What is Ambit Energy? All You Need to Know About the Top Energy MLM


Ambit Energy ranks among the most successful MLM companies globally.

Direct Selling News (DSN) placed it in the 16th position in the “Global 100 List,” making it the top network marketing company in the energy sector.

It’s definitely out-of-the-ordinary to find an energy company among the top MLM companies’ list.

Read on to find out how the company created such a winning combination of MLM and energy services.



Section 1 – The Company

Ambit Energy Logo

This section covers the history, founders, and key values of Ambit Energy.

What is Ambit Energy?

Ambit Energy Holdings, LLC is a direct selling multilevel company.

It provides both electricity and natural gas services within the United States and Canada. The company is classified as both an Electric Generation Supplier (EGS) as well as a Natural Gas Supplier (NGS).

Basically, it supplies energy from power transmission companies and energy distributors.

Renewable energy was recently added to the service offerings.

Market

Ambit only serves deregulated regions (regions where consumers can choose their energy provider).

Ambit Energy marketPin
Source: Ambit Energy website*

Ambit’s services are available in 14 US states, including California, District of Columbia, Delaware, Illinois, Massachusetts, Maine, Maryland, New Jersey, New Hampshire, Ohio, Texas, Rhode Island, Pennsylvania, and Virginia.

In Canada, the company serves clients within Alberta.

Ambit started in 2006 and made $1M in sales in that year. This grew to $1.2B by 2015, making it the largest direct-selling energy company worldwide.

The company went on to pull in $1.3B in sales in 2019, which reduced slightly to $1.04B in 2021.

Currently, it has more than one million customers.

History

Ambit was started in 2006 by two co-founders: Jere Thompson, Jr. and Chris Chambless.

Their business idea was based on a chat about deregulation in the energy sector. This presented an opportunity for competition in the market offering better services than the existing players.

They had a dream of creating “the finest and most-respected retail energy provider in America.”

Their goal was to provide affordable electricity and gas, and to never sacrifice integrity for growth.

Ambit’s first office location was a large, renovated warehouse in the West End district of downtown Dallas. And the furnishing was made up of simple $19 fold-up tables. But they had a team of experienced executives competent enough to help deliver their vision.

Who is the CEO of Ambit?

Jere Thompson, Jr. is Ambit’s Chief Executive Officer.

The other top executives include:

  • Chris Chambless, the Chief Marketing Officer
  • John Burke, the Chief Information Officer
  • Laurie Rodriguez, the Chief Financial Officer

Who is the owner of Ambit?

In November 2019, Vistra Energy bought Ambit Energy. 

Vistra Energy acquired Ambit Energy in an all-cash transaction worth $475 million plus net working capital.

Therefore, Ambit is currently a subsidiary of the public company, Vistra Energy.

How big is Ambit?

Since Ambit was acquired by Vistra Energy, the size of Vistra can be an indicator of the potential influence of its subsidiary.

After acquiring Ambit, Vistra’s Texas residential energy market share grew from about 25 percent of the ERCOT (Electric Reliability Council of Texas) market to about 32 percent. The company now has an industry-leading 26 percent of all U.S. competitive markets.

Where is the Ambit headquarters?

The company’s corporate headquarters is located at:

1801 North Lamar Street,

Suite 600,

Dallas, TX 75202-1711

The company’s phone number is 214-270-1770.

Section 2 – Business Model

Amway business model

This section focuses on Ambit’s business model. We explain the company’s marketing structure, the size of the marketing team and the profit mechanisms.

How does Ambit market its services?

Direct selling, through Independent Consultants (ICs), is the company’s primary marketing channel.

It also has a multilevel marketing component. However, this aspect is not clearly promoted by the company. We inquired from the company to learn more about this and will provide an update once we get a reply.

What makes it different from other MLM companies is the potential of earning residual income. That’s because customers have long-term contracts with the energy provider while paying monthly for energy.

Plus, energy is a basic necessity and there’s no inventory to keep, unlike product-based MLMs.

How many Ambit Independent Consultants (ICs) are there?

Ambit reveals on their website that the company has more than 600,000 Independent Consultants (ICs). Since ICs are also customers, this number probably makes up about half of the company’s roughly 1 million customer base.

How to make money on Ambit

Ambit provides the “Free Energy” credit as a compensation method for ICs.

This is used to subsidize your monthly energy bill or give you a check (based on your area).

But how is the “Free Energy” credit calculated?

The credit is calculated based on your referral customers’ average daily energy cost over the past 70 days. This average daily energy cost is multiplied by the days in your billing cycle.

Note that you must have a minimum of 15 qualified referral customers.

How much can you make as an Ambit Energy Independent Consultant?

Ambit provided the IC earnings in 2019, which showed that an actively engaged IC earned an average of $2,134 annually.

Here are the earning details.

IC TitlePercent of Paid ICsAnnual AverageAnnual MedianAnnual RangeAverage Days to Achieve Position
National ICless than 1 percentUSD 333,766.80 USD 172,486.13 USD 750.00 – USD 2,232,696.052,089
Executive ICless than 1 percentUSD 38,369.97 USD 21,305.05 USD 69.70 – USD 416,821.50996
Senior IC3.32 percentUSD 4,233.19 USD 1,220.85 USD 0.00 – USD 130,236.45463
Regional IC4.26 percentUSD 921.52 USD 75.20 USD 0.00 – USD 105,061.64169
Marketing IC91.82 percentUSD 131.27 USD 0.00 USD 0.00 – USD 127,647.26N/A

Note that ICs tended to earn more if they spent a longer time as independent consultants.

How to sell Ambit’s products

All Ambit customers can promote Ambit’s products and be compensated for it, even without becoming Ambit Energy Independent Consultants.

To be an Ambit Energy Independent Consultant, you’ll first be a customer since the key compensation method is the Ambit Free Energy program.

Customers should refer customers to Ambit through their personalized customer gathering website: www.(your account number).joinambit.com. Independent Consultants should refer customers through their personalized customer-gathering website: www.(your web handle).joinambit.com.

Ambit handles all billing and payments, so you have no inventory to manage.

There’s no time limit to referring customers in order to achieve the minimum 15 referrals.

How to become an Ambit Energy Independent Consultant

Ambit’s website has an online signup form for interested ICs. Once you fill in your details, you’ll be contacted by an independent consultant to assist you.

How much does it cost to be an Ambit Energy Consultant?

Although not specifically indicated on Ambit’s website, multiple online reviews indicate that Ambit Energy earlier charged a one-time enrollment fee of $429. The fee was later reduced to $75.

There’s also a $24.95 monthly recurring fee for your personal website maintenance on the Ambit domain.

Ambit’s Compensation Model explained (video)

Ambit’s compensation program allows ICs to eliminate their own power bills and earn monthly income by referring and maintaining customers.

Here’s an overview of the compensation model.

You can also earn leadership bonuses by recruiting other members into the compensation program.

A minimum of 15 qualified referral customers is required to get “Free Energy” credit to reduce your energy bill or get a check.

The “Free Energy” credit is calculated based on your referral customers’ average daily energy cost over the past 70 days. This average daily energy cost is multiplied by the days in your billing cycle.

There’s no time limit for referring customers.

However, several conditions apply for a qualified referral customer:

  1. must have at least one energized metered service location
  2. must complete at least one billing cycle
  3. must be a residential customer (for Texans)
  4. no past due balance (for Texans)
  5. no payment arrangement or deferred payment plan (for Texans)
  6. no past due balance (in PSEG and NICOR markets)

Note that electricity and natural gas are separate services with separate compensation programs.

Therefore, you need 15+ qualified gas customers to get a gas credit. And you need 15+ qualified electricity customers to get an electricity credit.

US ICs can have referrals in another US state, but not in Canada. The same applies for Canadian ICs.

The multilevel component of the program features five levels:

  1. marketing consultant
  2. regional consultant
  3. senior consultant
  4. executive consultant
  5. national consultant

Though not fully defined on the Ambit website, these levels are based on enrollment of other lower-level consultants, starting from marketing to national consultants.

The multilevel component seems to play a small role in the company’s marketing since the most evident incentive for this component is traveling bonuses.

Members get trips classified under:

  1. Diamond Club
  2. Five-Star Club
  3. EC Fly-in Program

Has Ambit faced any complaints or lawsuits?

Ambit Energy was required to pay $1.5 Million in penalties in a 2017 class action lawsuit. This was restitution to customers who had paid for expensive energy services based on false promises of savings from multiple energy service companies – not just Ambit.

But it’s notable that Ambit agreed to issue more than $20 million in customer refunds, so the Attorney General didn’t seek restitution in Ambit’s case.

And the company currently has an A+ rating by the Better Business Bureau.

Section 3 – Products

Ambit Energy products and services

This section covers the services offered by Ambit Energy as well as the company’s certification and registration details.

What does Ambit sell?

Ambit provides both electricity and natural gas services within the United States and Canada.

Since Ambit is classified as an Electric Generation Supplier (EGS) and Natural Gas Supplier (NGS), it only supplies energy from power transmission companies as well as energy distributors.

Ambit provides electricity to businesses and homes through its residential, commercial, and industrial service options.

The electric service includes variable-rate, fixed-rate, and prepaid electricity plans. The natural gas service includes fixed- and variable-rate plans.

Ambit recently partnered with Sunrun to offer residential solar services.

This is different from ordinary solar installation, since you get the solar installation but all you pay for is the power rather than paying for the panels.

This solar service is currently available in California, New Jersey, Washington D.C., Connecticut, Maryland, Illinois, Massachusetts, New York, New Hampshire, and Rhode Island.

Ambit also offers Ambit Home Services in partnership with Allied Warranty.

Ambit Home Services offers coverage to save on unexpected repairs. It comes in two options:

  • Ambit AC/Heat Shield covers heating and cooling systems
  • Ambit Surge Protection offers lightning or power surge protection

Where are Ambit’s products made?

Ambit supplies energy from energy producers and distributors in deregulated states.

The specific producers and distributors vary from one state to another.

For example, customers in California are served by PG&E which provides natural gas for counties ranging from Humboldt to Santa Barbara.

Customers in New Hampshire are served by the following energy transmission and distribution companies:

  • Eversource Energy New Hampshire (electricity)
  • NHEC (electricity)
  • Liberty Utilities (gas and electricity)
  • Unitil (electricity)

Are Ambit’s products tested and certified?

Ambit Energy is a licensed EGS and NGS with the Public Utilities Commissions (PUC) of the states in which it operates.

That means the company must abide by strict requirements by the PUCs. Such requirements include reporting annual sales (kWh), gross receipts, generation sources, and tax ID information.

This provides transparency and accountability, which can help you figure out if anything is amiss.

Section 4 – FAQs About Ambit Energy

Amway FAQ

This section covers the questions you have about Ambit and provides comprehensive answers.

Is Ambit an MLM company?

Yes, Ambit Energy is an MLM company. Although the company primarily focuses on direct marketing, it has an MLM component too.

Is Ambit Energy a good company?

Anyone wishing to join any MLM should do his/ her due diligence before choosing to trust the company, including Ambit. However, Ambit has many good signals such as being duly registered in the states in which it operates. It’s also regulated under the Public Utilities Commission. And it’s a subsidiary of a public company which is subject to public reporting requirements (note that a subsidiary is not directly regulated as a public company).

Is Ambit a pyramid scheme?

No, Ambit is not a pyramid scheme. The company offers real services. It also has customers in multiple states and makes more than a billion dollars annually selling its services.

Does Ambit have a cancellation fee?

Similar to many energy suppliers, early termination of Ambit’s services will accrue a fee. The details of such a fee are provided in your energy contract. To avoid the fee, you can opt not to renew the energy contract when it expires.


*Sources

Author: Victor Nyorani

Victor Nyorani - Network Marketing Start

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