Welcome to my review. Is Ambit Energy a pyramid scheme or a scam? Is this a legit MLM company? Should you be joining their program to try to earn an income? Keep on reading…
Ambit Energy is an electricity and gas MLM company. You can use their services to supply your energy at home or for your business.
It’s possible for everyday people to sell these services to other people and make money.
Therefore, the main question of this review is, is Ambit Energy a scam pyramid scheme or a legit MLM?
Before we get into this review, let me introduce myself…
Hi, I’m Ivan and I’m an online marketer who went from losing my time waiting tables to running a thriving online affiliate marketing business.
In the meantime, I have actually tried and reviewed 600+ courses, scams, MLMs, and even pyramid schemes to find the very best way to generate income online.
Keep reading my Ambit Energy review where I’m going to show you what this company is about.
Also, I show you how it works, and I share my opinion about whether Ambit Energy is a scam pyramid scheme or a legit MLM opportunity.
Ambit Energy Review – Overview
- Type: MLM (Multi-Level Marketing)
- Owners: Vistra Energy
- Price: $74 one time + $24.95 monthly
- Recommended?: Read my review…
Overview: Ambit Energy is a multi-level marketing company that you can join and become a part of their direct selling team. In other words, it is an MLM (multi-level marketing) business.
And because of this, many people call Ambit Energy a pyramid scheme.
So is it? That question has been answered in detail in my review. But if you’re in a hurry, I can save you time and say that Ambit Energy is a legit MLM.
It’s because they offer real and useful products as well as the chance to make money selling the same.
But like every other company that uses this model it has problems. Keep reading my Ambit Energy review to learn more before you make your own decision.
Alternative: If you’re a newbie who is looking to earn passive income online, there are other, more beginner-friendly, and cost-effective alternatives. My top-rated affiliate marketing course has helped me to go from earning $0 to $100’s per day!
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What is Ambit Energy?
Ambit Power is a multi-level marketing power business that supplies electricity as well as natural gas. Its goal is to help prevent huge businesses from “monopolising” the industry and to offer various options and cost points to people.
The company provides everyday individuals with the opportunity to receive “free energy” and earn money by becoming “Independent Consultants” (IC). More about this soon in my review.
Ambit Energy was established in 2006 by Jere Thompson Jr. and Chris Chambless. The company has its head office in Dallas, Texas. Since most MLMs disappear after 3 years, to see Ambit Energy still going is a good sign that it’s not a scam.
They are recognized to be at the forefront of solar energy solutions, supplying their products and services in 17 states throughout the USA.
The company does seem to supply competitive rates for a 1-2 year contract. However, after that instantly positions customers on the variable price, which seems exceptionally high compared to competing energy providers.
This has actually caused a lot of complaints as you will have a chance to see in this Ambit Energy review.
It also allows you to make money by coming to be “Independent Professional” (IC). It’s extremely similar to other MLM businesses, which is why people tend to claim that Ambit Energy is a scam.
And I’ll be dealing with that questions in my Ambit Energy review as well.
Who Owns Ambit Energy?
Ambit Energy was bought by Vistra Energy in November 2019.
Ambit is now part of a leading, integrated energy company. It is now better placed to attend to the demands of its domestic as well as industrial consumers.
The success and continual expansion of Ambit Energy drew the interest of Vistra Power, another innovative company with a reputation for excellence.
When the leaders of the two businesses started chatting, they understood that they shared vital worth such as honesty, advancement, a customer-centric strategy, excellence, as well as excitement.
Therefore, they joined forces. But Ambit still kept its branding and MLM model.
Related Review: Oriflame MLM
Is Ambit Energy a Pyramid Scheme?
Ambit Energy is not a pyramid scam. In spite of its resemblance to a pyramid scheme, MLM is not a scam. There is a service or product included that may be marketed to customers.
You can generate income by selling Ambit Energy services to other people. However, the only method to make excellent money ($1,000+ a month) or cover the expenses of being a consultant is by recruiting a lot of people into the MLM business.
This makes Ambit Energy similar to a pyramid scheme in disguise. Before going in-depth on this question, you should comprehend what a pyramid scheme really is…
What Is a Pyramid Scheme?
According to Wikipedia, “A pyramid scheme is a business model that recruits members by promising payments or services in exchange for enrolling new members into the scheme, rather than providing investments or product sales”.
You can check out a short video below to learn more…
When we look at the true definition of a pyramid scheme, we can see that the perpetual need to attract new members is a crucial part of a pyramid scheme. That is the distinction between network marketing and companies that are not pyramid schemes.
So why do so many people think that Ambit Energy is a pyramid scheme?
It’s because it’s possible for you as a beauty representative to sell their products to make commissions. It’s because you can make cash by recruiting a lot of individuals right into the multi-level marketing scheme.
That’s the biggest reason why some people call it a pyramid scheme in disguise…
Is Ambit Energy a Pyramid Scheme in Disguise?
No, it’s not. They promise you settlements based on the sales made by others you register. However, there are no direct repayments just for getting them to join. That said, Ambit Energy, once again, is not a pyramid scheme.
They are a credible business and they run within the standards set out by the Federal Trade Commission.
In other words, Ambit Energy sells real products for people to consume.
But even so, their business model and the way people sell their products leave one with the impression of some sort of a scam. It’s just how people perceive this business ever since…
Having said that, although not legally a pyramid, whether you consider Ambit Energy a pyramid scheme depends upon your viewpoint of these schemes.
Related Review: Total Life Changes MLM
Is Ambit Energy a Scam or Legit?
Ambit Energy is not a scam. It’s not a network marketing firm. Their service is good, and their payment plan is basic enough to realize without the aid of their specialists.
The lack of openness by the company is what makes it difficult to recommend this to anyone.
Due to the fact that their earnings disclosure statement can not be viewed easily, it is all natural to conclude that the bulk, if not all, of their professionals, aren’t creating any type of real money.
It is completely possible to build a lucrative, effective MLM company … However there are better ways to build a lucrative hustle besides multi-level marketing.
Alternative: On the other hand, if you’re looking for the best business model to earn passive income online as a beginner, there are other, more suitable, and cost-effective alternatives.
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What Products Does Ambit Energy Sell?
Ambit Energy distributes power solutions to its customers. Ambit Energy currently serves 17 states in the United States with gas and electrical power.
Below is a list of the services and products they provide:
Ambit Energy has been assisting firms in lowering their energy expenses for over a year. They have experts in their group that aid with the procedure and conserve cash by giving special advantages and reasonable costs.
Ambit Energy and Green-e Energy
Ambit’s Green Plans are limited to some areas, so this limits their contractors’ potential of recruiting clients. Because Amber Energy respects the environment and its customers, they are heavily promoting its green energy services.
Right now, renewable energy is a growing market with climate change being such a hot topic. That’s why their Independent Consultants are quick to jump at this product (if it’s available in your state).
Solar Savings from Ambit Energy is one more option for ecologically diligent consumers. They are able to provide solar services to 6 of their 17 places national thanks to their partnership with Sunrun, a major solar power provider.
This is a great selling pitch, yet it’s a double-edged sword since it’s just offered in six states.
Related Review: Primerica MLM
How Does Ambit Energy MLM Work?
Ambit Energy conserves money on marketing and advertising by getting day-to-day people to promote these services to others. These everyday individuals have the chance of making a commission from sales.
In other words, Ambit Energy, similar to various other MLMs out there, works the same way. It conceptualizes and manufactures its products.
Then, it allows people like you and me to become representatives and resell these products in return for a commission.
However, there is another way how this company works. As the business’s name suggests (MLM), you can build a downline of salespeople and earn income from their distribution.
Therefore, many people will say that Ambit Energy MLM is a pyramid scheme…
But as I said in my Ambit Energy review, it’s completely legit MLM.
The company provides natural gas and electricity services to 17 states in the USA. Each individual and state will have slightly different rates so it’s not as straightforward as having a set price.
Related Review: Rodan and Fields MLM
How To Make Money With Ambit Energy MLM?
There are 2 main ways you can make money from Ambit Energy:
- Sell the product yourself
- Recruit people to earn bonuses from the sales they make
It’s important to note that Ambit Energy, like most MLMs, avoids being shut down as a pyramid scheme because you do not make money just by recruiting people.
You earn bonuses from any purchases these people you recruit make or any sales they make.
What Is Ambit Energy Compensation Plan?
You have to go through their 4-page Compensation Plan in order to comprehend Ambit Energy’s business. You will see in their Payment Strategy that there are other benefits to joining Ambit Energy that you will be able to take benefit of right now:
The possibility to make totally free energy: you will get this reward after presenting 15 consumers to Ambit Energy as their energy provider. This makes their MLM program worthwhile.
Ambit Energy takes trip rewards that might likewise be earned by referring clients or earning benefit points that can be switched for journeys. Even if it doesn’t earn a profit, free things are constantly welcome.
The Ambit Energy Compensation Plan tries its finest not to enter into excessive detail, but we have the ability to gather 3 ways to generate income with Ambit Energy from their payment plan.
Initially, there are the client and group perks. This is paid weekly and enables you to begin making money quickly under the Ambit Energy MLM program.
You simply bring in customers while supporting others to do the same. You may receive $100 by building up four consumer points.
You might make these points by enrolling customers in an energy plan or a personal website package. Then you get $100 for assisting somebody else to do the same, hence the recruiting aspect of their opportunity.
This is where you get benefits when you register a brand-new MC or Marketing Consultant and she or he earns 4 client points in the first 4 weeks.
You will also be paid a recurring bonus offer depending on the variety of Marketing Consultant customers in your team.
Management bonuses are also provided regularly, based on client activity throughout the organization. All leadership benefits are based on your level within the organization.
Keep in mind that your bonuses will be larger the more active your downline is.
This is the majority of Ambit Energy consumers’ earning perspective, and that is what their Independent Consultants are going for.
The amount you make in recurring commissions varies depending upon the marketplace in which you run in the United States.
You may produce a network of 6 levels of the downline and make commissions depending on the consumer activity of your downlines. To put it another way, if they make money, so do you.
Those tables are indeed hard to understand, which is why most people run away from MLMs.
Multi-level marketing companies often do this to make it appear like there are tons of methods to make money. The truth is, you can only do 2 things to make money: Sell Ambit energy services or Recruit people.
The 5 min video clip listed below explains this in even more detail.
How Much Does It Cost To Join Ambit Energy MLM?
According to some older reviews, Ambit Energy used to charge a one-time cost of $429 to register.
However, they have actually currently dropped it to $75. Along with the one-time fee, you will be charged a month-to-month recurring cost of $24.95 for personal internet site maintenance.
Other than this, there are no major extra costs to participating in this scheme.
Related Review: Arbonne MLM
Can You Make Money With Ambit Energy?
Yes, you can make money with Ambit. However, there’s a whole lot that comes along with network marketing that lots of people fight with. In other words, it’s hard to succeed.
It’s possible to earn money with multi-level marketing. And if you’re gonna place in the work and time to do this, you could generate some cash while you’re selling energy to people.
Just keep in mind that the success rate with Ambit Energy (or any other) MLM is low…
Over 90% of professionals make an average of $110 a year, which is far less than their expenses simply to be active specialists.
The only individuals that appear to make suitable cash from Ambit appear to be top salespeople that treat it like a full-time business, not a part-time side hustle.
Related Review: Tupperware MLM
Ambit Energy Reviews and Complaints
The best way to check whether Ambit Energy is a scam or legit is to read some customer reviews and complaints.
Luckily, if you do a quick Google search, you will see BBB, Yelp, and Consumer Affairs Ambit Energy Reviews. Things are not looking good for them on Yelp. They’ve got only 1.5 stars from 115 reviews!
On Consumer Affairs, on the other hand, most Ambit Energy reviews are basically complaints. They’ve got 2.7 stars from 820 customer reviews!
Here are some of the most critical reviews…
In any case, some people do say that Ambit Energy is a scam or even a pyramid scheme in their reviews. But the truth is, the company is legit. They are just dissatisfied customers…
Related Review: DoTerra MLM
Ambit Energy Review – What I Like
It’s a Billion-Dollar Company
Ambit Energy has actually established itself as a large and successful company in this niche. It was named the fastest-growing company in the USA in 2010, and it was valued at a billion bucks in 2013.
Their Product Is In Demand
The company’s services given are not vanishing anytime quickly.
Unlike many various other congested multi-level marketing companies that sell useless products, every family and company need the services provided by Ambit Energy.
Green Energy Provider
When it comes to eco-friendly power, there has been a substantial change in public opinion.
Many individuals are coming to be extra knowledgeable about the dangers surrounding global warming. So if they can discover a legit method to feel as if they are making a contribution, many will certainly make use of it.
This is a considerable edge for Ambit Energy and its representatives.
Related Review: Young Living MLM
Ambit Energy Review – What I Don’t Like
As you can see from the screenshots that I posted in my Ambit Energy review, the most prevalent complaints say that power rates were either too pricey in comparison to options or there was a considerable cost increase after their 1-2 year contract finished.
Regular Monthly Costs
The $24.95 month-to-month cost for a replica website is ridiculous when contrasted to other multi-level marketing companies.
You would certainly believe that this consists of training and other benefits, yet these are simply fundamental things. You will need to spend more training if you intend to learn how to bring in visitors to this website.
Having an internet site does not guarantee that people will certainly find it. The hard component is figuring out exactly how to get individuals to locate the internet site, and Ambit Power does not assist with that.
That said, check out my #1 recommendation to learn how to generate tons of free visitors and make money with affiliate marketing.
There are little to no details easily accessible on their settlement plan data on their website.
Because the recurring payments are not as lucrative, you’ll require to bring in a large number of people to be profitable. And this is the main reason why people give up and say that Ambit Energy is a scam.
Ambit Energy Legal Actions
There have actually been numerous class-action claims, such as the one they worked out in March of 2018 for $9.3 million. This is not the just one either. There have been other suits in 2015.
It’s never a good indication when there are numerous lawsuits versus any firm that you want to sign up with.
But still, despite those complaints and lawsuits, Ambit Energy is a legit MLM company.
Ambit Energy Review – Conclusion
As I said in my review, Ambit Energy is not a scam. But it’s not the best multi-level marketing firm either. On the bright side, their service is admirable as well as their settlement plan is lucrative if you give it a fair try.
But there are a few reasons why I don’t recommend this MLM (or any other for that matter).
Their business lack transparency. In other words, there is no official disclosure of the earnings of their representatives.
Not having the ability to see their earnings disclosure statement, really pushes me to think that the bulk of their professionals is not making any kind of life-changing income.
Also, the growing number of issues surrounding the firm is what’s impeding from recommending Ambit Energy.
On the other hand, it is a legit MLM. Ambit Energy is not a scam, pyramid scheme, or any other such thing. You can join their program, become a consultant, and sell people some electricity.
So if you believe that you have skills, go for it. Just treat it like a real business.
But still, I would recommend seeing the rest of this page to learn about a much better way to make money online.
Thanks for reading my Ambit Energy review. What is your opinion? Were you a part of or maybe still are a member of this business?
Feel free to leave your reviews at the end of this page!
Is There a Better Way To Make Money Online?
I know how hard it is to trust websites these days. There are too many scams out there, especially in the make-money-online world. I know, because I reviewed over 600+ sites so far!
See, Ambit Energy is just one of the many companies MLM I have reviewed…
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And don’t forget to share this review with your friends and family!
Thanks for reading my review of Ambit Energy MLM!
All the best, Ivan. contributor @freeaffiliatemarketingbusiness.com
Related Review: Herbalife MLM
16 thoughts on “Is Ambit Energy a Pyramid Scheme? – My Honest Review”
I’ve tried several MLM companies and I’d say as long as their products are legit, they’re not a scam. But what I don’t like about MLM’s is their recruitment system. Upon joining, they will immediately pitch in what’s commonly called the “downline/up line” system or known as pyramiding. This is because according to them you can actually make money even without a product.
Ambit Energy seems like a great company to invest in because of the demand for energy and solar energy is a good alternative. But other than the bad reviews, their lack of transparency is a big turn off.
Thanks for sharing a detailed review of Ambit Energy.
You’re welcome and thanks for your input!
Ambit energy looks like a brilliant idea. Selling the product will not be an issue. The challenge is in the recruitment and unfortunately this is always where the money is in MLM. Top of it is the push to make sales, for me its a no go area. MLM have similar structure and are always difficult to sell. I stand with you, affiliate marketing remains a winning ticket
I agree. Affiliate marketing is a much better way to start earning an extra income than MLM.
Great post, very well written and informative, I enjoyed reading it and learned a lot from it. Keep up the good work! I have some personal experience with Ambit energy and almost signed up for it a few years ago. I find that many people think multi level marketing is a scam, even when the products are legit. Ultimately, I decided against signing up, b/c of that negative sentiment amongst my peers.
Thanks for sharing your review of Ambit Energy MLM.
I have not come across Ambit energy before, but that is most probably because the energy and gas that they supply, is only available in 17 states in the USA. Seeing that they are at the forefront of solar energy solutions, would make them very popular with those wanting an eco-friendly solution for their utilities. I can understand that consumers would not like a steep tariff increase after the initial contract, but that is fairly standard with many energy suppliers.
Joining Ambit to earn money with their MLM business model, is something that I cannot recommend. Having to constantly recruit and build a downline to earn passive income, is not worth the time and effort. Affiliate marketing is a more realistic way of making money online.
Thanks for your review of Ambit Energy!
Wow, you have certainly done your homework here. However there are a few reasons I would not choose Ambit as something to profit off of. For one, it will be much harder to sell energy if people can get it cheaper elsewhere, and it is only available in certain place, which does limit you as far as marketing is concerned.
With any MLM opportunity, one has to work very hard to either sell or recruit as you say, and I can think up a lot of easier ways to make money, like your top recommendation for instance.
Thanks for your comment on this review!
I had a bad experience with an MLM called Qnet, we were forced to buy a water filter at 1200 dollars, a necklace called Chipendant, and had to make other people fall into the trap, finally I have nothing win at all, it’s the company that cashed everything, so I don’t know if I should believe you, but you changed my ideas a little
Thanks for sharing your experience!
I was once a representative in an MLM company that sells many products and services for 2 years, And i haven’t made any single dollar which is called Qnet.
Actually I lost money, 2500$, I wouldn’t say I lost, it was a lesson for me.
Most of the network marketing companies are the same system, but one of the cons for Ambit Energy is only in the USA.
Energy is in very much demand, specially clean and renewable energy.
But I think if you sell and make commission is much better than building downlines, although in building network better income.
I believe affiliate marketing is much better option for me.
What about the gas, how do you sell the gas in an MLM company?
Thanks for sharing your experience, Moses.
There are MLM companies that sell real, tangible, and often good-quality things. I don’t think there’s anything wrong with that.
However, the network marketing model itself is something I don’t trust. Their goal is for every new entrant, who in many cases is also a consumer of the products, to build their own network by recruiting more people.
I have friends who have seen this as a good way to make money, but very few can make a full income with it. In addition, the MLM companies I have come across so far have offered overpriced products, as you say in this Ambit Energy review. Just like you, I consider affiliate marketing to be a much better way to make money.
Thanks for sharing your opinion!