Is Ambit Energy a Scam? – I Wish I Knew this Beforehand!

The short answer to the question is "No"! Ambit Energy is not a scam.

However, after speaking to many Ambit Energy Consultants...

I understood from them that some customers would have good experiences, while others may have bad experiences with the company.

Ambit Energy Scam Review

I am going to expose the truth about the company, and everything you need to know before joining as a consultant.

Review Summary

Name: Ambit Energy

Founders: Jere Thompson Jr. & Chris Chambless

Price to Join as Consultant: $75 + $24.95/month (Used to be $429 + $24.95/month)

Price of Energy: Varies from States (Check Your Rates Here)


Business Opportunity Rating:

Ambit Energy Service Rating:

Should You Switch to Ambit Energy?

Someone close introduced you to Ambit Energy, and you are wondering if you should switch your energy provider to them.

You have come to the right place because there are 6 things you need to know before switching...

#1 Is It Really Cheaper?

The first question to ask before switching to Ambit Energy is, "is it really cheaper than your current provider?"

If you haven't yet compared the rates, do take out your current energy bill and compare it against this.

One thing you have to understand is that Ambit Energy provides 2 types of plan, a Fixed Rate Plan, and a Variable Rate Plan.

#2 Fixed or Variable?

I would recommend that you compare the prices against the Fixed Rate Plans because there are many complaints about the variable plans. 

Some people have been charged 8 to 10 times their current energy bill just because they selected a variable plan.

So, is Ambit's Fixed Rate Plans cheaper than your current rate?

#3 What you need to know about Fixed Plans?

Depending on the fixed rate plan you signed up for, there is a contract expiry.

Some plans will lock you in the fixed rate for 12 months and some for 24 months.

The critical thing to note is that after the contract expires, you will automatically be enrolled in the variable plan.

That's unless you make an effort to renew or sign up for a new fixed rate plan.

Ambit Energy - Fixed Rate Terms of Renewal

This is the very reason that leaves many people enraged with the company because they were not aware of this fact.

Which leads to the next question...

#4 Did your consultant disclose everything to you?

Though you may trust your consultant because she or he is your friend, family or neighbor who is using the same service...

You still have to be cautious because your name is on the dotted line. It takes a lot of time to read the contract through and through, but it is worth it.

Also, it is the responsibility of the consultant to highlight the things you need to know before you put pen to paper.

For example, if you've decided on a variable plan, your marketing consultant should carefully highlight the risks, like the fluctuating rates, and all.

And, it is the responsibility of the user to keep track of the real-time rates.

I would suggest that you do your due diligence (without the presence of a consultant) before making the decision.

#5 What others say about the service?

To keep this objective, let me share with you what others say about the services provided by Ambit (the good, the bad and the ugly)...

The Good


The Bad


The Ugly (The Class Action Lawsuit)

The Class Action Lawsuit was mainly against the false advertisement that lures people into buying "cheap" energy.

Many consumers claimed that they didn't know about the clause that allows Ambit to hike their charges without limits. So, in 2015, Ambit Energy settled the class action lawsuit for $950,700. The proceeds went back to the affected consumers.

To put it simply, Ambit was forced to settle, or else they lose the license to operate in New York.

#6 What you need to know about the service

The truth is, Ambit Energy is not an energy provider at its core, it has no infrastructure to provide the service on its own, surprising right?

Ambit is not a direct energy provider

To put it simply, Ambit Energy is a sales company. It sells Energy through other direct energy providers.

In other words, you are signing up an energy plan through an intermediary.

I don't know what you make of this, but I have some interesting thoughts I'd like to share with you below about how Ambit earns money.

But before that, if you have already decided to sign up a plan from Ambit, the next question you'll probably ask is...

Should You Join Ambit Energy as a Consultant?

Since everyone around you consumes electricity and gas, why not share Ambit with them and earn some money at the same time, right?

It makes sense to earn money while helping others save. It's win-win!

But now let me prep you on the things you should know before joining as a consultant, much like how your consultant should highlight the critical points when you select a plan.

#1 Ambit Energy is (NOT) an Easy Sell!

Do not join the business opportunity thinking that everyone around you will buy cheap energy from you. I know, only a fool would not switch to a cheaper service, right? But, that's the biggest mistake you can make!

Some people are comfortable with their current energy provider, and it takes someone convincing enough to sway their minds.

Having said that, you need to possess the soft skills required for this job to be successful. Otherwise, you need to take the time to sharpen your skills, which means that you have to put yourself out there and stomach tons of rejections. It is inevitable if you want to succeed.

Not that easy after all, right? This business is not suitable for everyone.

#2 People in Your Warm Market are (NOT) the Best Prospects

But if it is not them, then who, right? Let me explain.

Your warm market consist of your friends, family, neighbors, and the people you know.

Instinctively, those are the people who will come across your mind when you are looking for prospects.

The problem is, while your warm market is the best prospects for the service Ambit provides, they are not the best prospects who would help you grow your business.

Success with Ambit boils down your ability to grow a sales team

Yes, recruitment is the only way to be successful with Ambit. The more people out there helping you promote Ambit, the more money you make, and this is reflected in the compensation plan which we will discuss later.

You can't be truly successful based on your personal sales.

With that said, your friends and family could care less about your success. They could switch their energy provider to Ambit just to support you.

But when it comes to getting them to be an Ambit consultant, that's a different story.

Even if they do join you...

I would say that 99% of the time if they do not see results in a short period, they will quit.

Remember I said that you need to acquire soft skills? Not many people are willing to go down that path.

So if it is not the people in your warm market, then who?

The best kind of prospects who will help grow your business is people like you.

People who are sales driven, and hunger for success.

But the question is, how are you going to find them, right?

In the past, I would stop here and tell you not to waste your time and energy on Multi-Level Marketing opportunities like Ambit, because more than 95% of the people will fail.

And that the traditional network marketing strategies don't work anymore.

But that has changed ever since I discovered a strategy called Attraction Marketing. It is a strategy that will allow you to attract the right type of people for your business.

And the good thing about this is that you do not need to rely on your warm market for prospects, and you do not need to do any sorts of cold market prospecting like talking to people at the mall or do cold calling.

If you are interested to learn more about Attraction marketing, there is a 10-day Bootcamp that you can attend. Click here to gain access.

#3 Choose Your Sponsor Wisely

The fact that you are going to build your sales organization means that you are going to train recruits.

And, the knowledge you have, and how were you taught to promote the Ambit business will be passed on to your downlines.

If your sponsor teaches you all the wrong things like "focus on recruiting" or "manipulating people to join the business because Ambit is a Turnkey business," your entire organization will be built on that foundation.

And as we know, a weak cause can cause an entire organization to crumble. Recruitment schemes don't sit well with the law anyway.

So, to choose your sponsor wisely means that you have to assess how you were being brought into the business.

Did you join the business because Ambit benefited you, and you want to share it with others?

Or, did you join the business you just want to earn some extra cash?

I will be honest that if your answer is the latter, many other opportunities are much easier to earn money than Ambit.

How Ambit Earns Money? (My Exciting Discovery)

Disclaimer: This is a hunch I have while researching on Ambit. I am quite sure, but not 100% that this information is accurate. Maybe you can weigh in...

The question that came to my mind while I was researching about this company was, "How do they earn money when they are providing such cheap energy?"

Wouldn't they be losing money? What gives them a competitive advantage and how are they able to be the cheapest on the market?

As I've mentioned above, Ambit is not a direct energy provider. It does not supply energy directly to its consumers.

The key to understanding how Ambit earns money is through the concept of Wholesale.

Because Ambit can generate a high volume of new customers to its contracting partners who would supply the energy, there must be some secret contract in place behind the scenes that would allow Ambit to earn money whenever they send new customers to the energy providers.

If not, how else would Ambit be able to generate money and support its compensation plan?

My guess is whenever Ambit earns money from its contracting partners; the funds will then be redistributed through the compensation plan.

I am pretty confident that this is how Ambit works. what do you think? Please share your thoughts in the comments section below.

Speaking of the compensation plan...

How Will You Get Paid? - The Compensation Plan

There are 3 ways you can earn money from Ambit Energy...

  1. Immediate Income
    • Jump Start Bonus
    • Team Builder Bonus)
  2. Leadership Income
    • Consultant Leadership Bonus
    • Customer Residual Bonus
  3. Residual Income

Let's talk about each of them.

1.1 - Immediate Income (Jump Start Bonus)

To put it simply, if you can sign up 30 customers (not marketing consultants), you will be able to earn a maximum bonus of $400.

Signing up more than 30 won't earn you more bonus.

But, there is a break down for this $400 bonus.

  • Sign up 5 customers in 4 weeks, and you earn $100
  • Sign up a total of 10 customers in 8 weeks, and you earn a total of $200
  • Sign up a total of 15 customers in 8 weeks, and you earn a total of $250
  • Sign up a total of 20 customers in 12 weeks, and you earn a total of $300
  • Sign up a total of 25 customers in 12 weeks, and you earn a total of $350
  • Sign up a total of 30 customers in 12 weeks, and you earn a total of $400

1.2 - Immediate Income (Team Builder Bonus)

Whenever you sponsor (recruit) a marketing consultant who managed to sign up 5 new customers in their first 4 weeks, you earn a $100.

2.1 - Leadership Income (Consultant Leadership Bonus)

To earn a Leadership Income, you must qualify for one of the 4 leadership positions:

  • Regional Consultant (RC) - Personally enrolled 5 new customers; sponsor 6 marketing consultants
  • Senior Consultant (SC) - Personally enrolled a total of 10 customers; sponsored at least 2 marketing consultants when you are an RC; Have at least 18 RCs in your organization
  • Executive Consultant (EC) - Personally enrolled a total of 15 customers; Have at least 5 SCs and 18 RCs in your organization
  • National Consultant (NC) - Personally enrolled a total of 20 customers; Have at least 5 ECs, 5 SCs, and 18 RCs in your organization

If you qualify as a leader, you will earn a Consultant Leadership Bonus whenever someone joins your organization (regardless of the levels or generations) and manages to enroll 5 new customers.

  • RC earns $55 per consultant who enrolled 5 new customers
  • SC earns $135 per consultant
  • EC earns $215 per consultant
  • NC earns $240 per consultant

2.2 - Leadership Bonus (Customer Residual Bonus)

Whenever there is a new customer within your organization (regardless if you are the direct enroller or your downline is), depending on your leadership position, you will be paid as follows:

For Leaders in Texas

For Leaders in other Markets

3 - Residual Income

This is the most enticing compensation out of the 3. It allows you to earn money whenever someone in your organization pays their energy bill. Take note that you will be paid 6 levels deep of your organization.

Ambit Energy - 6 Levels of Compensation

Residual Income (For Texas Residential)

Residual Income (For Texas Small Commercial)

Residual Income (For All Other Markets)

Want to be successful with Ambit Energy? Read This!

How Much Does it Cost to Join as a Marketing Consultant?

To participate in the compensation plan mentioned above, you need to pay a one-time fee of $75 to join as a marketing consultant.

Then, you have to pay a $24.95 per month for a personalized Ambit website. This website will be your portal to sign up new customers or sponsor marketing consultants.

The good thing about this is that the cost of joining used to be $429, and now, you can participate in the compensation plan at just $75.

In Case You Don't Know What Ambit Energy is?

Ambit Energy is a Multi-Level Marketing Company that is supposed to provide cheap electricity and natural gas to its customers.

It was co-founded by Jere Thompson Jr., whose family started the well known worldwide franchise called 7-Eleven, and Chris Chambless, who was a senior executive of Excel Communications, which was one of the fastest growing companies in the U.S. surpassing Wal-Mart and Microsoft in 1995.

Seeing the opportunity to capitalize on the energy deregulation, the co-founders started this company with the intention of redistributing wealth and at the same helping people save money on their energy bills.

Currently, Ambit Energy provides its services to 17 deregulated states in the U.S., and it has over 1 million active customers.

The Verdict

Now the biggest question you probably have, "Is Ambit Energy a Scam?"

You must be wondering why I wanted to keep this critical section so far down this review.

It is because there are so many things to discuss about the Ambit service and its business opportunity that leads to this conclusion. If you haven't read the above yet, I highly suggest that you do so.

In short, Ambit Energy is NOT a scam... But first, how do you even define a scam? To do that, I will answer these two questions:

  1. Is Ambit Energy a Pyramid Scheme?
  2. Does the Company or its Consultants Deceive Consumers?

Is Ambit Energy a Pyramid Scheme?

Honestly, with such a business structure, many people will claim that Ambit Energy is a pyramid scheme.

Let us first understand how the Federal Trade Commission (FTC) defines it...

Is Ambit Energy a Pyramid Scheme?

So, the first question to ask is, "does the services provided by Ambit Energy gives you with the value you need?"

Personally, I think that it does, because Ambit sells energy in wholesale for the direct energy providers which allows consumers to enjoy a cheaper energy bill.

So, in this sense, Ambit does provide a service that consumers need, thus it is unlikely a pyramid scheme.

Unlikely? Let me explain. No matter how legitimate Ambit Energy is, there will be a group of people who will give the company a bad name.

Those people are the ones who will present the business opportunity as an easy way to earn money. Their primary focus is on recruiting new consultants, and nothing more.

And that's why some people will feel that Ambit is a pyramid scheme.

Does the Company or its Consultants Deceive Consumers?

A consumer's experience will differ depending on the integrity of the consultant.

Bad experiences derive from poor delivery by the consultant.

If a consultant do not explain the details of the plan properly, it will lead to misunderstanding between the consumer and the company.

And that's why some people will feel that they have been deceived.

The company, in general, does its best to educate its consultants on the best practices. But in the end, it is how the consultants deliver their pitch that matters.

So at the top level, I don't think the company has any intention to deceive anybody.

Verdict: Ambit Energy is not a scam!

How to Protect Yourself from an Ambit Energy Scam?

To protect yourself from unscrupulous consultants, know these...

  • Compare your current energy rate against this;
  • Always RENEW YOUR FIXED RATE PLANS whenever they expire;
  • Ambit is NOT a "Get Rich Quick" Scheme;
  • You should NEVER join Ambit just because you want to earn money; your primary reason should be to help others save money on their energy bill;

I hope these pointers help. If you have any suggestions, feel free to leave it in the comments section below.

My Sincere Advice to You

Whether you are considering to become an Ambit Consultant or you want to benefit from the services, you have to exercise due diligence.

Do not sign a contract blindly, and do not join the business opportunity without considering the things I've mentioned above.

Ask your consultant to walk you through the contract, and if that consultant refuses or gives you an excuse, don't sign with them.

You can always find another consultant from the website.

If you enjoy the customer service from your consultant, then it would make sense for you to consider the business opportunity.

A considerable part of the due diligence is already done on the fact that you are a happy customer of Ambit Energy.

If you ever find yourself in a situation where you do not have enough prospects or leads, I would highly recommend that you learn more about attraction marketing. This is the strategy used by top earners to find high-quality prospects online.

What if Ambit Energy is Not the Right Business For you?

I would recommend that you check out this program. It is a program that teaches you how to turn your passion into a full-time online business. Thousands of people from all around the world have benefited from the program, including me.

Were you or are you an Ambit Energy customer? I invite you to share your experience in the comments section below and do let me know what you think about my exciting discovery above as well.

If you find this review helpful, please share it! Others may be looking for this information.

Thank you for reading this review! I hope that I've provided you with sufficient information to make an informed decision.

I wish you all the best in whatever decision you make!

Your pal,


Ambit Energy Scam Review
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