subject: How Deregulation Can Work For You [print this page] The first thing you need to do in determining if Ambit Energy, or any Multi-Level Marketing (MLM) company is right for you is to determine what the product is and is it marketable. Some would tell you otherwise, but if you can"t sell the product, every other aspect of evaluation is pointless. Secondly, are customers, not distributors, the major source of product consumption? In other words, could the product sell without a MLM structure? Ambit Energy, now in their fourth year, has over 70,000 consultants and over 350,000 customers. So, yes, customers are the major source of the company"s revenue.
The U.S. Securities and Exchange Commission defines a pyramid scam on their website as such:
"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. The chart below shows how pyramid schemes can become impossible to sustain."
If the only consumers of the service were the consultants that paid to get in, then the MLM would be a scam. That is definitely not the case here. Ambit passes this test with flying colors. Energy is a commodity that is used by everyone, so the only difference comes down to price. Ambit energy guarantees a 7% savings for the first two months and a guaranteed annual savings on the supply portion of your bill over your current provider.
Ambit Energy uses what is known as "coded" compensation. This plan pays energy residuals based on the customer usage. Bonuses are paid for customer gathering, no recruiting bonuses are paid until new consultants get customers of their own. The compensation plan pays out based on product/service movement, not recruitment. The fact that the customer to consultant ratio is about 5 to 1 proves that. With the facts before you, it is easy to see why deregulation, and Ambit Energy, can work for you.
