Ambit Energy Review: A Pyramid Scheme Or Easy $11,758/Month?

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Ambit Energy Review: A Pyramid Scheme Or Easy $11,758/Month?

“Would you like to save money on your electricity bill?
Would you like to earn monthly residual income?
Would you like to achieve a financial freedom?

All of this is now possible with Ambit Energy!”

That’s how they start their marketing speech. They promise you a moon from the sky and a little bit more. Is Ambit Energy a Pyramid Scheme? Can you really save on electricity if you change?

If you have been looking for an Ambit Energy review, you have come to the right place. I am not affiliated with their company so I am not trying to lure you into a system. Take a comfortable seat and continue reading until the end. This will be helpful information for you!

is ambit energy a pyramid scheme

Ambit Energy Homepage

Ambit Energy Review


Name: Ambit Energy

Founded: 2006 by Jere Thompson – Chris Chambles

Cost: $429 plus a $24.95 monthly fee to stay active

Type & Industry: Multi-Level Marketing. Energy Products.

Short Review: Ambit Energy is not an illegal pyramid scheme even though there has been lots of controversy around the company. Some people are reporting that their electricity bills skyrocketed after changing to Ambit Energy while others have enjoyed their service for years.

I recommend that you take your electricity from the company that is not a multi-level marketing system. Then you don’t need to pay so-called “MLM-extra” which means a higher price.

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What Is Ambit Energy?

Ambit Energy is an international energy company founded in 2006 by Chris Chambles and Jere Thompson Jr. Their corporate headquarters are located in Dallas, Texas; their operations headquarters are located in Plano, Texas. The company uses the Multi-Level Marketing (MLM) strategy to market electricity and natural gas services in energy markets in the U.S.

The company targets homeowners located in several states in America and the company has spread their business to Japan as well. As you probably know, before people Americans weren’t able to choose their energy company but after deregulation, anyone can choose the best one.

Ambit Energy’s mission is to provide the best energy products on the market. Well, that’s probably mission for all of the energy companies. Who would like to provide something second best?

I want to say right away that Ambit Energy is neither a scam nor an illegal Pyramid scheme. They sell energy products so they don’t solely focus on recruiting. However, it plays a huge role in the company and that’s one reason people have claimed it’s a pyramid scheme.

First, we’ll take a quick look at their products and then I’ll show you how their business part works. You’ll also find out why it’s not so easy to make money with this system as they want to you believe.

Ambit Energy offers electricity

Nowadays everyone needs energy. But does everyone need Ambit Energy? That’s another question.

Ambit Energy Products – Simply Put: Energy

Ambit Energy offers:

  • Electric
  • Gas
  • Green-e plans
  • Solar services

They promise to offer competitive rates and tell that your electricity bill will be cheaper if you change for them. However, customer’s experiences highly vary.

My friend’s family member joined Ambit Energy and he received a huge bill afterward. His electricity bill was 6 TIMES more expensive than before. As far as I know, this kind of rises are very rare with Ambit Energy but I have seen several people complaining their price was 2-3 times higher than before.

Still, there are also some people who said their price has gone down. We can only imagine how expensive price they were paying before joining Ambit Energy…

Anyway, let’s get to the most interesting part which is their money-making opportunity.

Ambit Energy Compensation Plan – Let’s Discuss!

Joining Ambit Energy business opportunity costs a one-time fee $429. Then you’ll need to pay a $24.95 monthly fee to stay active. That sounds like an expensive program if you compare to most other MLM-systems where you can join just for a one-time fee of less than $100. Ambit Energy consultants say that their awesome opportunity compensates the high price. Listen what they say:

“You can earn a lifetime residual income via the power of multiplication. Just bring in 3 consultants; those consultants bring in 3 customers multiplied through their 7 tiered commission structure and wow, you can easily earn up to $12,000 per month.”

is ambit energy a pyramid scheme

This Ambit Energy consultant is almost like praying you to join this program!

If it would be so easy, why would more than 95% of people fail with MLM-systems? All of them tell you the same story, “Just recruit two or three and you’ll become a millionaire.” or something similar. Their 7-tiered compensation plan is supposed to help you to earn passive income.

They say that selling Ambit Energy is easier because you don’t actually need to sell anything. Everyone needs electricity and wants to earn extra money. Well, I can say from my own experience that it’s easier said than done.

I have been selling electricity to people and even though I was studying selling every day, it wasn’t that easy. Many people who were paying for a more expensive service just didn’t want to change. Of course, my skills weren’t so good back then but the old sales principle applies to selling electricity, “You will face lots of NOs.”

That’s the reality. You need to be ready for that.

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“I Was Able to Recruit 3. Can I Retire Now?”

Before I quickly mentioned that more than 95% of people fail with MLM-systems (sometimes the failure rate is even over 99%). So, how do you assume that you and your two friends belong to that small 1-5% who succeed?

Most of the time the story of successful network marketers goes like this:

  1. You invite 100 people.
  2. 20 people join the system (that’s a good number!)
  3. 10 of them leave during the first months so we have 10 left.
  4. 7 of them leave after a year because they realized they didn’t earn almost anything but spend lots of time and money. We have 3 recruits left.
  5. 2 of them drops eventually because life gets in the way and they don’t have time for this business.
  6. Then we have one below your downline who still believes he will succeed.
ambit energy recruiting

You need to become a “recruiter-machine” when you join Ambit Energy business opportunity.

The story is, of course, a caricature but it tells you that most people just come and go. Those are very few people who will eventually stick with the system and recruit others. Things don’t always go like in the movies (and like in MLM-testimonials). If you have experience of other MLM-systems like Herbalife, Mary Kay, Amway, etc. you probably understand this.

If you really want to be successful with Ambit Energy you need to be able to recruit hundreds of people and help them to recruit other people as well. That’s the real reality here. I’m not saying it’s impossible. I believe everything is possible.

I just want point this out that you understand the reality of this system.

Ambit Energy Complaints and Lawsuits

Before you rush into joining Ambit Energy, I want that you are aware of everything important about their business.

There have been several lawsuits against the company during their history. Probably one of the most famous ones was in New York in 2015 when they needed to pay around $1 million in refunds to their customers. Otherwise, Ambit Energy would have been kicked out of the business so they didn’t really have choices.

There have also been other cases in the past but this one enjoyed popularity in the media.

is ambit energy a pyramid scheme

Ambit Energy didn’t have other choices than paying $1 million refunds.

There are also more than 500 customer complaints filed against Ambit Energy on Better Business Bureau. There have been several reasons for complaints:

  • The prices were higher than they promised.
  • Ambit Energy consultant wasn’t honest.
  • Marketing strategies were shady and the customer didn’t understand everything.

Are these just normal complaints that every company receives? You decide.

 

Conclusion – Is Ambit Energy Worth It?

I have reviewed 60-70 MLM-programs and almost all of them have one similar characteristic. They have higher prices than normal companies. Ambit Energy is not an exception.

I call this nowadays so-called “MLM-extra”. Most of the time you need to pay something more if you want to use network marketing products. Of course, they always say it’s high quality or something similar but most of the time that’s BS. You can still support your friend and buy the product if you have some extra money in your wallet.

What about Ambit Energy business opportunity?

To be honest, I find this more interesting than most MLM-opportunities. Anyway, everybody needs electricity so the market is huge and there’s certainly a big potential. However, I am not a big fan of network marketing and pyramid structures. Also, their lawsuits and +500 customer complaints on BBB make me a bit suspicious.

The fact is that you will make most of your money by recruiting new consultants to the system who will gather their own army to their downline if everything goes well.

If you are interested in work from home opportunities, I still have good news for you. I make money online and this website is actually designed to help you as well. I recommend checking out #1 make money online training that helped me and thousands of other people worldwide to earn a living on the Internet.


What is your experience with Ambit Energy or with other MLM-programs?

Have some of your friends joined Ambit Energy?

Let me know in the comments below!

Ambit Energy

Ambit Energy
4.5

Overall Ranking

4.5/10
By | 2017-10-18T20:51:47+00:00 October 18th, 2017|Categories: MLM-Programs|36 Comments

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Roope is the founder and creator of YourOnlineRevenue.com. He has created this website in 2015 to help you to create a successful online business.

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36 Comments

  1. Fantasia October 26, 2017 at 7:44 am - Reply

    It’s at least nice to hear about an MLM company that isn’t selling just health products, and instead sells something like solar panels which I think more people could actually use, and given that they are an MLM company then potentially customers could get the products for cheaper if they are able to sell to others, which I think is a good thing.

    However, since there is a monthly maintenance fee, it makes me doubt it a bit more since it’s never a good thing when you feel like you are being forced to sell because if not you are just adding up on expenses.

    Also, I think buying solar panels from a company like this might not be the best idea, considering that you need these products to last for decades for them to be worth the price or purchase, and additionally they have been taken to court many times before so it just makes it even more suspect.

    • Roope Kiuttu October 27, 2017 at 12:10 pm - Reply

      That’s true. I didn’t even consider that fact about solar panels and the possibility that the company could go out of the business soon.

  2. Shellyann36 October 25, 2017 at 4:47 pm - Reply

    This would be an interesting concept for some people in my area, who seem to be getting screwed over by our local electric companies and paying higher prices due to coal ash spills. My parents are paying quite a bit more for their electric services due to the companies irresponsibility.

    As a previous poster said, you will be on the same grid as the local company, it would seem that the cost would be passed on to anyone under their umbrella. It seems you would end up paying twice for one service. First Ambit gets paid and then they turn around and pay the local energy company. That is going to jack up the price because Ambit has to get what they would feel is their fair share.

    It seems to be the perfect way for the higher-ups in the Ambit company to earn all the rewards while the smaller contributors get pennies. After reading this I did go and look up more info on the company and the complaints are staggering. I even saw one complaint where a family was switched to Ambit without ever signing up for it twice.

    Now, if a solar company would set-up a similar offer, I would be all over it.

  3. jyy October 25, 2017 at 5:24 am - Reply

    Sorry to make this thread political, but it seems like deregulation helps out the consumer. I mean, look how web hosting now can be bought for a dollar a month – something great for consumers, but terrible for sellers. However, though, a lot of people also say that deregulation hurts poorer consumers – citing examples like the high cost of water in parts of Latin America.

    Anyway, do you all feel this deregulation is good or bad? It seems like in this case it would lower the power cost – due to competition.

    • Roope Kiuttu October 25, 2017 at 12:24 pm - Reply

      In general, I think deregulation is a good thing but it depends on the subject a little bit. There may always be some differences in individual cases but in general it’s good. I’m rather a capitalist than a communist 😉

  4. deebee October 23, 2017 at 8:59 pm - Reply

    I would love to save more money on my bill, but it seems there are more con’s than pro’s on this company. I joined a company named Viridian that did help my bill go down. The problem is that the monthly rates fluctuate so drastically. Some months I have great savings and other months it’s very small savings. Before switching, my bill was always roughly in the same range each month. I will definitely pass on Ambit Energy after reading these helpful comments.

    • Roope Kiuttu October 25, 2017 at 1:07 pm - Reply

      Yeah, companies offer different kind of pricing for the electricity. You can either take a fixed price or the one that fluctuates. Both of them have pros and cons. In the end, the difference isn’t huge unless you have a 500m2 house that consumes tons of electricity 😉

  5. HazelDJ October 23, 2017 at 12:23 pm - Reply

    If the company promise that those who joined will earn is $11,758/month, it is really good. It is over a half million pesos here in the Philippines which is more than a salary of a manager or more than four times the monthly salary of the president of Philippines.

    • Roope Kiuttu October 23, 2017 at 3:56 pm - Reply

      That $11,758 is just an example of their calculations. However, I think that less than 0,1% of all distributors earn that kind of money.

  6. Moze4ific October 23, 2017 at 8:47 am - Reply

    Question: What is the difference between MLM and referral programs? I ask this because I believe in referrals and think every business should have a referral program. because their we would earn commissions through conversations with friends.

    I think the number of people that have referred their friends or family to a business, job or service are endless so if we took advantage of it maybe money would circulate a little more. Do you agree

    • Roope Kiuttu October 25, 2017 at 1:23 pm - Reply

      You are right, referral programs can be great. MLM-systems are different because they have a pyramid form and the money moves from downlines to upline. Those who are on top of the pyramid make the most money.

      On many referral programs you earn money when you make the sale and that’s it. Then the customer/user can start getting benefit from the product he bought. Many MLM-systems focus on pumping up the system and building the pyramid instead of focusing on the value of their product.

  7. melvs October 22, 2017 at 1:53 pm - Reply

    This is something serious! The reason you are trying to lower down your electricity so that you will pay a lesser bill. And the main purpose buying a product with them so that you will get extra cash from the lowered bill that you should get from their products.

    But when a product rather done make your bill lower, it makes it much higher. That is a lowdown, it only means products are fake. What they need is to make ramifications and maybe some tweaks on their products can make it work properly.

    • Roope Kiuttu October 23, 2017 at 12:25 am - Reply

      Yeah, I really would be interested in hearing more experiences from these people. How is it possible that prices rise so much? :O

  8. felabruno October 21, 2017 at 7:14 pm - Reply

    This is really interesting, I didn’t know there were companies that sell energy products this way. I think that it’s easy to say that everybody needs to pay for energy and therefore it should be easy to find clients…People rarely change their energy companies because they can’t be sure if their bills won’t be bigger and it’s not that easy to change it.

    • Roope Kiuttu October 23, 2017 at 12:35 am - Reply

      That’s true. I found this out when I was selling energy. It’s not as easy as people might think. Many people are just too afraid of change and better opportunities that they rather stick to a more expensive and worse company.

  9. kingcool52 October 21, 2017 at 7:02 pm - Reply

    Like some others that have commented, this is the first time I have seen such a thing for electricity. I didn’t even think there would be any for electricity but here it is lol. If I was ever contacted by someone looking to promote Ambit Energy, I would just tell them no and end the call. I just would not be able to trust any random company for such an important thing like electricity. I wouldn’t mind paying more for a company that is well known and trustworthy

    • Roope Kiuttu October 23, 2017 at 12:52 am - Reply

      Yeah, I think Ambit Energy isn’t very well known in the UK because it doesn’t operate there (as far as I know).

  10. HazelDJ October 21, 2017 at 1:59 pm - Reply

    When the business is somewhat in pyramiding, the cost to be member is more likely high. It is the normal way how to gain more. If it is not for an income, what else would the reason why they put up such kind of business? It is not good if the energy that you pay is 2-6 times higher.

    • Roope Kiuttu October 21, 2017 at 2:30 pm - Reply

      You are right. Pyramid type businesses almost always have higher prices than normal businesses. That makes them a bit shady in my opinion.

  11. rfismad October 20, 2017 at 2:49 am - Reply

    I was part of it. Makes menial money unless you make a full time job out of it. The service is rather awful honestly, using the same lines as the city. You’re basically on your own when they bring you on board and the higher ups who joined in the very beginning see the most benefit. Such is life, remember guys, always investigate before joining anything that seems too good to be true.

    • Roope Kiuttu October 20, 2017 at 10:50 pm - Reply

      Interesting to hear that you were part of it.

      Yeah, it seems that with many MLM-programs you are on your own after joining. If you would get a good mentor on your upline, it could be a different story.

  12. xhollo October 19, 2017 at 10:36 pm - Reply

    Hmm, the price is expensive, but it looks like it is worth it, because electricity is a daily necessity, every body needs it and I don’t think that Ambit energy will run out of business though, everyone needs power and that is what kept them in the business for almost 10 years now. I think they have good intentions but they need to slack down the price a bit.

    • Roope Kiuttu October 20, 2017 at 10:31 am - Reply

      Yes, everyone needs electricity. That’s why it’s an interesting business. I was amazed when I was once selling cheap electricity contracts how ignorant some people were. They were happily paying some extra each month just they didn’t want to change. The only change they would have been experienced would have been more money in their wallet.

      So, sometimes people are ready to buy more expensive electricity just for some unknown reason 😉

    • Heatman October 20, 2017 at 10:52 am - Reply

      I really don’t think that price is worth paying for electricity if you aren’t using that power for business purposes, that way you would likely be able to cover the expenses spent on the electricity bills.

      To just pay such exorbitant amount of money for just electric bill, looking at the sum of $429 plus a $24.95 monthly fee to stay active, it’s truly insane for one to incur such expenses without any ulterior motives.

  13. jemuelterrado October 19, 2017 at 3:55 pm - Reply

    It is my first time to hear a marketing plan that targets about electricity. Ambit energy has a good plans and speech but in reality they disappoint most of their members. They helps to lessen the electricity bill which is a lot convincing words. They must take care of their company in terms of service.

    How does their business survived up until now? I think there are only some countries that is prioritized by them and those people are the one who gives them a good rating.

    • Roope Kiuttu October 19, 2017 at 6:27 pm - Reply

      There are also positive customer reviews of this company especially from their distributors. There’s one interesting phenomenon. If a person buys something and uses time for that, he usually has a need to defend his own decision and he wants to see positive sides. That’s what happens with many MLM-distributors. They get blinded to negative sides of the program.

      However, if they don’t start earning and reality isn’t so good, at some point they realize the truth usually.

      • jemuelterrado October 27, 2017 at 7:23 pm - Reply

        Some people don’t agree unless they tried it. I admit that my decision is based also in the comment or review section of the website and it really affects my interest about trying some websites.

        We can’t blame some freelancers because they may have experienced a lot of scams online that is why they are gathering some information first and if they see bad side of the site they will hastily go to the next options. This is the sad truth that it affects other good websites because of the scammers deeds.

  14. Henrywrites October 19, 2017 at 12:35 pm - Reply

    Right from the moment I began reading your review on Ambit Energy and the way they provide electricity services to their members, I looked at it as one of those multi-level marketing schemes that promises so much and offer little.

    With this review, I won’t join and won’t even allow an enemy join Ambit Energy for paying too much for electricity consumed is not the right way to go about it.

    • Roope Kiuttu October 19, 2017 at 12:46 pm - Reply

      Yeah. I think Ambit Energy is not as bad as some other MLM-systems but still I would prefer some normal energy companies who don’t have these pyramid structures, extra prices, etc.

      • Henrywrites October 19, 2017 at 1:38 pm - Reply

        I never said that they’re not legit, but the a million dollars refund to members due to complaints should have showed how unfriendly the company is to members.

        • Roope Kiuttu October 19, 2017 at 2:58 pm - Reply

          True. A million dollar fine really tells about something negative.

    • Heatman October 26, 2017 at 10:25 am - Reply

      I really have the same thinking with you on this note about Ambit Energy, the cost for their services is quite exorbitant that I don’t think even if you are using such energy for business purposes that you can be able to cover up and not to talk more of using it for just home purpose.

  15. xobe October 19, 2017 at 5:48 am - Reply

    It sounds like they are trying to attract consumers with their marketing strategy. Electricity is one of our necessities in life living and without, people will get bored and unhappy. They used the electricity which is one of their tool because they think that people will focus on their plan.

    But in reality, it is much better on not to subscribe on their program because the price is not affordable and I don’t think that it is beneficial to consumers with this marketing company.

    • Roope Kiuttu October 19, 2017 at 12:01 pm - Reply

      Yeah, there has been lots of controversy around Ambit Energy. Some people reported that their electricity bill has been permanently cheaper after changing to Ambit Energy but others are saying their bill became 2-6 times higher.

      I am just wondering how much those who think Ambit Energy is cheaper were paying for their electricity before the change.

    • Heatman October 20, 2017 at 10:57 am - Reply

      I completely agree with you on this, as much as their services seems to be good, the cost at which it comes at is definitely inhuman and totally unacceptable to me in all ramifications. I can’t imagine paying for such hiked amount only for electricity. Instead of for me to waste my hard earned money on such electric bill, I would simply use the money to fuel my generator and make use of it.

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