In Texas and now Illinois and New York we have energy companies selling electricity through an independent sales organization that are sales contractors with no real employee status to the retail energy companies they work for. This allows these sales associates of these companies to create excessive hype and buzz about a mediocre electric rate to their friends and family. Those friends and family who don’t sign up as an electric customer sometimes get sucked into the hype and start selling the electricity to other people as well. Right now the main buzz in these communities are with companies like Ignite Energy and Ambit Energy.
Ambit Energy and Ignite Energy are a couple of these retail electric providers in Texas and Illinois that have created this type of electric company. Letting the multi level marketing compensation plan and excitement loose in a room full of poor people creates an excitement these poor people may not have experienced since they were riding through the “It’s A Small World After All” ride at Disney World when they were kids. It doesn’t take much before these people muster up $300 to plop down to join this amazing opportunity that will make them millions of dollars simply by signing up a few friends and family on the electric rate and signing up a few sales reps to become independent sales associates who will go out and replicate what you have just done. Don’t be mistaken, the beginning people in these MLM companies probably recently jumped off of a recently defunct MLM company with a few million dollars. They know what works and get right in at the beginning of the next con.
Most people know MLM by the name pyramid scheme. Many people would call Ambit Energy a pyramid but any sales associate in the company would tell that simply is not true because they sell a service. The problem is $300 to become a sales rep doesn’t make sense. In other affiliate type sales contracts you do not pay to sell a product but can receive residual income. Why on earth must you pay $300 to sell their electricity? This question is why many people realize Ambit Energy and Ignite Energy are nothing more then pyramid schemes.
The money making pyramid idea has a powerful effect on a newbie joining the opportunity. It starts to take shape in their minds as a new house or Ferrari and the compounding effect immediately shows them how they could make millions by just having a few people join their organization. Unfortunately it doesn’t work that way but still many people sign up with these companies like Ambit in droves as the founding hype creators rake in all the money. The problem arises when you get the paper that the State requires be sent out to the sales associates showing how much money everyone makes in the organization. It is then that you realize there is a bit of a top down way in which multi level marketing works. A few beginning people in MLM’s like Ignite Energy are making millions while it dramatically declines to where most people are making just a few hundred dollars a year. This is not even enough money to cover their enrollment fee or time spent on the opportunity.
The Ambit Energy or Ignite Energy millionaires at the top are charismatic people at the founding of the company that intentionally start creating that snow ball and rolling it down the hill to create that wealth that comes from new recruits joining a newly hyped opportunity. Likley these beginning salesmen were skimmed up off of a recently declining MLM company like Excel Telecommunications or Quickstar. These founding partners then travel the country creating the hype and excitement that stirs the excitement in the communities that adds multiple people to their downlines. The rolling snowball has a profound effect on those who started the company but those who come in later will never see the same millions. Next time you are asked to join one of these organizations you should ask to see the income statement the company sends out to the sales recruits showing how much everyone makes. This should help to enlighten you about just how great an opportunity this might be for you.