THE OFFICIAL ANSWERS TO "WHAT IS AMBIT ENERGY?” AND "DOES AMBIT ENERGY WORK?”
Officially, Ambit Energy is a non-regulated utility company that repackages and sells electricity and natural gas to customers in North Eastern and Southwestern regions of the US. Unofficially, it is a groundbreaking multi-level-marketing company that capitalized on the deregulation of electricity in Texas and used that momentum to build a nation-wide energy empire. Despite the limited market created by the continued regulation of energy in many states, the company successfully generated $930 million dollars in sales in 2012 alone (Gregg, 2013).
Ambit Energy was founded in 2006 and by 2010 was America’s fastest growing private company (Dahl, D. 2010). Today, Ambit has more than a million active energy customers who contract for natural gas, electricity, or both. It expects to exceed $1 billion in revenue by the end of 2013 despite the fact that it only operates in the American Market (Ambit Energy Leaders, 2012). According toAmbit News, Ambit credits this success to the hard work of the 150,000 distributors working to market the company’s energy opportunities in the national arena.
AMBIT PRODUCT REVIEW: HOW CAN YOU RESELL ENERGY?
In several states, specifically, California, Connecticut, Delaware Illinois, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, Texas, and Washington D.C., energy has been deregulated.
Deregulating energy means breaking up monopolies, or ensuring there are multiple major energy providers in an area by allowing energy provider coverage areas to overlap. This creates competition in the market and allows consumers to choose between providers to get the services they need at the best-offered price.
Ambit is a Retail Energy Provider (or REP). That means that they buy energy from an energy producer wholesale and offer it to customers at retail rates. Ambit does not actually produce or distribute energy; they just recruit and contract customers for energy that a second party (or parties) manufacture and handle.
Independentconsumer reviewsare available for Ambit’s energy offerings, which differ significantly from state to state. These reviews are a strange mix of positive and negative, varying from person to person, in large part according to their satisfaction with their sales representative.
In short, energy is energy, and those who signed a contract with Ambit do have electrical service through that contract. Those who were most displeased typically discovered, after signing the contract, that their sales representative grossly exaggerated the savings that Ambit would provide, or took advantage of someone who did not fully understand what they were signing up for, like those on a fixed-income or who have limited English-speaking capabilities.
AMBIT ENERGY COMMISSION AND PAYMENT: ARE REPORTED EARNINGS EVEN POSSIBLE?
Ambit Energy’s Compensation Planpays over seven levels of team building in addition to bonuses and residuals (Ambit Marketing, 2013).
Residuals are based on both the number of customers you have enrolled and the amount of energy those customers use. Each customer pays no less than 5 cents and not more than .50 at level one. The exact payment base varies from state to state.
The greatest earning potential is in CAB or Jump Start Bonuses earned on the number of customers signed, or the CLB bonuses earned on a growing team. These bonuses reward leaders for recruiting new downline members and helping them sign new customers (Getting Paid, 2013).
Perhaps the greatest selling point used to sign new representatives is that you can "get paid for bills you are already paying.” New representatives are strongly encouraged, if not required, to move their utilities to Ambient. They then get paid a residual for their own energy use.
New Ambit Energy Marketing Consultants have a significant amount of control over how they choose to build their business. Because they are technically self-employed, they can work when and where they want to, setting their own hours and financial goals.
Use the navigation located on this page to reach a deeper exploration of theAmbit Compensation Planor to find out how Ambit’s compensation plan measures up against other commonly used MLM Compensation Plan structures.
AMBIT TRAINING: HOW DOES AMBIT RECRUIT AND EDUCATE THOSE WITH AN ENTREPRENEURIAL SPIRIT?
Ambit Representatives typically invite those that they think might be interested in the Ambit opportunity to meetings. There are two types of meetings: personal presentations that introduce the opportunity to five people or less, and large corporate meetings that host hundreds of people.
At these meetings, current distributors talk about the success they have had with the company and typically focus more of their attention on the importance of growing a team than how to attract new customers to Ambit’s energy products.
After a new recruit signs up with the Ambit company and orders their start-up kit, they can accessAmbit U Training, an online back office training system that covers the recommended system for finding leads in a warm market, printable brochures, instructions for using Ambit’s software, and more. Ambit also hosts regular conferences that members pay a significant amount of money to attend. These conferences are touted to provideongoing trainingbut they really just serve to feed the hype. They get those who are losing money and considering quitting excited about remaining active in the company and recharged with a burst of recruiting energy.
Unfortunately, these PDF files, how-to guides, and conferences contain very few practical reproducible processes that can help Ambit Energy Consultants grow their business to full time employment (MLM Rehab, 2013).
EXAMINING THE AMBIT OPPORTUNITY: IS IT TRUE THAT THERE IS AN AMBIT SCAM?
Complaints from former distributors are not hard to find, but many may be filled with half-truths and unfair accusations. The people that launch these kinds of complaints have typically had a hard time finding people to recruit into their Ambit business and building a customer base. They are generally angry that the Ambit opportunity has not lived up to their expectations and has not earned them the kind of monthly salary they were promised at the invitational meeting they attended.
The truth is that failed expectations alone are not enough to call Ambit a network marketing scam. The reality is that new Ambit energy distributors sign a contract that outlines both Ambit’s expectations and the new recruit’s rights. Each distributor is legally an independent business owner and fully responsible for their own success. Ambit agrees to pay them according to the official Ambit Energy Compensation Plan for the state that they live in. The amount of payment received is directly proportional to the amount of work the individual does.
Ultimately, some people are better at sales than others and an individual’s failed attempt at growing their Ambit business is the result of multiple factors including marketing practices, work ethic, time devoted to Ambit, the local energy market, and more.
Are you an Ambit Energy Representative who is looking for a better way to build your business? Have you exhausted your warm market and want to find a way to find and contact leads that is less personal? Or are you simply looking for more information about Ambit because you are considering joining the company’s sales team?
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