19.12.16

AMBIT ENERGY

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Ambit Energy Overview

Founded in 2006 and headquartered in Dallas, Texas, Ambit Energy is an electric and gas services company. Ambit Energy, whose mission is "to be the finest and most respected retail energy provider in America," has over 350,000 independent distributors and generates over $1.5 billion in global revenue each year.

The Good

  • Low startup costs
  • Commissions and bonuses
  • No fee to switch
  • Company website
  • Power Payback program

Low Startup Costs

Individuals who are interested in Ambit Energy’s business opportunity can join as a marketing consultant for a one-time fee of $75, plus $24.95 per month for website access, which costs significantly less than it used to. There is no annual renewal fee. Marketing consultants receive a business builder kit, a personal website, access to the company’s back office management tool, and consultant support group access. Consultants are encouraged to sponsor two marketing consultants and develop an initial team of six consultants.

Commissions and Bonuses

The compensation plan provided by Ambit Energy offers multiple ways for consultants to earn an income. Consultants have the opportunity to receive jump start bonuses, team builder bonuses, and leadership bonuses. Distributors who enroll four customers within the first four weeks of joining are eligible to receive $100. Consultants who enroll customers with larger energy bills have the capability to earn more money in residual income.

No Fee to Switch

There is no fee to switch to the utility service provided by Ambit Energy. Additionally, the company gives individuals the opportunity to receive free energy by referring customers to switch to Ambit Energy. The utility company takes the average of the bills paid on time each month and credits that amount to the distributor’s energy bill.

Company Website

Consumers in service areas covered by Ambit Energy can view rates and plans by entering their area code on the company’s website. Additionally, consumers can manage their accounts online and make automatic payments.

Power Payback Program

Texas customers are able to conserve energy and prevent rolling blackouts through the company’s Power Payback program. Ambit Energy will alert customers when periods of high electricity demand are coming up so that they can adjust their thermostats accordingly and turn off any unnecessary appliances. Customers whose energy usage is lower than average during these periods will receive a bill credit of $1 for every kilowatt-hour saved.

The Bad

  • Contracts
  • Expensive variable rates
  • Limited availability

Contracts

Ambit Energy generally requires one- or two-year fixed rate contracts for its utility services. When the contracts expire, services are automatically switched to a variable rate plan unless consumers manually renew the fixed rate plan. This is explicitly stated in the contract, but some consumers have reported that independent distributors did not mention it to them.

Expensive Variable Rates

The variable rate plans are typically much more expensive than the fixed rate plans.

Limited Availability

Ambit’s energy program is not yet available in all markets. This may make it to difficult for interested consumers to find a sponsor in their local area. In addition, the payouts in the compensation plan vary by regional markets. Distributors in colder markets where energy bills are higher tend to have greater compensation payouts than those in warmer regions.

The Bottom Line

Ambit Energy is a multi-level marketing company that offers electric and gas utility services. Consultants are given the opportunity to save money on their energy bills and earn income by referring others to join as customers. The cost to join as an independent consultant is relatively low. However, Ambit Energy does require fixed rate contracts that automatically switch to more expensive variable rate plans at the end of the fixed rate term. Additionally, the company’s service area is limited.

More Information

Industry Type
  • Natural gas and electric service utilities industry
Sign Up Cost
  • $75
Renewal Cost
  • $24.95 per month
Patent Products
  • None
Product Distribution
Consultants are encouraged to sponsor two marketing consultants and develop an initial team of six consultants.
Ambit Energy recorded revenues of almost $200 million in 2008 and nearly $325 million in 2009. As a result of this tremendous growth, Ambit was named the fastest-growing privately-held company in North Texas by SMU’s Caruth Institute for Entrepreneurship in their annual Dallas 100™ rankings. And 2010 brought further public recognition, when Ambit made the SMU/Cox Dallas 100™ for the second year in a row, as well as the Top 100 Places to Work by the Dallas Morning News. But the biggest achievement of them all was being named “America’s Fastest-Growing Private Company” by Inc. magazine, which placed Ambit at #1 on the publication’s renowned “Inc. 500” list in 2010.
Company Education
  • Business builder kit
  • Back office
  • Consultant support group
  • Sponsor
  • Business tools
Support Programs
  • Business builder kit
  • Personal website
  • Back office
  • Consultant support group
  • Sponsor
  • Business tools
Contact Information
  • Customer Support: (877) 282-6248
  • Consultant support: (877) 302-6248

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