Network Marketing

The National Energy Marketers Association (NEM) is pleased to announce a new Code of Conduct for its members that use network marketing also known as relationship marketing as a means of acquiring new customers. Craig Goodman, President of NEM, reported that, “NEM’s Network Marketing Companies have agreed that their independent representatives will not use telemarketing or door-to-door sales techniques for the purpose of acquiring customers." This is one of the principles underlying a Code of Conduct that was voluntarily adopted by Network Marketing Companies that are members of the National Energy Marketers Association.
NEM’s Network Marketing Code of Conduct includes the following

• Independent representatives of network marketing companies shall not use either telemarketing or door-to-door sales techniques for the purpose of acquiring customers.
• A network marketing company shall ensure its independent representatives have received adequate training and information about the nature of the product and the terms and conditions of its sale as well as all market-specific regulatory compliance requirements.
• Network marketing companies shall establish and maintain a clear channel of accountability for the actions of its agents.
• Any marketing materials utilized by an independent representative of a network marketing company shall be pre-approved by such company.
• A network marketing company shall utilize a verifiable quality control process to ensure the integrity of consumer enrollments.

Network/Relationship Marketing business models potentially provide significant consumer education benefits, particularly Companies that adopt the NEM Network Marketing Code of Conduct. NEM Network Marketing Companies that have endorsed the Code of Conduct are ACN Inc., Ambit Energy, Ampegy, North American Power, Stream Energy, UCI, and Viridian Energy. Goodman also noted that the Network Marketing Code of Conduct would be incorporated into a broader, general industry Marketing Code of Conduct effort under development at NEM. The broader NEM Marketing Code of Conduct recognizes that telemarketing and door-to-door sales are legitimate and valuable means to educate and enroll customers for competitive energy services, given the appropriate oversight.
NEM is a national, non-profit trade association representing wholesale and retail marketers of natural gas, electricity, as well as energy and financial related products, services, information and advanced technologies throughout the United States, Canada and the European Union.

Network Marketing