Ampegy Energy is it an MLM Scam?

Ampegy EnergyWith any MLM like Ampegy Energy, the question is often raised as to whether it is a scam or not. Now I am all for affiliate sales and making money by selling something but the idea of building a down-line of people by standing up on stage at hotel conference rooms has personally always rubbed me the wrong way.

The MLM idea combined with electricity deregulation has done very well for both Ignite Energy and Ambit Energy. Green Mountain Energy has even tried the MLM business model (now owned by NRG a Reliant Energy holding company.) I haven’t heard much from that company in awhile but I imagine their sales reps are still building those down-lines.

Looking at Ampegy’s commission and compensation chart they appear to be similar to the Ignite and Excel telecommunications compensation plan. In fact the same guy that setup the compensation plan for Excel in the early 90’s is the same guy who setup Ampegy, his name is Steve Smith. Coincidentally Dynastar Energy launched their MLM just a month after the Ampegy launch by the ex-VP of sales for Excel Telecommunications.

I remember in Excel’s heyday Steve bought an entire Texas town so you can imagine he was at the top of the pyramid. These type of programs however are not illegal pyramids as it takes customers for people to get paid. The down-lines are setup so that when each sales rep gets a certain number of customers bonuses get paid out.

Basically you can make a lot of residual commission when you combine commissions from the multiple levels you may qualify for if you build a large enough down-line.

As far as making good money from personal sponsored electricity service customers the money just doesn’t seem to be there. For anyone who makes it big in this business the bonuses paid upon sales reps getting their customer count is a big part of the commission check.

The residual commissions take awhile to build up and requires a very solid down-line full of people actively working the business for a few years. This is the challenging part as most down-lines completely die out in a matter of a few months but for those who worked their down-line in the beginning they still get those large bonuses by getting their reps to become qualified by signing up their friends and family as electric service customers.

Some people can do this and enjoy doing the whole MLM thing with the meetings, conference calls and so on. My dad did at one time did okay in MLM but even so I feel it was a waste. Had I known then what I know now I would have given him some training on how to easily get leads online but I wasn’t there yet.

The idea of pressuring people to create a list of their friends and family and then to motivate them to call those people on the spot and have them sign up for electric service has been another problem for me.

Many people can relate to being cornered in a room and asked to buy a case of Kleenex from a family member in Amway. In the case of Ampegy Energy imagine being called up and asked to sign up for electric service. If you say no to that family member there is usually some bad vibes thrown your way as in their minds you may be the reason that they are failing at this great business opportunity.

If we are comparing Ampegy Energy with Affordable Energy I can tell you that you will make more money per customer you personally enroll by about $5 a month or so if you sell through Affordable Energy.

If you compare Ambit Energy with Ampegy Energy you will make about $4 – $5 more per personal electric service customer you enroll then you would with Ampegy Energy.

Now as far as the down-line commission is involved you can make a significant amount of money as a representative with Ampegy if you are very good with business networking, doing hotel meetings, conference calls, and a traveling circuit to pep up your down-line throughout the state and even US.

Simply put not everyone has the will power or ability to be that MLM superman guru you have to be to make the big money people like Steve Smith can make with this type of business model.

Steve Smith is the mastermind behind this latest MLM energy company and I have heard that Spark Energy is the company behind creating this MLM division known as Ampegy Energy.

Steve Smith was the guy behind Excel Telecommunications that I believe made it to number 3 in the Telecom industry in the US. Steve’s accomplishment with Excel is nothing to snub or laugh about and so you got to hand it to Spark Energy for bringing on a guy of his caliber for this latest method of signing up more customers.

So is Ampegy Energy a scam? The Ampegy Energy scam is simply a matter of perspective and for most an MLM business is a losing proposition. Those who make replaceable income in an MLM like Ignite, Ampegy and Excel put in the hours of phone calls, travel, and meetings necessary to make a business like this take off. Not to mention, a successful Ampegy Energy rep will have a magnetic charismatic aspect to him that will attract others to follow him or her.

If you do not think of yourself as someone with the traits we have outlined here you may be better off doing affiliate sales rather than building an MLM downline.

In conclusion Ampegy Energy is a legal Multi-Level Marketing opportunity and is not in the legal sense a scam by any means. In fact in a good solid MLM company it is usually a matter of some scammers who joined the company as a rep that are in there with good people.

We do not recommend considering Ampegy if you are not the type that can do this type of opportunity as it does take a certain person to make this work.

My dad is an example of someone who can and has done ok with MLM and made more money per year than most do in a normal 9-5 job. The problem is the company went out of business eventually and he never became one of those millionaires.

Had I known what I know now about getting traffic and leads to an affiliate site or MLM website portal he might have gotten there. I wish I could have taught him some very basic and simple things to pick up leads online from people looking for someone like him. He was a top leader in Excel Telecommunications and many people online look for top skilled trainers to teach them how to be a success in things like Ampegy and Excel.

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3 Responses to Ampegy Energy is it an MLM Scam?

  1. dogteam says:

    You also forgot to mention that a successful rep needs to market to people with good credit. The credit requirements of most electric companies can be strict and when it becomes difficult to sign up customers because of credit reps can become disillusioned, I have seen big checks in Ambit and I have received checks myself, but it takes work

  2. Jaylin says:

    Your success depends on your efforts and that is all the Network Marketing companies like Ampegy guarantees.Ampegy provides Independent Representatives the potential to earn multiple revenue streams by maximizing opportunities within the deregulated energy industry.It is a 100% legal Multi-Level Marketing company and is not in any way a scam.

  3. Mark says:

    Excellent article, very informative and helpful. There is a big difference between the several network marketing systems with the energy companies available right now. Some do pay more for converting electricity customers and others are clearly aimed more toward building a team, like the Ampegy design. More information at

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