Retail Supplier Terminates Network Marketing Arm

North American Power has terminated the use of its network marketing arm, and will rely on alternative methods to enroll customers.

Deryl Brown, CEO of North American Power, said that the change in strategy reflects the company's growth ambitions and profitability ambitions, and the decision that the best way to achieve such ambitions is to rely on alternative marketing channels.

North American Power will use a variety of direct marketing moving forward, Brown said. Direct-to-consumer channels have consisted of more than two-thirds of the company's customer base.

The change in strategy is also prompted by a desire to diversify the customer base.

Brown emphasized that the strategy change is not indicative of any stress or poor health at the company.

North American Power will continue to serve its existing customers, including energy supply customers, and will continue to enroll new energy supply customers.

North American Power will continue to offer home automation and security offerings to its customers through an affinity partnership with Vivint, but will no longer accept enrollments through its network marketing channel. North American Solar, which offers financing for solar installations, is unaffected by the change in strategy.

For North American Power's national REC product, American Wind, the company will not be accepting any new enrollments given that American Wind was almost exclusively marketed through the company's network marketing channel. North American Power will continue to serve existing American Wind customers

North American Power said that there are currently no plans to continue the development of the Teladoc telemedicine health care services product.

North American Power Independent Representatives will continue to receive residual payments on customers that have been referred to date, and, once successfully processed, any pending enrollments that have been referred to date will receive the normal up-front commissions.

Independent Representatives that have earned Free Energy will continue to receive Free Energy for as long as they remain qualified.