Is Ambit Energy A Scam? The Shocking Truth REVEALED!

Welcome to my Ambit Energy review!

You may have heard or read about a company that sells electricity and gas while providing you with "business opportunities" at the same time. 

If you did, then you just stumbled across Ambit Energy.

First of all, I must Congratulate you for taking your time to do your own research before buying into any "seemingly good" product.

That's the way to avoid scams and find the legitimate way to make money online!

Let me be completely transparent with you, I'm not associated with Ambit Energy in any form.

So, rest assured that I'm not here to pitch or sell anything to you.

Instead, I'm here to reveal the truth behind the secretive company that is Ambit Energy and I'm going to take a look at what sets them apart from other companies.

Ambit Energy is an energy/multi-level marketing (MLM) company that provides electricity and gas.

Ambit Energy was founded by Jere Thompson Jr and Chris Chambless and opened up their headquarters in Dallas, Texas in 2006.

Ten years later, they offer their products and services to 17 states in the United States and are considered to be at the forefront in solar energy services.

In Feb of 2013, Ambit Energy joined the billion dollar club together with other MLM companies like Team National, Primerica, and Melaleuca.

Ambit Energy’s emergence proved that the huge energy corporations can’t have a monopoly in their marketplace. Ambit Energy provides their services through their distributors, who’re referred to as Independent Contractors or Consultant.

Now, Ambit Energy provides natural gas and power to 17 states in the USA. Now, I don’t have any rates to show you because they vary from one state to another.

They’re also competing against other utilities-based companies like ACN and Enagic Kangen Water.

Here’s a list of products and services that they provide.

1. Commercial Services

Ambit Energy helped small and large businesses cut their energy costs for more than a decade now.

They have commercial business experts in their roster that help with the process and helps save them from unnecessary fees by providing special benefits and competitive prices.

2. Ambit Energy and Green-e Energy

Ambit’s Green Plans are limited to some areas, so this limits their contractors’ potential of recruiting clients.

Because Amber Energy respects the environment and their customers, they are heavily promoting their green energy services.

Right now, renewable energy is a growing market with climate change being such a hot topic. That’s why their Independent Consultants are quick to jump at this product (if it’s available in their state).

3. Solar Savings

Ambit Energy’s Solar Savings is another option for their environmentally-conscious customers. Through their partnership with Sunrun, a leading solar energy provider, they are bale to provide solar services to 6 of their 17 areas nationwide.

Now this is a great selling point, but it’s a double-edged sword because it’s only limited to 6 states.

You’d think that a billion-dollar energy company like Ambit Energy would little to no complaints, but in the last 3 years alone, they had nearly 600 complaints with the BBB (Better Business Bureau) alone!

In the screenshots below, you’ll see that their complaints are focused on two areas:

• The product itself
• Their billing system

Allow me to shed some light on their billing system: When a new customer signs up to a plan, they receive what they ordered and all is well.

However, if they don’t renew their contract by choosing another plan or sticking with their current plan, they are AUTOMATICALLY switched to a MUCH HIGHER rate plan.

This new plan is a variable rate plan instead of a fixed rate plan, and is a lot higher. This has caused a lot of people to complain about their system as a whole.

Is this LEGITIMATE company trying to “craftily” mislead their own customers?

You be the judge.

Apart from providing cheaper energy, they also offer potential business opportunities to their customers, which is a multi-level marketing opportunity.

Now there are three ways for you to earn money with Ambit Energy:

• Get people to switch from their current energy supplier to Ambit Energy
• Recruit people into the business opportunity and you gain a percentage of their profit
• You earn money when people you recruit into the business opportunity also recruit other people

Ambit Energy’s idea here is to grow a network of people you’ve recruited beneath you, and the others beneath you will also try to recruit people under them.

As your downline grows, your income potential does too.

Ambit Energy used to cost $429 to join, which is a one-time fee. Now, they reduced it to $75 and I don’t think they’ll be increasing it any time soon.

On top of the one-time fee, you’ll also have a monthly recurring fee of $24.95 for your personal website maintenance.

That’s pretty much about it with their costs for joining Ambit Energy. 

In order for me to understand their business opportunity, I had to read through their 4-page Ambit Energy Compensation plan.

There are also other advantages to joining Ambit, which you’ll be able to take advantage of immediately:

1. The opportunity to earn free energy: you earn this reward after referring 15 customers to enroll in Ambit Energy as their energy provider. This makes their MLM program worth their while.
2. Travel rewards: you also earn travel rewards for referring customers or from earning reward points that can be exchanged for trips. While it doesn’t really make a profit, free stuff is always cool.

The Ambit Energy Compensation Plan does its best to not go into too much details but I was able to get you three ways on how you can earn money through Ambit Energy.

1. Customer & Team Bonuses

​​First you, have the customer and team bonuses. This is paid weekly and allows you to get started into earning quickly under the program.

You simply get customers into your business while sponsoring others to do the same. You can earn $100 for getting 4 customer points.

You earn these points by signing customers up to an energy plan or signing them up to a personal website package.

Then you also earn $100 for helping someone to do the same, hence, the recruitment part of their opportunity.

2. Residual Commissions

​This is what makes up the bulk of their customers’ earning potential, and is what their Independent Consultants are building towards.

The amounts you earn under residual commissions varies according to the market you’re operating within the USA. See what I mean when I say that they do their best into not giving out too much detail for their compensation plan?

You are able to build a network of 6 levels of downline where you can earn commissions based on your downlines’ customer activity.

To put it simply, when they earn, you earn.

3. Leadership Bonuses

​This is where you earn bonuses when you sign up a new MC or Marketing Consultant and him or her getting 4 customers points within their first 4 weeks. You also get paid a residual bonus based on any MC’s customers in your downline.

Leadership bonuses are also recurring, depending on the customer activity throughout the organization. All leadership bonuses depend on what level you are within the organization.

The more active your downline is, the higher your bonuses.

Meanwhile, here’s a video to help you understand their compensation plan:

To be honest, the compensation plan doesn’t impress me. In case I’ve been to subtle, I’d like to point out that you can’t make money with Ambit Energy.

Here’s why.

First, there’s little to no information available on their actual compensation plan figures (they don’t even have average rates) and a video is your only source of information on their website.

Residual payments are small, so you need to bring in a lot of people to make it worth your while.

This made me wonder. If their business opportunity is to provide people with FREE energy, then who paid for the $1.20 billion worth of energy bills in 2016?

This is important for me to point this out because MLM companies need to be transparent on how much their distributors are actually earning.

The fact that they don’t even disclose this figure supports my point about Ambit Energy having a terrible compensation plan.

I mean, if you were a contractor for Ambit Energy, wouldn’t you want to disclose how much you’re earning if you want to recruit people?

If that was the case, these people would be better off with other forms of income, like say, affiliate marketing. 

To date, there are only 17 locations where Ambit Energy services are available, and even fewer locations where their premium products (Green Energy and Solar Savings) are available.

This limits their consultants' opportunities to earning more for themselves and for the company.

This is a big turn-off for potential recruits when they discover that Ambit Energy is surrounded by negative complaints. 

So yeah, I’d say this type of bad publicity can’t be spun towards any Contractor’s advantage.

If you think complaints are bad enough, they also had to deal with a class action lawsuit, which they settled in March of 2018. 

Ambit Energy agreed to pay $26.5 million to settle a class action lawsuit alleging the company overcharged their NY customers for gas and electricity by rolling them off a Guaranteed Savings Plan and into Ambit's New York Select Variable Plan without proper authorization. 

The lawsuit also alleged that Ambit Energy did not provide the full amount of savings represented under its Guaranteed Savings Plan. 

Class Members included those who received services in the state of New York who were enrolled as customers of Ambit and were a part of any of Ambit's Guaranteed Savings Plan at any time during the period of Sept 5 2010 and Feb 22, 2018.

Recruitment is the fuel that helps run your money-making engine under Ambit Energy’s business opportunities. Every time a new consultant joins Ambit, they are now competing against new customers and MLM recruits with all of the existing Ambit consultants.

This means that potential profits earned by consultants decrease as more people join the MLM.

The problem with a recruitment-based model like Ambit Energy is that there’s no focus on organic customers. People are fixated on finding the next consultant rather than finding the best customer.

This means that a high percentage of customers are actually consultants. This poses a problem because a large percentage of bonuses a consultant earns is paid for by other consultants, and vice versa.

It’s only those at the top of tier who’ll actually turn a profit in their model.

Changing their joining fee from $429 to $75 was a major shift and makes their business opportunity more attractive to new customers.

Although I found it weird that customers were paying for an upfront cost for a company when the main point of their compensation plan is merely driven towards referrals.

Albeit not a financial benefit, a company that provides renewable energy deserves to have the spotlight for positive actions towards the environment.

Now if only contractors can effectively sell their renewable energy products to customers and if their renewable energy products are made available to more locations.

Ambit Energy’s product is more of a necessity than anything else: ENERGY. Households and companies need energy.

You’d think that this would be an easy product to sell because hey, we need gas and electricity. Sadly, their compensation plan and their complaints beg to differ.

If only they expanded into more states, then they’d be able to get a better reach for their products and their opportunities.

Ambit Energy is definitely not a scam. It’s not a great MLM company but it’s not the worst either.

Their products are good and their compensation plan is quite easy enough to understand without being talked to by one of their consultants.

The company’s lack of transparency is what really kills it for me to recommend this to anyone. By not being able to see their income disclosure statement, it really pushes me to assume that majority, if not all, of their consultants are not making any real money.

However, I would like to think that the growing number of complaints surrounding the company is what’s hindering consultants from being able to market Ambit Energy to its full potential.

I'm not a fan of MLM, not because it's illegal or not profitable, but because of all the restrictions and the expensive costs involved.

Instead, Affiliate Marketing is my top recommended business model for anyone to make money online.

The reason is simple...

• You don't have to recruit anyone to make money
• You have the freedom to promote any products you want and not being restricted to only promote the products from one MLM company
• It's Free to get started

In fact, with affiliate marketing...