Is Ambit Energy a Scam & Pyramid Scheme? My Honest Review (2021)
Welcome to my Ambit Energy review 2021!
Ambit Energy claims that they sell electricity and natural gas in deregulated markets in the US through direct sales marketing, thus providing you with "business opportunity" at the same time.
I know this may get you excited, but there are many things you need to be considered before joining Ambit Energy.
That’s why; I must congratulate you for taking your time and researching on the internet about this product.
I just want to assure you that I am not related to Ambit Energy in any form. Instead, my purpose is to give you all the truths about this Company.
Is it really that easy for Ambit Energy to fulfill its promises? Is it worth your time? And most importantly, is Ambit Energy a scam or legit?
I will cover all this in my review.
So let’s start;
Ambit Energy Review Summary 2021
Product Name: Ambit Energy
Founder: Jere Thompson Jr and Chris Chambless
Product Type: Multi-Level Marketing (MLM) Company that sells gas and electricity
Price: $75 sign-up fee + $24.95 per month for Personal Website
Best For: People who have knowledge of electricity and gas and are good at recruiting people
Summary: Ambit Energy is an MLM Company that provides electricity and gas to 17 states in the United States. You can either become their customer or take it as a business opportunity to earn money. The Company has a good customer’s base in those 17 states. Also, there are tons of complaints as well.
They haven’t even shown their income disclosure statement to confirm that how much distributors are earning an average income per month. This is because their distributors aren’t earning enough income. So, despite the Company is a legit one, my suggestion is to start your own business.
What is Ambit Energy?
In 2006, Jere Thompson, Jr. and Chris Chambless decided to start a Company with the name of Ambit Energy. They came up with the idea of providing electricity and gas at affordable prices.
The Company's headquarter is in Dallas, Texas. The Company has witnesses’ significant growth over the years. It recorded revenues of almost $200 million in 2008 and nearly $330 million in 2009.
As a result of this tremendous growth, Ambit was named the fastest-growing privately-held company by Inc. magazine, which placed Ambit at #1 on the publication’s renowned “Inc. 500” list.
The Company also reached another milestone of 1 million customers in 2012. The success didn’t end here; in 2013, the Company joined the billion dollar club together with other MLM companies like Isagenix, Team National, Melaleuca, and Primerica.
All their success came up through the business model of direct selling and through their distributors, who’re referred to as Independent Contractors or Consultants.
Now, Ambit Energy provides natural gas and power to over 17 states in the United States of America (USA). The rates are not fixed instead they vary from state to state.
The companies which are major competitors are ACN, Green Mountain Energy, Fenix, Gexa Energy, and Enagic Kangen Water.
Ambit Energy Product Line
The Company offers a selection of rates and plans to meet the needs of their Customers. Currently, it has over 1.4 million users across 17 states of the United States, and these are states where this Company works;
- New Hampshire
- New Jersey
- New York
- Rhode Island
- Washington, D.C
Now let’s look at the services which this Company claims;
i). Commercial Services
The Company helped power the growth of businesses both large and small since they have opened their services.
They also have a dedicated team of Commercial experts who understand the special energy needs of small and large businesses. Even they claim that their rates are the most competitive in the industry.
They also promise for no interruption of service, and also you can subscribe to their plan in minutes online or through their Independent Consultants.
ii). Ambit Energy and Green-e Energy
Ambit Energy’s Green-e Energy program is a certified one which offers renewable energy from sources like wind. It will bring you electrical power that isn’t only reliable but also environmentally friendly.
Ambit Energy cares about the environment and offers a green energy product that promotes renewable energy generation. It means all of their plans aiming for reducing the environmental impact of electricity and gas you use.
If you don’t know renewable energy, here is the definition;
Renewable energy is energy that is produced from renewable resources, which are naturally refilled on a human timescale, such as sunlight, wind, rides, rain, and waves. Renewable energy often delivers energy in four important areas:
- Electricity generation
- Air and water cooling/heating
- Rural energy services
Renewable energy is now a growing market with climate change being such a hot topic. That’s why the Company has creates a positive image among people which led them significant growth over the years.
iii). Solar Plans
The Company comes up with innovative ways to increase your savings. They have also join consensus with Sunrun, to provide reasonable residential solar options to their Customers.
This service is currently available in California, District of Columbia, Connecticut, Pennsylvania, Illinois, Maryland, New York, New Hampshire, Massachusetts, New Jersey, and Rhode Island.
What is Sunrun?
It is the leading dedicated residential solar company in the United States, offering solar service to more than 200,000 customers.
They have over two decades of experience which lets people have custom solar systems without a substantial upfront investment.
Here are the benefits from Sunrun;
- Save 20% on your electric bill
- Very little startup costs
- They do all of the tasks; paperwork, approvals, financing, installation, monitoring, and maintenance
- Protection from rising utility prices
- Safe for the environment as well
iv). Ambit Home Services
Ambit Energy provides its customers an opportunity to save on unexpected repairs. They have partnered with Allied Warranty to form Ambit Home Services, and offer some important protection for you and your family.
They provide two forms of coverage;
- AC/Heat Shield –It is a low-cost monthly plan to prevent people unexpected costs of repair or replace heating and cooling systems.
- Ambit Surge Protection – Power surge can destroy expensive electronics and kitchen appliances in your home. To prevent this cost, you can subscribe to their cheap monthly plans.
Do The Products Work?
Though reading all above may excite you too much, but I don’t want you to live in the dreams. That’s because if you meet with people and read their customer reviews on the internet, you will see massive complaints.
If you don’t trust me; let’s look at the platform of Better Business Bureau (BBB), there are more than 500 complaints registered with them. That’s too many….
Even I have reviewed many sites registered with the BBB, but this is the highest I have ever seen.
This may be because of the huge customer base or some other shady things which you don’t expect about this company.
But this will be clearer when we look at their complaints thoroughly;
I know it became clearer to you that people are facing a lot of issues using their service. On papers, the Company seems perfect, but if you meet people, you will get the 360 degrees opposite feelings.
The major issues that people are facing are;
- High bills as compared to other competitors
- Automatically changed you to the higher billings plan
How to Make Money with Ambit Energy?
Though it is Company that claims of providing cheap energy, at the same time they also offer an earning opportunity to their customers as well. The Company is multi-level marketing and uses direct sales method to market its business.
You can earn money with Ambit Energy in the following ways:
- Bonuses for getting customers
- Bonuses when other people in your downline get customers
- Residual income
Previously, Ambit Energy charging people $429 onetime fee, but now, they reduced it to $75.
You will also have a monthly recurring fee of $25 for your personal website maintenance.
Ambit Energy Compensation Plan
As stated earlier, there is a $75 onetime fee and if you paid this; you are called as Marketing Consultant (MC).
You are now own a "franchise" in the energy business. MCs can build their businesses by signing up new customers and consultants.
Your next step is to become a “Leader.”
There are four types of leadership positions, and your number of affiliates will define your position;
- REGIONAL CONSULTANT (RC):
- Enroll a total of five customers personally
- Personally enroll two Marketing Consultants
- Grow an initial team of six total MCs (including your first two personally enrolled)
- SENIOR CONSULTANT (SC):
- Achieve RC status
- Personally sponsor a total of 10 customers
- As an RC, personally sponsor two MCs
- Develop an RC team of 18 MCs
- EXECUTIVE CONSULTANT (EC):
- Achieve SC status
- Personally sponsor a total of 15 customers
- Being an SC, build five SCs in your SC organization
- NATIONAL CONSULTANT (NC):
- Achieve EC status
- Personally enroll a total of 20 customers
- Being an EC, develop five EC in your EC organization
There are three types of ways you can earn here;
1). IMMEDIATE INCOME
To motivate their new consultants, Ambit Energy offers Jump Start and Team Builder bonuses.
Ambit pays Jump Start bonuses when new energy customers are enrolled and Team Builder bonuses when new Marketing Consultants (MCs) that you personally sponsored will do the same. They pay every Friday.
- Jump Start Bonuses - These are paid for your initial customer gathering efforts
- Team Builder Bonuses - These are paid for helping your customers bringing referrals
Persons who use natural gas and electricity service are known as one customer.
Ambit gives you one customer point when you sign up yourself as a new customer.
When you set up your business building website, they will give you two customers’ points. Now you have 3 points in total. If you bring in two new customers’ within your first four weeks, you will get $100 jump start bonus.
Sign up five more customers you will earn another $100. Keep signing up new people you will earn additional bonuses all the way up to $400.
If you sponsor a new marketing consultant and that MC also get their first five customers in first 28 days, they make $100 (team builder bonus) and so do you!
2). LEADERSHIP BONUSES
There are two different types of Leadership Bonuses: Consultant Leadership Bonuses (CLB) and Customer Residual Bonuses (CRB).
- Consultant Leadership Bonuses - paid to those when a new Marketing Consultant enter your leadership organization and get five customers (four customers in Texas and Illinois) in their first four weeks.
- Customer Residual Bonuses - These are paid by customers signed up by yourself or any marketing consultant (MC) in your Ambit organization to unlimited levels
3). RESIDUAL INCOME
This is alike to customer residual bonuses with two major differences. The first is that it’s only being paid up to 7 levels.
The second exception is that it's paid on all customers in your organization, not just the ones who signed up by new 'Marketing Consultants (MCs)'. The residuals income per month you can earn on customer power bills are shown below:
For personally recruited customer to Ambit, you can earn from $0.05 to $0.30 per month from their bills in the form of monthly residual income.
For 7th level customers, who you've probably never met, you are earning from $1.50 to $6.00 per month.
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Pros & Cons:
1. Real Business
This is a real deal. People don’t use electricity or natural gas just because of this Company rather these are their need on a daily basis.
That’s why Consultants over here feels much better advantage over traditional network marketing opportunities.
They can bring in new customers pretty fast, thus able to earn income quickly.
Plus, the upfront investment to get started is nominal, and there is never a renewal fee.
And since there are no lotions, pills or powders to stock them in your stores and then deliver them to the customers, their Consultants save on costs, avoid the hassle and can focus on their main business, i.e., reaching new Customers.
To support Consultants reach their potential, The Company has created a smart, easy-to-use Consultant help center designed to provide the tools, training, and guidance Consultants can use every day for reaching greater results.
And after the upfront investment, this support is absolutely free of cost.
2. Trusted Brand
We all know that very few companies in the network marketing that are operating for more than 10 years. We must give this credit to the Ambit Energy.
Not only this, the Company has expanded its customer base and now has over 1.4 million customers. Moreover, the Company has attained the status of contributing over $1 billion in the GDP of USA economy.
The Company is also a BBB accredited business having an A+ rating. This means that they are taking their customers complaints seriously and welcomed them to offer constructive criticism.
2. Low Upfront Cost
I have reviewed many network companies, and nearly all of them have a high upfront cost. Not only this, but they also trapped you in monthly autoship fee.
Ambit, on the other hand, dropped its previous price of $400 to $75 plus you need to pay a monthly fee of $25 for website maintenance.
I believe, this isn’t much for most of the people.
2. Better Business Bureau Accredited
Ambit is a BBB accredited business since 2006, and it has ratings of A+. It means the business has over 12 years with the BBB that is some sort of achievement.
Having A+ ratings and accreditation with BBB depict that the business cares about their customers and provide useful customer support to them.
However, these shouldn’t be considered about the Company to be called it a worthwhile opportunity. That’s what I will be shown you in a few seconds.
1. Only a Middleman
If you read their terms of service, the main thing you will notice that it is not the direct provider of electricity/natural gas.
The Company does not have any infrastructure at all and is not generating any power.
They only act as a middleman between the producers and the customers for a retail profit.
I have also seen that the Company may modify the terms of this agreement at any time.
It means once you are out of fixed term contract, they can raise the prices. They only have to notify you 30 days in advance.
They may notify you via an email, a letter, or a note appended to your monthly bill.
I don't know about you, but I generally pay the amount due on the bill and don't expend much time reading through the note/print to see if there's a notification about rate changes.
The purpose of telling this is, you shouldn’t expect too much from the Company regarding lowering their prices and hence fewer bills.
As it is only a middleman and the producers determine all the prices. The Company charges you extra premium from the price it paid to the producers.
2. Weak Compensation Plan
Every professional business shows you in detail about how to take it a business opportunity and make money.
Sorry for ambit; despite being searching for over an hour I couldn’t find any detailed information about their compensation plan.
Somehow I found a 4-page plan along with a video which provides some general info but no specific aspects.
Even if you look at their compensation plan and more specifically its residual earning section, you will see that for earning a good residual income you have to wait up until 7th level.
This means of you bring in 3 customers (say for example), and these 3 customers also bring in their 3 customers and so on to 7 level. Here you will be able to earn a residual income of $10k.
Believe me, that’s not going to be an easy one for you.
3. Deregulation Doesn't Guarantee Success
In the presentation and also on their website they have made a huge emphasis on deregulation.
Including we are given the example of deregulation in the telecommunication sector.
That’s true after this few companies have become Multi-Billion dollar companies. Deregulation leads to new super successful companies.
This is what they want everyone to believe but what they don’t want to tell you that for every successful business few failed as well, and no longer exist because they went bankrupt.
The real problem with deregulation is that there is a huge entry of new companies in the industry and only a few companies could able to survive. This is what called in “survival of the fittest.”
4. No Income Disclosure Statement
Income Disclosure is a statement that every professional company provides, and it shows us the average earnings of an Independent Consultants/Distributors.
This is where we know how much we can make but as there is no such statement we are not able to properly plan it.
Suppose if the statements show more than 90% people are not earning sustainable income then why we need to spend our energy on that business which isn’t working for others.
Not showing this statement may be of different reasons;
- Their Independent Consultants average earnings per month are very bad
- They feel embarrassment in showing that
Whatever the reason, the absence of this statement confirms weak compensation plan that I have already disclosed above.
5. Available on Limited Locations
Until now, there are only seventeen (17) locations where the Company services are available and even fewer locations where their premium products (Green Energy and Solar Savings) are available.
I am also seeing this 17 figure quite some time now, and for a Company who has annual revenue of over $1 billion, I believe it shouldn’t be a big issue to expand to other regions as well.
This limits their consultants' opportunities to make more money for themselves and the company.
5. Many Lawsuits
The Company over the years has faced many lawsuits, but the major one which settled in 2018 is the class action lawsuit.
The Company agreed to pay $26.5 million to settle this case in which it was alleged for overcharging New York customers for gas and electricity.
The reason for this case is due to shifting of “Guaranteed Savings Plan” onto “Ambit’s New York Select Variable Plan” without proper authorization.
The lawsuit also alleged that Ambit did not provide the full amount of savings represented under its Guaranteed Savings Plan.
This lawsuit is a great illustration of what the Company claims and the people gets in return.
5. Tons of Complaints
Apart from lawsuits, there are tons of complaints I came across when I read people reviews over the internet.
There are 595 complaints registered on the BBB in the last 3 years. Majority of their complaints falls into major three categories;
- Problems with products and services
- Billing’s issue
- Advertising and sales
Instead of saying myself; let’s look at what their customers are saying;
5. No Leadership
This perhaps the issue with all network marketing companies and after becoming their consultant/distributor you are left alone.
It’s now up to you to reveal your marketing skills and see where they gonna take you. Either you will love marketing, or you simply feel that this isn’t your style of business.
The up liners will only ask you how many customers you have brought in, but there is nothing else you will get from them.
5. Recruitment, Recruitment, and Recruitment
The only way to excel in this business is to recruit other people. It means recruiting will fuel your business to run faster.
However, if you don’t do this; it isn’t much you can get out from this business.
As I said earlier; there isn’t any help for you from your up liners, and marketing skills aren’t something that can be developed on its own. So, this recruiting task gets even more difficult for you.
This is seemingly why Jon Taylor found that less than 1% who joins any MLM will turn a profit. That 1 % who do make it, are those at the apex of the pyramid.
The issue with recruitment based business models is that there is no emphasis on organic customers. People become obsessed with finding the next consultant rather than finding the next customer.
Is Ambit Energy a Pyramid Scheme?
Though MLM businesses resemble with the pyramid schemes, few are legit as well. I called them legit only if the products and services attached to them are real.
Though all MLMs have pyramid structures having the owner/CEO at the top, then layers of executive followed by managers and finally workers.
This brings up a perfect pyramid structure but in essence the central points for calling them pyramid schemes are;
- They don’t have real products to sell
- People only join them to make money, and for this purpose, they buy their products
However, one thing should be kept in mind that though pyramid schemes don’t have real products, most of the times, they show people products and calling them real, but in reality, they are just hiding their pyramid schemes behind those products.
Just look at the case of Ambit Energy; their products are electricity and gas which are a need for everyone and people join them just for the sake of their products, after that leverage their business model to make an extra income from home.
So, in short, Ambit Energy isn’t a pyramid scheme as it offers real products and services to the people.
Want to Earn a Full-time Income From Home?
Is Ambit Energy a Scam?
In short, Ambit Energy is not a scam, but it is a real company that is operating for more than 12 years. The Company provides products that are real and also in demand of the public.
However, due to massive complaints about their products, misleading advertisements, and billing issues lead to believe that, though legit, but not the perfect place to start your journey.
I value time more than anything else, so my suggestion is to focus on your online business rather than serving for someone else behalf.
Because you depend on that Company and if for any reason they have to close their business (don’t forget lawsuits) you will again move to zero.
One most important thing; they also don’t have shown their income disclosure statement, and in the absence of that, I believe that most, if not all, of their consultants are not making any good money.
If you want to save cash on your bills, my suggestion is to make sure you match all the available options. Also, try to read their terms and conditions before you choose anything.
Though some deals may appear to be good at the start but can end up costing you more over the longer span.
Though Ambit Energy is a legit MLM company, my suggestion is to go for your own homemade business rather than working for someone else behalf.
This is where I recommend my favorite business model to beginners, i.e., Affiliate Marketing, which is the only business method I suggest to make a sustainable income from home.
I prefer affiliate marketing over MLM because;
- Unlike Ambit Energy, you don't have to recruit anyone to make money
- It gives you control and ownership that Ambit Energy doesn’t
- No need for face to face marketing
- In Ambit Energy, you are only eligible to promote it. However, in affiliate marketing, you have the license to promote anything you want. This reduces your dependency on one product.
- It's Free to get started
For beginners, I recommend you to join Wealthy Affiliate which is a platform that is designed for the beginners even if you don’t know anything at all.
There is a step by step training, and you don’t feel alone there. They have over one million members and also don’t forget my support as well.
What's your thoughts on my Ambit Energy review 2021 and if there is any question in your mind, please ask me in the comment section.