What happened to North American Power?

North American Power was a clean energy MLM that closed their network marketing branch in 2015.

They had their run for a while, but like most MLMs, the success and home based business opportunity was short lived.

So what exactly happened to them and was I involved?

This video explains:

 

All good? Let’s continue…

Overview

North American Power (NAP) was founded in 2009 by Carey Turnbull and Kerry Breitbart. They’re headquartered in Norwalk, Connecticut with 70+ full-time employees. They’re BBB accredited with an A+ rating. [1]

These guys really skyrocketed onto the scene. By 2011 they were already on the Forbes list of “America’s Most Promising Companies”, all the way up at #57. [2]

In 2013, they hit $263.3 million in annual revenue. In 2014, NAP was named one of “America’s Fastest Growing Private Companies” by Inc. Magazine due to a massive 991% 3-year growth rate. [3] [4]

In under a decade, NAP managed to make a big name for themselves and work their way up to nearly $500 million in annual revenue. [5]

A lot of this was thanks to some very wise moves by founder Kerry Breitbart. It’s no surprise that he got as far as he did, considering he’s a major player in the energy industry with 20+ years of experience in high-level positions. His most recent post was as President and CEO of United Companies, and he’s a member of the National Energy Marketers Association Energy Committee.

But in 2015, he had to make one particularly tough and unfortunate decision. NAP decided to dissolve its network marketing arm and left distributors totally out of work. [6]

How exactly this happened isn’t really clear, because the announcement kind of came out of left field. Energy MLMs are hot right now (see: Powur, Viridian, and Stream), but it’s hard to pull off direct sales in such a highly-regulated industry.

MLM isn’t exactly known for playing by the rules.

While the shutdown might have surprised NAP’s distributors, it doesn’t surprise me. This is how it always goes in MLM – shoot up into the sky for a few years and then crash and burn.

It sucks for distributors more than anyone else. One day you’re moving up to top ranks, raking in the residuals, and the next day you’re back to square one with nothing to show for your hard work. The company, of course, keeps all the customers you worked so hard to sign.

How much does North American Power cost?

There’s no fee to sign on as a distributor, but you do have to purchase one of NAP’s energy plans. The cost is your monthly energy bill, which varies greatly depending on your energy usage.

Products

NAP sells energy services in the 12 states that have deregulated their energy industries. These states are Connecticut, Georgia, Illinois, Maine, Maryland, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Texas.

Basically, companies like NAP don’t follow standard government regulations when it comes to energy providers. NAP doesn’t actually control any energy plants or generate your electricity. What they do is purchase lots of electricity at a wholesale price, break it up into small units, and then sell one of those units to you at a retail price. Therefore, you don’t have to schedule any installations or home visits in order to become a NAP customer. You simply fill out a form online.

They’re mostly known for electricity and natural gas, but they actually provide four different energy services.

  • Electric
  • Natural gas
  • Solar
  • Wind power

You have the option to purchase an 8-month contract, a 12-month contract, or a month-to-month plan. Of course, you pay significantly more for the month-to-month plan than you would if you were to purchase a contract.

Along with the purchase of any energy services from NAP, you’ll get an automatic Understandabill report delivered to you each month. This report details all your home energy usage, sending you data on your current habits and advice on how you can conserve energy and save money.

Compensation Plan

Under NAP’s direct sales model, customers and distributors were one in the same. Anyone who became a NAP customer could then market NAP’s services to friends and family to get discounts on their own services, commissions, bonuses, and more.

The NAP compensation plan no longer exists, but it was a unilevel plan with modest commissions on personal sales. The money, as always, was in recruiting a big team to do the work for you.

Bonuses were also pretty generous if you knew how to recruit. If you could recruit at least 3 teams of 10 customers, you could qualify for these bonuses. They started at $500, but if you really bulked up your team, you could win all the way up to $5,000. Not bad.

Recap

These guys had all the ingredients to become the next big hit in MLM: a knowledgeable, experienced founder, big initial buzz, a solid compensation plan, and a product that everyone needs. They were well on their way, too.

What happened?

The same thing that happens to so many other promising MLMs. There’s a saying that sums it up pretty well: the brighter your star, the faster it burns. Believe it or not, 6 years is longer than most last.

North American Power is still around, and their CEO is probably still making good money off the name and client base that their distributors built. But of course, their distributors aren’t ever going to see another penny from all their hard work.

Look, I’m not a hater of the company. But if you like passive income streams, there are much better opportunities out there.

In other words, you might like our training because it teaches the “good life” without selling electricity to your family and friends.

See our top 22 small business ideas of 2017

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Jeremy Page

Jeremy Page created Multiple Streams for ballers, big thinkers and online business owners. You can follow him on Instagram here.

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