Is Stream Energy a Scam? A Pyramid Scheme Possibly?
Wondering if you should switch over to Stream Energy to save some money, or possibly to make some money off it? Wondering if Stream Energy is a scam? Well then you are in the right place. I have reviewed this company and will be sharing all you need to know about it before you decide whether or not its the right opportunity for you.
By the way, I am in no way affiliated with this company so this review is completely unbiased.
Stream Energy Review
- Name: STREAM GAS & ELECTRIC, LTD (Most people just call them Stream Energy)
- Website: mystream.com
- Owner: Mark Schiro
- Recommended?: I’ll go over this at the end
The Stream Energy was originally founded in 2005 to supply consumers with cheaper natural gas and electricity. It has since evolved and not offers wireless services, protective services, and home services.
Stream is a MLM structured business that offers regular individuals an opportunity to have their own Stream home based business.
The 2 Types of Stream Members
There are 2 types of people that are interested in Stream and decide to become members.
There are those that are nothing more than customers and buy Stream services for the value that they offer alone.
And then there are those that buy into Stream as a business opportunity. They are looking to start a home based business by selling Stream services themselves and with a team.
Stream Services Offered
The services that Stream offers fall into 5 different categories as listed below.
Plans for both natural gas and electric energy are available. This is only available in a select group of states including Texas, Pennsylvania, West Virginia, Delaware, and others.
Cellular phone service is offered nationwide. They offer much of the same features that your top carriers like Verizon and Sprint offer.
In this category they offer virtual Medical coverage for entire households, roadside assistance, credit monitoring, identity protection, and tech support. These services are designed to give you peace of mind.
Digital voice and smart thermostat services are offered to keep you connected to your home even when you are away.
All of these services have monthly costs. The price varies depending on your location.
The Business Opportunity
If you are reading this post I am guessing you are probably doing so to learn about the business side of things. So this is for you…
Anyone can join Stream and promote their products as a home based business. In order to join you first must pay a $299 One-time enrollment fee. This is required. On top of this you can also pay an optional $24.95/month for the SMS (Stream Marketing System) Subscription.
If you are new to MLM business and everything then I would suggest you buy the SMS monthly subscription too at least for the first couple of months. This will help you get going and teach you a lot. But as I said, that is optional.
The 2 Ways To Make Money
There are 2 ways you can make money with a Stream home based business. You can sell the services that are offered to customers and you can recruit new members into your “team” that work beneath.
When you sign up with Stream Business you must be able to enroll 3 customers (at least 1 or which isn’t a family member) within 90 days. If you do so then you are then given the position of a Qualified Director.
You will make commissions monthly off of each customer that you enroll. Because you will be getting a slice of the pie every time they pay for the monthly service that you sold them.
You will also get a bonus for enrolling customers on top of the commissions you will already be getting from those people paying for their Stream service(s).
The bonuses are as follows…
- $100 for your first 3 customers
- $500 for your first 10 customers
- $500 for your first 15 customers
Recruiting Members for Your Team
As I mentioned Stream is a MLM. This means that you can recruit members beneath you and get paid for what they do, as well as what their recruits do and so on.
If you want to make good money with Stream you are pretty much going to have to build up a team beneath you.
Once you recruit 2 team members beneath you, you will then be considered a Regional Director.
You will get bonuses just for recruiting new members beneath you. They include…
- 1st recruit = $100 bonus
- 2nd recruit = $100 bonus
- 3rd recruit = $100 bonus
- $500 bonus for getting your first 3 recruits on top of this
Recruiting a big team beneath you is where all the money is at.
Just to give you an example, take a look at the chart below… This chart is based off of you and every recruit below you recruiting 4 members each and getting 5 customers each. As you can see this MLM goes 5 levels deep.
The downside to all of this is that it is WAY more difficult to make money than you may think. I know it seems like an amazing opportunity, and some people do make very good money selling Stream services, but most do not.
Just to give you an statistical example, there was an article published in an Atlanta Newspaper (you can read about it on pyramidschemealert.org) back in 2010 that showed that 2% of Stream salespeople accounted for 55% of Stream commissions. This means that 55% of the money that was being made was made by the top 2% of the people promoting Stream services.
Now I know this article is old, but this is still the reality of it. MLM’s are hard to make money in unless you get in early. If you get in early on then you will be able to build up a massive team beneath you much easier than if you get in late. And remember, the real money comes from building a team.
Is Stream Energy a Pyramid Scheme?
Absolutely not. And I know there are people out there that are claiming it is, but they are simply wrong.
Pyramid schemes do not offer products or services. They only make money off of new members buying into the scheme and that is how they pay their higher ranking members. All money is made from buying in, with no products/services being sold.
Stream does offer products and services so it is impossible to consider this a pyramid scheme, which would be illegal. It is a MLM, which is legal although many there is a lot of negativity associated with such businesses.
Final Thoughts & Do I Recommend Stream?
I’m not going to give you a concrete answer on whether or not I recommend Stream. They are legitimate and you can make money with them, so if you are interested I am not going to tell you no.
But you need to know that it isn’t going to be as easy to make money as they tell you. They make it sound amazingly simple because of course they want you to sign up and buy in.
MLM opportunities like this one are going to be difficult to make money in because of how saturated the market is. There are already plenty of other very similar companies out there such as Ambit Energy, . And Stream has already been doing this for over a decade.
If you really want to make good money with a MLM business you have to get in early or else you have to be a beast at marketing.