What Is The Ambit Energy Scam? – Or Is It Not?

Ambit Energy is an MLM company that has been operating since 2006.

However, unlike the saturated dietary and nutritional health - and wellness niche like Amare or LifeWave, Ambit provides electrical and natural gas product services.

So, this might be interesting for people who want to find products to sell in a different niche.

In saying that, there have been many complaints about the company that are concerning especially for potential new customers and people who are keen to join Ambit Energy as Marketing Consultants.

Without further ado, let's have a look at the opportunity  as well as the compensation plan to find out if you can make money with them or if Ambit Energy is just a scam.

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What Is the Ambit Energy Scam?- Or Is Not?

More Info About Ambit Energy

ambit energy logo

Before we get down to the nitty gritty, let's have a look at the company and its background.

Ambit Energy was founded in 2006 by Jere W. Thompson Jr and Chris Chambless.

Jere W. Thompson Jr. is also the CEO of Ambit Energy which has its headquarter in Dallas, Texas.

Back then, they decided to used the deregulated energy market in the US to build a company that would provide energy at competitive rates and chose to sell it via independent consultants.

So far, Ambit Energy sell its products in 16 states plus Washington DC and since 2017 in Japan and Canada.

Despite the fact that Ambit Energy was named the fastest growing privately held company in 2010, it also made negative headlines.

"Ambit Energy has come under scrutiny from regulators and consumer advocates. A 2014 story by Consumer Affairs documents numerous complaints by customers whose rates doubled or tripled without warning. Complainants also said it was difficult to contact Ambit to discuss rates or switch plans." [source: Wikipedia]

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The Ambit Energy Products

Ambit Energy provides electricity and natural gas services to residential customers and commercial businesses.

They also offer customers the opportunity to save on their power bill by using solar energy by collaborating with Sunrun. This option is only available in selected states though.

Ambit Energy has also partnered with Green-e Energy to offer energy from renewable energy sources.

Customers have to sign up either for a 12-months or 24- months contract to take advantage of savings on their energy bill.

To make it more appealing to its customers, Ambit Energy has developed a referral program where customers who refer at least 15 new customers to the company can earn free energy.


How To Join Ambit Energy

People who want to join Ambit Energy have to pay a one-time start-up fee of $75 plus an ongoing monthly maintenance fee for a personal website of $24.95.

It is not clear to me if there are any business supplies and other things included in the startup fee.

Ambit Energy also keeps it very vague what kind of support and training they provide to its independent consultants.

Here is what is being stated on the company's website:

"To help Consultants reach their potential, Ambit has created a smart, easy-to-use Consultant support system designed to provide the business-building tools, guidance and unlimited training Consultants can use every day for achieving greater results."

As a sales person, especially in this type of sales product, you will need a lot of knowledge on the rates and prices to convince people to sign up with a particular company,

After all, the competition is fierce and lost of power companies are offering savings options and other rewards.

Considering, your new customer is supposed to sign a 12 or 24-month contract. How do you convince them that it is worth it?


How To Earn Money With Ambit Energy

Ambit Energy has created a unilevel compensation plan where one can climb six ranks altogether; starting of as Marketing Consultant, Regional , Senior, Executive, and finally National Consultant.

To achieve those ranks you have to recruit new people into the company, of course.

You can read here the exact requirements to advance in the ranks.

Ambit offers three ways to earn income:

  1. Immediate income
  2. Leadership income
  3. Residual income

Immediate Income

ambit jump start

You earn an immediate income by acquiring five customer points in the first four weeks. According to the compensation plan, you get two points for your personal website.

So, if you find three new customers, you'll earn your initial investment of $100 back. For enrolling five more new customers you'll get another $100 and so on (refer to the above image)

Leadership Bonus

This bonus is paid when you start recruiting people to become independent consultants with Ambit Energy. The more you recruit the more you get paid.

Read the full compensation plan for details here.

Residual Income/Residential Customer Residual Bonuses (CRI)

ambit residual income

It sounds exciting to get residual income each month when your customers pay their bill and you get paid a commission on it. (Please note, that the rates are different in Texas)

If you are able to get lots of customers and recruit independent consultants you surely can make a good income.

That sounds good in theory but what does it look like in reality?

That is when Ambit Energy's income disclosure comes into play.

Can You Make Money With Ambit Energy

The income disclosure displays the income from 1.01.2018 to 31.12.2018.

Unfortunately, I couldn't take a screenshot of the data provided, so here is a quick breakdown.

All numbers refer to a median annual income.

Out of 107.731 active independent consultants, 90.89% were Marketing Consultants and had zero income.

  • Regional Consultants:  5.19% - $83.30
  • Senior Consultants: 3.38% - $1392.30
  • Executive Consultant: less than 1% - $20272.10
  • National Consultant: less than 1% - $198106.54

The numbers shown are very similar to other MLM companies. The majority of consultants earn basically 'peanuts', and only a few make it to the top.

I guess that if you had started in the early beginnings of Ambit Energy, the chances would have been alright to make it to the top.

But the market seems very saturated now with around 250 000 consultants.

Also, the company's credibility has suffered in the past as mentioned before. It is also reflected in the BBB reviews which I am going to outline shortly.

Looking at the numbers, I don't think that Ambit Energy offers a great income opportunity.


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The Pros And Cons Of Ambit Energy At A Glance

Let's have a closer look at the Pros and Cons of Ambit Energy.

Pros

  •  The startup costs are reasonable and no renewal fee is required.
  • The company seems solid with achieving around USD $ 1 Billion in revenue each year.

Cons

  • There are already 250000 consultants working for Ambit Energy.
  • The market is limited to only seventeen US states.
  • There is an ongoing monthly fee of $24.95 for maintaining the personal website.
  • The focus, as seen in the compensation plan, is mainly on recruiting new Marketing Consultants into the company.
  • As outlined earlier, the median income for an MC was $0 annually. The average income a year was $110.62. It doesn't like one can make a lot of money.
  • Even though the company is accredited with the BBB and got an A+ rating - the number of  complaints is alarmingly high with over 180 in the past three years. Read more here.

The majority of complains are regarding unannounced increase in rates and therefore unexpected huge bills.

It seems that overcharging is a common concern and really doesn't help Ambit Energy's credibility.


Conclusion - Is Ambit Energy A Scam

No, I wouldn't say that Ambit Energy is a scam. 


They are providing a service in a deregulated market and are now even present in Japan and Canada.


Using multi-level marketing has been successful for the company in finding a huge customer market and expanding its business internationally.


However, the money they make only gives a minority of consultants a solid income.


The majority only makes little or no money at all.


A big concern is the credibility of Ambit Energy.


Over 180 complaints and negative customer reviews (as seen on the BBB) is just too many.


There are many other companies on the market which offer similar services and products so the competition is fierce.


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