Ambit Energy Scam or Real Deal

Saturday, April 9th, 2011 at 4:16 am

Ambit Energy – The Story

Ambit Energy was founded in early 2006 at a Potbelly’s restaurant in Addison, Texas. Today they are located in Dallas, Texas. The founders, Jere Thompson and Chris Chambless saw the opportunity in energy deregulation and decided to started Ambit Energy to provide affordable electricity and gas and a home base business opportunity.

Ambit – Moving Fast

In 2006, Ambit Energy’s first fiscal year, it made about $1.6 million. In 2008, Ambit recorded revenues of almost $200 million and nearly $325 million in 2009. This year, Ambit Energy is shooting for $400 million in revenue and hopes to increase customers from 350,000 to 400,000. Ambit is currently providing affordable energy in Texas, New York, Illinois, Pennsylvania, and Maryland.

Ambit – The Awards

Ambit Energy was named the fastest-growing privately held company in north Texas by SMU’s Caruth Institute for Entrepreneurship in their annual Dallas 100™ rankings.
In 2010, for the second year in a row, Ambit was ranked #1 on the SMU/Cox Dallas 100™ and among the Top 100 Places to Work by the Dallas Morning News. Ambit Energy was also named “America’s Fastest-Growing Private Company” by Inc. magazine, which placed Ambit on top of the publication’s renowned “Inc. 500″ list.

Ambit – The Comp Plan

The following information was gleened from “The Ambit Marketing Compensation Plan”. Ambit has two entry levels, Sales Consultant with an initial refundable fee of $199, and Marketing Consultant with an initial one time fee of $399. The main difference is the Sales Consultant pays for use of the optional Support and Services Program and a Sales Consultant’s up-line will not get credit for customers.

Ambit has the following designations:
Marketing Consultant (MC),Regional Consultant (RC), Senior Consultant (SC), Executive Consultant (EC), and National Consultant (NC).

As with most MLM compensation plans each of the above levels are built upon obtaining certain numbers of customers, recruiting sharp people into the Ambit Energy business, and helping to develop and grow those businesses.

Ambit has four types of income streams:
Fast Start Money – Jump Start Program 1-6
This pays the Consultant up to $400 for gathering at least 30 customers within 12 weeks of signing up. The six programs pay $100,$100,$50,$50,$50, and $50 for obtaining certain numbers of customers within certain time frames.

Team Builder Bounus
$100 for each personally sponsored Consultant that secures 4 customers within 4 weeks of signup.

Residual Income
Ambit Energy’s Residual Income plan is somewhat involved, too much for this quick overview (this is not a bad thing). There are different Residual Income plans for some of the states they operate in. But to give you a glimpse of some of the factors involved, the number of customers a Consultant has will qualify them for eligibility to receive income down to six levels of their organization (20 customers gets you all six levels). Ambit also increases the payout based on the customers energy consumption.

Leadership Income
Ambit Energy has two plans here as well. These payouts begin to kick in at the Regional Consultant (RC) level.

Consultant Leadership Bonus is based on new consultants joining your organization and enrolling 4 customers within 4 weeks. The payouts:
RC – $55 and $55 for each in Unlimited Downline Levels
SC – +$80 and $135 for each in Unlimited Downline Levels
EC – +$40 and $175 for each in Unlimited Downline Levels
NC – +$15 and $190 for each in Unlimited Downline Levels

Customer Residual Bonus is based on qualified customers within your organization. These figures are for New York and Illinois, Texas is higher with a $2.00 payout at the NC level.
RC – +.25 and .25 for each in Unlimited Downline Levels
SC – +.25 and .50 for each in Unlimited Downline Levels
EC – +.25 and .75 for each in Unlimited Downline Levels
NC – +.25 and 1.00 for each in Unlimited Downline Levels

Ambit and You

Ambit Energy is not a scam, far from it. 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.

So if you have found this in your Due diligence search, good for you. You are acting like a real business owner. The next thing you need to do, besides getting with the person who shared the plan with you and signing up, is to ask yourself this question:

Do you want to use the Internet and/or Social Networking to build your business after you contact everyone on the list your sponsor has asked you to make?

If you answered “Yes” to that question, learn how to overcome the Number 1 Fear of All Network Marketers by Clicking here.