Ambit Energy is vulnerable after battling lawsuit

Ambit Energy USA is an electricity and natural gas company that strives to be “the finest and most-respected retail energy provider in America.” The company was founded in 2006 and serves energy markets that have been deregulated. While company headquarters are in Dallas, Texas, many of the 16 states (plus the District of Columbia) the company serves are in the northeast.

Despite substantial revenue, the outlook of Ambit Energy is not necessarily positive. The company has received plenty of criticism for its business practices. It has also been hit with a class-action lawsuit. Those set backs could disrupt the vast progress the company has made over the last 10 years.

Sign-up cost: $429
Global revenue: $1.5 billion
The Good: Easy service to sell; provides good support for distributors.
The bad: Customer complaints; has been hit with a class-action lawsuit.
Google Trends

Products

Ambit Energy’s sole product is supplying electricity and natural gas to its customers. In areas where it’s available, Ambit Energy also offers electricity from renewable energy sources.

Opportunity

Ambit Energy has been one of the fastest growing companies in the country over the past 10 years, in large part because of its network of over 250,000 distributors, or as the company calls them, Independent Consultants.

There are three ways that Ambit Energy consultants can make money:
• Jump Start Bonuses – a bonus for signing up new customers for Ambit Energy.
• Team Builder Bonuses – a bonus for putting together a team of consultants who are able to gather new customers.
• Leadership Bonuses – residual income from the bills of customers as long as they remain customers of Ambit, as well as the customers of sponsored team members.
Simply by signing up four customers within the first four weeks of joining Ambit Energy as a consultant, one can receive a $100 bonus and get started on the road to receiving residual income.

The Good

The obvious benefit for distributors of Ambit Energy is that they are selling a service that people already use. There is no need to sell people on the need for electricity; they merely have to convince them to change their provider. If there are obvious financial benefits to making the switch to Ambit Energy, it should not be difficult to get customers on board. Being able to sign up family and friends for the service creates a customer base that’s easy to access for distributors, giving them the confidence to find new contacts elsewhere.

Ambit Energy also provides plenty of support for its consultants. Each new distributor receives a Business Builder Kit, a personal website (albeit for a monthly cost), and access to a Consultant Support Group. This may be more support than what is necessary considering Ambit consultants don’t have a vast or complicated product line to sell, nor do they have to convince customers to sign up for a service they don’t already have, but the support the company provides leaves little to chance and ensures its distributors have the tools needed to succeed (1).

Ambit also does a lot for its customers, making it even easier for consultants to sell new customers on the company’s services. Customers are able to view rates, manage accounts, and make payments online, making everything easy for them. Also, as a courtesy to new customers, after signing up for Ambit, a customer will receive a voucher for a three-day/two-night stay for two people at one of 30 destinations across the country, which is a wonderful way to welcome new customers.

The Bad

Despite Ambit Energy having a high rating from the Better Business Bureau(2), the company has frequent received complaints from customers on a variety of topics. The most common complaint is with regards to unexpected costs or an increase in rates without notification. A 2014 report from ConsumerAffairs documented many complaints that not only accused the company of incrasing rates, but also claimed it difficult to contact Ambit Energy to discuss the issue.

Ambit Energy customers are typically given fixed rate contracts for one or two years before switching to a variable rate plan unless customers are proactive and renew the fixed rate contract. This change is in customer contracts, but many customers have said that the company’s consultants don’t always notify them of the changes that will come after a year or two of service. In at least four states, there have been class-action lawsuits brought against Ambit Energy for not disclosing its rates, although those lawsuits were ultimately dismissed (3).

In some states, New York in particular, Ambit Energy customers have complained that consultants embellished the financial benefits of signing up with Ambit Energy. There are also accusations that distributors purposely target consumers who are non-native English speakers, elderly, or other consumers who are considered vulnerable as a way to make it easier to sign people up for Ambit’s services.

Recap

If you live in one of the states where Ambit Energy operates, it is a potential goldmine for those interested in teaming up with a multi-level marketing firm. Getting started may be costly, but the possibility of saving on your energy bills and earning bonuses and residual income from signing up others for the company’s services is an enticing proposition.

If you have just a few family members and friends who you can sign up easily, you can quickly make back your startup money. Also, if you’re able to build a team with just a handful of other people, the income from Ambit Energy can be quite substantial, especially if you live in an area where few have the service and where few consultants are peddling the service.

However, before aligning yourself with Ambit Energy it’s imperative you take a good look into all the complaints the company has received and decide whether it’s a company you’d like to be associated with. The last thing you want to do is make money off of innocent people who have been misled and tricked by a billion-dollar company. If you feel comfortable that the widespread complaints against Ambit Energy are a thing of the past, it is a wonderful opportunity, but only if you can trust that the company will do right by its customers.

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ACN keeps trending after disassociation of Donald Trump

ACN is a multi-level marketing firm that started out in 1993 as a reseller of long distance services. Since then the company has grown and expanded to include a variety of services, including everything from high-speed Internet to natural gas. ACN vows to help people save money on basic services while also helping them gain financial independence.

ACN is well known for having a relationship with Republican Presidential Candidate Donald Trump (1). However, the billionaire ended his association with the company when he announced his Presidential campaign.

The outlook of the company is uncertain. Even before Trump disassociated himself from the company, there had been some decline. The ability of ACN to remain in business for over two decades does say something about the success of the company, but it’s possible ACN’s best days are behind them.

Sign-up cost: $499

Global revenue: $800 million

The Good: Services offered a common and used by everybody; has won awards for direct sales and been endorsed by prominent businessmen (i.e. Donald Trump).

The bad: High startup cost; sub-par ratings from employees; lack of support for distributors.

Google Trends

Products

ACN doesn’t offer products as much as they offer services. Most of the services offered by ACN are those that people already use. The list of services offered by ACN includes:

• Phone service
• Wireless
• Gas and electricity
• Merchant services
• High-speed Internet
• Home security and automation
• Television

ACN sells their services primarily to residences and small businesses. Like most communications firms, ACN offers a bundle of services that includes both Internet and phone provided by many of the top carriers. They also offer wireless phone services, and give customers options to choose from in terms of television provider and home security. ACN also acts as an energy provider, offering both natural gas and solar power to homeowners.

Businesses are also privy to similar services from ACN. Businesses may get their phone service, either landline or wireless, from ACN. Television and security are also options for businesses that need either one. A business may also get energy service from ACN, although solar does not appear to be an option for them. ACN also offers payment-processing services to businesses with a guarantee the business will save money.

Opportunity

ACN offers people the opportunity to run their home-based business. The company likes to refer to these people as Independent Business Owners (IBOs). Through ACN, these IBOs have a chance to sell common services that people already use for the chance to make residual income. At the same time, IBOs have the opportunity to recruit others to join their sales team.

According to ACN, IBOs are able to offer potential customers better value on services they already use, lowering their costs and perhaps even giving them a superior product. This is possible because the direct selling to customers by IBOs allows major carriers in the communications industry to bypass costly marketing and advertising.

The way the company is set up, an IBO will earn a percentage of the bill for every customers they sign up. Essentially, as long as a customer remains with ACN, the IBO that sold them the service is given a residual payment whenever that customer pays their monthly bill. The more services a customer is signed up to receive, the more the IBO earns.

The residual income of each IBO also grows when they sponsor others to join ACN, as you will earn a percentage of their earnings, as well as any people your sponsors also bring on board. This makes recruiting others to join ACN an important part of growing your personal business.

The Good

The publicity and endorsements ACN has received are a big deal, making one feel that the company is trustworthy and a place where one can succeed. In addition to a nearly decade-long relationship with Trump, ACN has been featured in many prominent magazines and newspapers, which again adds great credibility to the company. The A rating the company has received from the Better Business Bureau only works to confirm the positive reviews and endorsements from other sources (2).

As previously mentioned, the services that ACN offers and wants its IBOs to sell to customers are all common services that are practically basic necessities in today’s world. This gives IBOs the confidence that they can sell customers on ACN’s services, and in direct sales, having confidence in your ability to sell is essential. ACN also does a good job of providing support for its IBOs so that all they have to worry about it selling to customers and building their team.

The Bad

Of course, there are downsides to getting involved with ACN. At the top of the list is the start up cost of $499. This gets your foot in the door and undoubtedly gives you some of the best training available from any multi-level marketing firm. However, $499 is far higher than most MLM companies.

It can also be difficult to make large sums of ACN at the beginning of your time with the company. IBOs have to raise several levels up the ladder before the residual payments start to become worthwhile for the work you’ve put in. This requires bringing others into the ACN family and hoping that they are as dedicated and successful as you, which in a way takes your personal success out of your own hands.

It’s also important to note the lack of satisfaction of ACN employees with their own company (3). These bad reviews don’t come from IBOs and they’re certainly not the worst reviews a company has ever received from within its own walls, but they are enough to raise an eyebrow about how you may be treated, especially since you’ll start out as the lowest man on the totem pole on the periphery of the organization.

Recap

If you want to shoot for the stars and commit yourself to making large sums of money with a multi-level marketing, ACN may be among the best options available. It will certainly be a grind, especially in the beginning, but ACN does give its distributors the tools to succeed, and the number of prominent businessmen and publications to endorse the company back that up. If you believe you have the skills to succeed in a multi-level marketing company, ACN can help you get to where you want to be.

That being said, if you don’t have a lot of money to get you started or don’t want to put yourself in a deep hole right from the start, it may be hard to look past the high startup cost. If you have just a passive interest in joining an MLM, this company may not be for you. ACN is for geared more towards serious people striving for high levels of success who will stand up to deterrents. If this doesn’t describe you, there’s little reason for you to consider ACN.

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Alliance in Motion Global is hot right nowAre they legit?

Alliance in Motion Global is a direct sales company based in the Philippines. The company was founded in 2005 and sells nutritional supplements and beverages that are produced by Nature’s Way USA. The stated goal of Alliance in Motion is to maximize the market of its products while helping its distributors gain “financial independence and economic stability.”

The outlook of Alliance in Motion appears to be good, although being a foreign company makes it difficult to ascertain all essential information about it. That being said, the company has a presence throughout the world and continues to expand, giving them some benefit of the doubt.

Sign-up cost: $179 – $1,256

Global Revenue: Unknown

The Good: Several ways for distributors to make money; great fringe benefits for distributors; training programs for distributors.

The Bad: Company information is hard to find; limits on sales; pressure to sponsor new distributors.

Google Trends

Products

Alliance in Motion offers roughly 20 products related to nutrition and wellness (1). The products can be divided into four categories:

• Functional Beverages
• Nutritional Support
• Nutritional CosmeCeuticals
• NaturaCentials

The Functional Beverages category makes up a majority of the Alliance in Motion product line. There are 10 beverages options, most of which are coffee-flavored drinks that claim a variety of health-related benefits.

The Nutritional Support category refers to five different nutritional supplements that claim several health benefits, including one that’s geared towards kids.

The Nutritional CosmeCeuticals category includes one skin care product, as well as a product that Alliance in Motion claims to be the “world’s first glutathione sublingual spray,” which carries a variety of benefits.

The NaturaCentials category includes soap, toothpaste, and specific types of wash for both men and women.

Opportunity

Alliance in Motion has six ways that distributors can earn money:

• Retailing
• Direct Sponsoring
• Match Sales Bonus
• Uni-Level Bonus
• Stair-Step Bonus
• Royalty Income

Retailing offers distributors the chance to resell Alliance in Motion products after purchasing them with a 25% discount.

Direct sponsoring offers distributors the chance to sell a package of products to new distributors. The company offers more than half a dozen different packages and each package sold to a new distributor gives the original distributor an $11 bonus.

A Match Sales Bonus is worth $33 and comes from earning product points or a sponsored distributor earning product points.

A Uni-Level bonus is a dynamic compression structure that gives quality distributors bonuses on up to 10 levels.

The Stair-Step Bonus set up allows distributors to climb the ladder based on global points acquired through group sales accumulation.

Royalty Income involves a 2% commission when a distributor is promoted up each of the five levels of being a Global Ambassador with Alliance in Motion.

The Good

One of the obvious positives of Alliance in Motion is that the company offers distributors six different ways to make money. This can be a bit overwhelming, and perhaps even a little confusing, but it opens the door for those who are dedicated to make a substantial amount of money.

The benefits and support the company gives its distributors are far and above what other multi-level marketing firms offer. In addition to a lifetime discount of 25% on all Alliance in Motion products, new distributors are able to receive a free medical check up when they join the company, as well as the opportunity to buy personal accident insurance. The distributor also receives a scholarship grant that can be utilized at over 300 schools and can be transferred to anyone the distributor knows. Even if the distributor doesn’t choose to take advantage of all these perks, the fact that Alliance in Motion offers them says a lot about the company (2).

When it comes to direct sales, Alliance in Motion provides seminars and training for its distributors to help them find their way in the industry. Each distributor is also given his or her own page on the company’s website to help them keep track of all sales and transactions. There are also three different ways distributors can claim payments, giving them plenty of flexibility and freedom.

The Bad

One red flag that is raised with Alliance in Motion is the lack of information about the company, most notably no report from the Better Business Bureau. To be fair, there are a limited number of online reviews from those within the company, and those reviews could not be more favorable (3).

Alliance In Motion also puts a great deal of pressure on distributors to sponsor others and grow their sales team. The company also puts a limit on the number of sales that can take place within a given time cycle. The distributor will need to learn about these stipulations and adjust their selling accordingly to ensure they receive full credit for their sales.

Finally, while Alliance in Motion offers training on the basics of the industry and the products its distributors are selling, the company has been criticized for not offering training on advanced sales and marketing techniques. Not receiving such training can make it difficult for distributors to rise through the ranks and maximize their earning potential.

Recap

Despite a lack of information about Alliance in Motion, which adds to the risk of joining it as a distributor, it’s certainly possible to experience significant financial gain from joining the business. The startup fee varies based on your level of commitment, and the company encourages distributors to join at the highest levels possible. This means putting down more money up front, which obviously increases the risk, but it also opens up the possibility for better rewards.

This type of set up can be great for someone who has the time and willingness to put in the work necessary to succeed in a multi-level marketing business. Of course, even with the right attitude, the money to get started can be a lot for some people, and the products don’t necessarily standout above the competition, so making large volumes of sales isn’t a guarantee unless you have certainty there will be a market for you to explore.

At the end of the day, Alliance in Motion is a high-risk, high-reward venture. Not enough can be learned about the company or its products to give one extraordinary amounts of confidence in joining Alliance in Motion.

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AdvoCare is probably the hottest health MLM

AdvoCare is a company that focuses on the selling of health, nutrition, and other wellness products. Charles Ragus, who had a brief career in the NFL in the 1960s, founded in the company in 1993. He passed away in 2001, but several of his family members still serve on the board. The name of the company comes from Ragus’ desire to be an advocate who cared and run a company that gave back to the community.

The outlook of AdvoCare is somewhat unclear, as the company has had some bad press and recently lost a lawsuit that cost them close to $2 million. AdvoCare is also not all that large compared to other multi-level marketing firms, despite its ability to remain stable and profitable throughout much of its history.

Sign-up cost: $79

Global revenue: $494 million

The Good: Strong line of products backed by both science and endorsements; provides financial management advice for distributors.

The bad: Lawsuit filed by former distributors; poor communication between managers and distributors; in-depth investigation by ESPN the Magazine

Google Trends

Products

AdvoCare has dozens of products related to health and wellness. Most of the products fall into one of four categories:

• Trim
• Active
• Well
• Performance Elite

Trim products are for weight management and include supplements, shakes, and even a workout DVD. The company does mention that these products should be combined with a proper diet and exercise.

Active products are consumed while “on the go” and are designed to both increase your energy and provide you with proper nutrition. The product line includes supplements and nutrition bars.

Well products are designed to promote a healthy and active lifestyle by addressing core nutrition, mental capacity, digestive support, and other elements that contribute to overall wellness. Many of these products are vitamin-based supplements.

Performance Elite products are designed to add muscle, enhance workouts, or help in recovery.

Opportunity

If you use AdvoCare products, the company offers you a chance to earn money selling their products to others. Agreeing to become a distributor gives you a 20% discount on AdvoCare products. This gives you the opportunity to resell the products at a profit or simply buy the products at wholesale cost and use them yourself.

If you choose to distribute AdvoCare products to others, you can ultimately earn up to 40% profits on each item sold by reaching the advisor level. Over 60% of the people who join AdvoCare reach this level or higher. There are levels within the company above advisor, but only slightly more than 10% of the contributors in the company climb that high, as it generally takes over a year to get there.

According to the latest income disclosure statement from AdvoCare, the average distributor makes $69 per month, with the top 10% hauling in about $280. At the advisor level, the average monthly income is $183, with the top 10% making $747.

Of course, like any other multi-level marketing firm, bringing in other distributors can be a way to make additional income, as AdvoCare offers you the opportunity to make between 5 and 20% commission on the products sold by the distributors you sponsor. Leaders who build up strong networks can also earn additional bonuses.

The Good

AdvoCare’s products help make the company stand out above similar companies. As mentioned above, the company offers a wide variety of products, but they are divided into specific groups based on the individual needs of customers. This prevents potential customers from being overwhelmed by having too many products to choose from and helps them find what they need based on their own health and nutrition goals.

It also helps AdvoCare’s product line that they are endorsed by a large number of pro athletes across all major sports (1). Obviously some endorsements are worth more than others, but having several NFL starting quarterbacks, most notably Drew Brees, publically endorsing your product line creates instant credibility in the minds of consumers.

AdvoCare also does a good job of supporting its distributors, most notably through a unique program called Debt Buster. This program helps distributors use the money they make selling AdvoCare products to pay off any debt they have. This could be a mortgage, credit card debt, or any other type of large payment. Most MLM firms talk about giving their distributors a chance to gain financial independence, but AdvoCare’s Debt Buster program is concrete proof that they are making an effort to do so.

The Bad

Unfortunately, the dark side of AdvoCare includes a lawsuit that saw a jury award nearly $2 million to a pair of former distributors. The lawsuit alleged deceptive trade practices and claimed that the two distributors were unjustly removed from their position with the company. This is obviously a huge black eye for the entire company and calls into question how AdvoCare treats its distributors.

Several reviews by employees within the company also call the treatment of distributors into question (2). Some of these reviews further allege that distributors were let go by sales managers without cause.

The public perception of AdvoCare took another hit recently with an in-depth article by ESPN the Magazine that looked into the company and the support of Brees and others (3). The article claimed that only a little more than 2,000 of the more than half a million distributors in the company made more than $10,000 in 2014, with only 318 making a six-figure sum. For what it’s worth, Brees has stood by the company and insists that AdvoCare products have helped to prolong his career.

Recap

There’s a lot to digest when it comes to AdvoCare, but all things considered, it should be considered a viable MLM venture. It should not be considered a plan to get rich quick, and it may not be wise to put all your eggs into AdvoCare’s basket, but as a part-time venture to make a little extra money, you could do a lot worse.

The startup cost isn’t unreasonable and the discounts on products given to distributors is substantial, so if you’re going to give it an honest effort, it has a chance to payoff, particularly if you use their products and believe in them. Like many other health-related MLMs, you’re not going to get a 100% guarantee on the validity of the products, but there’s enough science and endorsements behind them to feel comfortable both using them and selling them.

There’s no denying that AdvoCare has gotten some bad press, but there’s little chance that so many well-known athletes would stand behind a product line and a company, particularly health-related products, if they didn’t truly support them. That should be enough for you to give AdvoCare serious consideration.

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4Life keeps trending…should you promote it?

4Life Research USA markets products that are designed to improve a person’s immune system.
The outlook of the company looks quite good. Since the company was founded in 1998, it has expanded to over 50 countries worldwide. 4Life offers a wide selection of products, and even has a humanitarian branch of the company, indicating continued growth and genuine care for individuals.
Sign-up cost: $150
Global revenue: $250 million
The Good: Resources to understand products; happy employees; good customer service.
The Bad: High enrollment cost and low commission; has had a major lawsuit.
Google Trends

Products

The 4Life website lists roughly 100 different health-related products. Some of its products are for general health, but with such a wide variety of products, many are geared towards a specific aspect of one’s health, such as eye health, heart health, immune system, weight management, etc.
The company’s core product is 4Life Transfer factor, which works to balance the immune system. This and similar products offered by 4Life work to strengthen the body. The company has gotten endorsements from several athletes who testify that the products help them to remain healthy and strong.
4Life has an in-house team of physicians and immune science experts involved in the research and development of its products. Having this team of experts adds credibility to the company’s long line of products.
However, some have questioned the true science behind the products and are not fully convinced that they work as advertised. Of course, there is no proof that the products don’t work, allowing one to give 4Life Research the benefit of the doubt.

Opportunity

At the heart of 4Life is the desire to help people improve both their health and their income. Thus, they invite people to not just use their products but to distribute them as well.
Like other multi-level marketing ventures, 4Life offers distributors the opportunity to buy their products at wholesale prices and then resell them for profit, giving them the chance to make more money but obviously taking on more risk.
If you believe in your skills as a salesperson and have time to dedicate to selling 4Life products, this is certainly a viable option, and there are plenty of tips out there to help you along the way . However, even purchasing products at wholesale could put you into a financial hole if you don’t sell them. There’s also the question of choosing which of the dozens of 4Life products you would choose to purchase and subsequently sell.
The other option as a distributor would be to sell on a commission basis. The commission made depends on the LP (life point) value of the products you sell. Distributors can earn up to 64% commission on sales, but like similar companies, getting to that point is not necessarily quick and easy.
Moving up the ranks among 4Life distributors, and ultimately reaching that 64% commission mark, requires recruiting others to the company. Those people, in turn, are encouraged to recruit others. This is in addition to simply convincing people to purchase 4Life products. Moving up the ladder means continuing to recruit other distributors who are able to sell products that add up to at least 100 LP per month.
This means that the people you recruit being able to sell is in many ways equally important to your ability to sell. This can certainly make it difficult to gain traction while moving up the company ladder and find a way to reach the bonuses and commission markers that make 4Life an appealing venture.

The Good

There’s a lot to like about 4Life, and it starts with the products. Obviously, there can be debate about the merits of their products, but finding a market that has an interest in health-conscious products should not be that difficult, so it’s a business that has room to grow. Also, the fact that 4Life has a wide array of products opens up a world of possibilities. There is also enough science behind the products to think there’s a chance that they are legitimate and can really improve one’s health.
The positive customer service reviews and positive reviews of 4Life from within the company also give the impression that it’s a good company with which to do business(1). On top of that, 4Life provides plenty of support to its distributors, which can be helpful to those who are inexperienced when it comes to sales or those who are venturing into multi-level marketing for the first time. This can make it easier to make the decision to join 4Life as a distributor if you’re on the fence about it.
Finally, if an A+ rating from the Better Business Bureau doesn’t inspire confidence in 4Life, nothing will. 4Life has done well to resolve customer complaints and comply with regulations, so there are no worries about getting involved with a rogue company. The fact that the company has been in business for nearly two decades and amassed profits of $250 million should confirm that 4Life is a quality company.

The Bad

Of course, with all the positives 4Life has, the skepticism about the products the company offers is enough to scare some people away. There also isn’t enough research to know if their products are safe for those in delicate conditions, most notably women who are pregnant or breastfeeding.
It is also good to keep in mind that some people will only use supplements for short periods of time, which can make it difficult to sustain business from the same customers, especially since it’s impossible to guarantee that the products make a significant difference in improving one’s health.
On top of those uncertainties, the startup cost of $150 is higher than comparable companies, which makes becoming a distributor a decision that should not be taken lightly. If you can rise to the top, the amount of money you can make is substantial, but getting off the ground with 4Life is far from a guarantee and something that will take a discernible amount of work and dedication, as success won’t come easy.

Recap

All things considered, 4Life is a solid and reliable multi-level marketing company to join. There is a significant market available for health supplements, and 4Life products have enough legitimacy and science behind them to convince reasonable people to give them a chance, even if there is some doubt to their validity. The company has survived since 1998 without being shut down by the FDA or being pushed out of business by competitors, so there’s plenty of reason to believe in their products, which is essential when signing up for an MLM.
There may be highs and lows along the way, but there’s reason to believe 4Life is here to stay and will continue to be a successful company. This is far from a sure thing, but if you believe in the products and are willing to make a commitment to selling them, this is a good opportunity for anyone who is interested in joining an established and proven company.


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