Is Ambit Energy a scam or not? This is the first time I’ve seen energy as part of a MLM scheme, but is this opportunity any more lucrative than all the others out there?
Let’s take a closer look and find out….
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Company Name: Ambit Energy
Founders: Jere Thompson Jr and Chris Chambless
Price To Join: $75 + $24.95/Month
My Rating: 4/10
~ Ambit Energy Reviews ~
What Is Ambit Energy?
Maybe you’ve recently come across mentions of Ambit Energy, or someone has tried to recruit you and you want to learn more about it first. Well, you’ve come to the right place, and doing your research is a wise idea.
Founded in 2006, Ambit Energy is a MLM company that deals in electricity and gas. This is the first time I’ve ever come across a MLM venture in this niche, so at least that sets it apart from the countless others involved in either health and wellness or beauty.
Ambit Energy only provide electricity deals within the United States, and so far they have managed to generate over 1 billion dollars in revenue. Not many MLM ventures have managed to achieve that figure.
The company has suffered quite a bit of negative feedback over the years, including dodgy tactics employed by Ambit Energy consultants (those selling the deal) and ridiculously high energy prices after the initial 1 or 2 year contract expires.
Let’s briefly take a look at the energy products Ambit Energy offers.
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Ambit Energy Products
Ambit Energy provide electricity supply contracts, where they get you to switch over from your current supplier to their preferred supplier.
The general idea is to save you money, but that’s only the case in the very beginning, for as soon as your initial contract runs out, you’ll be up for huge energy prices. They deal in both electricity and natural gas.
The real concept behind this is for members to get busy selling Ambit Energy to others by recruiting new members. This way, if you can earn commissions, you further reduce your energy costs by offsetting them with the money you earn.
Sounds good in theory.
The MLM Business Opportunity
All MLM opportunities suck in my opinion, because they take full advantage of their workforce. The consultants do all the work for no pay, promote the business, buy the products and expand the business through recruitment.
Companies like Ambit Energy are laughing all the way to the bank with this kind of setup. All they have to do is pay out some commissions and bonuses down the track while they have a veritable army practically running their business for them for no pay.
These are the main reasons why MLM is such a popular business model for so many modern day companies. They get so many advantages out of the deal, while hyping it up to the public to entice new members. They make out like you can live the highlife once you join, when it reality most people are slogging it out for nickels and dimes.
Almost 100% of people fail at MLM, or make less than $500 a year before expenses.
What does that tell you?
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The Ambit Energy Compensation Plan
Most MLM compensation plans are rather complex and confusing, so I won’t go into depth here. Further below you can watch a video that explains how it works.
The whole idea once you join this MLM company is to get busy recruiting others into it. Only by recruiting new members can you really hope to have a chance of earning decent money by building active downlines and moving up the company ranks.
You can also earn commissions for simply getting people to switch from their current energy provider over to Ambit Energy.
Is Ambit Energy An Illegal Pyramid Scheme?
To be classified as an illegal – or naked – pyramid scheme, Ambit Energy would have to rely solely on recruitment to make money as well as have no products. Ambit Energy does rely heavily on recruitment, but not entirely.
They also have real products – electricity and natural gas services – that can also be sold at a retail level. Therefore they cannot be classified as an illegal pyramid scheme, despite the pyramid structure of the compensation plan.
Target Audience
This one is definitely targeted at anyone wanting to look for ways to save on energy and earn some money in the process. MLM appeals to people who mistakenly believe they are getting their own business without having to set everything up. The company always owns the business in MLM and calls all the shots. Those who join MLM are just sales reps, nothing more.
What I Like
- At least it’s a MLM dealing in a different niche to the saturated health and wellness niche
- The energy concept sounds interesting at first glance
What I Don’t Like
- There are multitudes of complaints out there about Ambit Energy
- The cost for your energy skyrockets once your initial contract expires
- Recruiting people for any MLM venture is ongoing and tiresome work
- The need for constant recruiting is the very reason most people fail at MLM
- Without recruitment you likely won’t make much money with this one
- MLM of any kind is one of the toughest ways to earn an income
How Much Does Ambit Energy Cost?
First you must pay a one time joining fee of $75. It used to be a whopping $429, but they’ve since reduced it considerably. To remain active as a consultant for the company, each month you need to pay $24.95. Overall this works out more expensive than their initial $429 one-off fee, but easier to swallow upfront.
Is Ambit Energy a Scam?
Well, a lot of people have labelled this one a scam because of some dodgy sales tactics employed by consultants over the years, plus the price hike once your contract runs out.
I don’t see it as a scam. It’s just your typical MLM, except they are selling energy rather than magic diet pills and the like.
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Darren Burton
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