April 7, 2021

Is Ambit Energy Legit or Another Pyramid Scheme in Disguise? [Review]

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Chances are someone has introduced Ambit Energy to you as a way to get free energy and work from home. 

But you're probably wondering if Ambit Energy is legit or just a scam. 

Ambit Energy MLM review: Is Ambit Energy Legit?

This honest Ambit Energy review, with videos, will reveal the true pros and cons of joining the MLM company so that you can make an informed decision if it is for you or not.

Ambit Energy MLM Review

The overview and rankings

Name: Ambit Energy

Founders: Jere Thompson Jr and Chris Chambless in 2006

Type: Gas and Electricity MLM

Products (Including Pricing): 10 out of 100

Success Stories: 1 out of 100

Price To Join MLM: $75 + $24.95 per month (65 out of 100)

What To Look For In An MLM:

  • Low start-up fee & maintenance cost
  • High-quality affordable products
  • You don’t have to carry inventory
  • An affiliate-like system 
  • Generous compensation plan
  • Company is in the early momentum phase

Ambit Energy MLM Pros

  • Proven company
  • Everyone needs energy
  • Green energy

Ambit Energy MLM Cons

  • Energy price increases
  • Monthly expenses
  • Pyramid scheme in disguise?
  • Ambit Energy lawsuits
  • Downward trend

Summary: Ambit Energy is an electricity and gas MLM company. It's similar to other MLM's such as Stream Energy.. It's similar to other MLM's such as Stream Energy.. People can use their services to supply their energy at home or for their business but the price increases a lot after the initial 1-2 year contract. 

It's possible for everyday people to sell these services to other people and receive "free energy". However, it's very hard for MLM consultants to make good money from the company unless they recruit a lot of people into the MLM business. Only 1 in 200 consultants make over $35k a year before expenses. 

Make Time Online Rating: 24 out of 100 

Recommended: No

What is Ambit Energy?

Ambit Energy is a Multi-Level-Marketing company that provides electricity and gas services. 

It supplies "deregulated energy" to help prevent certain big companies "monopolising" the industry and to provide different options and price points for different people's energy needs. 

The company does seem to provide competitive rates for a 1-2 year contract but then automatically places customers on the variable rate, which seem extremely high compared to competing energy suppliers. This has caused a lot of complaints as you will find out later in this Ambit Energy review. 

It was founded in 2006 and offers everyday people the opportunity to receive "free energy" (if they sell 15 packages) and make money by becoming "Independent Consultants" (IC). It's very similar to the Numis Energy MLM.

The 8 minute video below explains more about this opportunity...

Ambit Energy may appear to be a great way to "be your own boss" from this video. 

But you're smart enough to realise this is just a sales video from Ambit. 

So, you're probably wondering...

Is Ambit Energy a pyramid scheme?

No, Ambit Energy is not a pyramid scheme. 

Consultants can earn money by selling the energy service to other people. 

However, the only way to make good money ($1,000+ a month) or cover the costs of being a consultant is by recruiting a lot of people into the MLM business.

This makes Ambit Energy similar to a "pyramid scheme in disguise".

Here's what I mean by this...

What is a pyramid scheme?

A company that promises payment for recruiting people rather than selling a product or service. 

These are illegal in most countries. 

This is because it is impossible for everyone to make money as you can see in the Wikipedia diagram below...

Ambit Energy, like most MLMs, does provide a legit service. 

However, if you want to make good money just from Ambit, you will need to recruit people into the company. This means that most people you recruit will not be able to make decent money, even if you do. 

This makes Ambit energy very similar to a "pyramid scheme in disguise".

The 5 minute video below explains more about this...

Success is hard to find at Ambit Energy

In fact, success is rare inside most MLMs.

Did you know that between 73% and 99% of all MLM representatives lose money?

MLM FTC Fact Stat

You can see in Ambit Energy's 2018 income disclosure that 99.46% of "Independent Consultants" (IC) earnt less that $35k a year. 

That means that only 1 out of 200 IC's earn enough money from Ambit to realistically live without any other income.

Before we really dig into what this takes to earn this kind of money let's figure out...

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How does Ambit Energy Work?

Ambit Energy provides alternate rates for people's energy service at home or for businesses. 

They save money of advertising and marketing by getting everyday people to promote these services to others. These everyday people have the opportunity of earning commission and bonuses from making these sales. 

So in theory, it's like a win-win.

Ambit Energy products

If you are serious about joining any MLM company, it is vital that you understand what products they provide as this is what you will be selling!

Ambit Energy provides natural gas and electricity services to 17 states in the USA. Each individual and state will have slightly different rates so it's not as straightforward as having a set price. 

Here are some of the main services provided by Ambit:

  1. Commercial services- Helping small and large businesses
  2. Personal home services- Perks like "free energy" and giftcards
  3. Green energy- from sources such as wind
  4. Solar- Solar options for customers in 11 states
Is Ambit Energy Legit?

It's worth being aware that there are dozens of energy providers in the USA to compete with. Plus there are other very similar MLM companies such as ACN that offer similar services. 

So how does Ambit Energy stand out?...

Ambit Energy Free Energy- flagship product

The main selling point for Ambit Energy is that it's possible for people to get "free energy"...

Is Ambit Energy Legit?

To do this you have to refer 15 customers to Ambit, then you receive yours for free (by the way, that's not easy to do!)

Ambit also provides good "customer support" to accommodate individuals needs. However, from my experience all people care about from energy providers is how cheap they can get their energy for!

These are nice gimmicky sales tactics, but what do real people actually think about Ambit's services?

You can find out what real people think about a company from places like Consumer Affairs or the Better Business Bureau. And it doesn't really look very promising...

Is Ambit Energy Legit?
Ambit Energy review
Ambit Energy Review-

The only positive reviews I found were clearly from Ambit "IC's", like the one above, which is never a good sign. 

At the end of the day people just want their homes and business to be provided with energy for an affordable price.

Also note that there are many other MLMs out there that sell the same stuff as Ambit Energy:

The 2 minute video below explains a bit more about Ambit's services...

Can you make money with Ambit Energy?

It's very hard for anyone to make good money from Ambit.

Over 90% of consultants earn an average of $110 a year from Ambit, which is far less than their expenses just to be an active consultant.

The only people that seem to make decent money from Ambit appear to be very good sales people who treat it like a full time business, not a part time job. That's pretty different to how Ambit makes it seem like you can in that initial sales video!

How to make money with Ambit Energy

There are 2 main ways you can make money from Ambit Energy:

  1. Sell the energy services to receive a commission
  2. Recruit people to sell these services and earn bonuses from the sales they make

It's important to note that Ambit, like most MLMs, avoid being shut down as a pyramid scheme because you DO NOT make money just by recruiting people. 

You earn bonuses from any purchases these people you recruit make or any sales they make.

Before we dig into the compensation plan, you're probably wondering...

How much does it cost to join Ambit Energy MLM?

It costs a $75 one time fee to join Ambit as an "Independent Consultant" (IC)...

Ambit Energy price

It used to be $429, but the costs do not stop there...

Ambit Energy monthly cost

It will also cost $24.95 per month to receive a "consultant suite". This basically consists of a free replica website and tracking services to see who has joined from you.

This is extremely expensive and most MLM companies usually offer this for free as it doesn't really cost the company anything. 

You are realistically going to have to get your energy from Ambit too, otherwise you won't really know how the process works and it will make it much harder to sell to others. 

Total costs for the first year:

  • $75 
  • $24.95 x 12

1st year expenses = $374.40

This doesn't include your own energy costs that you will need to pay for from Ambit or any other training or marketing materials, such as your own website or paying for ads. 

The replica website may look nice but unless you get people to visit the website it's pretty much useless. 

Ambit Energy compensation plan

For some reason MLMs like to make their compensation plan harder to understand than an Irishman on St Patrick's day. 

So I will try to keep this as simple as possible...

There are 3 Ways to Earn with Ambit:

  1. Immediate income (jumpstart bonus and team builder bonus)
  2. Leadership income (when you or your team get promoted)
  3. Residual income (commission from your customers plans)

Those tables may look confusing to you. But you really don't need to worry about how you get paid. MLM companies often do this to make it seem like there are loads of ways to earn money. 

The truth is, you can only do 2 things to make money:

  1. Sell Ambit energy services
  2. Recruit people

And do you notice that recruiting people helps you to get paid in all 3 ways?

The 5 minute video below explains this in more detail if you'd like to get your head around it a bit more...

Or you can find the full 4-page Ambit Energy Compensation plan here.

Is Ambit Energy legit or a scam?

Yes, Ambit Energy is legit.  

Ambit Energy is not a scam because they offer legit energy services and they pay their IC's like they claim they will.

However, is this really an opportunity for you to work from home?

The rest of this Ambit Energy review will help you to make an informed decision...

Just to be fully transparent with you, I am not a distributor myself and I do not endorse Ambit Energy in any way.

I have researched the website, testimonials and information on the Internet to get to the bottom of what this program genuinely does. This is because I have been burnt from programs just like this in the past and I want to prevent others from making the same mistakes. If you’d like to learn how to “Spot an Online Marketing Scam” then click the highlighted text.

Tired of MLMs? Check out how I make money online here!

What I like about Ambit Energy

There are a few things that I do like about Ambit Energy compared to other MLMs...

Key Terms:

  • Pyramid Scheme – recruits members via a promise for payment from referring others to the service rather than providing a product
  • Affiliate Marketing- Connecting a customer to a product they are looking for and receiving a commission for doing so
  • Red Flag - A warning sign

#1 Billion dollar company

Ambit has proven itself to be a big company...

Is Ambit Energy Legit?

In 2010 it was recognised as the fastest growing company in the US and it reached the billion dollar valuation in 2013.

This is another great sign that Ambit Energy is legit and won't disappear tomorrow like many MLM companies do.  

#2 People pay for energy every month

The services provided are not going to disappear any time soon either. 

Every household and business needs the services provided from Ambit, unlike many other saturated MLM markets such as BeautycounterRodan and Fields or Young Living.

#3 Green energy

There is a huge shift in people's thinking with green energy. 

Many people are becoming more aware of the issues of global warming and if they can find a legit way to feel like they are making a contribution, then many people will take it. 

I think this is a huge selling point for Ambit Energy and this is how they could stand out compared to other energy providers. 

What I don't like about Ambit Energy

There are many hidden truths that most people won't find out before they join and it's too late.

#1 Price increases

The most common complaint on the BBB and consumer affairs is that the energy prices were either high compared to alternatives or there was a huge jump in price after their 1-2 year contract expired...

Ambit Energy review
Is Ambit Energy Legit?

This isn't me hand picking some of the bad ones either there are hundreds of complaints on the BBB alone. 

#2 Monthly expenses

The $24.95 for a replica website is an absurd amount of money each month and totally unrealistic compared to other MLM companies. 

You will have no control over this website it's just a ready made one that sits there. 

You may think that this will include training and things but this is really basic stuff. If you want to learn how to get visitors to this website, you will need to pay for additional training.

Having a website doesn't mean people will find it. Learning how to get people to find the website is the hard part and Ambit doesn't help with this. 

#3 Is Ambit Energy a pyramid scheme in disguise?

Here's the truth...

When you HAVE to recruit people to make any decent money, the company is very similar to a "pyramid scheme in disguise".

This means that it's impossible for everyone to make money within the company. 

Just watch a couple of minutes of the "business presentation" below...

When a company heavily focuses on trying to get you to recruit as this video does then this is a huge red flag. It's a sign that the company operates like a pyramid scheme in disguise.

MLM pyramid scheme

You can even find more of the same in the 2017 Ambit Energy Business Presentation Script. 

#4 Ambit Energy Lawsuits

There have been numerous class action lawsuits, such as the one they settled in March of 2018 for $9.3 million...

Is Ambit Energy Legit?

This is not the only one either.

There have been other lawsuits in 2015. It's never a good sign when there are multiple lawsuits against any company that you are interested in joining.  

#5 Downward trend

The final nail in the coffin for Ambit Energy can be found on Google Trends...

Ambit energy trend

When you compare how many people search for Ambit each month to other MLMs like Farmasi you can see that Ambit is going the wrong way. 

It's much easier to promote a company that more and more people are interested in that one that is on the decline.

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I've created a growing passive income online with no previous marketing skills or online experience... 

I've made a special video for you to explain exactly how I did this. 

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My opinion - Ambit Energy MLM

Ambit Energy does provide legit energy services, but you need to watch out for the hike in prices after the contract expires. 

But what do I think are your chances of making good money from Ambit as a consultant?

The only way you can make money from this MLM is by recruiting a lot of people into the MLM business. And you will need to do this knowing that 99.5% will not make $35k a year.

It's never been in my best interest to promote something to people knowing that they will likely lose money from it. 

How I make passive income online

MLMs are not scams or illegal. However, I'm not a fan of them because of the restrictions to the expensive products you have to promote.

Once I learnt about affiliate marketing, I realised it's a far superior business model because:

  • You can promote anything you want and truly own the business
  • You never need to sell to friends and family
  • It's completely free to start

In 2018 I had no idea what affiliate marketing was.

But I went from a full time PE teacher to making a passive income online within one year...

Mike PE teacher to Passive Income Online

If you want to discover how I did it then check out this special video I created which explains exactly how. You can also get your free 7-day bootcamp to get started.

Make Time Online Income

About the Author

Mike Beatty has built a passive income online whilst working as a full-time PE teacher without any marketing or technical experience. Learn more about how he's done it here.

Mike Beatty

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