Is Ambit Energy A Pyramid Scheme – Ambit Energy Review

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Ambit Energy is a pyramid scheme.

Why did you say that? And what is Ambit Energy anyway?

Well, a guy at work talked about the Ambit Energy business opportunity the other day… and I thought, ‘Another MLM Pyramid Scheme.’

Now I understand, my friend was talking about the Ambit Energy MLM opportunity, not the products.

Many people think Ambit Energy is not a pyramid scheme because it sells electricity and gas. This is not true.

We have a good discussion on this topic in MLM vs. Affiliate Marketing. A pyramid scheme has nothing to do with the products. It’s all about the recruiting scheme.

If consultant earning is derived directly from recruiting activities, then Ambit Energy is a pyramid scheme.

Are you planning to join this mlm?

You might want to read this Ambit Energy review to discover the truth about your earning with this mlm opportunity.

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Ambit Energy Review Summary

Name: Ambit Energy

Competitors: 
ACN, 5LINXXynguareXp RealtyAmare Global,Synergy Worldwide

Annual Revenue: $1.30 Billion

Business Opportunity:
Multilevel-Marketing (MLM)

Initial Investments:
$75 Plus $24.95 per Month

Business Earnings Estimate: 
$621.13 Per Year

  • Ambit Energy is an mlm that offers electricity, natural gas, solar, and Green-e plans to the US market.
  • Ambit Energy was launched in 2006 by Jere Thompson Jr. and Chris Chambless, after the deregulation of the energy sector.
  • Ambit Energy promotes and ells energy through a network of over 61,000 independent consultants operating across the United States.
  • Yes, you can become an Ambit Energy consultant and make money from home selling and recruiting friends and family to switch energy services or join your team.
  • But don’t expect to make a lot of money as an Ambit Energy consultant. According to the company 2018 Income Disclosure Statement (IDS), the annual average income of consultants was $621.13.
  • Ambit Energy is a sale and recruiting business opportunity. This home-based business is not suitable for people without sales or recruiting background.

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What Is Ambit Energy

Ambit Energy was one of the hundreds of energy companies founded after the deregulation of the energy industry.

The purpose was to provide alternative electric and gas services to consumers at a lower cost.

Ambit Energy founded in 2006 by Jere Thompson Jr., and Chris Chambless, with headquarters in Dallas, Texas.

Besides, offering low energy costs,

Ambit Energy offers its customers an opportunity to start their own home-based business, becoming an Ambit Energy Consultant. This is an mlm opportunity, which earns Ambit Energy a pyramid scheme title.

Here’s how my friend learned about Ambit Energy. A fellow at his company tried to recruit him as a consultant.

He started by asking my friend to change his electric services to Ambit Energy with a 1 or 2 years lock-in low price guarantee contract.

My friend liked the low price but hated the lock-in contract.

That is when his coworker talked about becoming a consultant for Ambit Energy.

The idea was to earn enough money to cover my friend’s electric bill.

Ambit Energy offers cheaper utility services for the first 2 years to get you to switch suppliers. Then, once you’re a customer, they recruit you to become a consultant.

But you have to invest money to become a consultant.

This takes us to the next topic,

How Much Does It Cost To Become Join Ambit?

Well, I asked my friend to invite his coworker out for coffee, telling him, “I want to discuss the process of signing up as an Ambit Energy consultant.”

We met at my favorite café place. After the introduction, the consultant began explaining the process,

He told me, “the cost to join Ambit Energy is $75 and agree to switch your utility services to Ambit Energy.”

No other cost? I asked

Yes, he said, there is a $24.95 monthly fee for a personal website.

What if we don’t need the website? I asked.

He replied,

I think the website is part of the package.

But, look, this is less than $100 to get you in business today!

Yet! It’s only five cents less. I said as we all laughed.

But, don’t you agree this is cheap to start a business?

Well, it’s not just $100, my friend replied. we have to change our electric services, and we don’t know the costs of Ambit Energy.

The consultant started to explain the service options and costs, which I had no interest in.

So, I interrupted and asked, “Can we talk about the services later?” Right now, I want to discuss how we make money as an Ambit Energy Consultant!

Do you want to know the compensations? He asked.

Yes, I like to know,

Ambit Energy Compensation Plan Overview

The consultant pulled out a folder and handed it to us.

The folder contained a printout of the Ambit Energy Compensation Plan, which stated 3 Ways to Earn: Immediate Income, Leadership Income, and Residual Income.

The consultant earns the first $100 immediate income after enrolling 5 customers within 4 weeks of joining.

As the consultant enrolling more customers, he can potentially make more money.

Below is the earning table.

Ambit Energy pyramid scheme income

The problem with this immediate income, Jump Start Bonuses, is the time restriction.

It is not easy for an Ambit Energy consultant to acquire a large number of customers in a short 12 weeks.

The next earning is Leadership Income. This is earned when you start building a team.

As your team grows, you get promoted and earn more money.

The table below explains the leadership positions and earnings potential.

Ambit Energy pyramid scheme leader income

Looking at this table, I asked, “The leadership income is earned after the new Ambit Energy consultant enrolls 5 customers in 4 weeks, right?”

Yes, the consultant replied.

So, if the new consultant doesn’t meet the time restriction, there’s no leadership income.

Truth!

This is tough. How you make money then?

Most Ambit consultants make money with the Residual Income, the consultant continued. This is unique about being an Ambit Consultant.

OK, tell us more about the residual income.

This is simple, residual income is paid monthly on active customers when they paid their utility bill. You get paid through six levels.

You see this income table, he showed me.

Ambit Energy residual income

The residual income is earned based on the amount of usages. You can potentially make a lot of money as an Ambit Energy consultant.

Well, the earnings potential sounds good, but do you have the actual earnings statement?

Yes, the consultant replied as he pulled out two pieces of paper. He handed to me, “here’s the IDS report.

Looking at the IDS I said, to make decent incomes, which is $34,924.99, you have to be an executive consultant.

Ambit Energy earnings statement

Yet, the consultant replied. Some people reach this position very fast.

Not really, according to the earnings by promotion level.

Ambit Energy pyramid scheme earnings

Less than 1% achieved Ambit Energy Executive Consultant in 2018. This is terrible.

This IDS stated that it could take 5 plus years for an Ambit Consultant to earn an average annual income of $6,778.94.

How long have you been with Ambit Energy? I asked the consultant.

A little over 2 years. But, I’m doing this part-time. He answered.

I looked at my friend and smiled.

Later in the car, I told my friend, “I don’t think he makes money!”

On the way home, we continued discussing,

Is Ambit Energy A Pyramid Scheme?

Ambit Energy is not a pyramid scheme. Do you agree? I asked my friend.

But it’s hard to make money, he said.

Yes, even though Ambit Energy is not a pyramid scheme, it is not a good business opportunity to invest in.

Then why so many people join? My friend asked.

Well, because people get excited just looking at the potential earnings from downlines. It always looks impressive on paper, but it’s not easy to recruit and build a team.

Ambit Energy uses the mlm business model to encourage people to switch their utility services. Once you switch, you stuck with the company for life. Unless you are willing to give up your business.

God! Less than 1% makes $34 grand a year, my friend said. I don’t know if I want to be an Ambit Energy consultant.

How long does it take you to make a full-time income with the online writing business? My friend asked.

Less than a year… Why?

Just wondering… It seems much easier to start a writing business than becoming an Ambit Consultant.

Yes, but you still have to learn to write… The kind of writing that produces money!

It still must easier than traveling from home to home recruiting new customers. You work on the computer from our home, no traveling, nothing.

Let me ask you this, my friend,

Do you know why you want to start a home-based business?

To earn extra money from home, to be your own boss, or to achieve financial freedom?

And to make money, we invest in a PROFITABLE business!

There are much better and less risky home-based business opportunities. I recommend you look at Affiliate Marketing.

As an affiliate marketer, there’s NO traveling around town to attend late-night meetings and NO face-to-face sales or recruits.

The best part, you are working on the computer in your own home or anywhere you like.

Affiliate marketing is one of the most powerful work from home business opportunity to earn passive income. I recommend you read, MLM vs. Affiliate Marketing to learn.

What I am going to tell him at work tomorrow?

You can tell him Ambit Energy is not available in our area.

I cannot believe this. You dragged him out to meet us for nothing.

No my friend, not for nothing. I have to write my Ambit Energy review article. I need to do something different for my readers.

I feel bad for him. It’s hard work, my friend said.

But, Ambit is not a pyramid scheme.

My friend smiled and said, ‘We’re Home!’

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