Value an Ambit Energy Business

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What is the value of your business? It doesn’t matter whether we are talking about Ambit Energy, or any other network marketing company, or MLM, or your investment portfolio. For any comparison and deeper understanding, see how to evaluate a company. The end goal, when you reach retirement, will be to receive money from your investments. Residual income can be considered similar to investment income.

Consider this; your residual income is no different than receiving money from a CD or an investment portfolio. The only qualification is the longevity of the business or its income. I will get back to that in a moment.

People often hear extensive marketing about becoming a millionaire. Many of these, actually almost all of these are bogus. But, let’s talk about financial freedom and what it truly means.

Is it truly worth the hard work to receive residual income? Most people quit because they don’t truly understand what they are getting. Unfortunately, that is because most are promised instant riches and overnight success. You can’t measure the value of residual income just looking at your receipt of $500 or more, a month. That is $6,000 per year. In the chart below, you can see that $600,000 at 1% interest would yield $500 per month. Why do I pick $500 and 1%? A couple of years ago, $500 a month would have prevented approximately 70% of the bankruptcies in the United States. In the table labeled interest rates for CDs, you can see that based on current rates 1% is almost what you can depend on receiving.

So, when was the last time you saved and put aside $600,000 in the bank?

Value of Residual Income

While you are working in your business, if you are building residual income, you must consider part of that income the equivalent value of an investment or equity that you would be putting aside just like a bank account. As I have just shown, your residual income is just like earning from investment money. So, if you start getting $2,000 per month, it would be equivalent to having $2.4 million in a secure account.

Most people would consider themselves financially free at around $4,000 per month. Yes, some will be more some will be less, but it doesn’t hurt the example. $4,000 per month or $48,000 per year is equivalent to $4.8 million being drawn at 1% interest.

Now a couple of qualifications are in order. Yes, interest rates may go up. Let’s say they double or quadruple. That would still be equivalent to $2.4 million or $1.2 million being in CDs. Keep in mind this is your residual income not other income for your ongoing work while you are building this residual.

So, when you are having hard times or members of your team are having hard times and complaining that they are only making $500 or $1,000 per month in residual income, remind them what they are receiving without any work whatsoever. The residual income is equivalent to the having earned and put aside the money in CDs as stated in the table. That is just as if that money was deducted from your paycheck before taxes and put into a 401K. Then bring them back to this article to let them see it again.

Are these interest rates reasonable? Well, here are the current rates available today, March 6, 2012, as sourced from Google Advisor which takes reported bank rates.

CD Interest yields from Google Advisor

The other and very major qualification is the longevity of your business. Check on this thoroughly. Are you in a business with short-term prospects? Can you retire from the business and continue to earn residual income? Are the owners committed to the long-term? At Ambit Energy, all of these questions are able to be answered positively. Most importantly, in 2012, this is still just the beginning with less than 5% of the market even started (see Beginning of the Ambit Opportunity).

Ambit Energy – After Its #1 Inc 500 Rating, Raises Growth Rate to near 70%

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I’ve been asked how fast a Lamborghini is. Ok, I used it as an analogy in a previous blog post (Ambit Energy Moves into Top 20). If you were about to go into business, would YOU choose the fastest growth possible or something sedentary? That is, if you want to race through the day, do you choose a Lamborghini or a Chevy Volt? If your choice is a sedentary one, this news is not for you.

The most interesting part to Ambit hitting #1 on the Inc. 500 (see – Ambit hits #1 on Inc 500) is that it was a retrenchment year of rebuilding systems to prepare for greater expansion. Most will assume that the slower growth rate was natural as the company gets larger, it is harder to grow by large percentages. That is usually true and will be true in the future. However, when Ambit Energy’s final revenue is released in the DSA rankings, I expect its rate of growth to dwarf the 2 year rate of growth ending in the Inc 500 status at #1. No, it won’t get to that high ranking again on the Inc 500, which is based on a 3 year rate and very small first year revenue.

Ambit Energy will have a growth rate from 2010 to 2011 of approximately 70 percent. I’m also expecting Ambit Energy to grow by at least another 40+% during 2012. Now, that’s a great investment.

You are working your butt off. Don’t you want to know that the company is doing the same? So you have two parts to the growth of your business: 1. How much and how smart you are working, and 2. How fast the company is moving along with you.  Many people can work hard and smart, but don’t you want to be in one of fastest investment vehicles around?

Let’s say you were to invest in the stock market. Would you pick a stock that is growing and expected to grow rapidly or one that is stable or even shrinking? Of course you want the one that is growing. Keep in mind that a network marketing company does not pay you dividends on your investment. You must grow your business and reap residuals from your customer growth.

Here are the Fastest Growing Companies Among the Direct Seller’s Association (DSA) Top 40*

*Some companies were omitted if there was no 2 year data available.

Well, if you are considering one of the several big well-known companies for your future income, you should have some serious reason, other than growth

Is Ambit Energy a Pyramid?

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If you ever heard that question or statement, Ambit Energy pyramid scheme, I’m willing to bet that the person asking doesn’t even know what a pyramid is. Actually, if you don’t know, don’t feel badly as most people don’t have the foggiest idea what a pyramid is. I investigated it, too, before joining. They just heard of a thing called a pyramid scheme or pyramid scam. Well, let me first say, it is illegal. Second, I must tell you that the definitions here are from the Securities and Exchange Commission. I’m just your color commentator to make this very clear. Also, a pyramid scheme just like a Ponzi scheme really should not be thought of or named by the pyramid shape, as truly everything is a pyramid. Let’s look at any company out there today and then revisit where Ambit Energy fits.

Every company has this pyramid structure. So then, what’s the difference with Ambit’s structure and why is this one ok?  This could be GM, IBM, Wal-Mart or any company.  Well, I’m not sure why it’s ok. I do know why it exists and why it works. But, if you are in one of these companies that have this structure, how do you ‘get ahead’. How do you get promoted or get more money?

You will only get ahead if someone above you dies or quits, unless the company grows and needs an extra body above you. Now, that is bad. In Ambit Energy, I can make more than the people above me. Actually, I do. I make more than 5 of the 7 people above me. And, since I like them all, I’m glad none of them either died or quit!

Ambit Energy pyramid scheme

Ok, we can now agree that a Pyramid Scheme is actually misnamed as everything is a pyramid in shape.

So, what is a pyramid scheme? Think a little bit of Bernie Madoff and the Ponzi Scheme. It is very similar according to the Securities and Exchange Commission (SEC). In the case of the Ponzi scheme, according to the SEC, “A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.” http://www.sec.gov/answers/ponzi.htm#PonziWhatIs

The Pyramid Scheme has many similar properties. Think of it this way. Some people set up a system with the same evil goal as a Ponzi scheme, but tried to get around the law by trying to appear as a business. Again, the pyramid scheme is defined by the SEC, “the scheme typically does not involve a genuine product. The purported product may not exist or it may only be “sold” within the pyramid scheme.” That is, there really aren’t any “true” customers.

 

The pyramid scheme has taken various forms or meanings but really breaks down to the idea that it is really not commerce. Nobody is really selling anything to anyone that is a true customer. In cases where it involves sales, the customers are all really ‘in the business.’ That is, you have to join and must buy some product. The new purchasers in the business are buying from the people who were in before them, just like the new investors in the Ponzi replenish the fund to pay the people in before them.

The changes over time in pyramids can be explained as creative people trying to make them look like something they are not. A good thing to keep in mind is a little analogy and a reason that pyramids are illegal. If you have been around for a while, you may remember chain letters. You were supposed to send someone money and add your name to the bottom of the list and after 30 days or so, you were to receive money in the mail. This is the basic concept of the pyramid scheme. When chain letters became illegal, some people started businesses that really don’t have real customers. They only sell products to newer members. The law has been very strict with those companies.

So, where does all this put Ambit Energy? Ambit Energy’s success is all about customers. As I look at Ambit Energy, it is a top quality company with all the attributes that you should see in a company you would choose(see – Evaluating a Company. It has chosen network marketing as its distribution system. It clearly did not try to start a network marketing company as the focus.

Nobody has to worry about Ambit’s focus. It passed 700,000 customers a few weeks ago. From the perspective of income, Ambit business consultants get absolutely nothing unless they bring in a minimum of 3 households as customers, (in Texas it is 2 because of greater work in customer acquisition). Gradually the consultant is expected to get 20 customers in order to have full access to the residual income at any rank. Ambit Energy is clearly customer driven.

Ambit Energy Top 20 Direct Selling Company

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Ambit Energy Moves into Top 20 Direct Selling Companies in 2011Ambit Energy is on a lightning fast growth path. It is passing other well known and very good, network marketing companies at an amazing clip. Since ambit was established it has proven to be one of the fastest growing companies. Put on your seat belts, you are watching Ambit pass other companies like soaring in your Lamborghini riding on the highway passing everything in sight.

Every year the Direct Seller’s Association ranks the top 100 companies based on total revenue.

This is a great indication what companies are rising stars; which ones are maintaining their elite status and those who may be past their peak. In network marketing, where it is said that the three most important things are timing, timing and timing, these annual results can really help tell who the future winners will be.

For the past 4 years, Ambit Energy’s sales were rapidly climbing at historically high levels; generating revenue in 2010 of more than double its earnings in 2008. Matter of fact, in 2010, it was ranked #1 fastest growing company in the US with the celebrated #1 ranking in the Inc 500.

In 2008, Ambit Energy reached the 46th largest direct selling company. In 2009, it moved to number 38. At this point, the rate of growth and the rank was amazing. Why? You see, at this time, the top 37 companies ahead of Ambit Energy in the list were in as many as 20 countries. Ambit Energy was only in 3 states within the US.

Through this time to 2010, Ambit Energy passed such notable and well respected companies as Arbonne, Isagenix, Xango and Nikken.

In the DSA top 100, Ambit Energy is #31. It moved up very quickly in 2010 past such notable companies as:

Ambit Energy Independent Consultant - DSA Top 100 company

I’m an Economist and well known business analyst as the numbers are released, my forecast is that in 2011 Ambit Energy has passed many more notable companies including: MonaVie, ACN, USANA Health Sciences, PrePaid Legal, and Market America.

I expect when the numbers are released, Ambit will be in the top 20 in 2011 among direct selling companies, probably between 16th and 19th largest company according to the DSA.

Ambit Energy Independent Consultant - Top 500 company

The list is in order of size for 2010 revenue.

Now the rankings for 2011 have not been released yet. But these are my projections and mine alone based on my own analysis and the figures I am looking at which clearly shows that Ambit Energy is growing at an incredible rate.

Does this remind you of Excel Communications during the long distance deregulation? It should. The only difference is this is about 10 times the size and is still in its infancy. Remember the higher ranked companies have been selling in many countries for an average of over 40 years.

What will Ambit Energy look like in 4 to 5 more years? I leave that for another post!

Commitment is a Muscle, Necessary Path to Success, – Ambit Energy or Any Activity

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Whatever your goals and whatever your dreams in life, if you truly are striving for something, attaining it is a most satisfying outcome. Almost anything you do strive to reach will not only take hard work, but will require perseverance and a rekindling of spirit. I was reminded of this yesterday when someone I am helping run his Ambit Energy business called me and asked to chat. That is, you will have periods of ups and downs. You must find ways to work through the periods of disappointment and get to the next success, no matter how small, as quickly as possible start moving up the next hill.

Commitment is a driving force that takes you to your destination. This is the key to achieve success and it’s like a muscle in the body that supports the bones in order to function properly. Commitment brings this whole thing back as if in a circle. That’s it, a self generating, ever growing process to build success, income, health, or whatever you desire.

 

Commitment is a muscle that must be exercised regularly with consistency and persistence.

Consistent exercise of a muscle increases endurance, confidence and therefore energy. And, every commitment to exercise must start off slowly and build. Commitment to something works in the same manner. It also increases energy as you see more success and accompanying reward. The energy becomes the fuel that drives you to achieve success.

Energy comes in two parts – real and perceived. That is, when you exercise you build muscle that gives you more energy. However, if you find something difficult, the mind plays a wonderful trick on us and gives us the same feeling as when we are tired. Your conclusion is, “I’m tired” and your natural tendency would be to stop. This is where commitment comes into play.

Commitment is necessary to work yourself through the negative thoughts and tendencies. It helps you take an extra mile to get to get to your goal. After awhile, it becomes easier; that is, exercise the commitment ‘muscle’ and it becomes easier over time. You develop a good habit. The key is that commitment must be exercised or it will atrophy. That friend working in Ambit Energy is going to do just fine.  He has the maturity to know what to do when negativity hits him. And, yes he is coachable! Whatever your reaching to attain: a degree, a new language, a business or to excel in a sport, they all must follow these tenets.

In Texas, Ambit Energy Finds It Easy to Grow Rapidly.

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Texas is now an electric supply company’s playground. It wasn’t always that way. Ambit Energy and others waited for a few years for the idea of supply companies became universally accepted. Houston Mayor Bill White urged people to make a switch to energy providers. He said it doesn’t matter who you get your power from the reliability will not be sacrificed.

When deregulation started in Houston, Reliant Energy and Center point energy was established as two separate companies, one sells power and the other one delivers it. It is Center Point that owns the lines, responsible for its maintenance and reads your meter. The reading is then sent to your energy provider who bills you.  It is also Center Point who restores power supply come storm time if there are any interruptions or problems with maintenance. All energy providers put their power on the Texas grid where it is transmitted to their homes which is used by consumers; meaning only one source, just different providers.

Every market will go through this acceptance period where there will be a slow acceptance period until consumers truly understand it. In the meantime, the ignorance of consumers, largely caused by poor explanations, will cost those consumers hundreds or thousands of dollars by the time some of them choose a supply company.

Why is this deregulation thing beneficial to consumers? Because with several power providers competing for better services (see Deregulation), the market moved to cheaper electric bills, prompt and effective customer service, as well as discount packages and earning opportunities; consumers can save thousands of dollars and get better buying power.

Switching to independent power providers does not jeopardize the reliability of your power supply. Houston Mayor urged his constituents to make the switch believing that this will help save a lot of money. Since deregulation started several years ago, only about 25% had switched in the first 4 years and about 75% out there are yet to leave their expensive power provider; a big market for power providers to convince and serve.

People who have very little or limited information about deregulation are skeptical about its advantages. Having heard so many promises from other service providers it is not easy to convince them otherwise. While paying enormous electric bills is not easy on the budget especially in these trying times, switching just seems scary or uncertain to them. But to those who have switched and have reaped the benefits of saving on electric bill they can attest that deregulation works for the good of consumers.

This leaves a huge market opportunity in other areas of the country as the newer states open. Unfortunately for many, it requires patience and perseverance. It took several years for Texas to become a wide open market where consumers now shop for suppliers. With Ambit Energy, I get calls every day from Texas where people are either shopping for a good price or are asking because of excellent word of mouth customer satisfaction. It will be several years before some states see Texas’ level of acceptance. Customer acceptance will be sped up or slowed down based on how companies explain this new market. Some are not so nice, unfortunately. This electric market is so huge that a company that stresses ‘integrity before growth,’ a motto at Ambit, will always stay in a strong position.

Want Success in Ambit Energy like Eli and Payton Manning, Tom Brady, Tiger Woods

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Most people don’t know the difference between doing reasonably well and super stardom. Whether we talk of success like Tiger Woods or how to excel in business, like Ambit Energy, or school.

  1. Tiger Woods at his peek averaged 1.5 strokes less than the average in Pro Golf Tournaments (quote Chris Chambless, Ambit Energy). One and a half strokes is not a major difference. He gets there by consistent practice and commitment to all phases of the game.  That difference is what separates him from the field. He is generally alone working early in the morning or when everyone else is at the club after a round. But, some of the newer players learned what he did. However, his extra work gave him the consistency in success and that income, lifestyle and following.
  2. You just saw the Super Bowl. How did Eli Manning and Tom Brady get there? They study everything they can with every fiber in their body. How did they maintain that high level? Did you see them on the sidelines? Even then, they were not just idling sitting on the sidelines. They talk with the key players on their offense. They discuss what they did that worked and that which didn’t. They planned for their next opportunity on the field.
  3. In exercise, when someone does an exercise it is not the 1st 11 repititions that gets the results, it is pushing beyond limits for the last repetition and holding it a little longer that achieves most of the results.
  4. In education,it is the extra effort that matters. When studying during a course, it is not going through the material and working through the problems and turning in your homework, it is reviewing the material within a short period after initial study while others take a break.
  5. Some of the greatest people in many sports, Larry Bird, Bill Bradley, Charles Barkely, Michael Jordan, Terrell Owens and Kobe Bryant got where they did, not just by talent, but that extra effort beyond others.
  6. When arriving at Grad School at UC Berkeley, what struck my attention was how the great professors and Nobel Prize Winners, worked extra to attain their level of success. They would be there working on Saturday or Sunday morning and always worked longer hours.
  7. At Hofstra University, near the end of my undergraduate studies, a student friend, who was studying with a group nearby called me over. He asked, “Thomas, how do you do so well?.” I answered, “You are all trying to figure out what you need to know. I try to figure out what I don’t know.” Excellence is not by guessing what you need to do in life, it is by working at excelling, i.e. filling the holes in your knowledge, experience or skills.

Success comes with hard work. If you don’t want to work for it, that doesn’t make you a bad person. You just made a personal choice. However,don’t complain about success of others or that your income, wealth or lifestyle isn’t as good. Life’s not fair, but “life is 10% what happens to you and 90% what you do with it.” (Lou Holtz). I’m tired of hearing about redistributing and want to hear more about rewards. What about you?

Interestingly, take a look around you. When you are at college or high school, it is really easy to be in the top tier. Most people are not putting in the extra effort. Look at the events and travel that top people in Ambit Energy do. But, if you want to truly attain the highest levels, you have to push yourself further than those others who are participating in success.  People who are participating may only be looking for what they need to know or need to do, not what they don’t know or haven’t done, yet. Questions keep arising – why am I working with Ambit Energy –click here?

Beginning of an Opportunity – Ambit Energy

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Everyone would love to be at the beginning of some opportunity. Now, what if you are at the beginning of something, and already know that it can succeed and you can reap a large reward at the same time. Well, let me just explain what has happened, what is about to happen, and why is this quite different? [Read more…]

Ambit Energy – Major Announcements, Major Income

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FYI – New Territories, Connecticut, Massachusetts, 3 gas territories in NJ, 3 more in PA + Gas for MD. Plus huge bonuses. (click for flyer)

Evaluating a Company

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Evaluating a Company to join or buy is not so easy and should not be taken lightly. The most expensive part is the time you invest if you don’t minimally heed these points.

Here are some of the key components I used for evaluation of companies and similarly for products or divisions of companies. My focus on a company is as if I was buying it or investing in it. The company must be able to withstand a rigorous examination.
[Read more…]

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Disclaimer: The analysis, views and opinions expressed in this blog are personally my own and do not necessarily reflect nor are meant to imply in any way they are the opinions of Ambit Energy.I am an Executive Consultant with Ambit Energy. Analogies used are to assist with general understanding of the postings and are only to be examples.

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