Project Paper on Ambit Energy

Topics: Energy economics, Conservation of energy, Entropy Pages: 8 (3289 words) Published: March 29, 2012
Julie Conlon

Ambit Energy

December 18, 2011


The Federal Energy Agency started energy deregulation in the late 1980’s and early 1990’s, mostly because many local energy companies such as New York’s RG&E, had formed monopolies, they also felt that these companies were using outdated, inefficient generating plants. Consumers had no choice, and were forced to pay escalated energy costs based on solo area providers. It has taken several years and a lot of red tape, but 3rd party energy service companies known as ESCOs, were finally let into the marketplace to compete for your business. Energy is now regulated by some states, only about 22 states; including New York and the District of Columbia participate in allowing homeowners and businesses to purchase their energy supply from 3rd party vendors.

In a roundabout conversation with a friend one day, he mentioned to me that he and his wife started an energy business and they could save me money on my energy bills. I couldn’t get my bills out quick enough, and then he said “maybe you might want to consider becoming an Ambit consultant.” Next I attended a meeting at the Rochester, NY Holiday Inn Airport and after watching a presentation I signed on to become an Ambit consultant. Ambit Energy was founded in Texas by Jere Thompson and Chris Chambless in 2006 to take advantage of the deregulation marketplace and to become a player in the energy market. Ambit buys commodity amounts of gas and electric through Shell Energy which is the biggest company in the world to resell in States that allow 3rd party energy providers. Since Ambit buys in such large commodities from Shell, this allows them to offer a bigger saving and quickly become a top competitor in this industry. They entered into New York and some other states in 2007. Ambit has annual operational sales revenue of about 418 million dollars. In 2010 Ambit Energy was ranked number one on the fortune 500 company list, their strategy is direct multilevel networking and advertising. Ambit guarantees that they will be less than the incumbent, in Rochester, NY the incumbent is Rochester Gas and Electric (RG&E). Ambit’s mission statement is - “To become the finest and most respected retail energy provider in the country."  The first networking goal Ambit would like to achieve is to entice their existing/new customers with the idea of receiving free energy. If a customer refers 15 others to switch their energy supply to Ambit, Ambit will supply them with free energy. Tina Culhane is my Ambit consultant that took me to a meeting. Tina and her husband Pat, have accomplished signing on 15 customers. It’s my understanding in the interview I did with Tina, that they have to wait a few months for all customers to be verified and using Ambit Energy once this is confirmed they will receive a check from Ambit or their bill will reflect no charges for their energy supply The next level of Ambit’s multilevel marketing tactic is for consultants to recruit consultants, the more consultants and customers accrued under an individual the more income they can make based on a residual scale. As an Ambit consultant you are urged to invite as many people as you can to listen to a presentation on how selling Ambit Energy can benefit you. These meeting are held every Wednesday night at the Holiday Inn, and are usually packed full of enthusiastic consultants hoping to get other people excited to join the Ambit team. If you go into the sales section on Craig’s List, a free internet on-line advertising tool, you will see lots of ad’s searching for more consultants. In the presentation you learn that it’s $429.00 investment to become an Ambit consultant, but you can easily make that money back if you sign up 3 customers in the first two months you earn $100.00, but if you sign10 customers in the first two months you earn another $100.00,...
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