How to Open an Energy Brokerage in 6 to 12 Weeks Ready to Quote
To start an energy brokerage, pick deregulated electricity or natural gas markets, confirm state licensing rules, form the business, secure supplier or aggregator access, and build a repeatable quoting and customer onboarding process A practical launch timeline is 6 to 12 weeks, mainly driven by state approvals and supplier onboarding In the Year 1 planning case, buyer acquisition uses a $150 CAC, supplier acquisition uses a $1,000 CAC, and commission revenue is modeled at $10 per order plus 25% of order value First revenue starts when a customer signs authorization, accepts a supplier contract, and the account becomes commissionable
Time to Open6-12 weeksOpening prepLaunch Sequence5 stagesMarket firstKey BottleneckLicense gateState rulesFirst Revenue StepSigned clientSupplier accepted
Launch timeline
This is a short web summary of the launch timeline; the XLSX export includes the detailed Gantt Chart.
Want the six drivers that decide launch readiness?
1State License
6-12 wk
No launch until the target state allows broker solicitation and registrations; spending leads early creates compliance and rejection risk.
2Supplier Terms
$1K CAC
Signed supplier access and commission terms unlock quoting; unclear terms can block the first paid deal.
3Quote Flow
$10+25%
A standard quote flow keeps rates, bill data, and contract terms aligned, so pricing stays fast and credible.
4Lead Niche
50/20/30 mix
Focused outreach fits the Year 1 buyer mix and keeps CAC at $150.
5Onboarding Docs
Auth pack
Complete intake forms, signed authorization, and end dates cut quote delays and reduce rejected enrollments.
6CRM Tracking
9 stages
A tracked pipeline prevents lost renewals and missed commissions as the book grows.
Confirm the day-one checklist before selling energy brokerage services
Launch readiness checklist
Use this go-live approval checklist to confirm the energy brokerage is ready before opening. It covers compliance, supplier access, customer flow, and cash.
1Compliance
Entity and tax setup completeCritical
Needed before contracts, tax forms, and supplier onboarding.
State broker registration filedCritical
State filings can block brokerage activity if they are missing.
Utility commission rules reviewedCritical
Rules vary by state, so the launch team needs one clear playbook.
Disclosure language approvedHigh
Marketing claims must match the disclosure rules and filing language.
E&O insurance bound if requiredHigh
Coverage can be a deal stopper when suppliers or clients ask for proof.
2Suppliers
Supplier agreements fully executedCritical
You need a legal path to quote rates and submit orders.
Portal access tested for suppliersCritical
If portal access fails, first deals cannot be submitted on time.
Commission schedules captured in writingHigh
Written payout terms prevent disputes when revenue starts hitting.
3Quoting
Quote comparison workflow builtCritical
The team needs one repeatable way to compare electricity and gas offers.
Utility bill intake validatedCritical
You cannot quote cleanly if bills arrive incomplete or unreadable.
LOA and contract templates readyCritical
LOA, the letter of authorization, and contract forms must be ready before submissions.
4Onboarding
Customer approval forms capture consentHigh
Signed consent keeps the enrollment file clean and defensible.
A missing step here can delay or reject the supplier submission.
Renewal dates are trackedMedium
Renewal tracking is where repeat revenue and retention come from.
5CRM
Lead stages map full workflowHigh
Lead flow should cover quote, submission, commission, and renewal.
Submission status updates liveHigh
Ops needs a clear handoff from quote to contract to supplier submission.
Commission receipt stage worksCritical
This is the clean link between a closed deal and booked revenue.
6Finance
Cash runway covers launch periodCritical
Minimum cash lands in Month 10, so the launch needs a deep buffer.
Year one CAC assumptions checkedHigh
Use $150 buyer CAC and $1,000 seller CAC before approving spend.
Year one mix assumptions checkedHigh
Year 1 should match 50% small business, 20% large commercial, and 30% residential.
Go-live signoff from all ownersCritical
Do not launch until legal, supplier access, LOA flow, and commission tracking are ready.
Why does Energy Brokerage need a financial model before launch?
Want to pressure-test Energy Brokerage before launch? This Energy Brokerage Financial Model Template shows revenue, costs, cash needs, assumptions, and break-even logic—open the model.
Financial model highlights
Launch timing and runway
Buyer and supplier ramp
Commission and subscription timing
Break-even path clarity
How long does it take to start an energy brokerage?
Energy Brokerage can usually launch in 6 to 12 weeks if you start compliance and supplier onboarding first. The fastest path is one deregulated state, one clear customer niche, and a small supplier panel; sales can’t really start until CRM and LOA (letter of authorization) setup are in place. The timeline stretches fast if licensing is multi-state, commission terms are unclear, or you don’t have supplier portal access.
Fastest launch path
Start with one state
Pick one niche
Build CRM early
Complete LOA setup first
What slows launch
Multi-state licensing adds time
Unclear commission terms slow deals
No supplier portal access delays quotes
Sales wait on compliance approval
Do energy brokers need a license?
Yes—Energy Brokerage may need a license, registration, bond, or disclosure approval depending on the state, customer type, electricity vs. natural gas, and whether it works through suppliers or an aggregator; Texas, for example, requires electric broker registration and a $10,000 financial security filing. Before quoting rates or making customer claims, verify rules with the state public utility commission and use How Is The Customer Satisfaction Level For Your Energy Brokerage Business? only after compliance language and customer authorization steps are reviewed.
License triggers
State retail-choice rules
Electricity vs. natural gas
Residential vs. SMB customers
Supplier or aggregator model
Launch order
Pick deregulated target states
Check commission rules first
Confirm bonding and disclosures
Sell only after authorization review
How do energy brokers get clients?
Energy Brokerage gets clients by going straight to local businesses, property managers, multi-location operators, chambers of commerce, and referral partners, then using utility-bill review offers for accounts with real usage and renewal windows, not broad awareness campaigns. For launch budget context, see What Is The Estimated Cost To Open And Launch Your Energy Brokerage Business? The first commissionable account needs the utility bill, letter of authorization, quote comparison, signed supplier contract, and accepted enrollment; the one-liner is simple: get the bill, get permission, quote cleanly, close the contract.
Client sources
Start with local business outreach.
Call property managers directly.
Target multi-location operators.
Use chambers and referral partners.
Close the deal
Focus on renewal windows.
Use utility-bill review offers.
Year 1 assumes $150,000 budget.
At $150 CAC, that is about 1,000 buyers.
Key Takeaways
Confirm state licensing before spending on leads.
Lock supplier terms before quoting or enrolling customers.
Use a standard quote workflow to avoid rejections.
Track renewals and commissions from day one.
State Market and Licensing
State License Readiness
State selection comes first because the brokerage cannot legally solicit customers until it is cleared in a deregulated market and has the right registration or license path. The launch gate is simple: confirm the target state, customer type, and whether the scope is electricity, natural gas, or both, then match that to the state public utility commission rules.
Weak licensing work slows opening fast. If disclosures, bonding, marketing claim limits, or renewal notice rules are missed, supplier onboarding gets messy and contract rejections rise. The real risk is spending on leads before the business can legally operate, which burns cash and delays first revenue. One clean state filing beats ten bad sales calls.
Lock the Compliance Path First
Before launch, verify the regulator checklist and document the exact path to broker registration or license approval. Confirm what the state public utility commission requires for disclosures, any bonding, and how renewal notices must be handled. Keep the filing set tight so marketing can start only after legal solicitation is allowed.
Build the launch file around the basics: target state, customer class, product scope, required forms, and approved claims language. Then test the day-one workflow with one compliant offer, one supplier packet, and one renewal process. If any piece is unclear, pause lead spend until the rule set is written down and signed off.
Confirm state and customer scope.
Check public utility commission rules.
Document disclosure and claim limits.
Verify bonding and renewal notices.
Delay lead spend until legal clearance.
1
Supplier Agreements and Commission Terms
Supplier Access and Terms
The brokerage cannot quote or earn until supplier agreements, portal access, and written commission schedules are live. That is the day-one gate. If contract submission rules or payment timing are unclear, the first deal can sit approved but unpaid, which delays revenue and makes launch cash tighter.
Here’s the quick math: Year 1 supplier acquisition assumes a $50,000 marketing budget and $1,000 CAC, or about 50 supplier-side relationships if the cost holds. The planned mix is 40% large utilities, 40% regional providers, and 20% green energy firms, so territory coverage and product availability need to be set before launch.
Lock Terms Before First Quote
Start with the supplier mix, then confirm who covers each territory and which products are actually available. Document the enrollment process in plain steps: contract submission rules, required fields, approval path, and who can reject a deal. That keeps the team from sending customers into a dead end.
Map commission timing for every supplier before opening. If a portal is live but the commission schedule is missing, the brokerage may close volume without knowing when cash lands. One clean rule: no supplier goes live until access, products, and payout terms are signed and tested.
Verify signed supplier agreements.
Test portal login and submission.
Confirm territory coverage by supplier.
Write commission timing in plain terms.
Document the enrollment handoff.
2
Pricing and Quote Workflow
Repeatable Quote Workflow
Quotes have to be repeatable on day one, or the brokerage slows down fast. The core workflow is utility bill collection, usage history review, letter of authorization, supplier rate comparison, proposal format, contract term comparison, and renewal date capture. If any piece is missing, the broker can’t price cleanly, and launch turns into back-and-forth instead of booked business.
Here’s the quick math: Year 1 order value assumptions are $10,000 for small business, $100,000 for large commercial, and $2,000 for residential. With commission math of $10 plus 25%, that works out to about $260, $2,510, and $60. A weak quote process lowers trust and can delay first revenue even when leads are coming in.
Build the Quote Pack
Before opening, lock the quote template, rate-validity check, and assumption log. The founder should verify that every quote captures customer usage, term length, supplier options, and expiration windows. That keeps pricing consistent and cuts the risk of quoting off stale or incomplete data.
Standardize bill and usage intake
Track LOA status before quoting
Compare rates and contract terms
Record renewal dates every time
The bottleneck risk is clear: quoting from incomplete usage data. If that happens, proposals slow down, supplier submissions get reworked, and first-day operations lose speed. Clean inputs also protect cash needs, because the team spends less time fixing bad quotes and more time closing contracts.
3
Lead Generation Niche
Targeted Energy Leads
Energy broker lead gen only works when the niche is narrow enough to show real buying intent. You need a named segment, a decision-maker list, a bill review offer, a renewal timing script, and a follow-up cadence before you spend on traffic; otherwise you burn $150 CAC in Year 1 on leads you can’t quote or close.
Practical launch targets are small businesses, property managers, restaurants, warehouses, multi-site operators, and referral partners. With a modeled buyer mix of 50% small business, 20% large commercial, and 30% residential, the outreach list has to match the segment you can actually serve on day one. Buyer CAC is modeled at $150 in Year 1, improving to $80 by Year 5.
Build the outreach list first
Before opening, verify that supplier coverage and the quote workflow are live for the exact segment you plan to target. If not, broad marketing creates leads you cannot price, which pushes back first revenue and wastes cash on weak follow-up.
Use a simple launch pack: segment name, decision-maker titles, renewal dates, bill review script, and a 3-step follow-up cadence. The goal is not volume; it is enough qualified conversations to keep the quote queue full from day one.
Match outreach to one clear segment.
Pull renewal dates before launch.
Send leads only after supplier access.
Test scripts on 10 real prospects.
4
Customer Onboarding Documents
Customer Intake Pack
If the intake file is messy, quotes slow down and customers drift. For an energy brokerage, complete onboarding documents are what turn interest into a clean submission that suppliers can accept. The pack should cover the utility bill request, customer details, letter of authorization, usage history permission, quote approval, supplier contract package, and the enrollment checklist.
The launch risk is simple: a customer may be ready to switch, but without a clear authorization trail the file gets stuck. That pushes back supplier acceptance, delays enrollment, and can slow first revenue. Clean documents also reduce rejected submissions, which matters on day one when the team needs fast quote turnaround and fewer back-and-forth fixes.
Clean File Setup
Before opening, standardize the workflow so every new deal follows the same path. Here’s the quick checklist: confirm the authorized signer, collect account numbers, store contract end dates, and use one file name format across every customer record. That keeps the broker from losing time on avoidable rework.
Request utility bill first
Log customer details once
Verify letter of authorization
Capture usage history permission
Track quote approval date
Attach supplier contract package
Complete enrollment checklist tasks
What this hides: if paperwork control is weak, the business can look busy while revenue stays stuck in pending status. The fix is boring but effective: assign one owner, check every field before submission, and only send files that are ready for supplier review.
5
CRM and Commission Tracking
CRM and Commission Tracking
Day one needs a CRM that tracks the full revenue path, not just leads. The real launch risk is missing a renewal due date or a commission received record, which means money earned later never gets collected or renewed on time.
Set up stages for prospect, bill received, LOA signed, quote sent, contract signed, supplier submitted, account active, commission received, and renewal due. Each record should carry supplier, utility, contract term, start date, end date, expected commission, paid commission, and the next reminder task.
Protect Revenue Before Open
Before launch, verify that every active deal has one owner, one end date, and one renewal reminder. For buyers, the Year 1 subscription assumptions are $20 per month for small business, $80 per month for large commercial, and $0 for residential, so even small gaps in follow-up can stall recurring revenue.
Also load supplier billing fields by type, because supplier subscription assumptions are $500, $200, and $250 per month by supplier type. If commission payments are not reconciled against expected and paid amounts, cash reporting drifts fast and the team starts chasing old deals instead of closing new ones.
Track contract end dates on every record.
Assign renewal follow-up before go-live.
Reconcile expected versus paid commissions weekly.
