Ambit Energy Review
Name: Ambit Energy
Website: ww2.ambitenergy.com, www.theambitstory.com
Founders: Chris Chambless & Jere Thompson Jr.
Price: $75 + $25/month website subscription
Rating: (3.5 / 5)
Is Ambit Energy a Scam?
No. Ambit is an energy service provider who also offers a multi level marketing business opportunity. They offer a customer referral program which allows customers to qualify for free credit on their bill, and/or a mlm business which I’ll discuss the ins and outs of inside this review. Ambit has been around since 2006. It made $1 million in its first year and $1 billion in revenue by 2013. The energy industry altogether is worth a total of $474 billion.
Ambit Energy is currently in 14 states, you can see if they offer service in your area by visiting their website. In my state of Pennsylvania, they are offering a 3% guaranteed savings with a 12 month contract. Either your bill is lesser, or they’ll mail you a check for the difference.
What is Ambit Energy All About?
Researching Ambit Energy I learned about energy deregulation. Energy monopolies are being broken up allowing customers to choose their energy service provider. Previously electric companies were making a profit from both the Generation Company and the Consumers. The government has to go into each state and pass deregulation laws to break up these monopoly companies.
They have currently gone into 28 states which are now in phases of deregulation. Ambit is currently in 14 of these states, and holds less than 3% of the customers. Essentially meaning there is room for growth.
Make Sense of This Jonathan!
You have the Generation Companies which generate energy. You have the Delivery Providers in your area which does not change. The electric company was making a profit on both the Generation Company and the Delivery to the consumer. These deregulation laws passed which no longer allows the Delivery Companies to make a profit off of the Generation.
Now you have the ability to choose a service provider. Currently the electric company chooses a service provider for you on the open market, purchases the energy, then turns around and sells it to you. Again, you can shop for your own service provider if you want too. This is where Ambit comes in; they are a service provider.
Your regular delivery company, your current utility provider, encourages you to choose your supply company. They will still provide you with the same customer assistance. After all they’re still your delivery company. You’re just buying it from your preferred energy provider.
The Good & the Bad
PRO #1 – $500 Billion Industry
PRO #2 – Save money on electric
PRO #3 – Lucrative compensation plan
PRO #4 – Provides a suite of websites
CON #1- $75 to start and $25/month for the websites
CON #2 – Direct selling and recruiting involved
CON #3 – Many customer complaints (will touch on this further down in my review)
I am in no way shape or form affiliated with this company or any within the energy industry. I’m just an Internet Marketer completing a thorough investigation and relaying this research to you so that you can make an educated decision on your next home based business.
Who Can Take Advantage of Ambit Energy?
- Anyone who would like to try and save money on energy costs.
Update: As of Nov. 2016 Ambit Energy is in 16 states and D.C.
- Anyone within the 16 states that it operates in who thinks they can build a home business from it.
Currently in California, Connecticut, Delaware, Illinois, Indiana, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, and Washington, D.C.
Ambit Energy Tools, Training & Support
- You can find several training videos on YouTube by the top earners of Ambit.
- Most of your support and training will come from your sponsor and/or upline.
- For a fee of $24.95 Ambit provides you with a suite of websites to help you sell the service/opportunity to customers. This includes a personalized website with your own domain, a customer website that translates in both english/spanish, and a platform called Power Zone where you can track your customers, consultants, and this includes training material.
Ambit Energy Price
If you’re interested in becoming a customer Ambit has a free energy program. They do not charge anything for you to switch. (Caution: Check with your current provider to make sure they do not charge a termination fee.)
Many years ago the business opportunity at Ambit cost $429 to start. However, today you can become a distributor for $75 and the cost of your websites which are $25/month.
How Do You Earn Money With Ambit Energy? | The Compensation Plan
- As a customer of Ambit you get an enrollment gift. This is a 2 nights/3 days stay at your choice of over 30 locations.
- When you sign up new customers they get the same gift. If you sign up 5 customers, you can choose another exciting travel package from a list of destinations.
- When you get 15 customers to enroll from your website, you qualify for free energy credit every month.
How does this work? If you look at your power bill you’ll see two costs that create your total; the generation costs and the delivery costs. Reminder: even if you change your service provider you still pay the electric company for delivery costs; everyone pays it. So you continue to pay for the utility company to deliver it, but you get free credit for the energy itself.
Example: Your monthly bill comes in, the delivery cost is $68 and the total kWh used amounts to $143 for a total of $211. You can get that credit for $143 from Ambit. So you only pay the delivery charge.
Explanation: Ambit takes the average of your 15 customers supply charges, add them up and divides them, then they give you the average as a free credit. (i.e. In our example the credit was for $143. Yours may be different. If the average came to $100 then you would’ve received $100 off of that bill.
How Do Distributors Get Paid?
- When you recruit 5 customers within your first 4 weeks as a consultant you earn $100.
- You can include your own house in your customer pool.
- This is a one time bonus.
- If you get 2 more within that time frame you can earn $50 more.
- When you recruit 3 more within 8 weeks, you can get another $100.
- Get 30 customers within 12 weeks or less for a total of $450 in bonuses.
Getting Promoted / 5-2-6 Rule
When you recruit someone, you can get a matched bonus on their first 4 weeks, 8 weeks, and 12 weeks bonuses. So when they make $100, you also get $100, and so on.
- 5 customers
- Sponsor 2 people
- Build a team of 6 people
Once you have 6 people in your downline you become a Regional Consultant. You get a $55 pay increase on those first weeks bonuses.
Once you get 18 people you become a Senior Consultant and get a pay increase of $80 (that’s $235 that you can earn bonuses and on unlimited levels).
When you help 5 people in your Senior Organization, you become an Executive Consultant and get another $80 pay increase. Earning $315 on everyone you personally sponsor and $215 on everyone else on unlimited levels.
Help 5 people become Executive and become a National Consultant (highest rank). Earn $340 on personally sponsored members bonuses, and $240 on your downline on unlimited levels.
Your focus will be to get 20 customers for your entire career. You can get more if you want.
Monthly Income Potential
As a distributor you earn a residual income on your customers and your team’s customers.
- You get paid up to 7 levels of MC, marketing consultants.
- Find 3 people to put on your first level.
- Your 3 finds 3 each and it puts 9 on your second level.
- All the way up to 7 levels would be a total of 3279 consultants and all from your first 3.
As far as customers, you should focus on getting 20 in your entire career. If everyone else gets 20. Look at the potential: (for illustration purposes only)
- Your 2nd level will be 60 customers.
- 3rd level will be 180.
- All the way up to the 7th level will sum up a total of 65,600 customers.
If 65k people get an electrical bill for the month of january. You get paid feb 15th. This is where residual income comes in from .05 on the first level up to $1.50 each customer on the 7th level.
Using the previous example, this would be $78,376 for all those customers. Even if you did half of that. If everyone got 10 customers a piece that would be 32,810 customers and $39,188 monthly residual income. Even half of that, 3 customers a piece, would be $11,757 a month for a total of around $130k a year. This shows the power of exponential growth; it’s like a snowball effect.
Monthly Customer Residual Bonuses
- Ambit pays you an extra .25 cents per customer once you become a Regional Consultant. If you had 9,857 customers in your organization that would be $2500 extra a month.
- Once you become a Senior Consultant you get .50 a customer.
- Executive earns .75
- National Consultants up to $1 each customer. On unlimited levels.
Ambit Energy Complaints
There are a lot of complaints of customers who forgot to renew their contract with Ambit and their energy rates sky rocket. The way Ambit works is they secure a low rate for you for the length of your contract. It is the consumer’s responsibility to renew their contract for another low rate. If you forget to renew, Ambit puts you on a variable rate and this rate can be extremely high.
Many of the customer complaints I found, the majority were due to this issue. At consumeraffair.com I found several reviews not only on Ambit but other service providers. I found that there were just as many negative reviews about our current electric companies. My electric company is PECO, and they had more negative reviews than Ambit. Therefore, I take these reviews with a grain of salt.
Red Alert: Do not forget to renew your contract!
My Final Opinion of Ambit Energy
I actually may be calling Ambit soon to see if they can save me money on my electric bills. I may or may not take part in the business opportunity. I need to weigh out my options. I’m currently a part time Internet Marketer, and if you don’t know the potential of owning an online business, check out my #1 recommendation.
I think that there is room to grow within Ambit. It’s a little worrisome though not knowing where the industry can go 5 years from now. Warren Buffet shared some wise words that if the price of oil goes down then it will have a negative effect on the energy industry. On the flipside if it remained the same or even went up that it could be a good investment. This is the risk every business owner must face when starting up business.
I choose to invest my time on the internet. The internet has grown so much within the past 20 years and I can only see it getting bigger. Currently there are over 3.2 billion people online today with over a trillion dollars being spent online. If you would like to leverage the internet and create an online business;
Check Out the Vehicle That Can Take You There!
Ambit Energy at a Glance…
Name: Ambit Energy
Website: ww2.ambitenergy.com, www.theambitstory.com
Founders: Chris Chambless, Jere Thompson Jr.
Price: $75 + $25/month website subscription
Rating: (3.5 / 5)
What’s your opinion about Ambit Energy? Do you have a personal experience with their product/service? If so, I would love to hear about it.
Let me know in the comments below! 😀
I appreciate your feedback. It truly does help others!
Sources and Photo Credits: https://youtu.be/OLnmg8NVyXc, ww2.ambitenergy.com, www.theambitstory.com
4 thoughts on “A Thorough Review of the Opportunity at Ambit Energy”
It just goes to show the kind of money the power companies are earning from us when you look at how much money can be paid out with the compensation plan Ambit uses for its distributors. I live in Canada, so we have no way of making any such savings as of yet but look forward to the day of deregulation, so we’ll have proper competition for getting better rates.
Sounds like you have the making of a good way to say some money on your electric bills.
Hey Travis, I’m looking forward to it. I do believe that deregulation provides the proper competition as you said because without it we do not have the power to choose. So then how will be able to save? We would just have to trust the electric company that they are providing us with the best rates. I enjoy having the freedom of choice.
I haven’t gotten around to calling yet, but I should be soon. I’m all for saving money!
While Ambit Energy sounds interesting, I’m skeptical for two reasons. It’s an MLM. Lord save us from the MLMs.
Injecting an MLM structure in the energy delivery process only makes it less efficient. Less efficiency means more expensive.
In my experience with MLMs, the product is incidental. What they are really selling is the dream of financial independence. Once you buy the dream, which is an illusion, they have you by the short hairs.
I followed your link to learn how to build a legitimate online business and I have to say, it looks good. It looks real good. And no one asked me for my credit card.
Thank you for your input. I agree with you that MLM is a risky business. The fact that you have to put an initial investment makes it risky. I found that you can make it in just about any business if you only put in the effort. Many people nowadays, not saying you or me, give up when it gets a little hard.
If we’re able to sustain when challenged and overcome difficult situations, I believe we’ve won half the battle. It gets better when we have trained our mind to endure through the times. It takes time no matter what to make money in business. There’s no such thing as overnight success. So the question is, where will you invest your time?
Glad you enjoyed my #1 recommendation!