“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!
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 Products – Simply Put: Energy
Ambit Energy offers:
- 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.”
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.
“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:
- You invite 100 people.
- 20 people join the system (that’s a good number!)
- 10 of them leave during the first months so we have 10 left.
- 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.
- 2 of them drops eventually because life gets in the way and they don’t have time for this business.
- Then we have one below your downline who still believes he will succeed.
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.
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.
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What is your experience with Ambit Energy or with other MLM-programs?
Have some of your friends joined Ambit Energy?