There will be many posts in the future with more insights, but I wanted to put a brief backgrounder here. About four years ago, I saw my mother living into her 90’s. That’s great news, right? Well, it also means that I could live another 40 or 50 years. I reasoned, that as well as my wife and I did, we couldn’t last that long on what we currently had. I better start thinking about income and wealth for our future to live decently past my working years.
I said to my wife, Beth, I’ve helped a lot of people and many companies to make a great deal of money. Maybe it is time to use those same talents and skills to do the same for us. After looking around and looking at some investments, and being presented different opportunities in almost any conceivable business, a friend suggested that I look at Ambit Energy. I did my due diligence, which is something I used to do for major companies. I looked at the company, its founders, the investors, the key people, and the probable motivating factors driving the company. Then, I looked at the industry, what was changing, its size, the competition, growth and potential changes in the overall industry, and market conditions in the industry. I also looked at the service, its marketability, the potential for me, the probable return on investment of my time, and the possible problems the company might face. While it was clear that this was a great opportunity and a potentially great company, I was initially concerned with the idea that this was a network marketing company.
Since Ambit Energy is a network marketing company, I needed to see that there was a good reason for that choice of distribution. Many network marketing companies or MLMs are sold on the concept that you will make a lot of money and often have grossly inflated prices to fund the payout for the MLM. But, what was unique was that Ambit’s prices were below retail prices of most companies and in some places they were the lowest. It seems that using this distribution model actually resulted in a very high customer retention rate and a low customer acquisition cost. Hence, it made both business and economic sense.
Every once in a great while, an opportunity arises because of economics and sometimes combined with changes in laws or statutes. In the mid-seventies, I saw that demographic changes would soon affect real estate in center cities. I invested in San Francisco apartment buildings. I was fortunate to see couple of other opportunities coming, and now I agree with this. Here is something where one-half of a Trillion Dollars will change hands from the existing utility companies to new companies because of federal recommendatioins many states are breaking up the energy utility monopolies. Now, imagine all the people you know who use gas or electricity and the price being guaranteed to pay less in writing, i.e., below retail. http://www.myincomefromenergy.com/ This was tempting enough that I started at a distance of approximately 2,000 miles from the company while in WA. That is, not DC, but Washington State.
Sometimes you see an opportunity and rather than just looking at the impediments and problems, you find solutions.
You have seen the first two parts of the following many times, I’m sure.
Some people see something and ask why? Others see something and ask why not. When I see something that I deem very good, I ask, how? That is what I did start to work with Ambit while still 2,000 miles away. Was it the best strategy? Maybe it wasn’t. I always assume that there probably is a better way. However, right now, it worked well and only seems to be getting better, so take this as far and as fast as possible. Now, I spend about 3 1/2 weeks every month in or around the territories covered by Ambit.