Is Ambit Energy a Scam?

ambit-energy-mainName:  Ambit Energy
Price: $75
Owners: Jere Thompson Jr. & Chris Chambless

Bare Naked Scam rating: Neutral



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Is Ambit Energy a Scam?

It’s been long since I updated this review, and I apologies as most of the information were outdated.

You’ll be able to see all of my outdated information being struck through.

So, I’ve re-looked at the Ambit Energy business, and have gone through the recent reviews and complaints about this company in length.

The short answer to the question in the header is “NO”!

I’ve spoken to many Ambit Energy Consultants, and I understand from them that some customers will have good experience with the company, while others will have bad experiences.

There are a lot of good reviews, and almost equal amounts of bad reviews on this company, but you have to understand that the experiences differ because of the independent Ambit Energy Consultants.

Normally, for a Multi-Level Marketing Company like Ambit Energy, I will focus on the business opportunity presented and discover if the opportunity is worth joining.

However, for Ambit Energy, I am obliged to share with you the numerous consumer complaints and several class action lawsuits filed against the Company.

ambit-energy-start-businessBut before I move on to that, I would first share with you what Ambit Energy is.

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

If you are unfamiliar with Multi-Level Marketing, it is a business opportunity offered to people who are interested in promoting the Ambit Energy business.

To earn money from Ambit Energy, you need to join Ambit Energy as a consultant, and promote its product to your friends, family members, colleagues or neighbors.

You’ll earn commissions from your customer’s monthly energy bill as well as from the people whom you recruited as an Ambit Energy consultant.

To be truly successful in this business, you have to recruit a team of people to promote the company’s product, and you will earn from your own sales, as well as your team’s sales.

Though it sounds like a pyramid scheme, but it has a legitimate business model. For your information, this business opportunity is totally legitimate.

However, due to the fact that there are numerous complaints and lawsuits against them, I would highly suggest that you would reconsider joining this opportunity.

Ambit Energy is not a scam, but it built distrust between its consumers and hence I am giving this opportunity a Bad Rating.

However, there are certain things you need to know before you join the company.

Whether you are joining the company as a customer or a business consultant, there are some facts that you need to consider.

Click here to Learn how to find targeted prospects online!

How Ambit Energy Scam People?

Because of the Deregulation of Energy in many states in the US, the founders of Ambit Energy, Jere Thompson Jr. and Chris Chambless, saw the opportunity to advertise cheap energy services to consumers while at the back end charging them a variable usage rate that can fluctuate tremendously, and these are all in the fine print of the agreement.

To be honest, very few people would actually go through the fine print, all people care about is to save money, and as long as a Company can promise to save its consumers money, there will be demand for the service.

This is where most people got caught into the Ambit Energy scam.

Consumers of Ambit Energy were made to believe that when they engage their services, they will save a ton on their electrical and gas bill.

However, the opposite is true when the consumers actually received a skyrocketed bill due to the sudden rate hikes. This is the main reason that sparked the numerous complaints and class action lawsuits.

As the business model changes for the better, I believe it is right for me to explain the mishap faced by the customers of the company.

Though there are many complaints about the variable rates of the company that allowed a hefty bill on the customer’s end, I would say that the fault lies heavily with the Ambit Energy Consultant who sold the plan.

It is also the customer’s fault for not reading and understanding the plan before putting the pen on the paper.

Whenever an Ambit Energy Consultant sells a plan, it is important that they highlight the important parts of the plan so that the customers will be aware of what they are getting into.

The problem with this is that most consultants were not properly trained, and all they care about is to sell the best plan to earn the biggest commission, regardless if it is ethical.

So, if you intend to be an Ambit customer, you have to be careful of what you are getting into.

And, if you are an Ambit consultant, please make sure that your customers know what they are getting into.

The Complaints Reviews

Other than the rate hikes on the utility services, there are also several complaints about the unethical practices of the Ambit Energy consultants as well as the Company itself.

Here are some complaints that I thought you should be aware of before joining Ambit Energy:

I didn’t want this to be all negative, I just want you know the good and the bad about this company.

As what I’ve mentioned above, there are many complaints about the unethical practices of the consultants, and in a business like this, it is also quite difficult to regulate each and every consultant.

Here are some good and bad reviews:

Good Reviews


Bad Reviews


Source: BBB

The Class Action Lawsuit

The Class Action Lawsuit are mainly against the false advertisement that lures people into the “Cheap” energy services provided by Ambit Energy.

On the back end, Ambit Energy will bill its consumers a variable energy rate that can hike without any limits. Many believe that the unethical acts of Ambit Energy made them a billion dollar company within 2 years.

Many also claimed that Ambit Energy is a pyramid scheme that entices people to make money with them.

While a pyramid scheme do not exactly have a product or service in place, Ambit Energy has its legitimate service.

The class action lawsuit has been settled and it has been taken down from hbsslaw’s website.

How much does it cost to join Ambit?

As a customer, there is no additional fee to join other than the price of the energy plan.

However, if you decide to become a Consultant for the company, it is a one-time sign up fee of $75.

One has to pay a one time fee of $429 plus a $24.95 per month fee to stay active.

Normally, a legitimate Multi-Level Marketing Business model will not charge a sign up fee. As long as you purchase a product from them, you qualify as a member. That is not the case for Ambit Energy.

How Ambit Energy actually works?

What you must know if you want to be a Consultant for the company?

Well, it really seems to be a great opportunity to make lots of money month after month, who doesn’t use electricity anyway, right?

However, you must know that there is a high failure rate for consultants, much like any brick and mortar business.

Problem #1: Lack of Prospects

For any consultants be wealthy through this company, one needs to have a constant flow of prospects. This is the biggest problem any consultants will face.

When you first join the business, you are taught to make a list of people whom you think will benefit from the services of the company.

Then, you’ll reach out to them to share your discovery. It sounds really simple, but in fact it is not.

Out of the 10 people you call, 5 of them will probably meet with you.

And, out of the 5, you will probably get 1 or 2 customers if you are lucky.

How many prospects do you think you have to meet in order to recruit one consultant?

To be honest, it is much easier to sell the services, then to promote the dream (recruiting).

It would be an uphill battle to sign up new consultants as well as to maintain a group of Consultants under your helm. Furthermore, after you have expanded your list of prospects to call, where else will you go to for new leads? Should you go door to door?

That is why I always recommend people to learn how to find prospects online. This way, you’ll get an endless stream of prospects.

The fact is many people still fail in this business. The fact that there are so many complaints and lawsuit against Ambit Energy that makes it even harder to sell the services to anyone.

Now that I have covered the external factors that made Ambit Energy a scam, I will now cover the internal factor that made 99% of the Ambit Energy Consultants fail in their business.


Click here to Learn how to find an endless stream of targeted prospects online!

Problem #2: Lack of Leadership

A quality service depends largely on the consultants and its team.

If the team leaders teach its consultants to only focus on recruitment, and not on helping others save money on energy, you’ll expect that there will be a lot of customer complaints from that team. Too many complains will eventually drown a business, and you do not want to be a part of it.

A well groomed team is one that focuses on its customers. Providing the best customer service will always trump those which focuses on profit.

So, if you want to join as a consultant, I would suggest that you test out its customer service first. If you have a good experience with its customer service, I guess that it is a good team to join.

Problem #3: Wrong Mindset

This is absolutely not a get rich quick scheme.

Don’t expect to have immediate success when you join the company.

Success is through hard work, dedication, perseverance, creativity, and a little bit of luck.

You can definitely be successful with this company, and that means that you have to become a great salesperson.

If you hate to be in the sales industry, this is not a business for you. You can check this out instead.

However, if you are not good at selling, but you are serious about transitioning into a great salesperson, you need to either find a good coach or mentor, or to learn from reputable online courses.

What you must know as a customer of Ambit?

Before you put the pen on the paper, you must carefully go through the fine print of the contract with your consultant.

This is to ensure that the plan that you are sold to is the one that you are signing for.

You must also ask if there are any alternative contact details (other than your consultant’s contact) for after service. This is to ensure that you have your questions answered, even if your consultant is unavailable for whatever reasons.

When your bill has arrived, take some time to study it, and make sure that you are paying what you have agreed upon.

When in doubt, always contact your consultant first, and then to the alternate contact person.

My Sincere Advice to You

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

Do not sign a contract blindly, and do not join a team immediately.

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, and you wish to understand more about the business opportunity, you can go ahead and contact your consultant. A huge part of the due diligence is already done on the fact that you are a happy customer of the company.

If you ever find yourself in a situation where you do not have enough prospects or leads, and you wish to grow your business, I would highly recommend that you check out this training course that will teach you how to find high quality prospects online.

If you are looking to join Ambit Energy as a Consultant, I would highly suggest that you reconsider due to the numerous factors I have described above.

If your main focus is on getting cheap energy, I would suggest that you do your due diligence (as I’ve mentioned) before signing up for a plan with the company.

Make sure you look at the fine print of the contract. I would suggest that you do not want to sign up to a variable rate plan because you might get a surprise when you receive your utility bill one day.

I invite you to share your views on Ambit Energy, whether you have past experience with the company or you are currently an Ambit Energy Consultant. If you find my article useful, please, help to share it with your friends and family by clicking on the social media buttons (Facebook, Twitter, Google Plus).

Your pal,


My Secret to Online Sucess

About the Author

Jack is an experienced online marketer who would like to extend his help to whomever wants to learn more about building a successful online business. Connect with me on Facebook, Twitter, and Google Plus. Read more about Jack and here...

Leave a Reply 29 comments

T - Reply

Ambit is not a scam by no means. It is a legitimate company that cares. It is not a get rich quick program it is a job. It is a very generously rewarding job. Ambit allows for financial freedom. Ambit does what it promises. You can get low rates and save money, even earn free energy (I am). Ambit notifies each costumer when there is an upcoming rate change. If your paying an electric/gas bill then I assume you are an adult. With that said, all you have to do as a responsible adult is read your mail/email or answer your phone when Ambit reaches out to you. Then you won’t be stuck with rates you don’t choose. It’s that simple! Ambit don’t sacrifice integrity for growth!

    Jack Cao - Reply

    Are you saying that those people who did not have a good experience with Ambit are not responsible adults who did not read their mails or answer calls?

    Linda chaskey - Reply

    I was with ambit from part of 2013 to 2015 and my final budget billing was $4000.00!!! How can they get away with this? I received a piddly check from 2013 as this was not a full year. Then I received a check in 2014 which was a little more. I have yet to receive a check for 2015 usage which should be significantly more in my estimation. Four thousand dollars is unheard of. I don’t have a large house and my nyseg bills never even came close to what they charged me and I was on budget billing. Can someone please look into this and send me a healthy refund? I am retired and this stress has caused me a case of shingles. Thank you kindly. Linda CHASKEY.

    Les Grossman - Reply

    You sound like an Ambit shill.

Linda chaskey - Reply

See above situation costing me 4000

Linda chaskey - Reply

See above reply.

    Debjo - Reply

    You so right! Ambit has been Scambit and somehow still able to continue doing business in NY???

R - Reply

I just got into the ambit business a few months ago and I have faith in it. Its making me a good sales person and I a
So very thankful for it because I never thought that i could be one until now.

Random Matt - Reply

seems like the problem is people missing their renewal and that’s when the variable rates kick in. at that point yea your responsible for your dumb mistakes. but moral is read the fine print.

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