Ampegy Review – Scam Or Legitimate MLM Business

| September 5, 2011 | 1 Comment

Ampegy Review imageWelcome to my Ampegy Review!

Ampegy is a Multi-Level Marketing (MLM) company on a mission to become the premier Network Marketing company in the deregulated energy marketplace.

In this Ampegy Review, I will be examining this company, and providing a brief overview of the products and services that they offer.  However, my emphasis in this Ampegy Review will be on the MLM Business opportunity that they offer as an Ampegy Independent Representative.

Is Ampegy a scam, pyramid scheme, or do they offer a legitimate MLM Business opportunity?  This is my unbiased Ampegy Review.

Company Details & History

Ampegy Logo imageFounded in February of 2011, Ampegy provides deregulated energy services through their partnership with Stark Energy.  Stark Energy has been offering electricity and natural gas services since their inception in 1999, and currently has customers coast-to-coast throughout 16 states.  In simpler terms, Ampegy is the marketing arm of Stark Energy services.

However, it appears that Ampegy is only operating in 9 states, including:

  • California
  • Texas
  • Illinois
  • Michigan
  • New York
  • Pennsylvania
  • Connecticut
  • New Jersey
  • Maryland

Ampegy distributes these energy services exclusively through their growing network of Independent Representatives, representing the MLM Business opportunity that they provide.

MLM Business – How it works…

Ampegy Review - MLM Business imageAmpegy provides very little information regarding how a new Representative can join and the investment that is required.

However, through other online sources, I have found that the cost to begin this business will be a one-time investment of $399.

With that being said, you may want to confirm this with the person who has introduced you to Ampegy to learn the exact details.

Also, keep in mind that as an Ampegy Representative, you will be an actual Ampegy customer, so the monthly expenses for your electricity and natural gas usage will apply.

Compensation Plan – how their pay plan works

The Ampegy Compensation Plan provides Representatives with 5 revenue streams, including bonuses for enrolling customers, as well as assisting your downline Representatives in enrolling customers of their own.

Furthermore, you will have the potential to earn a residual income on all active customers throughout your entire organization, going down infinitely deep.

I will limit the details of their pay plan to this, and at the bottom of this Ampegy Review, you will find a link that will provide the exact details of how Representatives are rewarded within the Ampegy Compensation Plan.

Independent Representative Training & Support

Ampegy Review - Independent Representative imageAmpegy advertises that a profitable business can be built in three easy steps:

1. Enroll Energy Customers

2. Sponsor Representatives

3. Help your Representatives enroll three customers

To achieve these three steps, you will be trained and encouraged to prospect amongst your list of friends, family members, neighbors, acquaintances, co-workers, and anyone else who you know personally who would benefit from a better rate on energy services.

This traditional form of Network Marketing is commonly referred to as Warm Marketing.

You will then recruit those within your Warm Market who express an interest in the opportunity that you offer as a Representative on your team.

You will train and mentor your downline team members to also prospect amongst their friends and family members to acquire customers and recruit Representatives of their own.

These Warm Marketing methods will be the basis of your training and support as an Ampegy Representative.

Ampegy Review Conclusion

In my opinion, Ampegy is legitimate, and should not be considered to be a scam or pyramid scheme.  Deregulated energy is a $60 Billion industry, and continues to grow at staggering rates every year.  Money can be made here.

Red flags

However, there are a couple of red flags.  While my intention here is not to slam Ampegy, there are a couple of things that I do not like:

Number one:

I do not like Ampegy’s claim that building this business is easy!  They blatantly advertise this on their website.  This could not be any further from the truth, especially when you take a look their compensation plan (link below).  More on that later!

When you visit their website, and click on the “Your Company” Tab, the first thing that you will find is a pretty illustration of what life would be like as an Ampegy Independent Representative.

It paints this wonderful picture of a Representative waking up at 10:00 am on a Wednesday morning, spending the rest of the morning watching their favorite movie, and then heading to the coffee shop, and casually enrolling two Ampegy customers over a nice hot cup of java!

While sipping their coffee, this Representative then decides to book a five-day trip for the family to Disney.

It’s a rather touching story…If we lived in a perfect world!

Ladies and gentlemen, building a business, whether an Ampegy business or any other business, will never be this simple!  Especially when Ampegy is going to limit your training to the Warm Marketing methods that they encourage.

Number two:

After reviewing the Ampegy Compensation Plan, I have definitely seen better pay plans.  While the one-time bonus opportunities are nothing to frown at, the residual income aspect of their pay plan leaves something to be desired.

While you will earn a residual monthly income for every paying customer throughout your entire organization, this residual income per customer is extremely small in my opinion.

According to the pay plan that Ampegy has created, generating a substantial income is going to require a few hundred, if not a thousand or so hard-working Representatives throughout your organization.

In addition to this, you and your downline Representatives will need to enroll a few thousand active and loyal customers.

How are Ampegy Representatives expected to achieve these kind of numbers when they are limited to their friends and family members?  In other words, how can this be expected when Ampegy does not train more modern and effective marketing strategies?

For those who can bring a previously learned marketing skill-set to this business, I believe that there is potential here.  However, for those who lack this skill-set, and will be limited to their Warm Market to build this business, there are better opportunities out there!

Next, learn more about how Ampegy Representatives are rewarded as my Ampegy Review continues with their Compensation Plan!

This concludes my Ampegy Review!  If you have found this Ampegy Review to be helpful, or if you have anything to add, please provide your feedback below!

Category: MLM Company Reviews

About the Author ()

Dave Fennell is the founder and editor of Marketing Methods Online and BloggerGo. Learn more about him here. You can also connect with him on Facebook, Twitter, and Google+
  1. Dave Fennell says:

    Dave Fennell wrote this Ampegy Review for those who are researching the Ampegy Business Opportunity. I would love your feedback. If you have any experiences with this company, whether good or bad, please share them here to assist others in their research efforts.

    I greatly appreciate your feedback and expertise, and others will too!

    To Your Success,

    Dave Fennell

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