There are a few companies that are taking a different approach to marketing and selling residential solar. Instead of a traditional solar sales business model, they are using a network marketing or multi-level marketing (MLM) model. The question to be addressed is, can solar MLM companies be effective at marketing and selling residential solar? To find the answer, let’s first look at how traditional solar sales companies operate.
Traditional Solar Sales
Residential solar has been sold to homeowners by a salesperson that knocked on their door or got their information from a form filled out online. Either way the sales presentation takes place in the home. This has served the solar industry well, but not necessarily the homeowner. There is a lot that goes into becoming a knowledgeable solar salesperson. Not only do salespeople need to know the technical aspects of solar, but also must understand the nuances of the local utility company. Further, they should be able to explain solar in such a way that the homeowner can understand it. One of the biggest issues in solar sales is that many solar salespeople don’t know enough to explain it properly, or they take advantage of naïve homeowners and sell solar systems at an inflated price.
Moreover, these two main marketing methods, door-knocking and online advertising, have a high cost associated with them. This cost is either passed onto the homeowner or taken out of the commission for the salesperson. The latter further incentives the salesperson to inflate the price.
Is There a Better Way to Sell Solar?
- Is there a way to eliminate high marketing costs and have only the very best and most knowledgeable solar salespeople talk to homeowners?
- What if homeowners didn’t have to deal with aggressive salespeople knocking on their doors?
- Can the baseline cost (hard costs) of solar be lowered to further help homeowners go solar for less money?
Solar MLM Companies are Changing the Way Solar is Sold
As mentioned above, there are a few solar companies that have adopted the network marketing or MLM business model. To learn details of 3 of these companies, visit Powur Solar, Comparison with Apricot Solar & REACH Solar.
REACH Solar
Let’s break down the specifics of the REACH Solar business model as it relates to the issues with traditional solar sales described above. Home Based Solar Sales is an independent REACH Solar representative with a team of over 1,800 Field Reps around the United States as of this publishing. So, we are highly qualified to discuss REACH Solar.
We Sell Virtually
REACH Solar Sales Reps sell virtually via Zoom. Virtual meetings have proven to be highly effective in meeting with homeowners. It also provides flexibility for both the homeowner and salesperson versus in home sales. Homeowners don’t have to let strangers into their homes. Sales Reps work out of their home office, so they avoid the cost and time necessary to drive to neighborhoods to get leads and drive back for the appointment. This helps them maximize the commissions they make on a sale and not pack that expense into the cost to the homeowner.
We Sell in Most U.S. States
REACH Solar also has a national presence by working with the best regional solar installation companies in the country. Our Sales Reps concentrate on certain states and installation companies to work with. We do allow our reps to sell in multiple states, but they must be approved by REACH to be certain of their knowledge in each state. Visit our Install Map to find out which states we work in.
Top Notch Solar Salespeople
REACH Solar has attracted some of the most experienced solar professionals in the country. Many solar sales veterans love the idea of selling virtually and not needing to drive all over their area to meet with homeowners.
We also work cooperatively to serve homeowners in other areas. If, for example, a salesperson gets a lead in a state in which they don’t sell, they can pass that lead onto someone that is proficient in that state. Because of the way the compensation plan is set up, they can still be compensated for that sale. This structure ensures that homeowners are working with the very best and most knowledgeable salespeople.
Sales Reps with REACH are taught to explain and educate homeowners about solar. We feel that if we do that well, homeowners will be able to make an informed decision that is in their best interest. We do not use high pressure sales tactics. After all, the homeowner can simply click a button and leave the Zoom meeting if we did. With in home sales, it’s very uncomfortable for a homeowner to ask the salesperson to leave their house.
Warm Market Leads
This is truly where the Solar MLM comes into play. Instead of spending a lot of money on buying leads, online advertising, or paying crews to knock on doors, we generate leads by talking to homeowners that we know.
Think about this. If solar is such a great way for homeowners to save money on their electricity bill, add value to their home, and lock in utility rates for the next 25 years, why wouldn’t you want people that you know to know about the benefits of going solar? In other words, why would you want to sell this great product to just strangers?
We have a position called Setter. Setters don’t have to be knowledgeable about solar. They just need to ascertain if a homeowner they know is interested in finding out how solar can benefit them. They ask for the homeowners’ electric bill and put that bill into the hands of one of our top salespeople. The salesperson needs the bill to determine the utility company, the kWh rate, the rate schedule, and the annual consumption of that household. For doing that, they are paid 10% of the total commission on the sale. That could be as much as $1,000 or more. This allows our top salespeople to do what they do best. Sell!
Who is a Good Candidate to be a Setter?
Anyone that is willing to pick up the phone and contact homeowners that they know and wants to earn extra money is a great candidate to be a Setter. In this economy there is only a small percentage of the population that doesn’t want to earn some extra money for making phone calls to people that they know. Other good candidates for becoming a Setter are people in professions that already speak to homeowners such as real estate, mortgage, home improvement, and more.
Lowering the Cost of Solar for Homeowners
Because we generate leads through Setters, and Setters are paid out of the commission on the sale, there is no additional cost that must be passed onto the homeowner. In addition, we can typically negotiate a lower baseline cost from the solar installation company than salespeople can on their own. The reason is that we can bring multiple sales to that installation company, so they are willing to lower the baseline cost to get our business.
Because we work with a lower price per watt or baseline cost, we can lower the price tag to the homeowner. This obviously benefits the homeowner, but it also benefits our salespeople because they can be more competitive when they are up against competitive quotes.
Team Builders
If you are familiar with network marketing, you know that team building is part of it. In the REACH Solar MLM model, you can build a team of Setters, Solar Sales Reps, and other Builders. By doing so you can earn overrides of the sales revenue generated by the entire team. This is a great way to earn passive income
You Can be a Setter, Sales Rep, and Builder
If you choose, you can talk to homeowners and set appointments for salespeople as discussed above. But if you want to learn how and get approved to sell, you can also set appointments for yourself. In that way, you’re being compensated for both. And you can also build a team. By doing all 3 you are maximining your income from your solar business.
Results with REACH Solar
I started working with REACH Solar in January of 2024. In August of 2024, our team generated $121,000 in commissionable revenue which came from approximately $500,000 in solar sales contracts. Please note that I only did 1 sale myself as a Company Sales Rep. Assuming the team did that or more each month, my solar business is a $6 million organization after just 8 months.
Are You Looking for Something Different?
Whether you sell solar now or have never sold solar, the solar industry is exploding and is a great vehicle for your future income. In fact, 36% of all solar ever installed in this country has been installed in the last 2 years! Global Trade says that the solar energy storage market will witness significant growth from 2023 to 2032.
Want to Learn More About REACH Solar?
Visit Solar Sales From Home to watch a business overview video. If you like what you see, you'll be able to schedule a Zoom appointment to get your questions answered and start a career with REACH Solar if you choose.
