. If you cannot recruit people and encourage them to maintain their accounts, don’t expect a bigger income.
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I honestly don’t like anything about the company. Despite being legit, it’s like their main goal is to expand the number of their distributors rather than produce and provide quality services.
Required Energy Points Per Month
You’ve signed up as an Independent Contractor and that’s worth $299 already; now you’re also required to purchase at least $100 worth of their energy products and mind you, some products are not counted.
While MLM has their quota for commissions, I don’t think it’s fair to require monthly purchase because 1.) the membership fee is expensive enough and 2.) you already paid to become a distributor.
Obviously, the main goal of the brand is to make money from you buy forcing you to purchase a certain amount from them every month.
Low Income Potential
It’s not easy to gain customers because as mentioned, more people are interested to buy gas and electricity from big brands or the government. Also, because of the necessary fees to become a member, it might be challenging for you to recruit people unless you’re extremely skilled at it.
Also, based on their Income Disclosure Statement, 78% of their distributors are under the Qualified Director position and the average annual income they make is $49.52. That’s barely enough to compensate for the $100 required purchase every month!
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Who Is It For?
Should you be interested with MLM opportunities, I suggest that you look for other legit brands instead. Otherwise, just find another way to make money online -- one that won’t require you to pay an expensive membership fee and force you to buy products every month.
While Stream Energy is not a scam, it’s not worth your time. Despite being legit and the real products they offer, it’s best to stay away from this because instead of making money, you are losing it.
It’s not even an opportunity. The income potential is low and the compensation plan mostly favors those who can recruit people to join the program. If you’re looking for a legit way to make money online, start your own online business or look for a work-at-home job. Better yet, consider our #1 alternative below!
If only making money online was that easy. The truth is, there will always be struggles but as long as you have joined the right company that matters YOU, then you’re in good hands.
If this kind of business excites you, I suggest that you sign up with our top-recommended program. Unlike Stream Energy and other MLM companies, there’s no need to annoy other people and purchase products or services every month.
The best part is that you have access to the following perks:
- One-on-one coaching
- Comprehensive guide
- The best business tools and support you need
- Webinars and training resources
- And many more
I hope this Stream Energy review has enlightened you and if you have questions or comments, please feel free to share it below.