Ambit Energy Complaints Surface – Is Ambit Energy Legit?
Is Ambit Energy a scam? That of course is the question of the hour and why I sat down to do an in thoroughness basic review of this new network marketing company that is taking a run at the energy deregulation market in the US.
You know there is so much negativity floating around our world on a daily basis that I work to keep my head straight by trying to only focus on the positive, however I had recently run across several newbies to the world of MLM that were either totally excited about Ambit or they were angrily calling Ambit Energy a scam.
Now as you can probably imagine, there are so many new MLM companies that go into the market each year, and there are so many that die off so quickly that I usually keep up off at the minimum 20 minutes or so before I take to time to do an in-thoroughness basic review, but since Ambit Energy has been around since 2006 I knew it was time.
First let’s get the get the details out of the way so we can dig into the really interesting stuff like “business form” product viability.
Ambit Energy is based in Dallas, Texas and is the brainchild of the founders, Jere Thompson and Chris Chambless and according to the company website,…”Ambit Energy was established in early 2006 at a Potbelly’s restaurant in Addison, Texas over a associate of turkey sandwiches”.
Now since Ambit Energy was doing something over $325 million in revenue only 3 years later, I now know exactly where to go when I am going to start my next company “Potbelly’s Restaurant”, it must be good luck.
Ambit has decided to target a slightly tricky market that several other MLM companies have not done too well with, energy deregulation.
Ambit’s products are pretty simple truly, electricity and natural gas.
The company’s marketing concept is also pretty straight forward, you are already spending money for basic utilities, why not just buy them from us and save money?
Seems pretty simple so why not?
In theory it’s a good concept so it seems like is should work like gangbusters right? Well it’s that simple business form that has attracted droves of distributors over the last few years but as many MLM hopefuls soon learn, what seems simple in concept can me a little more difficult in actual practice.
I can see how a new distributor can think it’s going to be a pretty easy course of action to get all their friends and neighbors to switch their utilities but when it turns out not to be quite that easy then the want to brand Ambit Energy as a scam.
So why wouldn’t everybody just switch? Well, probably 2 reasons, resistance to change and not a big enough savings to make it a priority.
It’s kind of like when phone service was deregulated years ago, it was exciting for a while but then you got so tired of dozens of companies pitching you on it, it was overload and you no longer wanted to hear about it anymore no matter what the savings.
Now this is probably where the company negativity chimes in with people angrily calling it the Ambit Energy scam when it’s not as easy as advertised.
Now it looks as if Ambit Energy is trying to conquer this by offering new customers a bonus giveaway. The currently offer a travel voucher good for a FREE 3-Day/2-Night stay for two at a 3-Star hotel at one of 25 exciting destinations nationwide.
Wow, change your utilities and go on vacation!
Now I see this as a good marketing move, paying or bribing your customers truly works if the offer is strong enough. Cell phone companies have been doing this for years with free or discounted cell phone giveaways and I have already recently seen edges truly offering to pay you $100+ in cash to open a new account.
One limitation on the Ambit product side you should be aware of is that Ambit’s market is limited to just a few states. They currently can only offer service in Texas, New York, Illinois, Maryland, Pennsylvania, and New Jersey.
Now of course you can sign up if you are in other states but it’s going to be kind of hard to get your required customer base so that you can collect commissions.
Ambit Energy Compensation Plan
The company uses a kind of MLM unilevel compensation program that pays a Fast Start bonus when you sign someone up for the basic $429 new distributor package, and the also pays bonuses on two other types of production, new distributor signups in your group and customer product usage over-rides.
The company compensation plan literature shows that you are paid as thorough as the legs go once you reach a certain rank or level of success.
Now to qualify for commissions you pretty much have to get customers which of course is good for the company but can be bothersome for distributors.
If you are a major business builder in the network marketing industry you pretty much know it’s not about selling the product, it’s about selling the opportunity and building a team. I have seen this acquire customers tactic before in MLM companies who market products where they pretty much have to get customers to strength the long term company cash flow such as telecom or technology. Big Planet, a MLM technology division of NuSkin used this same approach. However this focus on customer acquisition I am sure has kept some big players away, who just are not into being retailers.
So is Ambit Energy a scam or a squeaky clean MLM with a rare product?
Well Ambit energy is not a scam and from all appearances looks to be a very good company. They are also a member of the Direct Selling Association or DSA and it takes at the minimum 2 years and a company review by the DSA before they will already let you join.
So it looks like the pass the test, so why are angry distributors calling Ambit Energy a scam?
Well many times the wealth building aspects of the network marketing business is just a tiny bit oversold.
Did I say “tiny bit”?
Well let’s be honest, the get high quick angle has always been there in MLM. Some people just oversell how quickly you can unprotected to success and the $10,000 checks.
Now the distributors are not the only ones who do this, MLM companies are also at fault since they always showcase examples of MLM success from within the ranks and usually pick people who have had rapid success in just a few months.
Keep in mind that in a Standard MLM business form, success takes time, and the average time to build a $10,000 a month income stream is probably 12 to 18 months or more.
Now of course there are other business models that get you to the money quicker such as Top Tier MLM but keep in mind, “there is no free lunch” (that’s what they taught me in economics in college). MLM is a business and a very high paying one so it’s worth the time to master it and build it.
Now already though most MLM’s today nevertheless teach some variation on old school MLM marketing approaches such as making a list of friends and family or chasing people down in grocery stores, I have always found success comes much quicker and with less aggravation if you learn some simple marketing approaches and build your rule flow up so you are not regularly chasing luke warm prospects around.
Now since Ambit’s sets are just in a few states it’s already more important to use approaches such as online marketing to be able to specifically target just the market you are after.