Hudson Energy Huge Attrition Rate at Hudson Energy Etobicoke, Ontario
*UPDATE EX-employee responds: Dont get scammed by John Roche's Etobicoke JE and HE office!
*Author of original report: Good Luck - You're Gonna Need It
*Consumer Comment: Unfortunate Small Minded Jelous Person Making Up Lies
1Author 2Consumer 0Employee/Owner
I worked for Hudson Energy in Etobicoke for about two and a half months. Now, I want to make it clear that some people do make a lot of money working for Hudson. The established outside agents do make a lot of money--into the millions of dollars, in fact. But what I want to call attention to is what I feel are misleading statements concerning the new people who must first start as telemarketers. The first misleading statement is that they say you are not a telemarketer, but an energy consultant. But you're a telemarketer, make no mistake about it. And they want you to make at least 150 calls per day! It's all cold calling, too! Here's the biggest misleading statement: "We know you need to pay your mortgage, so you will get paid $1,000 to $2,000 per week." Really? I don't know of anybody who got that kind of money starting out. In fact, for two and a half months, I didn't make a single dime! You see, you're considered an "independent contractor." You aren't paid by Hudson--you're paid by your "outside agent" for whom you are booking appointments. You are supposed to get 30 percent of the outside agent's commission--but there's no enforcement of that supposed rule. You are expected to set a minimum of five appointments per week. Sound easy? Well, it's not. Cold calling is essentially obsolete--it may have worked five or ten or fifteen years ago, but people are a lot more resistant to cold calling today. Why? They've been ripped off too many times. You are given an out-of-date business directory from which to make your calls. Out of 100 calls, you might get one or two appointments. But here's the catch: your outside agent can be expected to "close" only 20 percent of the appointments you make. And ten days afterwards, the company's "customer service" department calls and gives the customer a chance to opt out of the contract. That's right. According to Ontario law, a customer has ten days to change his or her mind after signing a contract that was initiated through telemarketing. Want to guess how many customers cancel their contracts? The company says about 10 percent; my experience is 90 percent or higher. These are the reasons that Hudson brings on a completely new workforce of telemarketers every two weeks. People just see the futility in it and give up. A lot of these are seasoned sales professionals--but they just see the futility in it. Again, this "business model" might have worked ten or twenty years ago, but things are completely different now. What's more, this company doesn't spend a penny on advertising, so anybody you call has never heard of Hudson Energy. This company, by the way, has changed its name several times recently--from "Ontario Energy Savings" to "Just Energy" and now to "Hudson Energy." Just Energy owns Hudson Energy--but Just Energy's reputation was so sullied by reports in the Toronto Star and television news that people are very wary of that name. Now, I will say that some people with a great telephone voice and exuberant personality do actually succeed in this endeavor and go on to become outside agents. But I would estimate there is a 95 percent drop-out rate because of the difficulties in selling over the phone. Is the company's services legitimate? Yes, they can actually save a customer money on their electricity--but not on natural gas. But the company was founded on the idea that telemarketing is the way to go--and that's what is limiting them. They should pay their sales force a base salary to get them started--because it's just not true that you're going to make $1,000 - $2,000 a week starting out. And the company is a s-l-o-w payer, which makes things worse: it takes them three weeks to pay you for a closed deal! I wrote this report because Hudson Energy was advertising for sales managers--and that's just not the case. There are NO openings for sales managers--just for telemarketers willing to gut it out in making over 100 calls per day! The company has ZERO investment in you, so it doesn't care if you succeed or fail. Once a week you will get to listen to the sales managers' platitudes about winners and losers--none of which puts any money in your pocket. So, if you want a job where there is about a 1 - 2 percent chance that you will be successful, this is the company for you. Otherwise, stay away and look for something that actually pays you for your work!
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1Author 2Consumer 0Employee/Owner
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