Ambit Energy Scam!

I was introduced to Ambit Energy a little over a year ago and I had no interest at all. About 2 weeks ago a co-worker started to talk to me about earning a 2nd income and I immediately knew what he was referring to, Ambit Energy.

The amusing thing is that there are tons of blogs and articles posted online about how Ambit Energy is a scam. Being the skeptic that I am I decided to do a bit of research. When attempting to find out if a company/opportunity is a scam there a just a few things to look at. Does the company have a good reputation? Does the company offer a viable service or product. Does the company make more profit from actual customers than affiliate members? Is the company financially stable?

Questions 1: Does the company have a good reputation? In my opinion, yes it does. Ambit has an A+ rating on the Better Business Bureau.

Question 2: Does the company offer a viable service or product? Yes it does…savings on electricity and gas.

Question 3: Does the company make more profit from actual customers than affiliate members? I would say so. The company has approximately 500,000 affiliate members but approximately 800,000 customers.

Is the company financially stable? $1 billion in annual revenue and over 1 million paying customers….draw your own conclusion.

So why is there so much Ambit Energy is a scam complaints and reviews on the internet? In my opinion it’s due to their MLM sales business model. If you take the time to carefully read through these “complaints” you will find that a majority are from unsuccessful sales representatives. People who pay the $429 one time fee and the $24.95 month fee who crash and burn.

A major problem with the MLM sales model is that a majority of people who join will not be successful. Many quickly burn through their warm market (family and friends) and throw their hands in the air and scream SCAM!

Can you build a successful and profitable business with Ambit Energy? Yes you can but like any business venture it will not be easy. Although it may seem easy don’t fool yourself and don’t quit your day job.

Like any other MLM based company the ideology is that you become a representative, sign up customers and representatives and those representatives sign up customers and representatives and you make a sick amount of money in the process.

The reality is that many representatives you sign up will pay the fees and do absolutely nothing. So how would I build a successful Ambit Energy Business? I live in New York so if you’re not in New York your approach may be different.

Step 1: Approach your warm market. – “John, I just became a representative for Ambit Energy. Since the market has been deregulated, Ambit will become your new energy supplier. Con Edison will still be reading your meter and billing you. However, you get guaranteed savings of 7% in your first two months and 1% each month thereafter. Of course it’s not a huge savings but you will also get reward points for each kw you consume which can be used for discounts on services and products. You also get a savings statement and the end of the year showing how much you saved by having Ambit as your energy supplier.” Pretty simple.

Now here’s where the majority of people fail. They’ve depleted their warm market and don’t know what to do. So here is what I would do.

Google Voice Number.
Get a fax number, home or efax, whatever works for you.
Spend a few bucks on business cards.
Print up some fliers and hang them in the post office, supermarket, etc.

POUND THE PAVEMENT! Remember I said this would not be easy and when things get hard most people would rather call something a scam than actually put in the time and energy needed. I’m not saying go to private homes and start knocking on doors. What I am saying is start going to small businesses in your area and make the pitch.

FACT! People in general would like to get something for nothing. What’s the something? Guaranteed Savings. What’s the nothing? Reward points for paying something that you are paying for anyway.

Keep it simple. “Sir, if you were able to save $2 a month on your cell phone bill and get reward points for every 10 minutes of talk time you spend on your cell phone would that be of interest to you? If you were able to save $2 a month on your cable bill but get reward points every time you paid your cable bill would that be of interest to you?

The bottom line is that if you are willing to devote the time and energy needed to make money you can. If you expect to do nothing and get something in return than you’ll find yourself posting angry comments on some BS consumer complaint site. Keep in mind that you’ll be making around $.25 for every customer you sign up who pay their bills on time and will need to burn through 50 representatives before you find 1 who is worth working with but it is possible.

I’m not affiliated with Ambit Energy at this time as I don’t have the free time necessary but I can see myself signing up with them in the future.

If you’ve researched Ambit Energy and feel that it may not be the right opportunity for you, check out the below opportunity video for Giant Cinema provided by MisterSpud of www.BecomeASpud.com.

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23 thoughts on “Ambit Energy Scam!

  • Karl

    I like your comments on this. I did my research and Inc.500 companies are no scam. Funny how some people don’t know their friends are idiots until they show them mlm. True mlm is legal and is part of every business schools teaching today. I wish more people were informed by someone smarter than them instead of someone they like.

  • Jason Wivart

    If you are interested in starting an Ambit Energy business. Please contact me. I would love to work with you and help you with the start up fees as well. Please contact me for more information. Jason Wivart.

  • KnowItAllKnowItAll Post author

    Thanks for the offer but it’s not for me. However, you may be able to cut the same deal with other people who may want to give Ambit a go.

  • James X

    Thanks for the heads up. Going to a meeting tonight for Ambit Energy. It’s not really my thing, but thought it was a scam after reading so many negative reviews. At least now I can approach it with a more level/open mind after reading your article.
    X

  • leena dsouza

    Your blog is comparing on benefits to consultants who are selling Ambit. What about benefits to the consumers…I am a Ambit customer and my rates have tripled 200% from a year ago, when the gas rates have actually gone down, which his down-right cheating. I plan to change right way.

    For Bill date 4/2/2014

    For Bill date 3/4/2013

    Your primary duty is to make sure the benefits are filtrated down to the customers, so you can add more business, which goes to pay the consultants. If not for the customers, you would not be talking about promotions.

    This is a thought you need to take it up to your higher authorities, before I work on taking away all the customers you got through me. I am not your consultant but I enrolled through Ambit Consultants who got a lot of business through me (in Staten Island)

    Thanks
    Leena

  • Daniel C

    don’t do it. its a waste of time and money. should be illegal. surprised the FBI isn’t all over this!

  • KnowItAllKnowItAll Post author

    I didn’t get any customers through you as I do not promote Ambit and have no idea as to who and or what is Ambit Consultants. In fact I am not an Ambit Consultant as I stated in my review.

    The fact of the matter is the energy costs have more than doubled since last year and it’s up to the customer as to a guaranteed savings of 1% means anything to them. I spend well over $2,000 a year in energy costs and a guaranteed 1% savings of $20 or so does not mean anything to me, especially when failure to pay on time could lead me to spending way more.

    Terms and conditions are for the representative to explain and the customer to understand. The issue arises when a representative is unethical and the customer fails to complete their due diligence. Regardless it doesn’t change my opinion that Ambit is a legitimate opportunity but one that is not for me as stated in my review.

    Gas rates have gown down? Source please as the cost to produce energy has doubled since last year.

    Do what you feel is necessary as it affects me in no way. I understand that stupidity is contagious but I don’t understand the anger when you should have known full well what you were getting yourself into when you signed on as a rep!

    Yup, Energy costs are higher which means that Ambit costs are going to be higher. Ambit is a provider not a supplier!!! As the supplier costs rise the provider rates rise as well!!!! I would think you would know this as an Ambit representative.

    Be made at yourself for the lack of self education when going into a business opportunity MORON. BTW – Staten Island is New York’s armpit!

  • Hannah

    It is terrible that people would run down such a great company and opportunity. I have had the privilege of working along some of the greatest ambit leaders. With their help and Free social media marketing ebooks on my website, I have been able to help others get their ambit business up and going. We all started in mlm for a reason… to be a success.

  • KnowItAllKnowItAll Post author

    I don’t know exactly but I’m sure that it should be on par with other MLM companies. As in business most will fail while few will succeed.

  • Tabitha

    The Federal Trade Commission has a report on MLM’s that estimates about 99% failure rate for new members. While some do indeed rise to success, it is because they are exceptionally talented sales and marketing people. What makes MLM scenarios so loathesome to me is how they downplay the type of knowledge and skill you will actually need to succeed, there is no screening process, pretty much you come in and hand over your money and suddenly you “own a business”? It’s sad. They take advantage of those who can least afford it. Sure , it’s a billion dollar enterprise, but only a select few get to taste the financial rewards. Being mentioned in Forbes doesn’t make you an ethical business. And no, I am not a disgruntled former Ambit rep, I’m too smart for that. I got a real career going, thanks.

  • KnowItAllKnowItAll Post author

    I really can’t argue with anything you stated in your comment. Indeed the failure rate for those entering into MLM businesses fail at a rate close to 100%. It’s unfortunate as MLM is still the best way to get a product or service into the marketplace for the least amount of money. A major issue I see is that people get sucked into various MLM without taking into consideration the viability of the product and/or service. With regard to Ambit Energy I don’t see anything unethical about the business. If a person takes the opportunity seriously a person can make money with Ambit as I personally know people that do quite well with them. However, these are people that actually work the business meaning knocking on doors and speaking with small businesses.

  • AJ

    BBB rating is bogus… there are dozens of companies under an umbrella company and what you don’t know is that they advertise a rating for one company for all the companies. If you actually investigate it more, the individual companies have tons of complaints. If you shell enough money to BBB, you can have the negative reviews not count against you, believe me, they tried to sell that garbage to me for my business. The BBB rating means nothing!

  • Hugh G Diick

    Its a scam, all who are in it know it. It provides no benfit to consumers with their “product”. If the people who “consulted” on this used half the energy they pour into this business into something more concrete, they truly would have the success they all yearn for. #mailboxmoney

  • DADDY G

    Biggest problem for me was a deceptive pitch to save money on energy without a word about how or who,next I know Ambit is taking over,so I called the rep and the corporate office to stop it and was given a cancellation confirmation number,the end,right? Wrong,a further email giving the date they would take over and a letter from my suppliers about the change in suppliers comes in,why wont they quit???? My disabled cousin who is on fixed income from SSD has Ambit and tried to cancel after quadrupling their bill and they keep putting it off talking about the end of the billing cycle or their rep was on vacation or any other excuse. The whole concept breeds greed and contempt and I wont line anyone elses pocket to resell me something I have been buying on my own for decades. And the worst part is they are not regulated by any utility commission where customers may have some voice to get problems addressed. Who speaks for us consumers to Ambit? Bottom line:the Consumer will LOSE!!!

  • Lou

    The bottom line…
    MLM is for sales savvy people who are creative and skilled at convincing strangers that they have a viable product and that there is money to be made by selling it as well. However most of us are not sales savvy people and lack skills necessary to be successful at it. What is sad about that fact is that most of these marketers know this but insist on pitching their products/business plans anyhow because it doesn’t mean anything to them where the money comes from as long as it comes. Only a select few make most of the money and in my experience when the word is going around that money has already been made. If you aren’t sure about the sales pitch, turn and walk away.

  • Christian

    I am an Ambit Energy consultant. While I am not here to defend the company, or argue any of the valid points made here, I will say that IF you are willing to learn HOW to market online, YOU can be successful as an Ambit Energy consultant, or any online business for that matter. It takes skill and perseverance on your behalf to succeed, and a willingness to help others as well. You have to keep working even when nothings happening. But should you continue and not quit, you can succeed online with Ambit, or any business. I can help you if you like. Good luck.

  • Christopher E. Conley

    think about this…the focus is getting others to sign-up, it is secondary to sell the product, REALLY? So the con continues, sign up people cheap and then they get hammered after they forget to renew, it is a marvelous charade.

  • Josh A

    About 3 years ago, I was approached and shown the Ambit business. At the time I did not think that I had time to start a business.

    I am now a satisfied Ambit customer and referring people to the company’s service. Why wouldn’t I? I am guaranteed to save money compared to what the utility company would have charged me (I do have to keep re-enrolling at the end of the term). As a new customer, I received a 2 night hotel voucher (NOT a time-share offer). As a customer, I can take advantage of their customer referral program, which can reduce the Ambit supply portion of my utility bill to zero AND I have a travel rewards (like a loyalty rewards) program that I can take advantage of.

    As you see, I have done some research on the company as a customer and now looking to take advantage of the business opportunity. I wish I could turn back time and sign up as a business three years ago.

  • CARL SCOTT

    I agree with a lot of your comments in regards to Ambit Energy…..I read earlier that you stated that you use 2000 kilowatts of power and its not worth it for you to make the change to Ambit because the 1% Guarantee plan will save you only $20……..The Guarantee savings plan of 1% doesn’t mean that you will only save 1% all year… That is the minimum , you can save more than that ……And there are several customers who are saving way more than 1% ……..

  • wes

    AMBIT IS BIG SCAM. I JUST SIGNED UP AS A CONSULTANT WITH $101 FEW WEEKS BACK AND I GAIN FEW HUNDRED $ AS CONSULTANT , I AM YET TO GET MY CHECK UP TILL TODAY 09/09/16, THEY KEPT POSTING ME EVERYTIME I CALLED THEM, IT IS NOW LIKE 6th WEEKS, I WAS TOLD THEY SENT THE CHECK SINCE 1st WEEK OF AUGUST BUT ALAS!! THEY DID NOT SEND THE CHECK, I AM RECEIVING ALL MY MAILS IN THE BOX DAILY. I WILL MAKE SURE I POST TO EVERY REVIEW I CAN COME ACROSS ONLINE IN FEW DAYS TO COME WITH MY “C” NUMBER FOR ANY OF THEIR CONSULTANT TO VERIFY.

    PLS DO NOT WASTE YOUR VALUABLE MONEY TO JOIN, THEY WILL NOT SEND YOU CHECK IF YOU MAKE MORE THAN SUPPOSE TO

  • Elonda Warner

    I work with Ambit and they send your Chk right when they say they will. Maybe you have them the wrong address or something or maybe you should have just did Direct Deposit

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