Everyone needs electricity. With the prices of electricity getting higher and higher all the time, wouldn’t it be nice if you could get some of it back? As an Ambit Energy consultant, you could do just that. In this Ambit Energy MLM review, I’ll take a look behind the curtain to see if this is really a good opportunity for you or if you will end up alienating your family and friends.
What is Ambit Energy MLM?
Ambit Energy was founded in 2006 by Jere Thompson and Chris Chambless and is headquartered in Dallas, Texas. They provide natural gas and electricity services in a number of states throughout the U.S. They have also expanded into Canada and Japan. They have over a million customers and have generated over $1.2 billion in revenue.
The energy deregulation created a unique opportunity for Ambit Energy. The company has been able to do is to take advantage of the deregulation by becoming licensed energy suppliers in a number of states to sell energy plans to customers.
Are Ambit Energy Plans Worth Their Price?
The price of the various plans vary according to state. Currently, Ambit Energy plans are available in California, Delaware, Connecticut, Washington, DC, Illinois, Maine, Maryland, Massachusetts, New Hampshire, New York, New Jersey, Rhode Island, Ohio, Pennsylvania, many parts of Texas and Virginia. If you happen to live in either Canada or Japan, there’s plans available there, too.
The plans are usually 2-year plans for electricity, gas and/or solar services. And customers are usually locked into those plans for the duration. The plans usually start out with a discounted rate per kWh of energy used. I took a sample from a 6-month term contract in the state of Connecticut.
You can see by this particular contract that you can cancel anytime without penalty. According to the many complaints, that’s not always the case with other contracts.
When customers first sign up with Ambit Energy, they are usually pretty happy with the savings presented. After the contract expires, and sometimes even before that, customers become irate because their electric bills suddenly spike without reason or warning.
The Ambit Energy MLM Opportunity
Since Ambit Energy is an MLM model, you make money by selling plans to customers while recruiting customers to also become consultants. This expands your network and allows you to move up the ladder to more leadership roles.
As a consultant, you’ll present different plan options to customers based on their energy usage. Plans are fixed, variable or green in most cases. In the case of Connecticut, the plans are two fixed and one green plan as you can see by the sample above.
How Much Does It Cost to Join Ambit Energy?
To get started with Ambit Energy, you need to pay a $75 signup fee. You’ll also have to pay $24.95 per month to build your own web tools. You’ll also get access to training videos and webinars, coaching and support.
Can You Make Money with Ambit Energy?
In order to make back your initial investment of $100, you find three people to become customers. Not only will you make your money back, you can also qualify for a reduction in your energy bill or even free energy. If you can get a few of those customers to start a business as well, you’ll be creating your downline and be promoted up through the company and receive leadership bonuses. As your business continues to grow, you’ll receive residual income through the sales from your down line of consultants.
Above is a sample grid for the state of Texas. Each state will have a different grid.
Ambit Energy was named by Inc. Magazine as the fastest growing privately held company in 2010.
Because everyone uses electricity, it should be easy enough to convince your friends and family to jump on board and save money with these plans.
You can also sell electricity plans to small and large commercial businesses.
If you read the complaints on the BBB (Better Business Bureau) site, you’ll see numerous complaints all reflecting the same issue. Ambit signs up customers on a low-rate fixed plan. When the plan expires the prices jump to exorbitant levels. Many complaints about being swindled and overcharged.
Class Action Lawsuits
Ambit Energy was sued in a class action lawsuit for fraud, overcharging, and misrepresenting savings in their Guaranteed Savings Plan in the state of New York. The case was settled for $26.5 million. A similar suit was also filed in Pennsylvania.
Whenever you switch companies for anything, it’s usually a pretty seamless process. Afterall, that new company wants to make a good impression on you and make you feel confident that you made the right choice in switching companies. Whether it’s your insurance company, mobile phone service or cable service. It’s usually pretty easy and straightforward.
Ambit Energy guarantees that your service won’t be interrupted during the switching process. To have a guarantee that your electricity service won’t be interrupted during a changeover seems a little humorous to me. They really should be guaranteeing that they won’t automatically sign you up to a more expensive plan when your contract expires.
Is Ambit Energy a Scam?
I have to say, I watched the video and wow, what a sales pitch! It’s pretty convincing. Ambit Energy makes it sound like you are doing your friends and family a favour by providing them with an opportunity to switch electric companies. Ambit makes the opportunity sound almost like a service to humanity.
Remember those class-action lawsuits? Let’s not forget about them. Questionable business practices are not uncommon with MLM business models.
Here’s what you need to know. This is an MLM. No question. In order to make money you have to create a team so you can earn residual income from their sales. That’s what MLMs are all about. When your team members quit because they can’t get people to sign up or their customers are unhappy with a price increase, there goes your income unless you can hustle for more customers yourself. And once again, you are out of pocket before you make a penny.
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