Texas Electric Company Deregulation
Electricity deregulation in Texas has provided some great opportunity to investors and small business owners in the state looking for a new way to make some money. Ambit is one of over 40 Texas Retail Electric Providers in the state selling retail commercial and residential electricity.
The problem is not so much of an issue for those needing to have their electricity turned on or even by the company Ambit Energy but by those who think they have a good chance of becoming a millionaire or at least rich after the process of signing up to become an independent representative for Ambit Energy, Ignite, Affordable, or any of the other direct sales and MLM companies out there selling electric service in Texas.
The danger in this way of thinking is that if it is supported by some of the company’s spokesman it allows the beginning people in the MLM company to become wealthier while the new people signing up make more for their sponsor’s then they will for themselves. A better approach is to see this as a part time thing you might be able to make some extra cash with. An income report from the company showing just how many people make over six figures with an MLM company is a great way to decide if you have a statistical chance of making an opp like this work even if giving it 40 hours a week.
Not all Ambit Energy sales reps profit through their compensation plan in a dishonest way by promising new recruits hundreds of thousands and millions of dollars. If you do want to sign up with Ambit Energy we encourage you to sign up with Ambit through a sales consultant of theirs that approaches the business in an honest and ethical manner. Our opinion is that you should sign up on their affiliate program which offers you the opportunity to sign up electric service customers directly without the need to build a downline. We believe you will save yourself much time and money by going directly for the customers rather than trying to make the MLM downline work in your favor. We have met and talked to a few Ambit Energy people that are honest and ethical about this opportunity and do not make outrageous claims. We believe these are the people you should associate yourself with if you decide to do this opportunity.
What you will not find in the Ambit training material are some of the tricks of the trade that some of the seasoned MLM’ers use to make the MLM opp work. Many successful MLM’ers stack sales representatives and put customer’s under them if necessary to make the whole MLM sales structure pay out correctly so that you do make money. This idea is not discussed by Ambit Energy’s corporate offices as it is borderline illegal to structure the business to primarily build up independent sales reps with no emphasis on customers. The truth is although some of the top guys stack reps under other reps to build up their sales commissions they rely on these sells reps to sign up their friends and family. All of this primarily helps these super MLM sales people. If a new Ambit Energy sales rep wants to make the kind of money these guys make they would need to pull off some of the same type of stunts. Traveling the state, stacking reps and being that charismatic spokesman for the company is usually what it takes. The problem is that these techniques are not always explained in the sells pitch and most people walk away thinking that the business will be easier than it really is. The truth is that the time it will take to make a truly successful business with Ambit through an MLM downline could be better spent starting a more traditional business or signing up on Ambit Energy’s affiliate plan and just sign up customers. The typical example pyramid chart showing what could be possible in a perfect world scenario is not an accurate representation of what someone in an MLM opp can expect. An income disclosure statement showing exactly how many people make over six figures would be a helpful guideline in deciding if this is right for you.
Many See the Ambit Energy Pyramid Scheme as Old Hat Hyporama
The Office scene about a calling card pyramid business shows that the amazingness of the MLM compounding effect has lost some of its luster as many have tried and been burned by pyramid schemes. The law on what denotes a pyramid scheme and what does not is open for interpretation but as a rule to make it legal a genuine product is required. The Ambit Energy Company opportunity is a great way to make money if you are realistic about how much you can make with something like this and it helps if you go ahead and decide if the affiliate or MLM based business model is best for you. In our opinion Ambit’s affiliate option is the best way to go.
Reality is Many MLM Companies Like Ambit Don’t Make It
Many of these types of MLM companies go out of business or bankrupt due to a concentration on recruiting reps while the customers dry up. Excel Telecommunications was one of the more successful MLM companies of the last 20 years in a deregulated industry and is a perfect example of an MLM company growing into a thriving success only to eventually implode on itself later. By having a concentration focused on recruiting new reps the whole MLM may topple down. Because there is a high percentage of this risk you could very easily be wasting 5, 10, 15 years building a business that will have nothing to show for you when it finally goes out. This is a warning when working with any MLM company including Ambit, Affordable or Ignite Energy, Amway, Quickstar, Mary Kay and so on. You can make money with these companies but is it really worth the investment in time and personal relationships that could become ruined in the process by promising riches? If you choose to sign up with one of these MLM companies we encourage you to concentrate your efforts in signing up electric service customers and consider the downline part of the business an added bonus. By concentrating most of your efforts on building a downline you will find that most people in the business do not make enough money to justify the time spent in building their MLM structured sales team.
The downline you create may pay out decent money to some of the top people in your up-line but you or those you recruit will not see most of this money in most MLM type businesses. Instead of making money through sales associate recruiting we recommend just signing up people to the product or service in this case it being Texas electricity service.