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What are some facts about the Ignite Power Center?

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Quick Answer

Ignite is the multi-level marketing operation of Stream Energy, and the Power Center is a person's personalized page on the website when he becomes an associate. Media reports, such as one in the Atlanta Journal Constitution, warn that the operation could be a disguised pyramid scheme, and that only a few people at the top of the organization appear to make a profit.

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Full Answer

Stream Energy is an electricity and natural gas retailer based in Dallas, Texas. It is active in states with deregulated energy markets. Ignite is its marketing arm. It runs an MLM network with "associates" who pay a monthly fee of $25 and, in exchange, get a commission for recruiting new associates, as well as for the energy consumption of customers they recruit.

According to a calculation by Lazy Man and Money, the typical associate can expect to be losing about $200 per year, as the company reports only about two paying customers for every sales associate. Only about 2 percent of all associates appear to be making a profit in the scheme.

In 2009, the company was sued in Texas and Georgia for running a pyramid scheme. The Georgia lawsuit was dismissed on formal grounds, while the one in Texas is ongoing, as of 2015.

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