Ambit Energy Review: By ExpertMLMReview
In the spirit of full disclosure, it’s only fair I let you know about any ties I have to the companies I review. This whole site started as a result of my disgust at all the negativity out on the internet attacking the network marketing industry. I wanted to bring some balance by providing positive reviews for companies worthy of such. It only makes sense that I would start this effort with the company I represent which is what I did and Ambit Energy is that company. Out of the 11 currently companies reviewed on this site, this is the only company in which I have a vested interest. In spite of my vested interest here I think you will find the research thorough and the review unbiased, especially when you consider my evaluation and positive recommendation of our competition. Enjoy the review and please share your thoughts below… Sincerely, Shawn Cornett
Ambit Energy Value Proposition…
The first place to look in determining if the Ambit Energy business (or any other MLM) is a scam would be the product they market. Many people would tell you otherwise but if the product does not check out every other aspect of a serious evaluation is pointless. In my opinion the product is also the easiest aspect to evaluate. There is only one thing to consider… is it consumer worthy? Also… is a significant percentage of total volume derived from true consumers (non-distributors) purchasing the product?
In other words is the product worth the retail price regardless of the opportunity to make money? If the only consumers of the service were it’s own distributor force then then Ambit Energy could be in trouble. In the case of Ambit Energy they pass this test easily. Energy is a commodity so there is no difference between the energy of Ambit and any other company so it comes down to price. While there are no verified numbers, at the time of this writing there are close estimates indicating Ambit has about 50,000 consultants (folks signed up in the opportunity) and over 200,000 customers which indicates they have plenty of true customers beyond just their base of distributors/consultants. In Texas you can check Ambit’s current rates at http://www.powertochoose.org, in New York you can check Ambit’s rates at http://www.poweryourway.com and in Illinois you can check rates at http://citizensutilityboard.org/GasMarketMonitor.php. At writing Ambit’s electric and/or natural gas rates were very competitive with the competition.
Ambit Energy Business Basics…
Ambit is a retail electricity and natural gas provider currently providing service in Texas, New York and Illinois. Because they are a “licensed” retail energy provider they have a certain degree of built in credibility that most network marketing companies do not. This is a result of the strict licensing process that states run companies through before licensing them to provide a public utility. Ambit started off in Texas where they are currently licensed by the Texas PUC (http://www.puc.state.tx.us), they expanded into New York where they are licensed by the New York Public Service Commission (http://www.dps.state.ny.us), they expanded into Illinois where they are licensed by the Illinois Commerce Commission. Ambit is also licensed in Ohio where they intended to expand but have not done so yet. It is uncertain as to the exact reason they have yet to open Ohio but it is certainly a point of frustration for Ambit consultants that this expansion failed to take place. Ambit Energy is based out of Dallas and is currently reported to be running at 500 Million a year in gross revenues.
You can research more about Ambit by visiting their website at http://www.ambitenergy.com,reading their press releases at http://www.newswiretoday.com/news/38630, checking their BBB report at https://www.bbb.org/online/consumer/cks.aspx?ID=1061113132812. You will find some Ambit Energy customer complaints on their BBB report but this is normal for a company of Ambit’s size that has nearly 100,000 energy paying customers. Ambit applied for DSA membership (http://www.dsa.org) on in September of 2008 and is currently within the mandatory 1 year pending approval period.
Ambit Energy Compensation Plan…
Ambit Energy utilizes what is known as a “coded” compensation plan which was most historically proven out with Excel Communications back in the 90′s. Ambit’s version of this coded compensation plan pays energy residuals based on customer usage through 6 generations. Leadership bonuses are also paid out as customers are gathered by new consultants. From a legal perspective the compensation plan must pay out based on the movement of products and/or services, not on recruiting, because no commissions or bonuses are paid out unless customers are gathered it looks as if Ambit’s plan is legally sound. It also looks good from a regulators perspective that Ambit Energy reportedly has about a 4/1 customer to consultant ratio.
Ambit Energy Business Ownership & Leadership…
It is important to know who controls the company and what their motive/mission really is. Common sense says that if the product, company and compensation are done right it should probably mean that there are solid people at the helm that made the decisions that got them to that point. The first test is if you can even find who is behind a company; network marketing scams will typically hide their identity while legit network marketing companies will proudly promote their leadership/ownership.
Ambit Energy was started by CEO Jere Thompson who had a successful history with telecommunication and he brought on Chris Chambles as his partner and CMO to handle network marketing distribution. Plenty has been written about both individuals on the internet scam boards where anyone can say anything about anyone at any time, common sense rules out most of this nonsense. Both these individuals have had a lot of success and some failure in their past, to detail all this would be a topic for another day which I may take up at some point but right now I will simply say that my research into their backgrounds leads me to believe that there is nothing in their past that would cause me to give a negative recommendation for Ambit Energy.
Ambit Energy Competitors…
There are plenty of competitors on a retail basis that Ambit competes with. At the time of writing there were about 15 competitors in New York, 30 in Texas and 13 in Illinois. The more accurate discussion regarding competition would have to focus on that of other network marketing companies. As of writing there are only 2 other network marketing companies of significance in the energy arena, Ignite and Zurvita.
Ignite is widely regarded to be the first company to prove that network marketing was an effective business model for energy. They are currently reported to be running at about 800 Million a year in gross revenues. Ignite is also based out of Dallas, TX and has a very similar compensation plan as well as service plans. Ignite is much bigger than Ambit in the Texas market but they have pursued different strategies as far as expansion, with Ignite choosing to pursue Georgia while Ambit headed to New York and Illinois. You may find that representatives for Ignite and Ambit are both very partial to their own company but the reality is that both companies are very solid. You can learn more about Ignite by visiting their website at http://www.igniteinc.com.
Zurvita is the latest arrival to the industry of network marketing natural gas and electricity. Zurvita is very different because they represent a long line of products and services while both Ignite and Ambit focus strictly on energy. Zurvita is not a retail energy provider by itself; rather they are a partnered with MXEnergy which handles their energy customers. The two companies have reportedly signed a multi-year partnership agreement. The advantage of this arrangement is that Zurvita has the ability to sign customers in Texas, New York, Michigan, Georgia, Ohio and Indiana. The major disadvantage of this arrangement is that ultimately Zurvita is simply a reseller for MXEnergy which means that both companies are going to have to get a cut of the pie. Either this will affect the rates or it will affect the residual income that Zurvita is able to pay. It would make this author very uneasy to build a customer base for a company when it is only a reseller for MXEnergy which holds all the marbles. You can learn more about Zurvita at http://www.zurvita.com and MXEnergy at http://www.mxenergy.com.
Concluding remarks about Ambit Energy…
There is no Ambit Energy scam or Ambit Energy pyramid. They have a real product/service which their distributors market to end consumers at a competitive price.
The company has individuals at the helm with with a verifiable background and no history of sub par business practices. Their compensation plan is legal and they have inherent credibility derived from the fact that they have passed the licensing process to become a retail electric provider for the states of Texas, New York, Illinois and Ohio.
Yours in Success,
Shawn Cornett
If you have comments, questions and/or additions to our Trump Network review, please post them below.
If you have comments, questions and/or additions to our Ambit Energy review, please post them below…