What's up with Ambit Energy.

Is it a scam? Can I get it in my home state? Does it really save money and can I make money selling Ambit Energy?

I recently researched this company because I was interested in the concept and in getting involved, but I am hearing things that have left me thinking otherwise. Ambit Energy is a company supposedly founded in 2006 by Jere Thompson and Chris Chambless, both individuals who I'd never really heard of in the MLM world previously, which is sometimes a major element in my decisions.

The company is a Retail Electric Provider selling commercial and residential electricity and natural gas to Texas, New York and Illinois via fixed rates based on income and area. It has definitely been successful and even made it on the charts for one of the fastest-growing privately held companies in the MLM world, although that doesn't always say much because nearly every company makes that claim.

Ambit supposedly offers its service to 200,000 customers and provides its MLM opportunity to new consultants, and has already managed to accumulate about 50,000 individuals selling and recruiting. They use a "coded" compensation plan that pays energy residuals based on customer usage through 6 generations, and Ambit offers all the usual bells and whistles you would expect with any other plan. They actually pay out based on the sales of services, and not on recruiting.

Lately, I'm seeing a ton of complaints all over the Internet with people saying the company is doubling and even tripling their customer's bills, only to point out the small print once they call Ambit and ask what is going on. I don't know what to make of them to be honest, if the system is designed to go up or if its just bad luck based on area and the lack of attention to detail you find in the elderly or those who don't understand how to manage finances. Either way, Its not a company I have any plans on trying to sell or utilize as a new source of power.

Hi Joan,

I'm involved in Ambit, and the facts are clear.  Ambit offers a guaranteed saving in several states.  Unfortunately people make up stories on the internet.  If you take a moment and actually think about what these people are claiming on bills increasing, it's obviously made up.

If Ambit actually had bills rise double and triple the complaints to the state would be so many that they would loose their license to distribute a public utility.  Electricity is a public utility and Ambit must meet a certain standard in order to maintain that license.  Furthermore Ambit has an A rating with the BBB.  Which is challenging enough for any Network Marketing company, let alone an Electrical and Natural Gas Provider of it's size.

If I can be a resource to you please don't hesitate to contact me through rep space or my blog.

James

The 4 Fatal Flaws of Most MLM Opportunities

Hi Joan!  When venturing into a new MLM Business you deffinately have to do your homework!  I was very hesitant at first and really checked things out.  I have been a consultant since April 2010.  There is a lot of bad information out there and I would like to clear up a few things. 

Regarding the founders: Jere Thompson founded CapRock Fiber Networks to build fiber and broadband networks across Texas.  Cris Chambless was an early member of the management team at Excel Communications, he was responsible for all aspects of the company's marketing and communications organization. Most recently, as the Vice President of Marketing at VarTec Telecom, he was responsible for all aspects of the company's marketing strategy, including brand development, channel integration strategy, sales management and new product development.

Ambit now offers service in Texas, Illinois, New York, Maryland and just opened in Pennsylvania.  The rates in NY, Maryland and PA are not fixed and do not income based. Ambit give a Guaranteed 1% savings over your incumbent providers rates.  If at the end of the year Ambit wasn't lower, they will mail you a check for the differenct.  This is in writing. 

They were recently named the #1 Fastest Growing Company in America by Inc 500.  You can go right to the Inc 500 website and read about this.  Ambit has grown over 20,000% in just 4 years.  Microsoft debued on Inc 500 at #80.....Ambit debued at #1 - thats some braging rights!! 

The absolutely DO pay out when you recruite consultants underneath you!!  I don't know where all these complaints come from, most of them really don't make sence at all if you understand how the business works......which really makes the complaints just sound bogus.  Ambit has a rating of A with the BBB.  They couldn't have that rating if all those complaints were true.  Ambit is also a member of the Direct Selling Association.  To be a member you must follow their code of ethics and provide the services you advertise.  Many other MLM companies are not members of the DSA. 

The best part of being an Ambit Customer??  The referal program!  I as a customer ( nothing to do with being a consultant ) , referred 18 friends to Ambit.  Ambit now averages my friends usage and mails me a rebate check every month.  They will pay up to the full amount of your usage, but not over.  My last rebate check was $49.43 and my energy usage was $49.44.  I only had to pay $0.01 My checks are between $45 - $50 every month on top of the guaranteed 1%.....Now thats a savings!!!

If you have any questions please feel free to contact me at bill@bestworkfromhome.net  or visit my website at www.bestworkfromhome.net 

Thank you for getting involved in this thread James, I'm aware how typical it is for things of this nature to pop up on the Internet from time to time, and I always try to be fair to the companies when discussing them and going over the countless reviews and complaints. I would like to get a better understanding of how stories like this surface however. I think its great that Ambit has such a good rating with the BBB, and that it holds the professional certifications necessary to maintain a relatively good reputation, but I am legitimately curious as to how specific complaints surface. Are you implying that every single one of them is simply untrue? Is it possible that representatives/distributors are occasionally making false promises in order to increase memberships? I could respectively understand this, and I'm sure if most reviewers or skeptics could see some kind of protocol dealing with that, they would be much more lenient with the company itself.

I understand you are saying that Ambit Energy must maintain a certain standard, but are you referring to technical specifications, or the business practices and contract attributes? I have other reasons relating to whom the company is partnered with that would deter me from getting involved, not to mention the recruiting mentality that comes with these things, however, to be truly neutral is to also recognize that the majority of complaints seem to lack any real substance. They are mostly complaints about the money you must invest in order to become a distributor, or also those relating to recruiting friends and family etc. Generally, if you know what you're getting, and you have a network of people to introduce products to, then I don't see this as a scam, at least any more so than any other MLM. As for the customers, if after the first 3 months of 7% off you still don't have to pay as much as you did for your old service, I guess you win.... otherwise, might be wise to really review the fine print.

I'm on the fence with you guys, because on paper the system looks great and yeah, having a good rep with the BBB is definitely a plus but somehow you guys sure have a ton of folks saying to stay away, and the reasons tend to be the same for the most part. Also, its not all that uncommon for questionable companies to have a decent rating with the BBB. The policies and rates aren't usually in question, its the stories that involve a lack of disconnection notices, false rate promises, and a hard lack of customer service. I recall one story of a dude moving to another state, having his service transfered and never getting a bill for two months. The electricity was turned off in the middle of a real hot season with a baby in the house (don't worry baby was fine)..but the guy was on hold for over an hour, then disconnected. Called back, waited another hour, and was told they sent out the bill, and never recieved his payment.

He paid the money he owed on top of a $60 reconnect fee, which, if the story is true; is bullshit. How can you have your service transfered and they not know where to send the bill? He also had to wait 24 hours to get his service turned back on. I'm on the fence with this mostly because I understand press politics with forums just like this, complaint boards and the way in which companies have battles utilizing word-of-mouth "tales", but at the same time, some of these complaints must be true. Needless to say, this guy had a horrible time trying to fix out his address and get everything back to snuff.

On the other hand, I have also seen posts with complaints claiming that Ambit pulls a bait and switch routine, where you get a discount on your first bill, and then the rate goes up the next month. In some cases, the complaint would be followed by various Ambit customers who are quite happy with their service and the company, and are more than willing to defend it, even posting their bill in some cases. I think a good percentage of the complaints are probably tards that think everything that doesn't completely erase their bill is a scam. I have no experience with Ambit weither way, but an interesting topic.

The crazy stories I read online caused me to hesitate as well.  However, as I mentioned before if you understand how the business works they just don't make any sence!!  We live in a small town, so just about everyone around here is either a customer or a consultant or has at least heard of Ambit.  I know tons of customers and there is only one complaint I have ever heard.  A couple people had trouble about 8 months or so ago with being double billed.  The thing is Ambit doesn't bill customers in New York, the incumbent provider does.  The people ended up getting a rebate or credit from National Grid who had made the mistate.   I will have to double check for sure, but I think the only state Ambit bills in is Texas - but don't quote me on that.  So, any billing issues are not Ambit's fault.  The only state that has a connection fee is Texas.  I know a consultant in Texas and she is telling me that the incumbent providers have been very difficult to deal with.  Telling people that they can't switch ect.

The other thing I wanted to mention is Ambit Energy has 2 guarantees in writing.  The first is the savings guarantee and the second one states - and I quote - " We are so certain that your transition to Ambit Energy will be flawless, we are willing to guarantee it.  If, for any reason, Ambit Energy Disconnects your service during the switching process, we will pay your first month's bill.  No questions asked."  end quote. This document is signed by both Chris and Jere.

As far as this guy moving to another state -  untill recently Ambit only operated in Texas, Illinois and NY ( now in BGE territory of Maryland and PECO territory of PA ).  I wonder what state he was in and where did he move?  The other thing is when you move and get service at another location, your incumbent provider is the one who turns your new service on.  After you have your new account number you can then switch service to Ambit.  You can't get Ambit service first, so that doesn't make any sence either. 

I have a cousin who has been a consultant for 2 years now.  He jumped right in and worked it very hard. ( I wish I would have listened to him when he first told me about this! )  Anyway, he is now an Executive Consultant and was recently featured with the big wigs from Ambit on the cover of Sucess Magazine.  He has a real rags to riches story.  He has thousands and thousands of customers in his downline and I know tons of people who have had Ambit for over a year and I've never heard any of these crazy stories.  Just the opposite.  Who wouldn't want to be able to refer 15 or more friends and get a monthly rebate check for doing that?  My usage last month was $49.44 and my rebate check ( for the 22 people I referred ) was $44.43.....I had to pay a wopping $0.01 toward my usage!  The month before the rebate check was to the penny of what my usage was.  Add that to the 1% savings and thats huge!  I can't wait to see what this months rebate check will be because with my furnace running my usage was $125.  I'll know on the 15th.

I'd believe these complaints were real if they were on a site such as the BBB.  If  they were real Ambit wouldn't be allowed to continue as a menber of the DSA.

Hey Wallace,

Ultimately I'm it's a combination of things including perhaps reps over promising.  Any company of Ambit size is going to have negatives found online and no company currently has or will ever have 100% satisfied customers.  I always say seek and ye' shall find - look for good you'll find it, look for bad don't be suprised if you find that too.  These stories surface because anyone can post anything on the internet.  When it comes to business their are always critics and people with opinions.

In regards to maintaining standards, I was referring to business practices.  Ambit could lose their license with the state if their practices purposely misled the public.  If your considering partnering with Ambit and have more specific questions feel free to contact me through my blog - http://www.jamesyancey.net

James

@Rick

Hey Rick,

Ambit doesn't do the billing, the incumbent energy provider still bills customers all states but Texas.  Ambit does the billing in Texas.  I've come across negative stories from states we don't offer service in - so there is purposely misleading information out there. 

As far as customer service, Cynthia Young is the person in charge of our customer service dept.  She was one of the brains behind customer care of South West airlines, and does customer care for all ambit reps and Texas customers.  So Ambit definitely takes customer service seriously, customers are actually the entire focus and reason for the MLM model.  Ambit can't focus on internal consumption like many MLM's do consultants with Ambit must attract customers and keep customers based on a viable product who are outside of the pay plan.  At just over 500k customers something definitely working right.  Why not try the service some of my best distributors started out as customers.

If you have any questions or would like to speak directly with me connect with me through my blog at http://www.jamesyancey.net

James, you've made a fantastic contribution to this thread and I sincerely appreciate your input. A good deal of the time we're discussing various companies and complaints and its not very often we get a rep to give us their side of the story. It can be easy to lose one's self in the negativity of this subject matter, and I always appreciate when such responses are made. I wonder does Ambit have plans to expand, and how do these legal processes work? More specifically, does any part of your company actually build the hardware necessary for power to be provided outside the already present power grid, or do you operate through the companies already providing. If so, how does that work?

I'm guessing that if you use hardware already build by the more traditional companies, then you must pay them some type of fee or commission right? If not, then are there such a thing as grid laws? Laws that state that you can't build in specific areas simply because a company already has a grid laid out? I apologize for so many questions, and certainly don't expect you to answer them all, this is pure curiosity for me because I am interested in your company and how it works on a technical level.

Hey Wallace,

I'm not a techie guy.  When it comes to building a network marketing company that's where I come in.  The specifics to laws, infrastructure, and even the energy business are beyond the scope of being a distributor.

I simply gather a few customers who want to save some money and help others to do the same thing.  Anything else above and beyond that I would or could give you would be an educated guess and would not serve you at all in building a business.

Ambit clearly has the financial ability to expand, but when and where exactly is going to be up to the corporate team.  Ambit focuses simple core philosophy of "never sacrifice integrity for growth".  Which is something I strive to do in my business, so I can't say anything other than another state is set to open this year.

Ambit doesn't reveal the state until the state license, business arrangements, and systems are in place to ensure a smooth entry into that particular market.  All I can say is that the timing is absolutely perfect.

Best of luck with your decision.  Feel free to contact me directly through my blog if you have any needs or are looking to get involved in the opportunity.

http://www.jamesyancey.net/contact-me/

James

Hello to allhttp://www.youtube.com/\user/Leveltwoadvertising#pu

I have been looking at Ambit Energy and what I'm finding is that it is not a scam.

I recently read an article stating that an advertising company called LEVELTWO Advertising has launched a new television campaign for this company, it is growing at a truly impressive rate. Ambit Energy had originally launched "My Lightbulb Moment" campaign in 2009 which was a means by which to reveal themselves to the people. The adds depict every day people having a "lightbulb moment," in which they realize they have saved 30% on their bill. I enjoyed the adds and found them to be clever and delivered well. It is a nice change of pace from some of the other more outlandish and silly advertising found on many television channels.

I have recently considered Ambit energy as an opportunity for myself after having learned that research findings have discovered that nearly 80 percent of consumers choose their electricity company based on price, in addition to Ambit wanting to change the industry by charging by the kilowatt. Please take a glimpse at these advertisements and see for yourself that this could very well be a great opportunity. Thank you Mr. James Yancy for visiting our thread.

Love and peace.

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Ambit Energy is on the top 10 list this month on MLMRankings.com

What can I say?...a company I shrugged off as a scam a couple years ago has now made it onto my "foot in mouth" list. Good stuff. This is a good lesson to remind us that it can be a bit easy to knock a company over a few bad reps, or inconsistent stories. This is especially true in a scam section of a discussion board, since its all too easy to go on a witch hunt and indulge in the mold mind of the masses.

Way to go Ambit!