Is Ambit Energy a Scam?

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

However, as I've spoken to many Ambit Energy Consultants...

I understood from them that some customers will have good experiences with the company, while others may 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 different practices of each independent Ambit Energy Consultants.

Ambit Energy Review Summary

Name: Ambit Energy

Founders: Jere Thompson Jr. & Chris Chambless

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

ambit-energy-main

Bare Naked Scam Rating:

Summary: 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.

Is the Ambit Energy Business Opportunity Recommended? Neutral (Interesting facts discussed in this review)

What is Ambit Energy?

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 execute 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 capitalized 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.

Here's how the deregulation works...

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

There have been a lot of complains about the exorbitant prices on the energy bill, but there are good explanations to this which we will discuss later on.

To earn money from Ambit Energy, you need to join as a consultant by paying a one-time fee of $75 and a $24.95 per month for a personalized Ambit website.

The business opportunity used to cost $429 for the set up, and it is supposed to be a good thing that they've reduced the price to $75.

But with the price reduction, a lot of people grew interested in the business opportunity. So much so that the quality of the consultants have decreased over time. I'll talk more about this below as well.

Now, let's discuss about the Ambit business opportunity...

How Does the Ambit Business Opportunity Work?

Basically, as an Ambit Consultant, you'll be promoting the services to your friends, family members, colleagues, neighbors or whoever you've come across.

You'll be able to earn commissions from your customer's monthly energy bill, as well as from the people whom you've recruited as Ambit consultants.

To be truly successful in this business, you have to recruit a team of highly motivated sales driven consultants to promote the services.

You can earn from your own sales, as well as your team's sales. Here's a video that explains the Ambit opportunity in general.

And, here's a video that goes into detail about the compensation plan. Note the outdated price of set up fee in the video.

Is Ambit Energy a Pyramid Scheme?

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

The more consultants you recruit, the more money you will earn. It is as simple as that.

But here's the catch...

Pyramid schemes do not have a legitimate product or service, but Ambit Energy has.

Which is why this is not considered a pyramid scheme, but a Multi-Level Marketing opportunity.

For your information, Multi-Level Marketing opportunity is legitimate in the U.S.

Although the company is legitimate, there are certain things you have to understand and consider before you join the business opportunity.

Should You Join Ambit Energy as a Consultant?

Well, it really seems to be a great opportunity to earn lots of money month after month.

Who doesn't use energy anyway, right?

However, much like any brick and mortar business, there is a high failure rate of consultants.

Here are the main reasons for failure...

#1 Reason: Lack of Prospects

For any consultants to be wealthy through this company, one needs to have a constant flow of prospects.

This is the biggest problem faced by every consultant.

When you first join the business, you are taught to create a list of people whom you think will benefit from the services of the company. Which is basically every household you know.

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.

As you know, your business will boom if you are able to recruit many Ambit Consultants.

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 find 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.

#2 Problem: 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 profits.

So, if you want to join as a consultant, I would suggest that you test out the after-sale service provided by your consultant first.

If you have a good experience with your consultant, then it makes sense to join the business through your consultant.

#3 Problem: 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 environment, this is not a business for you. You can check this out instead.

However, if you aspire to be a great salesperson for Ambit, you need to either find a good coach or mentor, or to learn from other successful people in the industry.

How Ambit Energy Scam People?

Ambit Energy 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.

These are all mentioned in the fine print of the service agreement.

To be honest, very few people would get into the details of the service agreement, and all people care about is to save money.

As long as the company can promise to save its consumers money, there will be demand for the service.

But, this is where most people got caught in the Ambit Energy scam.

In almost every service agreement, there will be a fixed rate of service and a variable rate.

Consumers can usually enjoy the fixed rate for up to 1 or 2 years, and if they did not renew their contract on time, they will be charged at the variable rate.

That is why so many people receive an energy bill that cost thousands of dollars. Shocking! But it is real!

The fault lies with both the Ambit Consultant who sold the services, as well as the consumers for not understanding the contract properly before putting the pen on the paper.

The Quality of Service Depends on Your Consultant!

Whenever an Ambit Energy Consultant sells a service, it is important that they highlight the important parts of the service agreement.

I would think that the most important part of the agreement is where the variable energy rate kicks in, but it is missed by so many consultants.

The problem with this is that there is a huge inflow of new consultants because of the newly reduced sign up fee.

And, most new consultants were not properly trained.

All they care about is to sell the most expensive plan to earn the biggest commission, regardless if it is ethical.

The Good and the Bad of Ambit Energy

Other than the rate hikes, there are also several complaints about the unethical practices which you should be aware of.

In a business like this, it is also quite difficult to regulate each and every consultant.

The Good

Ambit-reviews-positive

The Bad

ambit-energy-complaints

Source: BBB

The Class Action Lawsuit

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

As I've mentioned above, Ambit Energy charges consumers a variable energy rate that can hike without limits. Though it is stated in the fine print of the service agreement, and it is signed by the consumers.

Many consumers claimed that they didn't know about such a clause. In 2015, Ambit Energy settled the class action lawsuit for $950,700. The proceeds were returned back to the affected consumers.

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

Thinking of Becoming a Customer? Here's what you need to know!

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

This is to ensure that the contract 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-sale 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 considering 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 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 huge 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.

And, if you don't think that Ambit Energy is the right business opportunity for you, and you are still looking for one...

I would recommend that you check out this program. This program has taught me and thousands of individuals to become successful online. Here's my success story if you are interested.

Were you or are you an Ambit Energy customer? I invite you to share your experience in the comments section below.

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,

Jack

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 BareNakedScam.com here...

Leave a Reply 36 comments

Thomas McClure - Reply

IT IS A SCAM!! AVOID AMBIT ENERGY

    Jack Cao - Reply

    Hey Thomas,

    Thank you for your input! Could you please provide more info as to why you think this is a scam please? That would help people reading this review.

    Cheers!
    ~Jack (BareNakedScam)

Editha D.Alipio - Reply

Hi Hi i just join this company can you please update me or email me ,Thanks

    Jack Cao - Reply

    Just sent you an email Editha! Please check.

    Cheers!
    ~Jack (BareNakedScam)

Steven Howell - Reply

Dear Jack,
You need to take down the Ambit Energy opportunity video “Getting Paid” because it has a major inaccuracy. It says the Investment fee is $429.00, which it was. However it is no longer true. The business opportunity investment is now only $75.00 and has been for over 2 years now. Just a heads up, as I will be bringing this to the company’s attention. You’ll need to contact the company and have them send you an updated video.
Yours truly,
Steven

    Jack Cao - Reply

    Hey Steven,

    Thanks for informing! This review was written some time ago, so that explains the outdated video.

    Now, I’ve swapped the video to a more recent one.

    Please check it out. If you find anything any outdated information, I’d be happy to update them.

    Feel free to share your thoughts and experience with Ambit as well.

    Cheers!
    ~Jack (BareNakedScam)

A.l - Reply

Hi guys!
It’s very interesting and exciting only once you have kinda 20+ customers!
Waiting for my cheque.

It’s not a full day business so I decided why not give it a try. Hopefully will see alot more numbers and success!

Thanks for ambit.

    Jack Cao - Reply

    Thanks for sharing your experience.

    Cheers!
    ~Jack (BareNakedScam)

Kliff C - Reply

This article is completely off-base and incorrect. Ambit has an A+ rating with the BBB and has a multitude of awards and accolades including multiple and prestigious JD Power and Associates awards for customer satisfaction.

I have been an Ambit customer for over 2 years, I receive free electricity and have never had a problem. The information in this article is wrong and for the most part, any problems are usually because the customer didn’t renew their contract and went into a default rate.

Also, just recently the PUC in New York gave Ambit certification to be an energy supplier and to market to low-income customers in New York. See full report.

I would challenge Ms. Chaskey to provide proof she was billed as she was, outside of that it is just someone making accusations.

I would also challenge Mr. Cao to correct the incorrect and misleading information on his website.

    Jack Cao - Reply

    Thanks for your comment Kliff! I’ve now updated this review. Please read it and give your comment.

    Cheers!
    ~Jack (BareNakedScam)

L - Reply

Everything here is so out of touch it’s almost a joke. Ambit bends over backwards for its customers and consultants. Why is there an A+ rating with the Better Business Bureau-look it up. Also they have received numerous awards from JD Powers for their customer service. And no matter what company you use, if your contract expires you automatically go on a high variable rate.

    Jack Cao - Reply

    Thanks for your comment L and thanks for your insights!

    Apologies for not updating this review sooner.

    Cheers!
    ~Jack (BareNakedScam)

Barbara Ormins - Reply

I am an Ambit consultant. Registration to be a consultant is not$429–it is $75, lifetime. Ambit is not a get rich quick scheme. It is a real job and it takes willingness to work and learn. I am delighted that I have saved friends and family a lot of money on their bills. And, except in New York state, consultants are not allowed to renew customer’s plans. This is actually a protection for the consumer. I always stress that if a customer doesn’t decide about their account, Ambit has to return them to the incumbent or put them in a default plan–it depends on the regulations where they live. And if we have enrolled them in the best plan, doesn’t it make sense that the default plan isn’t the best one? Ambit also notifies customers by mail, email and phone when plans are expiring. And as a customer’s consultant,they notify me,too. I have found the leadership of Ambit and my team to be honest and hard-working. I’m sure there are bad consultants out there but if you enroll through a friend, family member, co-worker, or business associate… you know who you can trust. My personal business is built on the company motto…”Never sacrifice integrity for growth”. I have never regretted my decision to join Ambit.

    Jack Cao - Reply

    Thank you for your comment Barbara!

    I had the same thought as you when I re-looked at Ambit. I Sincerely apologize for the late update on this review.

    I hope you are able to share this with the people whom you are prospecting. I am sure this review can help.

    Cheers!
    ~Jack (BareNakedScam)

M - Reply

None of the costs to get into it are correct. The renewal is automatic now in NY it’s a guaranteed 1% savings. They settled their lawsuit. Funny part is National Grid in 2016 had to settle a 1.5 million dollar lawsuit for over charging, are they a scam.

    Jack Cao - Reply

    Thanks for your comment M! Sincerely apologize for my late update on this review. It’s updated now.

    Cheers!
    ~Jack (BareNakedScam)

Doug Parker - Reply

Ambit is no longer 429.00. The price has recently be reduced to only $75.00. In addition to the reduction in the initial investment to get started, Ambit Energy has also expanded to Japan and on November 1st will be expanding into Alberta Canada.

    Jack Cao - Reply

    Hi Doug,

    Thank you for your comment!

    My apologies for not updating this review. It was long overdue and now its updated.

    Hope to see your comments soon.

    Cheers!
    ~Jack (BareNakedScam)

Melodee - Reply

The people here that are complaining are not responsible adults. If you were educated you would know about deregulation of energy. There is no cost to enroll. There is no penalties to quit. Our rates are competitive and ambit was just voted by New York State to be the only third party supplier for low income families in the state. It’s unfortunate that ignorant people don’t do their homework. I don’t mean just googling it, I mean checking with reliable companies like the such as the Better Business Bureau, JD Powers The Direct Selling Association. If you had a $4000 bill with them it’s your own fault for not paying attention to paying your bills. It sickens me that so called intelligent people would base there opinion of a company such as this one, or yelp. Now those are SCAMS.

    Jack Cao - Reply

    Hi Melodee,

    Thank you for your comment!

    I believe your concerns are now addressed in the updated review.

    Hope this helps.

    Cheers!
    ~Jack (BareNakedScam)

Torres - Reply

Who created this page to talk about ambit really don’t know nothing about it Ambit Energy has help me and too many people to save a lot money on electricity.
On the Bussiness has changed my life forever thanks to ambit I can take care of my kids and family at anytime please If you don’t know what to do during your spare time take a minute to study the ambit opportunity and then talk about Ambit. If you don’t believe respect everyone who really believe in ambit!!!

This is real!!!

    Jack Cao - Reply

    Thanks for your hyped comment!

    In no way you should talk about or advertise Ambit as a “Get Rich” or “Get out of the rat race” scheme. I know your life have changed because of Ambit, but please, I hope you do not use that as a reason to prospect new clients.

    And, I’ll appreciate if your sarcasm is minimized. Thanks!

    Cheers!
    ~Jack (BareNakedScam)

Stacy D. - Reply

Date: September, 2017
Websites like yours need to KEEP UP TO DATE on what you report.
This web site seems to by YOUR JOB JACK, do your job responsibly.

AMBIT CONSULTANT sign up fee is NOW $75.00
CUSTOMER sign up is FREE.
Variable AND locked-in prices ARE AVAILABE; for contract length CUSTOMER chooses.
REMINDERS are sent 30 DAYS BEFORE end of contract for renewal.
If Ambit’s rate is lower than what customer currently has, they do save!!!

CONSUMERS DO NEED TO KNOW, READ,UNDERSTAND , ASK QUESTIONS!!

So many people are so lazy they don’t want to be accountable for THEIR irresponsibility.
ANY business owner needs to WORK , DO what is REQUIRED in their PARTICULAR field to achieve desired success. MOST people WONT do WHAT IT TAKES!!!!

Thank you.
Best regards.

    Jack Cao - Reply

    Hi Stacy,

    My sincere apologies for not updating this post earlier. It’s long past due I know.

    After re-looking into the business opportunity and the way it is operating now, I can see that the company is putting in the effort to make things right, hence my change of view on this company.

    I hope this will help your prospective clients understand a little more about the company and can help them decide if they wish to join.

    Cheers!
    ~Jack (BareNakedScam)

T - Reply

This needs to be completely revised. Not only has the consultant join fee been lowered significantly, the rates everywhere have changed as well. For the people that have chosen to go through the variable rate plan, you absolutely have to read the fine print and renew before your renewal date is up or that variable rate will kick in and you will have to start another contract. It’s hard to believe that in this age of technology that people cannot mark a calendar or set a reminder for themselves.
As for being in the business of direct selling; it’s YOUR business. Your success depends on how you manage YOUR business. If you’ve exhausted your list and find just 1 person out of 10 on that list, why are you giving up on the other 9? It may not be fore them now, but who’s saying that it will not be for them 2 months down the road? What about a year from now? I don’t stay with just the people on my list because I meet new people every day and I always share the opportunity to anyone who will listen to me.
I became a consultant in May of 2017 working my business part-part time. I’m talking maybe half an hour a day. My goal was to make anywhere from $200 to $300 monthly to help with expenses. It is now September 2017 and I’ve personally made $2,000 finding people who are of the same mind set as me and helping them to gather their first couple of customers so that they could get their first bonus checks. No. It isn’t easy. If it was easy then it wouldn’t be worth it.

Cathy - Reply

I just got involved with Ambit and live it. I’m helping people save every month. This is NOT a scam only people that think negative would believe it…

    Jack Cao - Reply

    Nobody claims that Ambit is a scam. It is because of its many law suits and customer complaints that gave it a bad rep.

    Cheers!
    ~Jack (BareNakedScam)

me2you - Reply

Strip bars are also legal nevertheless morally wrong. To lure people to make others rich and leave the last ones hanging is also morally wrong

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.

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.

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???

Linda chaskey - Reply

See above situation costing me 4000
00.

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.

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