Ambit Energy
Ambit Energy sells 'free energy' through MLM. Your bill pays consultant commissions. The math works—if you recruit endlessly.
Company Overview
Here’s the truth about Ambit Energy: They sell “free energy” through MLM—which means your rates fund a pyramid of commissions.
Ambit Energy is a Dallas-based direct sales company founded in 2006. Their pitch to consultants: recruit enough customers and your commission checks exceed your own electric bill. “Free energy!” The pitch to customers: well, you’re paying for someone else’s free energy.
Those Inc. 500 awards Ambit mentions? They measure growth as a direct sales company, not value to electricity customers. Ambit grew fast because MLM scales—every consultant recruits more consultants, who recruit more customers, who fund more commissions.
The electricity works fine. Your lights don’t care who sold you the plan. But your rates include built-in costs for multi-level commissions, and if your consultant is a friend or family member, switching providers later might feel personal.
How Ambit Works
Ambit’s model:
- Independent consultants sell plans to friends, family, and networks
- Consultants earn commissions on customer bills
- Consultants recruit more consultants and earn from their sales
- Top earners can achieve “free energy” where commissions exceed their own bills
The Consultant Experience
When you sign up with Ambit, you’re usually someone’s customer. This means:
- Your consultant may be your main point of contact initially
- You might receive ongoing business opportunity pitches
- Leaving Ambit might feel personal if your consultant is a friend
Free Energy Program
Ambit’s flagship marketing is the “free energy” concept—referring enough customers to offset your own bill through commissions. It works mathematically, but requires:
- Ongoing recruitment effort
- Retention of referred customers
- Treating your electricity like a side business
Plan Options
Ambit offers standard electricity plans:
- Fixed-rate: Locked prices for contract terms
- Variable-rate: Month-to-month pricing
- Green plans: 100% renewable options available
The plans themselves work like any other REP. The difference is how you acquire them.
Where Ambit Operates
Ambit serves all major deregulated Texas markets including Dallas–Fort Worth, Houston, and the Corpus Christi area through AEP Texas.
The Verdict
Ambit is a real electricity company that happens to use direct sales. Your service will work fine. The question is whether you want:
- The MLM relationship with your power bill
- Rates that include consultant commissions
- The business opportunity pitch
If you just want cheap electricity and no sales contact, companies like Frontier Utilities or Gexa Energy let you compare rates online and never talk to anyone.
Good For
- You know an Ambit consultant you want to support
- You're interested in building an MLM business yourself
- You like earning free energy through referrals
Avoid If
- You want no involvement with MLM companies
- You prioritize finding the absolute lowest rate
- You prefer comparison shopping without sales pitches
- You don't want to be asked to join an opportunity
Company Snapshot
Plan Types
Service Areas
Green Energy Options
Ways to Avoid Deposit
- Credit approval
- Previous customer history