Disclaimer of Intent

This review represents my personal opinion based on my own experiences with MLMs and content from 3rd party sources (cited). The purpose of this review is NOT to imply that Utility Warehouse is an illegal pyramid scheme or make otherwise defamatory statements. Please do your own due diligence before embarking on any business decisions or spending any money.

Name:Utility Warehouse
Website:UtilityWarehouse.co.uk
Platform:Independent
Type:Multi-level marketing (MLM)
Price:Various
Trial?N/A
Money-Back Guarantee?Unclear
Rating:Unrated
Recommended?Caution advised
How to Join?Via their website


Thinking of becoming a Utility Warehouse Distributor?

But unsure if it’s a legitimate business opportunity or not?

Well, you’ll probably struggle to find a clear answer online.

Because most of the forums that I’ve trawled through are either packed full of glowing endorsements from folk who’re existing Distributors.

Or sceptics blindly labelling the Utility Warehouse Distributor programme an ‘illegal pyramid scheme’.

So, which is it?

Well, as I’m about to reveal in this unbiased Utility Warehouse Distributor review.

The real truth lies somewhere in between.

Because although I’ve never been a Utility Warehouse Distributor myself.

And I have exactly ZERO affiliation with this company.

My extensive research has revealed some potential issues that you’ll need to be aware of before getting involved.

Allow me to clarify.

What is Utility Warehouse?

Utility Warehouse is a multi-utility provider that supplies its customers with phone, broadband, mobile, and energy services.

Utility Warehouse was founded in 2002 and operates under Telecom Plus PLC.

The Utility Warehouse has no shops and does not advertise through traditional channels such as television and the press.

Instead, the Utility Warehouse focuses on word of mouth for their marketing.

More specifically, the Utility Warehouse operates using the MLM (‘multi-level marketing’) business model [source].

Which makes their Utility Warehouse Distributors scheme fundamental to their growth.

More on MLMs in just a moment.

How Does a Utility Warehouse Distributor Make Money?

This is explained in the comprehensive Compensation Plan document.

In simple terms?

The MLM structure means that Distributors (‘Partners’) make money by recruiting new customers and/or other Distributors.

You can join the Distributor scheme as a Partner with one of the following titles:

1: Independent Distributor (ID)

  • £100 joining fee (or £50 if you’re an existing UW customer);
  • Earn by recruiting customers and/or Distributors;
  • Required to complete the College of Excellence (COE) Online Training before recruiting is allowed.

2: Community Fundraiser (CFR)

  • Designed for community groups (schools, churches, charities, etc);
  • Nominated administrator required;
  • CFRs cannot recruit other Distributors to build a team;
  • £25 registration fee;
  • £25 fee returned if you can recruit 12 new customers within 90 days;
  • Earn £5 for each new customer referred + commission ‘…based on how much their supporters are spending using our services’.

3: Independent Representative (IR)

  • Designed for organisations with a large group they can market to (businesses etc);
  • £199.75 registration fee;
  • £199.75 registration fee returned if you can recruit 12 customers in 90 days;
  • An IR cannot recruit other Distributors in order to build a team.

Payment and Bonuses

There are an array of ways to get paid under the Compensation Plan.

Here’s a quick list of the main ones:

  • Customer Gathering Bonus (CGB);
  • Fast Start Bonus;
  • Residual Income;
  • Personal Residual Income;
  • Quick Income Plan (QUIP);
  • Group Residual Income;
  • Team Building Bonus (TBB);
  • Leadership Development Bonus (LDB);
  • Promotion Bonuses (PB).


I’d advise taking a look at the official documentation for a detailed explanation of each.

Where you’ll also find more information on the compensation ‘Stairway’ as it relates to Distributors, Qualified Distributors, and the various leadership roles.

What Are The Earnings Claims?

The advert that I saw on Totaljobs said that you can potentially earn between ‘£500 – £3,500 + per month’:

Utility Warehouse Job Description Example


Image source: TotalJobs.com – Job ID: 85514811

How Much Money Can You Really Make?

According to The Guardian:

‘…when Guardian Money investigated, we found that the average amount being earned appears to be less than £10 a week…’


Source: The Guardian – Get Rich Quick? Not With Utility Warehouse.

I’ll reveal why I’m more inclined to agree with ‘£10 a week’ rather than ‘£500 – £3500 + per month’ when I break down how MLMs work in just a moment.

Utility Warehouse Distributor – Scam or Legit?

Technically?

The Utility Warehouse Distributor scheme is NOT a scam.

Because although some people claim that the Utility Warehouse is a ‘pyramid scheme’ (more on pyramid schemes below).

They are incorrect.

Because the presence of the service that the Utility Warehouse are providing means that what they’re doing is considered legitimate in the eyes of the law.

However, I personally have some concerns with how MLMs tend to work in general.

Understanding How MLMs Work

Should you become a Utility Warehouse Distributor?

Well, that may depend on if you’re happy working under the typical MLM framework or not.

Because although I cannot comment on the precise intricacies of what it’s actually like to work as a Utility Warehouse Distributor.

I do know how MLMs tend to work in general.

So, you might wish to keep the following points in mind whilst making your decision.

MLMs vs Pyramid Schemes

As I said.

MLMs often have a strong focus on recruiting others.

Where you’ll typically make money from those who you recruit and the revenue generated by their ‘downlines’ (their recruits).

This structure is very similar to that of a pyramid scheme.

But the two are not the same.

Pyramid schemes are classed as illegal because there’s typically no tangible product or service involved.

And you’re instead paying into the programme for the ‘privilege’ of being able to market the same opportunity to others.

But the line between the two is often blurred.

This video from the BBC explains how MLMs work and discusses the issues that surround this controversial business model:

Video credit: BBC Stories – Multi-level marketing (MLM): Supporters Vs Critics – BBC Stories


Here are my own thoughts on the potential pros and cons of MLMs in general.

General MLM Pros

  • Potential to make good money;
  • Possibly work from home;
  • Bonuses such as holidays, healthcare plans, and cash.


I think the biggest possible ‘pro’ to MLMs is that some people do earn very good money if they can build a strong enough downline.

Others also argue that getting involved with MLM is relatively inexpensive when compared to the likes of franchising.

General MLM Cons

  • Most people make less than the minimum wage;
  • Some people make nothing at all;
  • Requires direct selling;
  • Normally required to ‘buy in’ to join the programme;
  • Business structure arguably favours those at the ‘top’;
  • You may be required to make regular sales to remain in the MLM;
  • MLMs can collapse due to ‘saturation’.


My main issue with MLMs is that so few people actually make any money with them.

For example, when I analysed Herbalife’s 2017 Income Disclosure Statement.

95.2% of Sales Leaders made less than the UK National Minimum Wage.

And 14.6% earned NOTHING at all:

Herbalife 2017 Income Disclosure Statement


Image source: Herbalife 2017 Income Disclosure Statement.

And that’s not all.

This report on TalentedLadiesClub.com claims that:

‘…to date, every income disclosure statement we’ve seen (including disclosures we haven’t published) reveal the same truth: only the top tiny percent in any MLM make decent money. Or indeed any money at all’.

Conclusion: Caution Advised

I wasn’t able to find an income disclosure statement for Utility Warehouse.

So, I can’t really comment on the actual amount of money that you can realistically expect to make as a Distributor.

However, based on the sources that I’ve cited throughout this article.

Coupled with my own understanding of how MLMs tend to work in general.

I’m leaning more towards The Guardian’s ‘£10 per week’ estimate.

Rather than Utility Warehouse’s own ‘£500 – £3,500 + per month’ claims in the job description posted earlier.

However…

Since I’ve not worked in the capacity of a Utility Warehouse Distributor myself.

I cannot really sign off on this Utility Warehouse Distributor review with a clear ‘star rating’ (as per the Review Policy).

But my closing advice would be to proceed with caution.

And really think about if you’d be happy operating under the MLM framework.

Ultimately?

It’s really up to you to decide if you think you should become a Utility Warehouse Distributor or not.

Hopefully, the points that I’ve raised in this Utility Warehouse review will help you make a more informed decision.

And if you do have any direct experience working as a Utility Warehouse Distributor.

I’d love to hear about them in the comments section at the end of the post. 🙂

What’s the Alternative?

Personally, I hate the idea of selling to my friends and family.

Or working in line with a business model that’s arguably skewed to favour those ‘higher up’ than me.

(That includes ‘normal’ jobs too!).

Which is why I prefer to set up my own websites and monetise them using affiliate links.

Because when I work hard – it’s ME that gets rewarded.

I’m not relying on a ‘downline’ to make money.

Nor do I have to ‘work my way up’ to be in with a chance of making a decent wage.

Plus, it’s totally ethical.

Because it’s entirely up to my website visitors if they want to buy through my affiliate links or not.

And the good news?

Pretty much anyone can do it.

So click the button below.

And I’ll walk you through the process of getting started for FREE.

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