IDT Energy Deregulated Review | Trust Score & Ratings

Founded2003

HeadquartersNewark, NJ

Trust Score88/100

About IDT Energy Deregulated

IDT Energy Deregulated is a network marketing company specializing in deregulated energy products. Founded in 2003 and headquartered in Newark, NJ, it offers a unique party plan model for independent distributors.

Distributors earn income through retail sales and team-building commissions, starting with wholesale purchases to sell at retail prices. While the company has a solid Trustpilot rating of 4.0/5 and a trust score of 84/100, income disclosures show a concentration of earnings among top earners.

With a low-risk level and a focus on building a distributor network, IDT Energy Deregulated provides opportunities for entrepreneurs, but be mindful of the monthly purchase requirements to qualify for full commissions.

Pros and Cons

✓ Pros

Established company
IDT Energy has been around since 2003, which gives it some stability in the industry.
Decent Trustpilot rating
With a 4.0/5 rating on Trustpilot, a number of customers seem satisfied with their service.
Party Plan structure
The Party Plan can make selling feel more social and less like traditional sales, which might appeal to some.
Potential for income growth
As you build your team and increase sales, you can unlock higher commission rates, making income potential scalable.
Flexible selling approach
Distributors can sell products at their convenience, which allows for a more personalized approach.

✗ Cons

Income concentration among top earners
The income disclosure shows that a small percentage of distributors earn most of the money, which can be discouraging.
Monthly purchase requirements
To earn full commissions, distributors need to meet monthly purchase quotas, which can put financial pressure on them.
Retail customer acquisition can be tough
Finding customers outside your immediate social circle might be challenging, especially in the energy sector.
Potential for high turnover
Many people may join with high hopes but leave quickly if they don't see immediate success, leading to instability.

Verdict: IDT Energy offers some appealing aspects, like its established history and social selling model, but the income concentration and purchase requirements are significant red flags. If you're considering this, be prepared for the realities of MLM and do your homework before diving in.

Best for: This could work for those who enjoy social selling and have a strong network. But if you're not comfortable with sales or risk pressure from monthly purchases, it might be best to look elsewhere.

Risk Analysis

IDT Energy Deregulated presents a low risk profile, primarily due to its structured compensation plan and positive Trustpilot rating. However, potential distributors should be aware of the concentration of income among top earners and monthly purchase requirements.

Key Concerns

Top earner income concentration moderate
Income disclosure shows a significant portion of earnings going to a small number of distributors.
Monthly purchase requirements for full commissions moderate
Distributors must maintain certain purchase levels to qualify for higher commissions, which may lead to unnecessary expenses.

Positive Indicators

Trustpilot rating of 4.0/5
This rating suggests a generally positive customer experience and satisfaction with the service.
Established company since 2003
Longer operational history can indicate stability and reliability in the market.

Consumer Advice: If you're considering joining IDT Energy Deregulated, weigh the benefits of income potential against the risks of required purchases and the reality that most earnings may go to top performers. Make sure you're comfortable with the financial commitment involved before jumping in.

Frequently Asked Questions About IDT Energy Deregulated

Is IDT Energy Deregulated a legitimate MLM company?

Yes, IDT Energy Deregulated is a legitimate MLM company. Founded in 2003 and headquartered in Newark, NJ, they have a Trust Score of 84/100 and a Trustpilot rating of 4.0/5. While there are some concerns like the concentration of top earners, the company operates legally.

What products does IDT Energy Deregulated sell?

IDT Energy Deregulated primarily offers energy services, focusing on competitive energy rates for consumers. They also provide various plans and options for residential and commercial energy needs. However, specifics on product offerings can vary, so it’s a good idea to check their website for the latest information.

How much can you make with IDT Energy Deregulated?

Earnings with IDT Energy Deregulated can vary widely. Distributors earn through retail sales and team-building commissions, but there's a concentration of earnings at the top. The income disclosure indicates that many earn little to nothing, while the top earners make significant amounts.

Are there any complaints about IDT Energy Deregulated?

Like many MLM companies, IDT Energy Deregulated has faced some complaints. Common issues include the pressure to meet monthly purchase requirements to unlock full commissions. It’s worth looking at customer reviews for more specific experiences.

What is the compensation plan for IDT Energy Deregulated?

IDT Energy Deregulated uses a Party Plan compensation structure. Distributors earn money from retail sales and can get commissions as they build their team and increase sales volume. As you rank up, you unlock higher commission rates and bonuses.

What does it cost to join IDT Energy Deregulated?

Joining IDT Energy Deregulated typically requires an initial investment to purchase products at wholesale prices. While exact costs can vary, you’ll need to be prepared for ongoing purchases to maintain your commission eligibility.

What is IDT Energy Deregulated's BBB rating?

IDT Energy Deregulated does not currently have a rating from the Better Business Bureau (BBB). They are not accredited, which is something to consider when evaluating their legitimacy and customer service.

Is IDT Energy Deregulated worth joining?

Whether IDT Energy Deregulated is worth joining depends on your goals and expectations. While they offer a structured compensation plan and have a decent Trust Score, keep in mind the income disclosure showing that many earn little. If you're committed to sales and team-building, it might work for you.

What are some alternatives to IDT Energy Deregulated?

There are several alternatives to IDT Energy Deregulated in the MLM space. Companies like Amway or Avon offer different products and structures, so it’s wise to compare them based on what you’re looking for. Researching other options can give you a better perspective on what's available.

Compensation Plan

Plan Type

This is a Party Plan. That means you can earn money by selling products directly to customers and by building a team of people who also sell products.

How Earnings Work

Retail Profit: You buy products at a lower price and sell them at a higher price. The difference is your profit.
Team Commissions: When your team sells products, you earn a percentage of their sales. This is based on how much your team sells overall.
Bonuses: There are additional bonuses for reaching certain sales goals or for helping your team grow.

Qualification Requirements

You need to buy a certain amount of products each month to earn full commissions.
To move up in ranks, you have to meet sales targets and have a minimum number of active team members.

Red Flags

You'll need to spend money each month to stay eligible for commissions. This can feel like a pay-to-play situation.
The majority of distributors earn only a little bit of money. Most of the big earnings go to a few top people.