Welcome to my comprehensive review of Ambit Energy. If you’re considering joining this multi-level marketing (MLM) company or simply curious about its legitimacy, you’ve come to the right place. Ambit Energy has been a prominent player in the energy sector, offering essential services such as electricity and natural gas. However, like many MLMs, it has faced its share of praise and criticism.
In this review, I’ll delve into various aspects of Ambit Energy, from its products and business model to customer reviews and the compensation plan. By the end, you’ll have a clear understanding of whether Ambit Energy is the right opportunity for you.
Let’s get started and explore what Ambit Energy has to offer.
Disclaimer: This Ambit Energy MLM review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn from that information are my own opinions.
Ambit Energy MLM Review Overview
Product Name: Ambit Energy
Owner: Vistra Energy
Product Type: Energy Provider + MLM Company
Price: $75 one-time, plus $24.95/monthly for personal website maintenance
Best For: If You’re Already With Them For Energy, Might Be A Lucrative Move…
Pros
- A Billion-Dollar Company
- Their Product is in Demand
- Green Energy Provider
Cons
- Rate Increases
- Regular Monthly Costs
- Legal Actions
- Compensation Plan
Quick Summary
Recommended? Ambit Energy is a good MLM company that offers valuable service and a lucrative compensation plan. But Your Need to Be Good At Sales
Table of Contents
Is Ambit Energy a Scam or Legit?
Ambit Energy is not a scam. It operates as a legitimate multi-level marketing (MLM) business, providing electricity and natural gas services. Their service quality is commendable, and the payment plan is straightforward and easy to understand.
However, the company’s lack of transparency can be a concern. It’s difficult to verify if their Independent Consultants (ICs) are making significant earnings, as their earnings disclosure statement is not readily accessible. While it is possible to build a successful and profitable MLM business, there are often more straightforward and reliable ways to generate income beyond the MLM model.
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What is Ambit Energy?
Ambit Energy is a multi-level marketing company that supplies electricity and natural gas. The company aims to disrupt industry monopolies by offering various options and competitive pricing. In addition to their energy services, they provide individuals with the opportunity to become Independent Consultants, earn money, and potentially receive free energy.
Founded in 2006 by Jere Thompson Jr. and Chris Chambless, Ambit Energy is based in Dallas, Texas. The company’s longevity—especially in an industry where many MLMs don’t last more than three years—speaks to its legitimacy. Ambit Energy is also recognized for its leadership in solar energy solutions and operates in 17 states across the USA.
While Ambit offers competitive rates for 1-2 year contracts, customers often face significantly higher variable rates afterwards, which has led to numerous complaints. This pricing strategy, along with the MLM business model, fuels claims that Ambit Energy is a scam—an issue I will delve into in this review.
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Who Owns Ambit Energy?
In November 2019, Vistra Energy acquired Ambit Energy, integrating it into one of the leading energy companies. This acquisition has allowed Ambit to better serve both domestic and industrial customers.
Ambit’s success and expansion caught the attention of Vistra Energy, a company known for its innovation and excellence. During their discussions, both companies discovered shared values such as integrity, progress, customer focus, excellence, and enthusiasm. This synergy led to their decision to join forces, with Ambit maintaining its brand and MLM model.
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Is Ambit Energy a Pyramid Scheme?
Ambit Energy is not a pyramid scheme. While it might share some similarities with pyramid schemes due to its MLM structure, it’s important to understand that MLM itself is not a scam. Ambit Energy markets tangible services—electricity and natural gas—to customers, and you can earn income by selling these services.
However, to make substantial money (over $1,000 a month) or cover the consultant expenses, you often need to recruit a significant number of people into the business. This recruitment-based earning model can make Ambit Energy seem somewhat like a pyramid scheme in disguise.
Before we dive deeper into this topic, let’s clarify what a pyramid scheme actually is.
What Is a Pyramid Scheme?
A pyramid scheme is a business model that recruits members with promises of payments or services for enrolling new members rather than selling products or services. You can learn more about this concept by watching the short video below.
Understanding the true definition of a pyramid scheme highlights the constant need to attract new members, which is a key characteristic. This is where network marketing, like Ambit Energy, often gets compared to pyramid schemes.
Why Do Many People Believe Ambit Energy is a Pyramid Scheme?
Many people think Ambit Energy is a pyramid scheme because, as an Independent Consultant, you can earn commissions by selling their services. Additionally, you can make money by recruiting others into the MLM business. This dual-income opportunity—sales and recruitment—leads some to label it a pyramid scheme in disguise.
Is Ambit Energy a Pyramid Scheme in Disguise?
Ambit Energy frequently faces scrutiny about whether it operates as a pyramid scheme, but the company claims to meet Federal Trade Commission (FTC) standards. While they sell legitimate products and base compensation on sales, the heavy emphasis on recruitment can give the impression of a potential scam.
Ultimately, whether Ambit Energy is perceived as a pyramid scheme or a legitimate MLM depends on individual perspectives and experiences.
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What Products Does Ambit Energy Sell?
Ambit Energy is a power solutions provider, serving customers across 17 states in the United States. They offer a range of gas and electrical power services designed to meet diverse customer needs.
Here’s an overview of what they provide:
Commercial Services
For over a year, Ambit Energy has been assisting businesses in reducing their energy expenses. With a dedicated team of experts, they simplify the process and help companies save money through special benefits and competitive pricing.
Ambit Energy and Green-e Energy
Ambit Energy’s Green Plans are available in select areas, which can limit contractors’ ability to recruit clients. However, Ambit Energy is committed to environmental sustainability and customer satisfaction, heavily promoting its green energy services. Renewable energy is a rapidly growing market, especially with the increasing focus on climate change. Independent Consultants are enthusiastic about this product, provided it’s available in their state.
Solar Savings
Ambit Energy offers Solar Savings for environmentally conscious consumers through a partnership with Sunrun, a leading solar power provider. This service is available in six out of their seventeen operational states. While it’s a compelling selling point, it’s important to note that this option is currently limited to those six states.
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How Does Ambit Energy MLM Work?
Ambit Energy leverages everyday individuals as representatives to promote their services, allowing them to earn commissions. Similar to other MLMs, Ambit Energy creates and offers its own products, and as representatives, we have the opportunity to resell these services and earn commissions. Additionally, the MLM model enables us to build a sales team and earn income from their sales efforts.
While some may classify Ambit Energy as a pyramid scheme due to its MLM structure, I can confidently confirm in my Ambit Energy review that it’s a legitimate MLM. The company provides natural gas and electricity services in 17 states across the USA, although rates can vary between individuals and states, making it less straightforward than a fixed price model.
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How To Make Money With Ambit Energy MLM?
There are two primary ways to earn money with Ambit Energy:
- Selling the Product Yourself
- Recruiting People and Earning Bonuses from Their Sales
Unlike pyramid schemes, Ambit Energy does not solely rely on recruitment to generate income. Instead, you earn bonuses based on the purchases and sales made by the people you recruit.
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What Is Ambit Energy’s Compensation Plan?
Understanding Ambit Energy’s business model requires reviewing their 4-page Compensation Plan, which outlines the various benefits and opportunities for earning, including the chance to earn free energy by introducing 15 customers to Ambit Energy.
Immediate Income
Ambit Energy offers two main perks in their MLM program: client perks and group perks, both of which are paid on a weekly basis. This allows you to start earning money quickly. By bringing in customers and supporting others to do the same, you can receive $100 for accumulating four consumer points. These points can be earned by enrolling customers in an energy plan or a personal website package. Additionally, you will be rewarded $100 for helping others achieve the same, emphasizing the recruiting aspect of the opportunity.
Leadership Income
When you register a new Marketing Consultant (MC) and they earn four client points within the first four weeks, you receive recurring bonuses based on the number of Marketing Consultant customers in your team. Management bonuses are also provided regularly, depending on client activity throughout the organization. All leadership benefits are determined by your level within the organization. Your bonuses will increase with the activity of your downline.
Residual Income
The earning potential for most Ambit Energy consumers aligns with the goals of their Independent Consultants. The amount of recurring commissions you earn varies based on the marketplace in the United States where you operate. You can build a network of six levels in your downline and earn commissions based on their consumer activity. Essentially, if your downlines make money, so do you.
MLMs often present complex tables that many people find difficult to comprehend, leading to aversion. However, making money in MLMs boils down to two core actions: selling Ambit Energy services or recruiting individuals. For a more comprehensive understanding, check out the informative 5-minute video linked below.
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How Much Does It Cost To Join Ambit Energy MLM?
Joining Ambit Energy’s MLM program requires an initial investment. Previously, the registration fee was $429, but it has now been reduced to a more affordable $75. This fee grants you access to become an Independent Consultant and start promoting Ambit Energy’s services.
In addition to the one-time registration fee, there is a recurring monthly cost of $24.95 for maintaining your personal website. This website is essential for managing your business, tracking your sales, and recruiting new team members.
Beyond these fees, there are no significant additional costs associated with joining the program. However, as with any business venture, there may be incidental expenses related to marketing materials, travel, or other business activities you choose to undertake.
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Can You Make Money With Ambit Energy?
Yes, it is possible to make money with Ambit Energy, but it’s important to recognize the challenges that come with network marketing. Success in MLMs often requires substantial time, effort, and dedication.
While earning money with multi-level marketing is achievable, it’s important to note that the success rate in this industry is generally low. Statistics show that over 90% of MLM participants make an average of $110 a year, which is often less than their expenses to remain active in the program. This can be attributed to the costs associated with maintaining membership and the difficulty in consistently recruiting new members and selling products.
The individuals who make substantial money with Ambit Energy are typically top salespeople who treat the business as a full-time endeavour rather than a part-time side hustle. These successful consultants often possess strong sales skills, a broad network, and the ability to motivate and manage a large team.
However, a major concern with Ambit Energy—and many MLMs—is the lack of an accessible income disclosure statement. This lack of transparency makes it difficult for potential recruits to make informed decisions about the realistic earning potential. It’s essential to approach the opportunity with caution and realistic expectations, understanding that significant earnings are not guaranteed and typically achieved by a small percentage of participants.
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Ambit Energy Reviews and Complaints
To determine whether Ambit Energy is a scam or a legitimate business, it’s crucial to consider customer reviews and complaints. A quick Google search will provide access to numerous Ambit Energy reviews on platforms such as the Better Business Bureau (BBB), Yelp, and Consumer Affairs.
Yelp Reviews
On Yelp, Ambit Energy has received a low rating of 2 stars based on 115 reviews.
Many customers have expressed dissatisfaction with the company’s services, citing issues such as high variable rates after initial contract periods and difficulties with customer service.
Consumer Affairs Reviews
Consumer Affairs also features numerous Ambit Energy reviews, many of which are complaints. Out of 820 customer reviews, Ambit Energy has received a rating of 2.7 stars. Here are some of the most critical reviews:
- High Variable Rates: Customers often complain about the sudden increase in rates after their initial fixed-rate contract expires, leading to significantly higher bills.
- Customer Service Issues: There are numerous complaints about poor customer service, including long wait times, unhelpful representatives, and difficulties in resolving billing issues.
- Misleading Sales Practices: Some reviews mention aggressive or misleading sales tactics used by Independent Consultants, which have left customers feeling misled about the true cost of the service.
Claims of Scam or Pyramid Scheme
Some people claim that Ambit Energy is a scam or a pyramid scheme in their reviews. However, it is essential to note that despite these claims, the company operates legitimately within the bounds of MLM practices. These negative reviews often come from dissatisfied customers who had different expectations or experienced issues with the service.
While negative reviews and complaints are prevalent, it’s important to consider the context and the nature of the MLM business model. Customer experiences can vary widely, and dissatisfaction often stems from specific incidents or misunderstandings about the pricing structure and MLM earnings potential.
When evaluating Ambit Energy, it’s crucial to consider both the positive and negative feedback from customers. While the company has faced criticism, particularly regarding pricing and customer service, it continues to operate and provide services across 17 states. Understanding these reviews can help potential customers and Independent Consultants make informed decisions about engaging with Ambit Energy.
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Ambit Energy Review: What I Like
Ambit Energy has garnered both praise and criticism over the years. Here, I want to highlight some of the key positive aspects that stand out about this company.
#1 It’s a Billion-Dollar Company
Ambit Energy has successfully established itself as a major player in the energy sector. In 2010, it was named the fastest-growing company in the USA, and by 2013, its valuation reached a billion dollars. This level of growth and financial success is a testament to the company’s strong market presence and operational effectiveness.
#2 Their Product Is In Demand
The services offered by Ambit Energy—electricity and natural gas—are essential and in constant demand. Unlike many crowded multi-level marketing companies that sell less useful products, Ambit Energy provides critical services needed by both households and businesses. This essential nature of their product base ensures a steady market and customer base.
#3 Green Energy Provider
There has been a significant shift in public opinion towards eco-friendly power solutions. More and more people are becoming aware of the dangers associated with global warming and are seeking legitimate ways to contribute to environmental sustainability. Ambit Energy’s commitment to green energy presents a significant opportunity for both the company and its representatives to make a positive impact.
Ambit Energy Review: What I Don’t Like
While Ambit Energy has several strengths, there are also some notable drawbacks that potential Independent Consultants and customers should be aware of. Here are the main concerns:
#1 Rate Increases
One of the most common complaints about Ambit Energy is the significant rate increases after the initial 1-2 year contract ends. Customers have reported that their power rates become considerably more expensive compared to other options, which can be frustrating and financially burdensome.
#2 Regular Monthly Costs
The $24.95 per month fee for maintaining a replica website is quite high compared to other MLM companies. While this cost covers the basics, it does not include training or additional benefits. To effectively attract visitors to the website, further investment in training is required. Simply having a website is not enough; knowing how to drive traffic to it is essential, and unfortunately, Ambit Energy does not provide adequate assistance in this area.
#3 Ambit Energy Legal Actions
Ambit Energy has faced several legal challenges, including a class-action lawsuit settled in March 2018 for $9.3 million and other suits filed in 2015. Multiple lawsuits against a company can be a red flag for potential recruits and customers. Despite these legal issues, it is important to note that Ambit Energy remains a legitimate MLM company.
#4 Compensation Plan
The details of Ambit Energy’s compensation plan are not readily accessible on their website. The compensation relies heavily on recruiting a large number of people to be profitable, as recurring payments are not particularly lucrative. This high recruitment requirement is a primary reason why many individuals give up and claim that Ambit Energy is a scam.
Ambit Energy Review: Conclusion
In my review, I’ve highlighted that while Ambit Energy is not a scam, it’s also not the best multi-level marketing firm out there. On the positive side, their service is commendable, and their compensation plan can be lucrative with the right effort and strategy.
However, there are several reasons why I don’t recommend this MLM—or any MLM for that matter. A significant concern is the lack of transparency in their business, especially regarding the earnings of their representatives. This raises doubts about whether their professionals are actually generating significant income.
Additionally, the increasing number of issues surrounding the company, including legal actions and customer complaints, further contributes to my hesitation in recommending Ambit Energy.
Despite these concerns, it’s important to note that Ambit Energy is a legitimate MLM and not a scam or pyramid scheme. If you believe in your skills and are willing to put in the work, you can pursue it as a real business opportunity.
Nevertheless, I recommend exploring the rest of this page to discover a much better way to make money online.
Thank you for reading my review of Ambit Energy. What is your opinion? Have you been a part of or are you still a member of this business? Feel free to share your reviews at the end of this page!
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Thanks for reading my Ambit Energy MLM Review! If you have any questions, or any experiences to share then please write them in the comments below. ;).
