Decoding the Ambit Energy Company: Personal Perspectives and Conflicting Reviews

[kcmckay]

My DH was approached and has been discussing this oppurtunity with a consultant for Ambit Energy.

My husband can be lazy and doesn't get excited about much but he seems really into this.

I don't know if I trust it to be honest. I just watched the dvd about what Ambit is and the business oppurtunity and all that. I'm still confused.

When I google it I get mixed reviews. I definitely think it's a legitimate company and oppurtunity. I don't think it's personally a business oppurtunity that I'd like to persue.

My DH said today he's thinking about paying start up cost ($429) but having me work the business. I think he should since he's so interested.

Also since I LOVE PC and want to recruit and move up to Director eventually that if I joined this oppurtunity it would be a conflict of interest right?

If anyone is familiar with this please let me know your thoughts. I know it originated in Texas, then moved to NY and also IL. It is supposedly supposed to be a big step in the deregulation of energy providers.

Thanks.

 

[JAE]

My DH was approached and has been discussing this oppurtunity with a consultant for Ambit Energy.

My husband can be lazy and doesn't get excited about much but he seems really into this.

I don't know if I trust it to be honest. I just watched the dvd about what Ambit is and the business oppurtunity and all that. I'm still confused.

When I google it I get mixed reviews. I definitely think it's a legitimate company and oppurtunity. I don't think it's personally a business oppurtunity that I'd like to persue.

My DH said today he's thinking about paying start up cost ($429) but having me work the business. I think he should since he's so interested.

Also since I LOVE PC and want to recruit and move up to Director eventually that if I joined this oppurtunity it would be a conflict of interest right?

If anyone is familiar with this please let me know your thoughts. I know it originated in Texas, then moved to NY and also IL. It is supposedly supposed to be a big step in the deregulation of energy providers.

Thanks.

I know nothing about the company, but I think you have your answer in the bold above. IMO, it's not your deal it's your dh's. You're busy with your PC goals.

 

[kcmckay]

I agree with what you say and I'm fine with him doing it but I know he will want my help and I ant to support him. But I just want to have my facts straight first.

 

[kcmckay]

Just bumping, I think my husband is really going to do this which is great he's found something he may actually be passionate about but I'm still weary. I'm guessing most of you just aren't familiar?

 

[NooraK]

There is a company called Stream out here in GA which sounds similar. It's basically an energy company that runs on a direct sales type of structure. I didn't sign up for the company, but a friend did, and we switched our service over to help her, and because the rates actually were competitive.

From what I remember, she would get bonuses if she got enough people to sign up under her, and then she'd earn a certain amout per month on the customers she signed. The per customer payment wasn't very substantial, and the bonuses for signing others seemed quite big. She's no longer involved, and I'm not sure if she just ran out of contacts or what.

I've heard of several similar businesses in the past, and they've all been legitimate, and it is a proved business model (just look at PC ). From what I heard though, it just seems that it's very heavy on the recruiting. I like PC because I can make money even if I don't recruit, and that works for me. Those who are good at recruiting can make tons of money in a direct sales business, so if he want sto do it, and he knows that's what he'll have to do, go for it.

 

[robochick84]

I was not familiar with the company until doing some research.

Without getting flamed, it appears to be set up as all other direct sales companies are and it is a pyramid scheme. Yes, even Pampered Chef is.

Do you watch "The Office"? If you aren't familiar with pyramid scheme's, The Office had a great episode with an example of this (textbook).

The benefit, perhaps, of this company - getting in early and being at the top of the pyramid if it is successful.

 

[chefjeanine]

I was amazed at how little I was able to find out about this company when trying to do simple research. There was a negative U-Tube video that had been removed. Hmmm, did they threaten the person who posted it?

I’d be leery too but I also understand your wanting to be supportive. See if there is some way you can do a bit more research. Perhaps check with the Better Business Bureau.

 

[lcucinella]

According to the Better Business Bureau in Dallas Tx, the company is a member of the BBB with an A rating. You can go to the report here BBB Review of Ambit Energy LP in Dallas, TX.

 

[DebbieJ]

I was not familiar with the company until doing some research.

Without getting flamed, it appears to be set up as all other direct sales companies are and it is a pyramid scheme. Yes, even Pampered Chef is.

Do you watch "The Office"? If you aren't familiar with pyramid scheme's, The Office had a great episode with an example of this (textbook).

The benefit, perhaps, of this company - getting in early and being at the top of the pyramid if it is successful.

Pampered Chef is NOT a pyramid scheme!

 

[Kelly8]

Deb, I too was going to highlight this quote! I'm sorry Ashley, but it's a pet peeve of mine when people call PC a pyramid. A pryamid would imply that you lock in your "spot" in the pyramid, and you could never do any better than the person above you because they are always above you! Not true with PC! I can advance to Senior Director beofore my director does. I can have more people under me than she does, too. True, uplines do get paid on their downlines, but not in the same way a pyramid sturcture does. I wonder how you handle those people who claim that PC is a pyramid, or do you just let them believe that? I would think that would drastically hurt your recruiting.

 

[babywings76]

Also, pyramid schemes are ALL about recruiting. You can be happy as a PC consultant and be profitable and NEVER recruit! Your success is not determined solely on recruiting!!

 

[esavvymom]

Also, pyramid schemes are ALL about recruiting. You can be happy as a PC consultant and be profitable and NEVER recruit! Your success is not determined solely on recruiting!!

That's the primary difference with pyramid schemes and a legit- MLM company. Yes, it's a pyramind in the regards that you have higher-up ED, SED, NED, etc...and then their lines below them- BUT it's not a SCHEME. We have an actual legitimate product that we sell, and you don't HAVE to recruit.

The companies that are the Pyramid Schemes- you're hard pressed to actually hear about the product you are supposed to be selling!! You are only told about "signing up recruits" and getting more agents.

But let's not argue over that.



I've not heard of this company. I think if i couldn't find very much information about the company, the pessimist in me would be leery. BUT if it's an investment you can afford to lose, and he's made up his mind, then sometimes you have to go for it. The opportunity isn't going to go away- it should be there, so don't rush until your questions are answered. And if they ARE telling him it's a limited offer, etc...then I would definitely be cautious. Just don't ignore the 'gut feelings', if you have them. I've learned the hard way sometimes that those are warning signs sometimes. I certainly would make sure that he understood this is HIS Business and if you can't afford to spend exorbitant amounts of time doing HIS business, while you are trying to run yours, that it's clear up front.....so you don't have arguments and stress later.

Good luck!

 

[NooraK]

Depending on how you look at it, ALL companies are a form of a pyramid. There are always more people at the top then there are at the bottom, making more than those below them.

No, I don't think PC is a pyramid, but that's one of my favorite comebacks, especially when someone here at work asks if PC is one of those pyramid things. I just laugh and say "Well, technically, Company X is a pyramid. We've only got one CEO on top, and he's the one that makes the best money."

Scheme is a very negative word, and absolutely does not describe PC or many of the other legitimate direct sales companies.

 

[annew]

Ambit is starting to go around our area now.....my cousin is wanting me to join in.....I'm not sure though......we live towards Binghamton & they are having all kinds of informational meetings.....we'll see

 

[kcmckay]

Ambit is starting to go around our area now.....my cousin is wanting me to join in.....I'm not sure though......we live towards Binghamton & they are having all kinds of informational meetings.....we'll see

We were supposed to meet with consultant today but with snow my husbands work schedule got flipped. If you are an advanced director wouldn't that be a conflict of interest since it's another MLM company?


I don't think DH is realizing that the money here is in recruiting. I think he sees it as referring your friends to switch means you'll make tons of money. It doesn't help that the consutant trying to "sell" this to him told him he made $7000 in his 1st 2 months which sounds more like a results not typical thing. We'll see I'll talk to him more tonight and make him realize the money is in recruiting and he may know lots of people who will switch providers but most won't want to do what he's doing.

 

[esavvymom]

Ask him if he'll show you his paycheck statements. On OURS you can see the Recruiting overrides, what was from show sales, etc. Maybe his will show the same thing.

 

[chefjeanine]

Katie,

Sounds like you should come up with a list of questions so you (and your husband) can clearly understand how $ is earned.

Good luck!

 

[robochick84]

Deb, I too was going to highlight this quote! I'm sorry Ashley, but it's a pet peeve of mine when people call PC a pyramid. A pryamid would imply that you lock in your "spot" in the pyramid, and you could never do any better than the person above you because they are always above you! Not true with PC! I can advance to Senior Director beofore my director does. I can have more people under me than she does, too. True, uplines do get paid on their downlines, but not in the same way a pyramid sturcture does. I wonder how you handle those people who claim that PC is a pyramid, or do you just let them believe that? I would think that would drastically hurt your recruiting.

I will not argue, but it is a point of fact, and any higher level business person (VP, President, CEO) or any individual with an MBA or above can clearly identify a working pyramid model. It has nothing to do with the ability to advance or fall as even "schemes" give individuals the ability to advance to higher tiers. In order to be a top individual in any pyramid model you must recruit, and better "benefits" or rewards are based off of recruiting. Not all pyramids must collapse, some of them have the ability to sustain for a long time because they can and do sell legitimate products.

 

[ChefBeckyD]

I will not argue, but it is a point of fact, and any higher level business person (VP, President, CEO) or any individual with an MBA or above can clearly identify a working pyramid model. It has nothing to do with the ability to advance or fall as even "schemes" give individuals the ability to advance to higher tiers. In order to be a top individual in any pyramid model you must recruit, and better "benefits" or rewards are based off of recruiting. Not all pyramids must collapse, some of them have the ability to sustain for a long time because they can and do sell legitimate products.

Hmmm, I think it might be better to having a working definition, not a business textbook definition.

I have heard and read plenty of definitions of a pyramid scheme other than the one you present here. (by "higher level business people, and people with an MBA or above")- including one of my best friends, who is the VP of a successful Investment Firm. PC is NOT a scheme. I did a lot of research before joining PC, since I live in the heart of the largest pyramid scheme known (Amway/Quixtar). I KNOW from experience what a pyramid scheme looks and sounds like. I wouldn't be here if PC was like that.

 

[pampered1224]

KATE one thing you may want to point out to your husband about you helping. Your interest level. You know, as we all do, that if something does not "trip your trigger", there is no way you could possibly help him sell. So make sure he knows that if you are not that into it, it would adversely effect HIS business. And yes, if you do want to go higher on the PC ladder, you can not be a director and have another DS business. So it is a conflict of interest in the eyes of PC.

 

[chefjeanine]

I will not argue, but it is a point of fact, and any higher level business person (VP, President, CEO) or any individual with an MBA or above can clearly identify a working pyramid model. It has nothing to do with the ability to advance or fall as even "schemes" give individuals the ability to advance to higher tiers. In order to be a top individual in any pyramid model you must recruit, and better "benefits" or rewards are based off of recruiting. Not all pyramids must collapse, some of them have the ability to sustain for a long time because they can and do sell legitimate products.

"A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered. Pyramid schemes are a form of fraud."

"Pyramid Schemes
In the classic "pyramid" scheme, participants attempt to make money solely by recruiting new participants into the program. The hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same.

The fraudsters behind a pyramid scheme may go to great lengths to make the program look like a legitimate multi-level marketing program. But despite their claims to have legitimate products or services to sell, these fraudsters simply use money coming in from new recruits to pay off early stage investors. But eventually the pyramid will collapse. At some point the schemes get too big, the promoter cannot raise enough money from new investors to pay earlier investors, and many people lose their money."


"Pyramid schemes now come in so many forms that they may be difficult to recognize immediately. However, they all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public. Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure. There are two tell-tale signs that a product is simply being used to disguise a pyramid scheme: inventory loading and a lack of retail sales. Inventory loading occurs when a company's incentive program forces recruits to buy more products than they could ever sell, often at inflated prices. If this occurs throughout the company's distribution system, the people at the top of the pyramid reap substantial profits, even though little or no product moves to market. The people at the bottom make excessive payments for inventory that simply accumulates in their basements. A lack of retail sales is also a red flag that a pyramid exists. Many pyramid schemes will claim that their product is selling like hot cakes. However, on closer examination, the sales occur only between people inside the pyramid structure or to new recruits joining the structure, not to consumers out in the general public."

 

[ChefBeckyD]

"A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered. Pyramid schemes are a form of fraud."

"Pyramid Schemes
In the classic "pyramid" scheme, participants attempt to make money solely by recruiting new participants into the program. The hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same.

The fraudsters behind a pyramid scheme may go to great lengths to make the program look like a legitimate multi-level marketing program. But despite their claims to have legitimate products or services to sell, these fraudsters simply use money coming in from new recruits to pay off early stage investors. But eventually the pyramid will collapse. At some point the schemes get too big, the promoter cannot raise enough money from new investors to pay earlier investors, and many people lose their money."


"Pyramid schemes now come in so many forms that they may be difficult to recognize immediately. However, they all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public. Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure. There are two tell-tale signs that a product is simply being used to disguise a pyramid scheme: inventory loading and a lack of retail sales. Inventory loading occurs when a company's incentive program forces recruits to buy more products than they could ever sell, often at inflated prices. If this occurs throughout the company's distribution system, the people at the top of the pyramid reap substantial profits, even though little or no product moves to market. The people at the bottom make excessive payments for inventory that simply accumulates in their basements. A lack of retail sales is also a red flag that a pyramid exists. Many pyramid schemes will claim that their product is selling like hot cakes. However, on closer examination, the sales occur only between people inside the pyramid structure or to new recruits joining the structure, not to consumers out in the general public."

Wow, Jeanine - you must be an upper level business person, or have an MBA or above!

 

[NooraK]

From the DSA's website, from their code of ethics:

Code of Ethics | DSA

6. Pyramid Schemes
For the purpose of this Code, pyramid or endless chain schemes shall be considered consumer transactions actionable under this Code. The Code Administrator shall determine whether such pyramid or endless chain schemes constitute a violation of this Code in accordance with applicable federal, state and/or local law or regulation.

6. The definition of an "illegal pyramid" is based upon existing standards of law as reflected in In the matter of Amway, 93 FTC 618 (1979) and the anti-pyramid laws of Kentucky, Louisiana, Montana, Oklahoma, and Texas. In accordance with these laws, member companies shall remunerate direct sellers primarily on the basis of sales of products, including services, purchased by any person for actual use or consumption. Such remuneration may include compensation based on sales to individual direct sellers for their own actual use or consumption.

I can understand what Ashley is saying, but the bigger problem is that most people don't have that view of the term "pyramid" when it comes to business, espeically direct sales companies. "Pyramid" has a very negative connotation, and creates the image of a scam in people's minds. So while you can have a constructive conversation with a few people about how many companies operate on a model similar to a pyramid, most people just equate it to a scam, and stop listening to whatever you have to say.

 

[chefjeanine]

Wow, Jeanine - you must be an upper level business person, or have an MBA or above!

Is it that obvious?

 

[kcmckay]

KATE one thing you may want to point out to your husband about you helping. Your interest level. You know, as we all do, that if something does not "trip your trigger", there is no way you could possibly help him sell. So make sure he knows that if you are not that into it, it would adversely effect HIS business. And yes, if you do want to go higher on the PC ladder, you can not be a director and have another DS business. So it is a conflict of interest in the eyes of PC.

It's not so much that I don't want to help him. I just don't want to take on the responsibility of "working" for the company. I will help him understand it all and I won't discourage him or look down on company. The more I've looked into via online research and the dvd he got to look at, I do feel it's a legitimate oppurtunity but I don't think he realizes how much work he'll have to put into it. I'm also nervous he won't get the return on his money he thinks he will. It's an initial $429 investment and then $24.95 a month after that. That's not cheap in my eyes. He seems to think he'll get it back in no time. It also seems though having some technological abilities are important and he doesn't really use computer, doesn't have an email doesn't really know how to use the internet. I will support him if he wants to do it. And when I heard him talking to consultant on phone yesterday it does seem he realizes he shouldn't quit his job and wants to stay invested in his retirment there so won't leave so that's good. I don't know, we need to talk more about it and see. But since I've yet to meet this guy I'm still very weary of it. Once I talk to him I know I'll have a better handle if it's a worthwhile oppurtunity.

 

[baychef]

Anxious to hear if you or anyone you know went with this and how it is working? I am invited to one of these meetings this Friday night. Where you make your profit is on getting others to invest in this $429 start up. According to the person that told me about this the local funeral director had his lawyers check out this company and they feel it is legit. Apparently he made $3000 last month. My biggest thing is even though I know the profit may be better than PC, it would be me trying to get others on board.

I have a hard enough time getting people to committ to $155 let alone $429! And with a full time job, it is just not for me.

BUT with that said, I am curious.

 

[susanr613]

If the main way to make money is to encourage others just to sign up, then it is a "pyramid scheme". If the main way to make money is to sell products and there's also a reward for signing people up, then it's MLM.

With regard to the person who referred to TPC as a pyramid scheme, it is not, as recruiting is secondary to selling products. Even Nancy Jo Ryan, who has a zillion people under her, has to meet a monthly sales requirement.

 

[kcmckay]

Anxious to hear if you or anyone you know went with this and how it is working? I am invited to one of these meetings this Friday night. Where you make your profit is on getting others to invest in this $429 start up. According to the person that told me about this the local funeral director had his lawyers check out this company and they feel it is legit. Apparently he made $3000 last month. My biggest thing is even though I know the profit may be better than PC, it would be me trying to get others on board.

I have a hard enough time getting people to committ to $155 let alone $429! And with a full time job, it is just not for me.

BUT with that said, I am curious.

Well I never spoke to the person personally. My husband decided he didn't want to go for it. Everyone he talked to about it felt like it sounded like a scam.