Ambit Energy Review 2013

Ambit Energy 2013 Review

Recently, I have been approached by a few people asking me for my two cents about joining an energy broker MLM such as Ambit Energy. Instead of just giving my opinions on top of my head (people’s cents come pretty cheap everywhere online these days), I decided to do in-depth due diligence on the company and opportunity to put myself in the shoes of those that are seriously considering joining the company.

So in addition to my own research, I also consulted advice from industry veterans and “insiders” such as Troy Dooly (MLM Help Desk),  Len Clements (InsideNM.com), Ted Nuyten (BusinessForHome.org), and Rod Cook (MLM Watchdog).

Here are my findings…

Overview

Ambit Energy was founded in early 2006 at a Potbelly’s restaurant in Addison, Texas, USA over a couple of turkey sandwiches. Introduced through a mutual friend, Jere Thompson and Chris Chambless met for lunch to discuss energy deregulation. They liked the opportunity, and they liked each other.

During lunch, they made a few important decisions: to build the finest and most respected retail energy company in America, provide affordable electricity and gas, and to never sacrifice their integrity for growth.

In 2008, Ambit recorded revenues of almost $200 million and nearly $325 million in 2009. In 2010  the biggest achievement was being named “America’s Fastest-Growing Private Company” by Inc. magazine, which placed Ambit on top of the publication’s renowned “Inc. 500″ list.

At this time, Ambit delivers energy services in New York, Maryland, Pennsylvania, Illinois, Texas, New Jersey, and California. The company is a member of the Direct Selling Association (DSA). The company has more than 150,000 independent sales consultants. Revenue for 2010 was $417 million and in estimated to be $650 million in 2011.

Products

Ambit Energy provides power and natural gas in 9 states in the United States and has a mission to be the finest and most respected retail energy provider. All across America, state governments are evaluating the impact of deregulating their electric monopolies to provide their citizens with greater choice, lower prices and more innovative products. Several states now allow competition. Texas was an early leader. California is the most recent state that deregulated its energy. Other states may continue to follow in the future.

Energy Deregulation Map

If you’re an Ambit Energy residential or commercial customer, Ambit Energy wants to reward you for becoming a loyal customer by offering competitive energy prices and creating an attractive customer rewards programs in the industry.

Ambit Energy Marketing

You may read more about Ambit’s Compensation Plan, Management, and Top Producers at BusinessForHome.org.

Competition: The “Energy Wars”

While competition is normal for all businesses, the competition is especially intense with energy MLMs because energy (electricity and natural gas) is a commodity and the product is the same with every energy reseller. The only difference is price. At the moment, Ambit Energy has at least ten other direct competitors:

The MLM Help Desk has a few articles covering this Energy War you may want to check out…

Concerns Voiced By Industry Insiders

If you are interested to see what industry veterans and “insiders” have to say about Ambit, here are some excerpts I’ve discovered after doing my due diligence or personally interviewing them:

“Energy (MLMs) is a high risk niche because energy is a commodity though some of these companies truly have their act together.”

Troy Dooly of MLMHelpDesk.com

“My main concern is that there is very little income potential from the overrides on power, especially when the provider is a reseller. There just isn’t enough margin. So, like long distance and cable services, they charge several hundred dollars up front as a ‘training fee’ then pay out large ‘Customer Acquisition Bonuses’ (CAB) from that training fees. And there are many problems associated with this model…”

Len Clements of InsideNM.com

“If I were you I’d be very careful about building a business with a non-unique product or service which such a limited market. Don’t get me wrong, the idea of getting paid of something you’re already using sounds amazing, however, if you don’t have access to a major market share then only the few top dogs who really hit it are going to make the serious money. And if the product or service is not unique, you pretty much have major competition that’ll have price-wars with your company which makes it hard to create a loyal customer base funding your residual income stream, and further making it harder for the little guy on the bottom to win.” 

How These Concerns May Affect Your Future Success

The problem with this is two-fold: First, it’s a one time event. To keep these lucrative CAB bonuses flowing requires the constant, never ending influx of new distributors. Secondly, it is only paid from the recruitment of new distributors. In fact, some companies, like ACN and Ignite/Stream Energy, and even Ambit, have all been sued in civil court for being pyramid schemes for specifically this reason (CAB bonuses). So far ACN has won 3 out of 3 cases and I think the other two are still going. Last I heard Ambit had the case thrown out, but 5th Circuit appeals court reopened it. Eventually both cases will probably settle, but all of these energy companies have to remain undefeated. If even one loses on the basis that CAB bonuses make it an illegal pyramid, then that can create a precedence that will be used to attack all of them on.

Ambit Energy Hit With $1 Billion Dollar Lawsuit Which Eventually Settled

More Details About Ambit and CAB Bonus Lawsuits:

Eventually the cases currently in court will probably settle, but all of these energy companies (and even companies that have CAB Bonuses as a central component to their compensation plan) have to remain undefeated in court or else their compensation plans will be deemed an illegal pyramid.

“If even one (court case) loses on the basis that CAB bonuses make it an illegal pyramid, then that can create a precedence that will be used to attack all of them on.”

- Len Clements of InsideNM.com

Perhaps this is why Troy Dooley calls Ambit Energy and any energy MLM company a high risk niche because of the many variables which can affect the margins from reselling energy.

The Bottom Line

Ambit Energy is a well-managed company and well positioned in the energy MLM sector. However, just like getting into a marriage, a smart and responsible distributor must consider the long term prospects because the last thing one would want to do is to pour your blood, sweat, and tears into building an MLM business that has serious flaws with its foundation.

The Pros

  • Timing: In certain states such as California that recently became energy deregulated, it’s first movers advantage.
  • Easy to Market: Getting prospects to save or make money with something they are already buying should not be a hard-sell in a tough economy compared to a product that requires purchases with disposable income.

The Risks

  • Large Bonuses But Minimal Residuals: Substantial income comes from recruitment CAB bonuses and not residuals from recurring energy purchases due to low margins.
  • Limited Market Potential: The limited ability to open up new market can affect your business’s ability for long-term growth and stability.
  • Legally “Untested” Comp Plan: The fate of CAB bonus driven comp plans are still legally up in the air. The last thing you want happening is building a very successful business then the company having to change its compensation plan in the future due to a court order and have your income significantly reduced.

Whichever side you decide to take, I’d like to personally congratulate you for your decision to take back control of your life and join the network marketing industry. I hope this review provides you with vital insider information that can help you make your decision.

Good luck!

To your health and prosperity,

Signature

Disclaimer: I am not a distributor for nor affiliated with Ambit Energy or any of the companies mentioned in this article.

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  • Karl Burson

    Amazing how you print this article after the billion dollar lawsuit has been won by ambit….yet not mentioned. They are in 9 states not 7. My findings when I looked at the company were … 2010 Inc.500 has them listed as the fastest growing business at over 20,000% That is great during times like these and only in 3 states at the time. I see they went from a A rating at the BBB to a A+ this year and hit 1 million customers and over 1 billion dollars. Looks like this is a good company to study.

    • http://denislam.com/ Denis Lam

      Hi Karl, thanks so much for visiting my blog and thank you for your comment!

      You’re obviously very knowledgeable about Ambit. I’m not sure if you are an Ambit Energy Broker or not, but either way I really appreciate your input!

      As you know, I’m not an Ambit energy broker so I do not have the latest real time information and statistics about the company. The article was also written at the beginning of the year and at the time and the facts I’ve dug up from my sources posted in the post may have been outdated due to Ambit’s growth. Thanks to your due diligence, I have updated the post to reflect the 9 states instead of 7 to keep the facts up to date.

      As for the billion dollar lawsuit, I was not aware that Ambit won the case or the case was thrown out. But it seems very likely you are correct because Ambit is still operating legally today and the experts even suggested that “Last I heard Ambit had the case thrown out, but 5th Circuit appeals court reopened it. Eventually both cases will probably settle.”

      To make sure readers are not misinformed that the lawsuit is still ongoing… I have added a note to clarify that the lawsuit is now settled.

      I do not disagree with you that Ambit is experiencing momentum and has good management, I believe the important point these experts were trying to make was not that Ambit is an illegal company. Rather, I believe they were trying to say that all MLM companies with CAB bonuses in their compensation plan has a very real risk of getting shut down anytime for being a illegal pyramid.

      These companies can all continue to flex their legal war chest to settle lawsuits, however, “if even one in the industry loses on the basis of CAB bonuses make it an illegal pyramid, then that can used to attack all of them on” which includes Ambit. The expert who analyzed this is a certified MLM witness by the U.S. court of law and has actively participated in or studied numerous MLM lawsuits in the past.

      With the recent shutdown of a Fortune High-Tech Marketing and Zeek Rewards, I believe these experts suggest that the responsible entrepreneur should not ignore these risks when deciding on a primary MLM company to partner with for the long haul.

    • Shane Schloesser

      The BBB has been known to sell A+ ratings, take a look at Hawaii BBB a couple years back and also the largest BBB chapter:http://www.inc.com/samuel-wagreich/los-angeles-bbb-chapter-expelled-from-national-organization-due-to-scandal.html

      You cannot receive an A+ rating unless you pay them. Fastest growing company……remember these fast growing companies…..Worldcom….Enron…..

      • http://denislam.com/ Denis Lam

        Hey Shane, thank you for sharing some insightful information about Ambit’s growth. Just curious, do you know if all the reps and customers you mention are “active” paying reps and customers? I know many companies like to claim big numbers, but most of the time, they’re not always active and just refers to the number of accounts opened with the company. If indeed your stats are true, that’s testament to the momentum and growth Ambit is having. Kudos! On the other hand, are you an Ambit broker?

        You are right about the BBB. It’s not the best un-biased “business rating” organization out there but at the same time, it does give at least some measurements of customer satisfaction… if you have a company that has lots of complaints… well, then I would question why so many customers want to complain? I doubt BBB puts up fake complaints though because that would be outrageous.

        The interesting correlation to the short-lived fast growth companies you mentioned such as Worldcom and Enron is that they are service or commodity-trading companies. In my opinion as well as the opinions of many “insiders” mentioned in my article, services and commodity-trading companies are definitely in a much higher risk niche as compared to consumable product-based companies. However, if Ambit is emerging as the A-tier direct sales company in this niche, that’s a very good thing because there’s already enough negativity and dirt on service and commodity-deregulation type MLM’s…

        In fact, let’s really hope Ambit or ANY other MLM doesn’t fold because the last thing our great industry needs is more negative PR (i.e. Zeek Rewards, FHTM, and even legitimate companies like the recent Herbalife fiasco). No company is ever perfect, but I hope each company can always strive for perfection and never forget about the customers and rep’s rights…

        • http://denislam.com/ Denis Lam

          Dear RRE, I apologize if my article offended you or your company in any way. I also appreciate you for pointing out that you are an Ambit energy broker and offering your view about the company you represent so you can be transparent about your agenda.

          I admit that I am no professional investigative journalist, writer, or Ambit broker or expert, but my intention for writing this article (as mentioned in the introduction) was to be as objective as possible to help a friend perform her due diligence on the company by researching statements from individuals that I and thousands of others believe to be credible and well respected industry experts – Len Clements, Troy Dooly, Ted Nuyten, and Rod Cook.

          You can do your own research on those individuals – they run some of the most viewed and popular MLM blogs on the net, and there are many that respect them for their opinions and transparency.

          In fact, I went to the length of personally contacting and speaking to some of those individuals to obtain their opinions which was the basis of this article.

          Furthermore, to be transparent with my research, I even wrote down the sources I quoted. I suggest that if you have issues with any of those individuals you personally contact them and argue your case.

          I also strongly believe that no company or opportunity is perfect, including the one I represent. This is what creates free enterprise and is the reason why not every network marketer is aligned with one company.

          I believe slandering or demonizing any company or individual is wrong and unethical; and I hope nobody views my article as that or does that on my blog comments.

          I also believe that there are always pros and cons to everything, and everyone has the right to express their opinions and be informed of different views so they can make an educated decision on any given company that they plan on dedicating their future to.

          Obviously, not everyone is in Ambit (or any other single company), and there may be many interested to learn why some individuals with credible track records in MLM are are not in Ambit.

          However, it does not mean Ambit is a bad company or is a bad fit for everyone, and clearly, the points mentioned by these authors are NOT deal breakers, which is why Ambit is still growing, as you zealously pointed out.

          In response to your points #3, #4, and #5, I actually do not have any arguments against them… I do not believe my article or any of the authors I quoted mentioned anything that attacks Ambit’s credibility as a fast-growing company in its industry, so you are singing to the choir.

          Clearly you are very proud to be an Ambit energy broker and I applaud you for having that passion for your business.

          #1 & 2- RRE, you seem like a leader doing very well and making significant income from Ambit. If so, congratulations!

          Why don’t you consider revealing your name and identity so that individuals that are interested in learning more about Ambit can contact you? I’m sure those interested in Ambit would like to work with a leader that’s doing well, and you can be the one to train them so they can reach the level of success you have.

          Now, it is a fact that product, commodity, or service brokerages generally rely a lot more on CAB bonuses in their comp plan because there’s no way they can pay out a high enough compensation to their reps as compared to a company that actually owns their unique, manufactured products or services and can command higher margins. Thus, I believe the authors I quoted suggest that that is why these companies are at a higher risk than companies that have higher margins to begin with.

          Lastly, what you mention is true in any MLM: “Anyone that stays and builds a (big) business” will earn a substantial income. But I believe you missed the point that Len, Troy, and the other authors were trying to make, which is the fact that CAB bonuses (from recruitment) play a big part in Ambit’s comp plan. How well you and others do in Ambit’s comp plan due to how long they’ve been in the business or advanced to Ambit’s leadership levels is not relevant to their argument.

          #6- In any legitimate MLM, everyone should have the chance to make more than the people above them. Ambit is no different and your argument that reps under you make more than you is proof of that.

          The argument is simple, let’s say the potential business that all MLM companies combined can obtain in all the markets it can legally do business is represented by a pie. More reps joinining a company means the pie is split among more people.

          Because Ambit is in a handful of states within the U.S. and probably will not have international expansion ability, the amount of pie that can be shared among Ambit reps is smaller than that of companies that are actually nationwide or in different countries.

          #7 – I believe you misread what the author, Len, said. He didn’t say that if one company’s CAB bonus was ruled illegal, all others would be automatically illegal and get shut down. (Len Clements, by the way, is one of the very few, incredibly well-respected experts and legal witnesses in multiple landmark MLM cases).

          He said it will set a PRECEDENT.

          A company’s comp plan that relies more on CAB bonuses means a higher potential to deal with lawsuits from unhappy reps, customers, or really ANYONE that wants to use this precedent.

          Any company can always hire amazing executives and win tons of awards and accolades, but no individual nor company can always be above the law. While some individuals may not say that’s a deal breaker and say that’s an acceptable risk, others may not have the same risk tolerance because, if the worse case scenario happens, it’s entirely out of their control. After all, in the entire history of direct sales, MLM’s that deal with energy brokering are quite new and legally untested as compared to those that focus on consumable products.

          #8 – Thanks for clarifying that Ambit has the ability to purchase large volumes of energy at lower rates compared to its competitors for its brokers to sell to others. This makes sense of why Ambit can outperform its direct sales competitors, but it still does not change the fact that Ambit doesn’t own its products and can be affected literally overnight by the whims of the commodity market. In my opinion, CAB bonuses will always be an integral part of Ambit’s comp plan by necessity to allow it to stay competitive.

          As far as me having an “agenda”, I give! You caught me. You’re absolutely right.

          But, don’t we all have one?

          I believe that practically everyone in the world has even several different agendas for different reasons and about different things. It’s part of our human nature.

          The mom and pop who start a coffee shop in their small town have an agenda: to make money.

          Now, that in itself is not a bad thing, is it?

          As long as they do it honestly, giving the best of themselves and treating their customers and employees with dignity and respect and give them what they want, there’s nothing wrong with their agenda.

          The agenda of the employees is to earn some money too, but without having to go through the hassles of starting their own business.

          The customers have their own agenda(s), at least to enjoy a delicious hot cup of coffee and a pastry without going through the hassle of making them themselves or wash the dishes once they’re done.

          I also respect your agenda and you are very much entitled to it.

          The truth is that, from the moment I set up this blog I’ve had my agendas as I’m sure almost everyone else who’s set up a blog does. Be it making money, creating awareness about a cause they believe in, getting attention, looking for recognition, helping others (which studies show most helpers also enjoy because of how it makes us feel – proud, happy, etc.), or simply venting their frustrations about life to anyone who will listen.

          My agenda is to help as many as I can if anything I post helps them and grow my business at the same time. And I intend to continue doing that the very best I can, understanding that I always risk making mistakes because, after all, I’m only human.

          Thanks again for participating in my blog and I wish you great success in all of your endeavors, RRE.

          By the way, I respect your desire to comment anonymously, but I want you to know that you are always free to identify yourself as everyone else has, so far. I want you to feel safe when you come to this blog because everyone’s welcome, here.

          Plus, your comments may have a lot more weight because you’d be telling everyone that you stand behind what you write and are proud of it.

        • Tinker111

          Yes they are active!!

      • Brian

        The BBB is a joke. I don’t use the BBB for any rating reviews. The BBB has become a scam. I could share some horror stories about the BBB and their inaccuracies.

        • Justin Redpath

          If the BBB isn’t good enough, lets look at JD Power. 2014 JD Power rankings just were released and Ambit is #1 in three states – Pennsylvania, New Jersey & Connecticut. They were in the top 3 in the vast majority of others.

          I’d say JD Power is a reputable resource, thoughts?

  • Catherine de Bourgh

    THE WORST COMPANY EVER. Took me Five Months to straighten out overbilling of more than 6000.00. They swear they do not have a legal department to talk to! They Swear they do not have a billing department to talk to! My local energy company finally got it straightened out on the third try. Do not touch Ambit with a 39.5 foot pole.

    • http://denislam.com Denis Lam

      Catherine, sounds like you had a terrible experience. If the company is not able to assist you and you believe you exhausted all your options, perhaps you can submit a complaint to the Better Business Bureau?

    • Rodney Darbonne

      I use Ambit Energy and love using them…They have saved me money and their customer service is phenomenal. I will touch Ambit with any size pole.

    • Tinker111

      It was probably your local energy company’s fault… Just saying

  • Beth

    Nothing new here? The only person who make any money with any business is the owner, including the owner of a MLM business. Just ask yourself, do you own AMBIT Energy?

    • http://denislam.com/ Denis Lam

      You are correct Beth, being a business owner is a better way! And for those that do not have the ability, skills, experience, and risk-tolerance to start a traditional business, the network marketing industry is not perfect but is definitely the better way!

      • Sam I ambit

        I must say that ambit energy is doing more for many than just making them money! Leadership is not a born talent and if you get just that than you gained more than your investment! On the other hand have you had someone try or actually do the business out of anyone that you have talked to? This is the only MLM from experience that I don’t see as a pyramid. ACN, It Works, Amway all use stacking to get a higher income! You are not allowed by policy to do this in ambit! The people that say I want to try this business I thank them for their time and tell them to go “try”the new bacon burger at McDonald’s! The people that say I’m going to make this my primary income and do this business I invite them to join my team! I think that’s also why we keep a good name! It’s not about the investment to get in like other companies because if you can’t make your money back in a month you just accepted “no” and stopped! For everyone reading these posts I’m a first hand failure of ACN who literally depends on bringing in Suckers with the $$$$ signs to fund there program! That company doesn’t release any details until your in and the residual dollars keep shrinking! I was profitable but deemed a failure by all ACN leaders above me! Now I am making my family and many others families financially independent with Ambit Energy! Nothing is hidden from the public with this #1 energy provider! We don’t broker energy we are a retailer! Companies like ACN are brokers by acquiring customers for Xoom energy with a higher rate as a favor to the IBO and getting a small portion for taking more money out of the consumers pocket than the local power company they were initially involved with! Just go to http://www.ambitenergy.com and do your own research on the business! I have free energy for referring customers! 15 people can tell me I’m nuts but eventually those 15 people will be asking me to teach them the business! This is as legit as it gets people! That is all

        • Jay Whitlock

          Sam I ambit can you email me your contact information and I will call you. I read about Ambit today in Success From Home and believe that they would not put a company in their magazine that is a scam. drjaywhitlock@gmail.com
          Please, anyone else reading this do not send me junk. I hope by coming on this blog people will respect each others opinions and privacy.

          • Awendell

            Jay if Sam doesn’t reply let me know I’ll gladly sign u up.

          • Kevin Marino

            Jay … Don’t know where you are located but there are better options … FREE comes to mind …

            Do you want to ask your friends for $750 … knowing that 90% + will not even earn that back?

            Just setting the record straight …

        • Kevin Marino

          Sam … except that over 90% will never earn that $750 back which they pay to join and cover monthly website fees.

          • Lynda

            They must be sitting in their living rooms watching TV.

          • Kevin Marino

            Lynda … That is probably part of the issue!

            But unfortunately the “pay to play” just simply hurts FAR FAR more people than it will ever help …

  • RRE

    Your ‘review’ is missing quite a bit. It’s obvious you did a quick internet search and pieced together a short article parroting some views of a few others. It’s kind of sad really; you apparently have positive views on the network marketing industry yet you publish a very poorly written piece on one of the biggest recent success stories in Network Marketing. I don’t have the time to completely disassemble your article, but for those that will have the misfortune of stumbling upon this, I wanted to leave a few pieces of information.

    1. The author says “substantial income comes from bonuses and not residuals.”
    NOT ACCURATE. Yes, substantial income comes from bonuses… but ALSO from residuals for anyone who stays and builds a business. I speak from FIRST HAND experience as an Ambit Energy consultant.

    2. The “fate of the CAB bonus” is not determined as a whole and then applicable to ALL companies. Traditional marketing energy retailers have been operating with CAB bonuses since day one of their operations. The idea that any company using CAB bonuses is at risk is preposterous. There is much more to the equation. Fortune High-Tech has been shutdown in part because of the way THEY operated and they used some form of CAB bonuses. The author’s claim that if ONE company loses a court battle, all other will be considered illegal, is just ridiculous.

    3. Ambit Energy’s Chief Marketing Officer was just appointed as a Member of the Board of Directors of the Direct Sellers Association. It’s also worth noting that one of Ambit Energy’s investors is Joey Carter Jr. who was himself the CHAIRMAN of the Board of Directors at the Direct Selling Association. This is NOT a sign of a company “at risk” (as this article seems to suggest).

    4. Ambit Energy recently obtained a J.D. Power and Associates #1 Overall Customer Satisfaction Award. J.D. Power is NOT a BBB rating, though there is NOTHING wrong with the top BBB rating Ambit Energy has acquired. I don’t believe you can point to ANY other network marketing company with a J.D Power and Associates #1 rank. Again, not a sign of a company ‘at risk.’

    5. Jere Thompson Jr. (Ambit CEO) spent over 10 years as the Chairman of the Texas Toll Road Authority. This may not mean much to the author, but this speaks pretty highly of Mr. Thompson, and his rapport among powerful officials.

    6. The author included an anonymous quote with the words ‘only a few top dogs hit it’ and ‘harder for the little guy on the bottom.’ Again; SAD. No corroboration. No evidence. I am an Executive Consultant with Ambit Energy, making a decent income. However, there are QUITE a few people ‘BELOW’ me making MUCH MUCH more. The parroting of someone’s bogus view is not helpful to the network marketing industry.

    7. Though you mention Ambit’s ‘competitors,’ you fail to mention that Ambit Energy is crushing them. And you fail to mention the distinctions between them. Even one of your quotes draws an important distinction that is worth mentioning, but in your “in-depth” research, you failed to touch on it. Len mentions the disadvantage of being an energy reseller, as most of Ambit’s competitors are. Ambit is NOT a reseller. That’s huge.

    8. Finally, Ambit Energy has garnered licenses or approvals from state agencies to operate in dozens of market areas in the US. Approvals to operate in the energy market are not handed out lightly. And these approvals are not the same as operating as a “reseller.” Ambit Energy IS the energy company, purchasing energy for it’s customers from large wholesalers.

    Your article leads me to believe one of two things: You have an agenda that excludes Ambit Energy, or you just really need to take some classes on writing thorough reviews.

    • http://denislam.com/ Denis Lam

      Dear RRE, I apologize if my article offended you or your company in any way. I also appreciate you for pointing out that you are an Ambit energy broker and offering your view about the company you represent so you can be transparent about your agenda.

      I admit that I am no professional investigative journalist, writer, or Ambit broker or expert, but my intention for writing this article (as mentioned in the introduction) was to be as objective as possible to help a friend perform her due diligence on the company by researching statements from individuals that I and thousands of others believe to be credible and well respected industry experts – Len Clements, Troy Dooly, Ted Nuyten, and Rod Cook.

      You can do your own research on those individuals – they run some of the most viewed and popular MLM blogs on the net, and there are many that respect them for their opinions and transparency.

      In fact, I went to the length of personally contacting and speaking to some of those individuals to obtain their opinions which was the basis of this article.

      Furthermore, to be transparent with my research, I even wrote down the sources I quoted. I suggest that if you have issues with any of those individuals you personally contact them and argue your case.

      I also strongly believe that no company or opportunity is perfect, including the one I represent. This is what creates free enterprise and is the reason why not every network marketer is aligned with one company.

      I believe slandering or demonizing any company or individual is wrong and unethical; and I hope nobody views my article as that or does that on my blog comments.

      I also believe that there are always pros and cons to everything, and everyone has the right to express their opinions and be informed of different views so they can make an educated decision on any given company that they plan on dedicating their future to.

      Obviously, not everyone is in Ambit (or any other single company), and there may be many interested to learn why some individuals with credible track records in MLM are are not in Ambit.

      However, it does not mean Ambit is a bad company or is a bad fit for everyone, and clearly, the points mentioned by these authors are NOT deal breakers, which is why Ambit is still growing, as you zealously pointed out.

      In response to your points #3, #4, and #5, I actually do not have any arguments against them… I do not believe my article or any of the authors I quoted mentioned anything that attacks Ambit’s credibility as a fast-growing company in its industry, so you are singing to the choir.

      Clearly you are very proud to be an Ambit energy broker and I applaud you for having that passion for your business.

      #1 & 2- RRE, you seem like a leader doing very well and making significant income from Ambit. If so, congratulations!

      Why don’t you consider revealing your name and identity so that individuals that are interested in learning more about Ambit can contact you? I’m sure those interested in Ambit would like to work with a leader that’s doing well, and you can be the one to train them so they can reach the level of success you have.

      Now, it is a fact that product, commodity, or service brokerages generally rely a lot more on CAB bonuses in their comp plan because there’s no way they can pay out a high enough compensation to their reps as compared to a company that actually owns their unique, manufactured products or services and can command higher margins. Thus, I believe the authors I quoted suggest that that is why these companies are at a higher risk than companies that have higher margins to begin with.

      Lastly, what you mention is true in any MLM: “Anyone that stays and builds a (big) business” will earn a substantial income. But I believe you missed the point that Len, Troy, and the other authors were trying to make, which is the fact that CAB bonuses (from recruitment) play a big part in Ambit’s comp plan. How well you and others do in Ambit’s comp plan due to how long they’ve been in the business or advanced to Ambit’s leadership levels is not relevant to their argument.

      #6- In any legitimate MLM, everyone should have the chance to make more than the people above them. Ambit is no different and your argument that reps under you make more than you is proof of that.

      The argument is simple, let’s say the potential business that all MLM companies combined can obtain in all the markets it can legally do business is represented by a pie. More reps joinining a company means the pie is split among more people.

      Because Ambit is in a handful of states within the U.S. and probably will not have international expansion ability, the amount of pie that can be shared among Ambit reps is smaller than that of companies that are actually nationwide or in different countries.

      #7 – I believe you misread what the author, Len, said. He didn’t say that if one company’s CAB bonus was ruled illegal, all others would be automatically illegal and get shut down. (Len Clements, by the way, is one of the very few, incredibly well-respected experts and legal witnesses in multiple landmark MLM cases).

      He said it will set a PRECEDENT.

      A company’s comp plan that relies more on CAB bonuses means a higher potential to deal with lawsuits from unhappy reps, customers, or really ANYONE that wants to use this precedent.

      Any company can always hire amazing executives and win tons of awards and accolades, but no individual nor company can always be above the law. While some individuals may not say that’s a deal breaker and say that’s an acceptable risk, others may not have the same risk tolerance because, if the worse case scenario happens, it’s entirely out of their control. After all, in the entire history of direct sales, MLM’s that deal with energy brokering are quite new and legally untested as compared to those that focus on consumable products.

      #8 – Thanks for clarifying that Ambit has the ability to purchase large volumes of energy at lower rates compared to its competitors for its brokers to sell to others. This makes sense of why Ambit can outperform its direct sales competitors, but it still does not change the fact that Ambit doesn’t own its products and can be affected literally overnight by the whims of the commodity market. In my opinion, CAB bonuses will always be an integral part of Ambit’s comp plan by necessity to allow it to stay competitive.

      As far as me having an “agenda”, I give! You caught me. You’re absolutely right.

      But, don’t we all have one?

      I believe that practically everyone in the world has even several different agendas for different reasons and about different things. It’s part of our human nature.

      The mom and pop who start a coffee shop in their small town have an agenda: to make money.

      Now, that in itself is not a bad thing, is it?

      As long as they do it honestly, giving the best of themselves and treating their customers and employees with dignity and respect and give them what they want, there’s nothing wrong with their agenda.

      The agenda of the employees is to earn some money too, but without having to go through the hassles of starting their own business.

      The customers have their own agenda(s), at least to enjoy a delicious hot cup of coffee and a pastry without going through the hassle of making them themselves or wash the dishes once they’re done.

      I also respect your agenda and you are very much entitled to it.

      The truth is that, from the moment I set up this blog I’ve had my agendas as I’m sure almost everyone else who’s set up a blog does. Be it making money, creating awareness about a cause they believe in, getting attention, looking for recognition, helping others (which studies show most helpers also enjoy because of how it makes us feel – proud, happy, etc.), or simply venting their frustrations about life to anyone who will listen.

      My agenda is to help as many as I can if anything I post helps them and grow my business at the same time. And I intend to continue doing that the very best I can, understanding that I always risk making mistakes because, after all, I’m only human.

      Thanks again for participating in my blog and I wish you great success in all of your endeavors, RRE.

      By the way, I respect your desire to comment anonymously, but I want you to know that you are always free to identify yourself as everyone else has, so far. I want you to feel safe when you come to this blog because everyone’s welcome, here.

      Plus, your comments may have a lot more weight because you’d be telling everyone that you stand behind what you write and are proud of it.

      • Jason H

        Recently, I have encountered Ambit Energy sale force. My friend whom I see almost every week for exercise purpose. He approached me to join the Ambit in the sale force to earn big money. $425 to join in the sale team. I am sure that the $425 will not make you an employee of ambit, but only an independent contractor. Of course, I refused to join. I don’t like this type of sale concept. Among the $425, your up lines will get a portion of it. You need to recruit your own down lines in order to get your investment back. By the way, I am located in San Francisco, CA. I told my friend that I am not interested to join the team. But, he said that “as a friend, help me by changing your Gas company to Ambit, by giving me your gas bill, and I will do the rest. and I guarantee. You will save money every month.” I told me that my wife is already switched our local gas company to Ambit.

        I told my wife not to switch gas company to Ambit. I had a bad experience with Ambit in Houston TX, my rental property. I don’t quit remember what has happened, but I think I paid like a $100 to cancel or $100 to switch the gas service back to the local provider.

        Many of these individual contractors – the salespersons. will not get their money back, being at the bottom of the pyramid. There is a possible of class action.

        • http://www.yousaveat.energy526.com John W.

          When I get taken for money, I never forget about it. I feel sorry for you. You had a bad experience, and don’t quite remember what happened??? No fees,no cancellation fees. Sounds like you did not pay your bill and your gas company wanted the 100 bucks, not Ambit.

      • mike

        Jason… I wish you could remember.. Ambit does not charge any fee’s to switch to or from your incumbent provider. Ambit does not require contracts, there are no cancellation fee’s either. No Credit check … Also, your upline will not see a dollar until you bring in customers…
        Consultant’s can start to day…. and quickly blow right by their upline… the potential income can be life changing… 2 years (working) with AMbit can change your life… you will have to trust me on that one… the problem that no one has mentioned is that too many consultants run around making PROMISES that they cannot keep… Thanks for your time
        http://www.mymabitman.com

        • Ambit failed

          Jason Actually Ambit does charge a cancellation fee in texas $199.00 to be exact! check it online. this is because in Texas the electric company structure is different and Ambit does not have the best pricing and there are many instances of people being wrongfully canceled and their power being shut off due to the interchange between Ambit and the power utilities!

    • Ambit failed

      Actually the author is mostly correct although Ambit energy themselves is a company of distinction in the REP markets, the business model of recruiting friends and families as customer’s and consultants works only as long as they pay their bills on time and stay active! one late payment and they’re off as a customer then so much for their consultant status! And Ambits pricing is usually good but that in itself cannot motivate people to Either be customers or consultants! The travel program is useless! the free energy credit is good but most customers can’t be bothered and only consultant’s even try! The real issue is numbers in order to get to the point where you can make money you need to get to at least a senior consultant and do it fast, but you need a fresh pool of uninitiated people who are willing to give it a shot and get at least 20 customers each. On average only 1 in 7 will be customers and 1 in ten will try being a consultant then out of those that sign up as a consultant only 1 in 25 will get past the first 2 levels, this does work until they either have a dry spell or customers and consultants drop off! At least with Ambit you don’t go back to having to start all over again! in order to make a 6 figure salary off Ambit you’ll need a downline of at least 10K customers and 1500+ consultants.All in all Ambit will work for those who have the sticktoitiveness to hang on for the long run! Ambit is an exemplary company whose founders are doing it right!

    • Jimmy H

      This was a well-thought article, as someone who just joined Ambit but now has some major doubts, I really appreciate the authors investigation. You sir are a kool-aid drinker, no ability to do critical analysis when it’s a result you may not like. What a shame

    • Shawn E Gray

      BBB can be bought off many countless claims go against ambit that by the company’s own numbers 97% of the reps loss money 5:1 customer to rep that’s not good unless your ambit selling $300 memberships to work or charging $20 plus monthly hosting to service you rep again good for ambit not the rep or selling overpriced business cards,shirts,banners that they also make good money on ,txu,others every year just ream the small business Ambit does have decent rates with fair terms for small business and homes there mid to large or any one using 100,000 + kWh a year can fair better far from ambit but they do the small business fair as well as the home user they also offer the free energy for homes 15 customers that could help more then one lower income or single parent who has decent contacts in a area they service also they do a fair job of training with there reps .I they need better screening as they don’t screen very well due to the fact they allow a number of illegals to be part of the mlm (Note I have a number of Hispanic friends,clients,employees,1099 ,but don’t support those who break federal and state laws )You must be a citizen or have a work visa to be part of my business ,the free trip is a joke I can get the same deal 100 trips for a $500 fee online if you don’t mind using it during week on the off season on one of the two open times during the month ok grap it go.There are brokers who pay better and are better to the business who use over 100,000 kWh a year 80% of the retail in texas meets this.I do think the customer service is slightly better then most ,Contract is clear with ambit for homes not 15 pages like some or 15 pages on 5 in 6 point font ,A+ is a buy off at least the DFW markets as I they sold my last business partner a A+ ranking to the tune of a 2 person office in 2009 almost $1300 ,All that required in the dfw market to keep that if one or a thousand files get opened with your business in question is fill out a form thats about 4 question and 3mins to do .Wonderful say BBB DFW your still A+ nothing against you.I would say ambit is wonderful to the people at the top who work and earn to get there the other 97% not such a hot deal ,but if you get in the 1.5% of the company your good,I know a number of top producers in the texas market ,work you butt off get up high your good do nothing or look at as a part time business your going to loss you shirt ,they do right by there small 100,000 kWh or less customers very small -small user business and homes, but 100,000+ kWh or more use your better run the other way.Also J.D. Power is bought ranking they don’t rank you unless you pay.

      So not 100% one way feeling 50%/50% good to small bad to the big and screw 97% buy there own math independent agents.so I will not pay for a job win the pay is worse then average and you have one company to rep,I have a big problem paying to work a job or business or whatever ,If I make you money you pay me not the other way around ,by the way I been doing energy in Texas since the start 2003 ,My parent company pays for my website and hosting not just for me but for several thousand reps,a mirrored site cost about a quarter a month per rep or less since the don’t give the rep a url they give them a sub domain that cost nothing to ambit

      • nails159

        I wish I could read what you wrote here. Have you considered grammar or punctuation classes?

  • Me

    Two guys came into my store today and tried getting me to sign up. They showed me the 15 minute DVD and explained how everything works… I had to try really hard not to laugh right in their faces. This is absolutely a scam, it has the exact same rules and regulations that Zeek Rewards had haha. Whoever posted that comment under the name “RRE” is clearly a scammer and will definitely not reply to your comment or even think about telling us his real name/identity. Thanks for the article though! I at least had to read a few things about this “company”

    • Tinker111

      Actually, (I don’t know who RRE is) RRE is absolutely correct in everything he/she has said.
      And everyone in this blog can think what they wish…. But are you old enough to remember when long distance calling deregulated and you were able to choose your own provider…..?
      Well the same thing is happening right now with energy!
      Once all states become deregulated in energy you will HAVE to choose a supplier… So why not choose it now and get gauranteed savings?
      Think about it… The deregulation if energy will only happen once… And it’s happening now… In our lifetime…

      • Ben

        NOT guaranteed had the fixed billing and then it was “adjusted” over $300 and nyseg prices are still the same. trying to call to see if I change I will be charged a competition charge

  • Tinker111

    I can see You have not done your research thoroughly.
    Ambit Energy has changes many peoples lives… The cofounders are impeccable, the business model is outstanding, and the residual income exceeds anything anybody had ever imagined it could.
    I know people saving $90 and more each and every month on their energy bill.
    I also know people making hundreds, thousands, even hundreds of thousands of dollars each month in residual income by being a consultant with Ambit Energy.
    I am so happy we decided to parter with the #1 fastest growing independently help company in the USA according to INC 500 magazine!!! Ambit Energy has changed our lives and our children’s lives!!!!

    • tinker111

      It has changed our lives so much that we are on the cover o Success From Home Magazine… 2 yrs in a row!
      Let me know if I can ago you the business and how we can change your lives too!!!
      This business is AMAZING

  • Kevin Marino

    There is a company out there that is “similar” to Ambit … but is FREE to join.

    It is listed under competitors up at the top … North American Power … the commissions are incredible … TONS of up front $$ for people and a solid residual.

    There is NO reason that companies have to charge people to come work for them!

    • Nestor

      Hey Kevin, I checked BBB and all it says there is that this company is nothing but trouble. This is the address fellows>
      http://www.bbb.org/connecticut/business-reviews/electric-companies/north-american-power-and-gas-llc-in-norwalk-ct-87075773/
      Beware of the people that uses this type of blogs for desperate efforts to gain uninformed victims :)
      Thank you , but no thank you!

      • Kevin Marino

        Nestor … uninformed victim? Really? I have been in the energy sector for YEARS sold commercial and residential … And currently have customers in over 45 utility areas in the country. I am probably one of the most informed people you will ever meet in this industry!

        NAP is FREE … In fact they give you $50 to become a customer and upgrading to a rep is FREE. That means everyone begins in the positive … Ambit … To be a rep costs you $750 the first year! Who is a victim? Especially when over 90% never earn that money back!

        If you want to talk BBB about customers who ignore notices that their fixed rate terms are coming to an end … And then ignore another letter to all the customers that were on the variable rate going into Dec which told them to lock into fixed rates for the winter because there would be issues in the northeast … NAP was the ONLY company to do that. You can’t lock people into fixed rate contact without their consent …

        So I ask you … When does a customer bare the responsibility to renew and protect themselves … especially after repeated warnings?

        Bottom line … NAP is the best VALUE out there bar none … I am not trolling for customers as I have over 72,000 that I currently am paid on … Don’t need more single customers. I was here to set record straight and save people from losing their $750 to a company which doesn’t warn people that well OVER 90% never ever earn money back to break even!

        • nails159

          Damn dude, check this out:

          Factors that raised the rating for North American Power and Gas, LLC include:

          Response to 463 complaint(s) filed against business.

          Resolution of complaint(s) filed against business.

          BBB has sufficient background information on this business.

          Customer Complaints SummaryRead complaint details

          463 complaints closed with BBB in last 3 years | 382 closed in last 12 months

          Complaint TypeTotal Closed Complaints
          Advertising/Sales Issues147
          Billing/Collection Issues233
          Delivery Issues5
          Guarantee/Warranty Issues3
          Problems with Product/Service75
          Total Closed Complaints463

          • Kevin Marino

            What would you call 1 compliant for every 900 customers? … that’s about a 0.1% compliant rate!

            I call that pretty damn good …

            And when the company STILL fixes even the few complaints even when the customer was dead wrong in many cases …

            I call that AWESOME!!

            Welcome to North American Power!

  • Dennis

    Consider the source guys! All the facts about Ambit Energy are below…
    #1 Customer Service by JD Powers
    A+ Rating on BBB
    #1 Fastest Growing Co. by Inc. Magazine 2010
    From start-up in 2006 to over $1.2 billion in 2013
    #14 Largest Direct Selling Company 2013

  • cis

    So far, the free energy doesn’t come. Takes 4 months to energize a meter and when you finally reach your quota; all credit disappears.
    If I don’t get my free energy I will sue the, They did pay me for signing reps though.
    Hmmmmm.

  • http://www.yousaveat.energy526.com John W.

    I have been in a number of network marking businesses, have done quite successful in most of them. I joined Ambit Energy last year. I joined early waiting for my Market to open. New Hampshire opens in two days. Most people join a direct selling company, Network Marketing Company, or MLM. Thinking they on at the perfect time,or think the 20 people they know will jump on board. This is not a get rich quick thing, it’s not a lottery. Dennis is right about one thing.
    “Don’t get me wrong, the idea of getting paid of something you’re already using sounds amazing, however, if you don’t have access to a major market share then only the few top dogs who really hit it are going to make the serious money.”

    In two days in my back yard. I have 700,000 potential customers,a award winning business and compensation model and every three to six month it seems there is another state or other markets expanding constantly. Number 13 in direct selling news. Only in 14 States as of Mar 31st and Washington D.C.

    A+ better business rating. JD Powers awarded Ambit Energy #1 in the State of NY for customer satisfaction.
    The fact that it is only in 15 states and the revenue that the company has generated. By the time this goes national, we will be the #1 direct sales marketing company in the world! Most of the other companies in the top 10 in direct selling news are global. Ambit made the ranking in only 9 states.

    As in Competition….NO ONE, has a customer rewards program like Ambit does. We are the only company that offers Free Energy and travel rewards for paying your bill monthly and referring friends and family.

    I’m proud to part of something that’s going to be around for a long time and is by Network marketing terms still a puppy. Time for me to be a TOP DOG. You can run with the pack too…..!

  • http://www.multitasker.energy526.com Multitasker

    Ambit Energy is the Finest and Most Respected retail Energy Company. J.D.Power named them #1 in customer satisfaction in NY and they were rated The #1 Fastest Growing privately held Company in America featured in: The INC. 500 magazine in 2010, #1. You owe it to yourself and your family to at least take a look. It truly is the American Dream go to: http://www.MULTITASKER.ENERGY526.COM

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  • Julie P.

    I agree with Catherine de Bourgh!! Our rates were almost double that of our regular electrical company. I have already contacted our state Attoreny General and am looking into other avenues. I WANT MY MONEY BACK! In my opinion and experience, Ambit is not worth switching to. Check out the 98 reports on the Comsumer Reports about them. I know it low as opposed to the number of customers they have but then again how many of us really willing to admit we made such a big mistake.

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  • Lorraine Sanchez

    I have recently had an issue with this company due to a ridiculous series of high bills for my tiny one bed room apartment. My bills were fluctuating between 300 and 450 dollars a month. They blamed it on the weather, and it was a little hard to believe since we would be out most of the day. Maybe that price for a average house seems about right. I called to complain, I was totally rude, and the CSRep. kept her composure the whole time. She did what ever she could to get to the bottom of the situation, and she not only came up with a solution, she gave me options. In the end i was left with my bill cut in half just for having good credit with them.This company will go to extreme measures to keep a customer and know the meaning of quality customer service.

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  • http://instantpaydaynetwork.com/jj1999 Justin Sowards

    I have tried other direct sales and MLM’s only to get burned
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  • Christine Bravo

    Thanks for sharing this ambit energy review. I had been using this since day one. They’ve got the best service and offers cheaper rate than any other companies.

  • rippedoff

    This company is a giant scam in every way! DO NOT engage their services. RUN as fast as you can. They are not regulated and will raise your rates sky high the minute the 1st year is up, causing you to incur a huge financial loss that is not offset by the pennies you saved the first year. Do not believe a word their pyramid workers say about it. I lost so much money by trusting a friend that this was a good deal. I saved, at most, $2 a month the first year. The very first month of the new year, my rate went up $60.00 per month! They can’t cancel quickly either and told me it will take up to 2 billing cycles to cancel my service, which means I will be out another $120. I am sick about it, and so annoyed that I fell for a “friend’s” speech about them. Sure, she makes some commissions, and I lose $60 x 3= $180 before I can get out of this mess. PLEASE, read all the reviews on line. There are scores of them on various websites. Everyone says the same thing. DO NOT use this company. Call the Board of Public Utilities in your state. They will confirm that these companies are NOT regulated and can raise their rates to any level they choose….at YOUR expense.

  • Wanda

    Live and learn! My husband switched us to Ambit when his nephew got involved in it.Promises of “BIG” savings.Well,the big savings turned into the reality of costing us $50. to switch to Ambit (this was a NYSEG fee and not Ambit;although we were told there would be no fees on either side to switch).A year later we got our BIG savings check of $11. for using Ambit a full year.So,at that point our BIG savings cost us $39.00.All of this and we didnt see any decrease in our monthly bills.NOW we get a letter from Ambit that our monthly electric supply billing charge will increase 400% as of 07/03/14…we received the letter 07/10/14.Just keeps getting better!!!

  • LouLouLegs

    I cannot tell you how much I detest this group (and most MLMs). I’ve been approached by so many people to join this company and at this point, I actually avoid almost anyone I know who is selling it….because of their aggressive “don’t take no” for an answer approach. And I do my research so I don’t just dismiss it.

    It’s MLM. Period. I dislike (intensely) any company that doesn’t sell the product but sells “selling” the product. It creates so much tension in friendships and relations with people. Especially since their marketing tells you to target family and friends. Trust me….if you are selling Ambit, you are being avoided by many people, people dread you bringing up the topic of your “new business”, and it becomes the elephant in the room. I’ve seen many relations destroyed by high pressure MLM marketing tactics and sadly, those good people really think they are doing good. Believe me when I say that people are walking on eggshells around you…absolutely dreading the mention of your new company (no matter what it is). They don’t want it…..and many are too kind to not buy your product. You have abused your friendship with them. I speak from experience, and from knowledge from others. Run …….

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