Ambit Energy Joins the $1 Billion Dollar Company Club! Based on Estimated Ongoing Running Rate

Ambit Energy Joins the $1 Billion Dollar Company Club!

Ambit Energy Joins the $1 Billion Dollar Company Club!
Based on Estimated Ongoing Running Rate

Ambit Energy hits $1 billion running rate. That is, Ambit Energy is a billion-dollar company. Now, first let me go over what it means by running rate. Then, let’s examine the significance of being a $1 billion company both at this time and at Ambit Energy’s age.

Sometime in the next month or two Ambit will announce breaking the billion-dollar mark. They will announce that they have $1 billion in revenue over the prior 12 months. The running rate means that amount collected in one month that would equal $1 billion if it was sustained for 12 months. Ambit energy probably hit the billion-dollar running rate sometime late last summer. While these are based on estimates, they are fairly straightforward assumptions. What’s the statement you hear sometimes? You can bank on this one!

We’ve all seen their customer accounts. When Ambit announced that it had 1 million customers, it was already far surpassing the $1 billion running rate. If we are to assume that the average bill is $125, then, when those 1 million customers are up and running and pay their bills, which should be the month of February, revenue for the month would be $125 million. That is a $1.5 billion annual rate. Even if the bills only average $100 apiece, that would be a $1.2 billion annual rate.

So, Ambit Energy probably hit the $1 billion annual rate back late last summer.

Now, more importantly, how impressive is this? The story is well known that it took Microsoft 10 years to hit $1 billion. We also know that Excel, which Ambit Energy is modeled on the same structure, did it in 7 ½ years. Google did it in about 6.4 years a couple of years before Excel. Yes, that is right, before Excel. Apple was founded in 1977 reached $1 Billion in 5 years back in 1982. Now Google already has been beaten by other companies. So, Ambit Energy hits 1 billion dollars in annual revenue in approximately the same timing as Google. What does that mean. I don’t think anything more needs to be said than being in the same company as Google’s growth rate is quite an amazing accomplishment. Imagine if you could have bought Google in 1994, when it hit $1 Billion. Well, guess what, it wasn’t possible. You see, Google wasn’t even put out there as an IPO until 2004 and ended it’s first day at $100.34. But, you can participate in deregulation with a company that is moving at Google speed at the same age in its existence. That is Ambit Energy. You don’t understand the opportunity this gives you, take a nap. You must need a rest and to re-awaken.

Ambit Energy’s structure as an energy MLM was modeled after Excel Communications during the telecommunications deregulation.What even gets better is the way Ambit Energy business expands. Very different than other companies and Excel, the fact that it expands territory by territory means that new growth is from territory expansion and not limited by trying to further penetrate existing territories. Don’t make the mistake of ignoring existing territories as Texas appears to still be growing rapidly. However, when new territories are states like California, Connecticut and Massachusetts, there is no reason to assume that the growth rates that Ambit Energy has in the recent past from 40 to 60 percent could not be sustained and even exceeded in each of the next few years.

If you want to know how to take part in this growth, click on the button above or send me your info. If someone sent you to this site to share it, ask them.

Ambit Energy Review, Trajectory and Home Business Opportunity


Ambit Energy Review, Trajectory and Home Business OpportunityHow do I possibly describe the trajectory Ambit Energy is currently exhibiting? We have a confluence of amazing events. First of all, Ambit Energy is seeing annual growth in the 45% to 60% range each year (See Ambit Energy Soars to #15 on DSA, and Ambit Energy hits #1 on Inc 500. I am expecting 2012 to finish in the 45 to 50% range and 2013 could be above the 50% mark, depending on a couple of remaining items the company should accomplish over the next few months. I will give a more honed projection in a few months as we see CA opening for gas and learn a bit more about the timeframe for electricity.

Also, the market place for any energy MLM is outstanding. But, if someone was to pick a company to represent, why would they not choose the dominant company as it enters every market and then become an Ambit Energy consultant?

Let’s put this in perspective. If you were invested in some stock and just sitting back watching it, a 50% growth rate doubles every 1.44 years. Why is this important to you?

The Ambit Energy market is going to double about every eighteen months. Some consultants are going to grab that market. But. this is very different than a stock.

Another way to put it, 1/2 of the customers that will be in Ambit Energy in eighteen months are not Ambit Energy customers today.

Who will get them?

Could someone with an Ambit Energy business today see massive success over the next three years? Well, Ambit Energy should more than double in size in that time frame.

This means that a Steve Thompson, Brian McClure or any other big guy could be created over the next three years if they started today! Now, Ambit Energy California is opening in a few days.

Are you ready?

Here is an assessment and letter that Steve Thompson sent out over the weekend:

Hi Team,

What an exciting time in Ambit. Our Production has already more than doubled since Ambition (Note: that was September 1st.) and it is just picking up speed. Make sure you are doing all that you can to get the most out of the Momentum and the Double/Triple and if you were at Ambition, the Level Up Bonus!

Next month I will celebrate the 6th Birthday of my Ambit Business. Although I have had other Successes in my Business Life, none like Ambit Energy. I was not always right when I chose new ventures, but I was always working and failing my way to knowledge, skill and Success. You only have to be right one time, and we were right when we chose Ambit Energy!

I know from my experience that an opportunity like this will probably never occur again. To find it is a blessing. To take massive action is to reach for all of your Dreams in life. What we do for the next few years will (And for many of us, has) change our families lives for generations to come.

I share this now, after our 5th Ambition as we open the other coast. That is the first step in taking the country. I want so much for each of you to find the joy and Success I have, in helping others reach for the sky. DO NOT LET THIS PASS YOU BY. Little efforts each day will compound dramatically. Massive Action over a several year period of time will change the course of your history. We all have it in our hands right now. We must act on it right now.

I am thankful each day for the blessings I continue to receive and for the thousands of people that made it possible and are now enjoying those blessings with me. Some of us are in the twilight of our career. It happens just that quickly, if you go for it. For most, the sun is just rising. Seize the opportunity. Make it yours. Do today what others won’t, and you will have tomorrow what others don’t.

I am strapping on my Tool Belt and expect to help make this the best year ever. I have dreamed of and worked toward this time in Business Life, forever. It is here. It is now. Come with me and this year we will change many thousands of lives.

Some will let this pass by. Many will watch it go by. Some, will make it happen. You choose.

See you all over Ambit Land.

Get Excited. Stay Focused. Never Quit!

To Success,

Steve (see a little about Steve at Steve Thompson Did It, Can You do it with Ambit Energy?

If you are working with another energy MLM or any other company, given these growth rates, it is not too late. When you know and see what is happening, and if you were in the stock market, you would change your portfolio. Don’t sit on the sidelines and watch this happen without you. Or, even worse, don’t work in some other company, while Ambit Energy is shooting ahead (see Ambit Energy Top 20 Direct Selling Company.)

The one thing that most of us who are Ambit Energy Business Consultants want to see is, when will Ambit Energy aggressively move forward and start entering markets more quickly. That time is apparently here.

If you have any questions about this or any post or even a general inquiry, send me a note. I am always interested in helping others succeed and appreciate any feedback!

Ambit Energy’s Residual Income Splintered with Stacking!


Ambit Energy’s Residual Income Splintered with StackingWithin Ambit Energy, the subject of stacking frequently comes up in discussions and is even recommended by some consultants. In other MLM companies, this is fairly common practice when people need to maintain consultants of different ranks below them in order to maintain their own rank. That is not the case in Ambit Energy. This is a review of Ambit Energy when a consultant stacks consultants. This practice dramatically decreases residual income. This brief post will demonstrate the loss in income from stacking and some of the arguments against the practice.

My first introduction to the dangers of stacking came the day after I promoted to Senior Consultant. I received a call from an EC who had become a very good friend and very helpful in my support. He quickly explained not to do what he had done. He explained that he was an EC but not making any money. We only hear about how much money there is to be made as an EC. Well because of stacking, which got him EC fast, his productive people had coded out and his customers were mostly below his sixth level. Well, let me go into more detail on this topic after I tell you two recent incidents that motivated me to write this article. It is a very controversial topic.

The idea for this article was motivated by two friends, both Executive Consultants, discussed with me their residual income. In one case, the person had more than double the number of customers I had and in the other case slightly more than five times my customers. In both cases, I am receiving higher residuals. After a significant discussion and examination, it was clear they were the unfortunate recipients of self-inflicted wounds, i.e. stacking. Yes, I call these self-inflicted wounds, because it is their own actions that caused their residuals to be low. They stacked consultants both to help become an EC as well as afterwards to help friends and family.

Now, first what is stacking? Stacking is deliberately putting a consultant under another consultant rather than under you. The idea is that it helps the other consultant get promoted and hopefully that means getting you promoted faster.

First, let’s look at how we get paid in Ambit’s compensation plan. We get paid four different ways.

  • We get paid for gathering our first 20 customers.
  • We get paid weekly bonuses for new consultants that gather their customers.
  • We get paid residuals up to six levels based on our customers electrical or gas usage.
  • We get paid for each of the customers in our coded organizations to infinite levels in quarters.

Stacking has no effect on your personal customers.

However, stacking dramatically reduces the income in all of the last three income streams.

So, in this simple example I’ll show what happens to your customer residuals when you start putting people further down. One way to think about it is to think of the examples in the ambit video or presentation. If you stack just one level, it is in effect the same as if you had removed last line of the residuals from the compensation plan. That is, by just moving people down one level you have in effect eliminated your sixth level. To understand the income effect, imagine crossing out the income on your sixth level. The sixth level is 82.5% of the total income received. Do you really want to limit or eliminate it? Now, here is an example of the effect if you stack versus building wide.

As you can see, the Ambit Energy compensation plan works exponentially. That means, if you teach to recruit the minimum number of consultants, you have two on the first, four on the second, etc. on the sixth level where you have two to the sixth power, 64. Based on experience of mine and others and taking a conservative estimate you have five customers per consultant, your total income from residuals is $654. Now, just taking the assumption that you only get three consultants that got three that got three, you would have three to the sixth power, 729 on your sixth level. Your total income per month would be $6623.25. Now, imagine receiving the over $6,600 per month just on residuals by doing it properly. So, stacking cost you $5983.25 per month just between two and three wide. If you want to get an idea of the loss, look at the post of the value of your Ambit Business.Some of your bigger consultants will go 30 or 40 wide. Many Executive and  National Consultants have personal consultants that are 40, 50, 60, 70 or more wide. Imagine if you stacked and one of them appeared in your organization that was already coded out.

  • First, for those who are relatively new, what is coding out? When you join Ambit and get your customers, there are bonuses paid. There is $100 for your sponsor, $55 for your RC, $80 for your SC, another $80 for your EC and $25 for your NC. There may be someone who is your RC and SC or some other combination; they get whatever bonuses that are ‘coded’ to them. Now, when you promote and start receiving a $55 increase that is the RC bonus. The person, who was receiving it, will no longer receive that for ‘new’ people that you bring into your business. You have coded out of his RC organization and now start receiving that $55.




Customers per consultant

Total Customers


Total Income





 $      0.10  $         1.00





 $      0.15  $         3.00





 $      0.25  $       10.00





 $      0.50  $       40.00





 $      0.75  $     120.00





 $      1.50  $     480.00
Monthly Residual  $     654.00




Customers per consultant

Total Customers


Total Income





 $      0.10  $         1.50





 $      0.15  $         6.75





 $      0.25  $       33.75





 $      0.50  $     202.50





 $      0.75  $     911.25





 $      1.50  $  5,467.50
Monthly Residual  $  6,623.25

I really don’t need to go further than this. I have demonstrated what happened to people who have stacked consultants. At this point, one could say, the case is closed. However, this is not the end. It is not as easy to document as this was, but I can demonstrate that there is a lot more lost income.

There are three problems with stacking in regards to consultants instead of customers.

  • Consultants code out quickly and you do not receive benefits from their future growth.
  • You build a welfare state. That is, consultants are not learning to build the business and you are motivating them to ask for consultants or customers instead of training and learning to duplicate your work.
  • When stacking the consultants that don’t code out are often your least productive. Why? If you are trying to reach the EC level from SC, you want as much help as possible from your consultants because you need five of them to make SC, which makes you an EC. So, ‘the stacker’ finds those ‘most productive’ consultants and puts people under them. So, your best people that give you the greatest future potential income are helped by you, not to do their business better, but to code out quickly.

I believe that the biggest effect of stacking though is creating a welfare state. That is, when you are filling up someone’s down line, you are teaching people to expect others to do the work for them. You have probably heard in other companies how you may just get this one magic person and become rich. I had MLM hoppers that go from one company to the next ask me, if I join who or how many people will you put under me? Another reason that it doesn’t work here is that you really need to work through a couple of promotions before you start making some of the bigger money. That is, after each promotion, you are building a new team for your new level. So, anyone who joins really does need to do something. I am ready to help anyone in my organization all they need, but I want people that are going to work with me.

While not nearly as obvious, stacking affects two other areas of income. Even though both bonuses and the quarters are paid to infinite levels, when your down line consultant promotes, he receives the coded income from all his future work, not you. When stacking, in effect you are reducing the number of personnel consultants and pushing them further down below you. You hear the recommendation, build wide for income and down for security.

Building down for security refers to working with your team to help them with their people and prospects not putting people down there. As your team sees the people below them promote or grow, they may respond because they see the system working and their own consultants and friends passing them in rank. I have seen this happen several times.

We have the largest market, energy, everyone buys it, and as an energy MLM we have the opportunity to profit from Ambit Energy. Just do it right in order to maximize your residual and bonus income. The energy market is still in its infancy (revisit the Ambit Energy opportunity.)

Ambit Energy Soars to #15 on DSA


Ambit Energy is #15 on the DSA (Direct Seller’s Association) Top Global companiesLast night at 11 pm CDT, the Direct Seller’s Association announces the global 100 largest companies. Ambit Energy hit number 15, while just over 5 years old. In the top 30 companies, the average age is over 40 years and the the other companies do business in at least 5 to 12 countries.

In an earlier post, I stated that Ambit Energy would hit the top 20, probably 16 to 18, and would grow by about 70% to about $700 million for 2011. The actual growth was 60% and with the help of some companies falling in revenue they grew to 15th place.
Ambit has hit these heights among companies while only in 6 states: TX, NY, IL, MD, PA and NJ.

Come back tomorrow for an analysis of the list of companies and what this means for the mlms, the energy mlm and where Ambit is going from here. Note if you are looking for a network marketing company, hopefully this will help. If you already have an Ambit business, this should give you some foundation and adrenalin to hit it hard over the next 6 months and see where you are at the annual convention, Ambition 2012.

Value an Ambit Energy Business


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%


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?


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.”

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


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!

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


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.

Beginning of an Opportunity – Ambit Energy


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…]


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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