Is Ambit Energy A Pyramid Scheme? Or Legitimate Multi-Level-Marketing Business Opportunity?
Today I’m taking a look at Ambit Energy! If you happened to just stumble upon this post, perhaps you’re researching whether or not you can make money with this company.
There are plenty of negative reviews to be found of Ambit Energy and their customer service team, but what about the business opportunity itself?
During Ambit Energy review, I will discuss the following…
- What Ambit Energy is about,
- How you make money in this business,
- Common complaints,
- Whether Ambit Energy is a Pyramid Scheme,
- How some individuals can fast-track their MLM business, by having a platform.
>> Unsure whether you want to join an MLM? Try this instead.
What Is Ambit Energy?
Jere Thompson and Chris Chambless created Ambit energy in 2006, providing cheaper energy costs in the USA.
The idea behind this business, is to provide customers a better, cheaper deal on their gas and electric.
Over the course of their business, they’ve done extremely well, and have succeeded in generating over 1 billion dollars in revenue.
They now provide energy to 17 locations across the USA.
As well as providing cheaper energy, they also offer a potential business opportunity to customers – this is a multi-level-marketing opportunity.
Whereby, you can profit by getting people to switch their energy supplier and further earn revenue by recruiting people into the business opportunity, and earning a percentage of their profit.
Additionally, you also benefit monetarily by other people that they bring into the business and so forth, up to 7 levels deep.
The idea is to grow a network beneath you of people you’ve recruited, some of whom also go on to recruit others.
As your downline grows, so does your income potential.
If you’re unfamiliar with how the multi-level-marketing works, you can check out the video below, which explains their compensation plan and how you get paid.
Ambit Energy Compensation Plan:
*This is just for information, I am not recommending Ambit Energy*
How Much Does It Cost?
Ambit Energy USED to cost $429 to join, a one off fee.
Thankfully, they have now reduced that one off payment to $75 dollars.
It also costs $24.95 monthly recurring if you want to work for them- which is meant to be a maintenance fee for your personal website.
The initial high investment, ($400+) was a red flag to me when I first started to research this company, so it’s a positive move reducing it.
However, you shouldn’t need to pay anything upfront anyway, just to recommend and profit from their program.
It’s not like this is an MLM where you need to purchase products in advance.
For example, in the health and wellness niche, it makes sense that you’ll need to put money upfront to purchase products.
But in this case, one reason they may want you to pay an upfront fee, as well as a monthly recurring rate, is to be sure they have some income coming in from every recruit.
By demanding an upfront fee and a monthly cost, they’re still making money from you – whether you make anything or not.
By lowering that initial upfront price to $75, they’re now going to be attracting a lot more people into the business.
When the fee was over $400, sales reps would say this was to cover any training costs and a welcome kit.
Presumably, you still get exactly the same deal now that it’s $75, so you can make your own conclusions on that one.
Making Your First Sales With Ambit Energy:
When you sign up as a consultant, you count as 1 of your first customer points, you also get two customer points with your own ambit energy website.
If you recruit two more people, (making 5 points in total) you make $100 bonus.
Sign up five more recruits and you get another $100 bonus.
When you help your friends or family get their first five customers in their first 28 days, they make $100 and so do you!
It may all sound very simple – the problem is, it isn’t! Only a small minority would ever achieve those goals in the first 28 days.
A majority will go into their second month still in debt from their initial investment…
But at least that will now only be around $100 in their first month, not over $400.
Getting someone to switch energy providers is one thing, but recruiting someone into an MLM business is considerably more challenging.
If you’re looking at making any serious money, recruiting others is how you progress within an MLM.
A big problem is, a majority of people right off the bat, will likely have negative feelings about the MLM business model.
Many people presume this sort of business is really a pyramid scheme and many people do not know the difference between a legitimate MLM and a pyramid scheme.
Helpful Post: The difference between an MLM & Pyramid Scheme?
Therefore, many people who get involved in MLM’s really have an uphill struggle on their hands from the start and you need to be careful not to alienate your friends and family by trying to bring them into it.
Ideally, you should stay away from involving people that you know, (although you’re normally taught to approach your friends & relatives first).
An alternative way to find leads, would be online. But you would need some internet marketing skills to make that work for you.
Other Benefits Of Ambit Energy:
If you’re not sure that the whole MLM aspect is really for you, there are still other ways that you could benefit from signing up with Ambit Energy.
a) You do have the opportunity to get free energy.
To do so, you would need to find 15 other people to sign up to Ambit, but that doesn’t involve getting them to sign up to the business opportunity.
Since everyone needs energy and also would like cheaper energy, you may not find this part all that difficult.
Additionally, if you do manage to sign up 15 people, you may feel that you would want to take it further.
b) You can also earn Travel rewards.
By referring other people to sign up with Ambit, you can also save up points that be exchanged for trips.
If you’re keen on travelling, this might be an attractive bonus for you.
Ambit Energy Complaints:
All large businesses are going to have plenty of complaints against them, but I was taken aback by the scale of negative complaints against Ambit Energy.
However, on closer inspection, the complaints all seem to revolve around the same couple of issues over and over again.
Many customers had become angry about their rates changing and suddenly being charged 2x, 3x, or even 4x what they had previously been paying.
After a period of a fixed rate, if you fail to renew your contract in time, your contract will roll over on to a flexible rate, whereby you may be charged more.
While this information is in the fine print of their contracts, some customers feel they’ve been cheated into signing up without realising that their rates could change – without being given a sufficient reminder.
Surely, if someones bill is about to take a dramatic increase unless they take action, they should be informed about it in good time?
Ambit Energy should take these issues on board and resolve them, considering the vast number of complaints surrounding this issue.
Have you been an Ambit Energy customer? Leave me a comment below!
Another recurring complaint involves the customer service team, who have been accused of being rude and unhelpful.
Largely, the complaints surround both customer service & the changing/flexible rates.
PROS VS CONS
- They have reduced their joining fee from over $400, to $75. That’s a massive shift and will make the opportunity more attractive to many.
- Ambit are focusing on Green and renewable energy – as well as this being a positive thing for the environment, it could also be an additional selling point for you.
- They have grown to over $1 billion in revenue in a short amount of time and are growing, so there is a potential to make money with this company.
- Energy is something every household needs, this makes your reach wide and will make it easier to find customers.
- Not enough information on their website about the business opportunity & compensation plan. You have to contact them directly if you’re interested and “talk, ” with them.
- Residual payments are small, you’d need to be bringing in a lot of people to make your efforts worthwhile.
- I cannot find an income disclosure for Ambit Energy & it’s important these companies are transparent about what people are actually earning.
- Minimal training, but that’s very common in MLM’s.
- You need to reside in one of the 17 locations that Ambit supplies energy to right now, but it is growing.
- Multiple complaints against the business, which may put people off who you’re trying to recruit.
Conclusion – Is Ambit Energy A Pyramid Scheme Scam?
Ambit Energy has been accused of being a Pyramid Scheme and a scam.
This in part, will be be due to the fact that you cannot make considerable money with Ambit Energy, without recruiting others beneath you, who also share the business.
However, Ambit Energy are selling something tangible, they’re selling Energy – not some health food supplement that no one actually takes, or digital product that are just smokescreen for a recruitment scam.
Here, you’re dealing with a service that everyone has experience with and everyone needs.
While you may not make much money just by getting people to switch to Ambit Energy, you can at least save some money and potentially eradicate your energy bill altogether.
While I don’t feel that Ambit Energy are a Pyramid scheme, I don’t recommend the MLM side of the business either.
Any MLM business you can find will only have a small percentage of success stories.
A huge majority of anyone to invests time and money into a multi-level-marketing business, will not be successful.
Furthermore, tying yourself to one product and one business is not any more “free,” than being tied down to a job.
If their business fails, so does your business that you fought so hard for and you won’t have any control over that.
MLM Shortcut: When You Have A Platform?
While there is no doubt an opportunity to make money there, for people hungry enough to persevere –
There are a group of people who will have a much better chance of doing well.
The people who have the greatest chance of success in an MLM, are people who already have a platform online and already have people there listening to what they have to say.
For example, if you have built up a blog, website or YouTube channel in the health and wellness niche and then you decide to join a related MLM in that field, you will find it significantly easier to make money.
Because you already have an audience who will be interested in your business.
Alternatively, if you have a blog in the money saving niche – something like Ambit Energy could work for you.
Because you already have a reach to people who are interested in saving money and maybe they’ll also be interested in the business opportunity.
What’s more, if you have your own blog, you can earn money from it in many other ways… such as affiliate marketing, paid advertising, or sponsored posts.
You also won’t be stuck just promoting and selling one service or product, there are an unlimited number of things you could choose to sell.
Growing a blog does take a lot of time and effort, there is no doubt, but the work you put in right from the start, pays off in the future.
What I definitely do not suggest you do, is hassle your family and friends to join your “business opportunity,” or spam people on social media.
That’s just a very quick way of alienating the people you care about.
If you’re interested in how you can build a blog in something you’re passionate about and earn money from it, you can access some excellent free training here.
While I’m always on the look out for MLM’s that seem to be a step up from the rest, I have yet to find one that I think is worthwhile.
What you really want to find with an MLM, is a scenario where you could sell the products or service independently and still make a reasonable living – without the need to recruit others into the business.
Too commonly, it’s the wrong way around. The recruits discover they can’t make a living selling the product or service, so they have to recruit others into the business to make money.
What do you think about Ambit Energy, or MLM’s in general? Please leave me a comment below!
All the best…