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The Utility Warehouse Review – Discount Club Energy Provider MLM A Scam?
Welcome to My The Utility Warehouse Review!
At first glance, I thought Utility Warehouse is a company that offers warehouse utilities or house tools literally. However, in reality, the discount club is multi-level marketing (MLM) that supplies independent energy providers in the UK.It can be compared to other networking companies, such as Ambit Energy, Stream Energy, and Viridian Energy.
The Utility Warehouse Review Summary
Name: The Utility Warehouse The Discount Club
Founders: Not Disclosed
Product Type: Multi-Level Marketing
Price: $69 To Join As A Customer + $138 For The Starter Kit
Quick Summary: The Utility Warehouse is a multi-level marketing company that is a brand of Telecom Plus.
Basically, it is an independent energy supplier in the UK that supplies a range of other utilities.
In their program, you can manage all of your utilities in one single bill and get discounts as their name The Utility Warehouse The Discount Club implies.
However, being an MLM, it can have the dangers of being a pyramid scheme as the recruitment hype is on.
Overall Rating: 3/10
Apparently, the Utility Warehouse Discount Club has grown to a lot with over 650,000 customer accounts and more than 45,000 independent distributors.
Is this because it is actually a great opportunity?
How does it really work?
Is The Utility Warehouse a scam or a legit program?
Let’s see more of The Utility Warehouse in this review!
What Is The Utility Warehouse About?
The Utility Warehouse (UW) or also known as The Utility Warehouse Discount Club is a multi-service provider based in London, England.
Following a multi-level marketing structure, the brand was launched in 2002 with no founders disclosed.
It is the brand name of its parent company, Telecom Plus, and it appears that UW is the primary engine of revenue generation for the said provider.
Currently, The Utility Warehouse handles over 650,000 customer accounts with the help of over 45,000 independent distributors.
The Utility Warehouse is not Better Business Bureau (BBB) accredited since it’s only limited in the UK.
Other than the utilities offered, being an MLM itself, The Utility Warehouse also provides a business opportunity to make money through their affiliate program.
The Utility Warehouse Product Line
Other than energy, The Utility Warehouse also provides services for landline, telephony, mobile telephony, broadband, gas, and electricity.
These are the products and services offered by The Utility Warehouse:
- Broadband (£27.99/month) and Landline (£18/month) - Provides you with "guaranteed savings on landline calls". Some of the highlights include:
- Unlimited downloads on the main and fibre optic broadband networks
- A free wireless router
- Mobile Coverage - Mobile plans to run on 4G connectivity and start at just £10/mo, but this only provides 1GB of data, 450 minutes, and unlimited text messages. However, that is very cheap and even their most expensive plan that provides 20GB, unlimited minutes & text messages, is only £25/mo.
- Energy - Energy Warehouse also provides gas and electricity at discount prices. They claim that their prices are lower than the "big 6" and apparently this is true. However, there are cheaper deals out there from other discount companies that aren't part of the "big 6".
- Bundles - One of the most attractive benefits of UW is that you can manage all of your utilities on one bill. They offer 3 different utility bundles that you can choose from, which not only provide you with this benefit but also have some added savings.
Other Services include:
- Cashback - As a member, you will also be able to save money at over 2,000 retail partners, such as Argos, Hotels.com, and Expedia when shopping online.
- Home Insurance - This has been rated at 5 stars by defaqto and Moneyfacts, and is said to provide an average savings of £115 per year compared to other insurance policies.
- Bill Protector - Ti covers accidental death up to £10,000 and utility bills up to £250/mo if you are hurt and unable to work due to something that was not your fault.
- Mobile Broadband - It comes with a Pocket Wireless Router that lets you connect up to 14 devices.
- Additional Benefits - Some additional benefits of being a member include the Gourmet Society Card that can save you money when eating out and the cashback card that saves you 1% everywhere you used it and up to 7% at over 50 top retailers.
Is The Utility Warehouse A Scam?
The Utility Warehouse is not a scam. It has already been operating for more than 2 decades to be considered a scam.
It’s also an established, well-known company in the UK.
Their products and services are even patronized by people with positive ratings and the company has grown rampantly throughout the years.
Is The Utility Warehouse A Pyramid Scheme/Ponzi Scheme?
The Utility Warehouse may not be a pyramid scheme but just like most MLMs that have the recruitment hype, it can have the dangers to be one.
However, unlike a scam, provides a real opportunity to gain some income. They have products and services you could use, sell, and obtain discounts from.
However, indeed, your bigger income will still definitely come from recruitment and it’s most likely that other than their products, what you really promote here is the program itself.
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The Utility Warehouse Compensation Plan
Just like most MLMs, UW’s compensation plan pays affiliates by the sales and the recruitment they make.
There are also bonuses and incentives depending on Rank.
Here’s more about The Utility Warehouse’s Compensation Plan:
Customer Gathering Bonus (CGB) - This is paid for every new customer you get to enroll in at least 1 of the eligible services offered, but the more the better. This bonus will range from £2.50 to £40 depending on the number of services bought.
Fast Start Bonus - UW offers a fast start bonus where new distributors can hopefully earn some quick cash. There are 4 different levels of this bonus (4 different payouts) and you can achieve just some or all of them.
- £100 bonus if you enroll 3 Gold Customers in 30 days
- £150 if you enroll 6 Gold Customers in 90 days
- £250 if you enroll 20 customers in 180 days
- £500 if you enroll 50 customers in 365 days
FYI: Gold Customers are people who purchase one of the Gold utility bundles we went over above.
Residual Income - This is the income that comes in every month from the people that you have personally enrolled as well as those that Independent Distributors recruited beneath you have enrolled. It can be a Personal Residual Income or a Group Residual Income.
- Personal Residual Income - This can earn an average of £30 - £60 yearly for each Gold Customer they enroll and one must have at least 3 personal customers to qualify
- Group Residual Income - Here you earn monthly income from the money that distributors recruited beneath you earn. Follows a unilevel compensation plan.
FYI: The % commissions you will be paid here vary a lot depending on the service.
Supporter Bonus (SB) - Pays distributors that assist new distributors in getting customers in their first 45 days.
Leadership Development Bonus (LDB) - Gives leaders incentive to support promotions within their "teams", or downlines.
Promotion Bonuses (PB) - These reward IDs for reaching higher ranks within certain amounts of time. The higher you go the higher the bonus is, starting at £300 when you reach Team Leader up to £20,000 when you reach National Network Leader.
Plus Clubs - If you can enroll high amounts of personal customers you will be promoted to Plus Clubs and will earn higher amounts of Personal Residual Income.
Distributor Car Plan - Designed to help lower the cost of owning a brand new BMW Mini.
HomeStarter - Here UW will provide a loan for a new house of £25,000.
Retirement Plan - IDs who make it to the rank of Senior Group Leader and above can "retire" from the business and continue to collect Residual Income, which could continue to come in for years and years to come, depending on the activity of your group or downline.
Being an MLM, The Utility Warehouse comes in Affiliate Ranks as follows:
- Qualified Distributor
- Team Leader
- Senior Team Leader
- Group Leader
- Senior Group Leader
- National Group Leader
- National Network Leader
Like most MLMs, there are various ranks within the company that you can climb up as a distributor. As you move up the ranks you will get more access to the compensation plan and be able to earn more income.
How Much To Join The Utility Warehouse?
To join as a customer, you have to pay £50 or something around $69.
However, if you want to earn from the income opportunity it offers you, you have to shell out £100 (around $138), and this startup cost is already inclusive of the following;
- Access to training
- A Starter Pack that contains marketing materials to get started in your own UW business.
To learn more about The Utility Warehouse, you can watch the video below:
Multi-Service Provider With Discounts
It’s good that this MLM provides various services and that you could as well get discounts with less hassle as you’ll have it all in one single bill.
Pyramid Like Scheme
The Utility Warehouse may not be a scam but it has a telltale of a pyramid scheme.
As discussed, just like most MLMs that have the recruitment hype, it can have the dangers to be one as recruitment is incentivized. So people will still opt to recruit to earn and gain bigger commissions and bonuses.
Yes, the compensation plan may be good to be true and the commissions and bonuses are enticing; however, it requires so much hard work.
You should also focus on developing your skills in sales, networking, and other MLM-related qualities.
You should also be active in building your team and increasing your sales.
Yes, you could probably earn some side income but for new ones, it’s of low-income potential. And as we know, MLM failure rates are extremely high.
Only In The UK
The company is pretty successful and well-known in the UK but the problem is that, if you’re not living in the United Kingdom, you can’t have access to it.
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Independent distributors (ID), especially newly admitted ones, are required to go through free online training.
It will be provided by UW upon payment of the starting fee.
IDs will have to go through this training before they can start earning money.
This training includes the College of Excellence (COE) online training and the Getting Started Classroom online training and the Team Building course that qualifies distributors to earn Group Residual Income.
In addition to the online training, new distributors will be mentored by experienced distributors for the first 45 days in the real world. Joining will also give them access to materials and tools for the UW business.
The Utility Warehouse is an established and known MLM in the UK business industry. However, some of the services it gives just like the broadband and landline are not that good.
Also, it’s still an MLM that would compel you to recruit and do good in sales.
It also lacks transparency plus it’s only limited in the UK.
With that and all I tackled above, I conclude that I am not recommending you to this one!
Well, if you're in the UK, you could try this yourself but I could just say that there are definitely better opportunities than this.
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Thank you for reading my The Utility Warehouse Review!
I hope this enlightened you.
If you have questions or comments, please feel free to share them below.