Is Ambit Energy a Scam? You NEED To Know This!

If you are thinking about switching over to Ambit Energy you might want to think again… Is Ambit Energy a scam? Are they legit? The answer to both of these questions are both yes, and no. And you will see what I mean in this review.

So whether you are looking into this company to save money on your electricity bill, or as an opportunity to make money on the business side of it, you need to read this post first.

Related: Viridian Energy Review

Ambit Energy Review

When I review companies, I usually look into them but don’t have any experience dealing with them. But this is not the case here. I have a personal story dealing with Ambit Energy and their scam operations that I want to share with you first.

So about a year ago, a family member of mine got into the business side of Ambit Energy.

For those of you who don’t know, anyone can buy into it and promote it, earning commissions off of people they get to sign up. And of course for you to be able to promote it you have to first sign up and switch over to Ambit.

So everything was good for a while. He joined in early 2016 and promoted it throughout the year. But when 2017 arrived he was hit with a massive electric bill.

And when I say massive, I mean MASSIVE. Ambit Energy had raised the rates by 6x. Yes, you read that right. They jacked up the rates 6 times what they were. And all of this was a surprise.

This is the reason I decided to write this review. And I hope I can deter as many people as possible from falling for this energy scam.

What Exactly Is Ambit Energy?

Ambit energy is an MLM company that provides electricity and natural gas to consumers, usually at a 1-2 year fixed rate.

They were founded in 2006 by Jere Thompson Jr. and Chris Chambless, who seeked to capitalize on the opportunity of the energy business being largely deregulated.

They have been the subject of many complaints and even some class action lawsuits for their sneaky and deceptive business tactics, which I will be going over.

Ambit Energy Business Model

Ambit Energy’s business model falls into the MLM category, or multi-level marketing. This is when anyone can join Ambit and get paid to go out and sell it to other people. You can build up a team of people beneath you selling Ambit Energy and get paid off of their sales.

MLM’s have a pyramid structure with people below you that had you recruited, and people below them that they recruited, and so on. It seems like a pyramid scheme, but MLM’s are actually completely legal because they do offer a legitimate product or service. And in this case it is energy.

The Cost To Promote Ambit

In order to become an Ambit consultant and make money promoting it, you are going to have to pay a membership fee. This will cost you a one-time fee of $429 plus a $24.95 monthly fee to stay active.

It doesn’t matter that you are a Ambit customer, you will still have to pay both these fees on top of everything else.

Is It Worth Getting Into?

You can still make money promoting Ambit, no doubt about it. But the opportunity is much less than it once was. This company has been around a while and the market is increasingly saturated.

With MLM style businesses like this it is important to get in early. Because the real money is going to come in when you have a large base of people beneath you.

It is also going to be difficult to recruit people in because of all the negativity that Ambit has around them. There are plenty of negative reviews and this will deter people.

The 2 Reasons People Switch To Ambit Energy

Basically there are only 2 reasons why I think anyone would switch their energy provider to Ambit.

  1. They saw the business opportunity and wanted to make money promoting it
  2. They “thought” they would save money on their electric/gas bills

So I just went over how they are an MLM and how you can make money promoting them. But if you were the type of person that was thinking about joining in order to save money on your monthly energy bills… you might want to think again.

The Shady Side To Ambit Energy

What the majority of people that sign up for Ambit don’t know, including my friend that I mentioned at the beginning, is that once your 1-2 year contract expires your rates are subject to change.

And when I say they are subject to change, what I’m saying is that they are going to skyrocket.

In the fine print of the agreement that people sign with Ambit Energy it will go over how they can charge you a variable usage rate after the fixed rate contract is up. Most people don’t bother to read the entire agreement. They just see that they will be saving money over the next 1-2 years and get excited and sign up.

These types of businesses that use “fine print” to swindle their customers are very shady in my opinion. I do not agree with it.

Ambit Energy Complaints

As expected, Ambit Energy’s scammy business tactics are getting them a lot of complaints.

If you go to you will see that they have a 2/5 star rating from over 400 reviews. This is a site where consumers can post reviews of companies to warn other people or to praise good business.Ambit Energy Complaints

And besides the individual customer complaints that you will find online, they have also been taken to court for their deceptive tactics.

In 2015 in New York, there was a lawsuit against Ambit, where Ambit agreed to pay $950,700 in refunds to 1,566 customers. Because it was either they pay up, or they lose the right to do business in New York.

Final Thoughts… Is Ambit Energy a Scam?

They aren’t a complete scam because they do provide a legitimate service to their customers. But they definitely are involved in some very “scammy” business tactics which leads to a lot of very upset people.

Some people claim that they have been with Ambit for years and continue to save money. But from what I know, and from what my friend knows, it is likely that your bill will increase drastically after 1-2 years.

Not only do I not care for the business for its use of deception, but I also don’t think its worth going out and promoting. The market is pretty saturated these days and there are too many complaints on Ambit to really do good with this business. Its just going to be a lot more difficult to get people to sign up than it was early on.

And that is the common theme with most MLM’s. You have to get in them early to make really good money.

What do you think about Ambit Energy? Comments, questions, concerns??? Leave them below in the comment section…

About the author


My name is Kyle and I am the owner of Earn Beast. I created this website to explore the various ways of earning and mainly focus on teaching others how they can make money online. To learn how I make a full-time income online, Click Here


Leave a comment: