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    • MSE Martin
    • By MSE Martin 17th May 10, 12:13 PM
    • 8,109Posts
    • 42,244Thanks
    MSE Martin
    Utility Warehouse (Telecom Plus) Discussion
    • #1
    • 17th May 10, 12:13 PM
    Utility Warehouse (Telecom Plus) Discussion 17th May 10 at 12:13 PM
    Utility Warehouse

    This is a special area for the discussion of Utility Warehouse (Telecom Plus).

    Unfortunately, it has become the topic for heated debate in the past and detracted from the main gas & electricity discussions. Therefore I would like to keep it restricted to just this discussion. Past discussions have been closed due to too many arguments between posters. This is a huge drain on resources and if it continues in this thread we'll have no choice but to keep the thread locked.

    What is Utility Warehouse?

    Unlike most energy companies and resellers Utility Warehouse operates by network marketing which means its customers are encouraged to sell on the product to their friends and they get commission for it.

    This tends to mean it does well on feedback charts, as customers have a vested interest, and many of them are evangelical about the firm – and sometimes over claim. That in itself doesn’t make the product bad, but in our view it is no better or worse than any other energy provider.

    Utility Warehouses prices are included in all the main comparison services we list therefore if the company turns out to be cheapest for you it should be listed by the comparison sites and then it’s worth going for. Please see the Compare gas & electricity guide for more.

    Some strict rules

    Due to rather bitter discussion about this we have had long term rules established.

    • All Telecom Plus Distributors must declare it when they post
    • All workers or those related to other utility companies must declare it
    • There are to be no abusive comments, accusations of fraud.
    • Anyone breaking the above rules will be barred first of all from this board, and if they persist, from the Forums as a whole.

    We hate having to be so draconian, yet this problem has lasted a long time.

    For general, non-UW, discussions on gas & electricity click here.

    And please, I know there are two very polemic views on Utility Warehouse going to be expressed in this thread. Please do not libel anyone. Treat those with opposing arguments with respect, even though you disagree and please try and avoid personal remarks. I live in hope!
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

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Page 181
    • PupPup
    • By PupPup 12th Oct 17, 8:38 PM
    • 44 Posts
    • 46 Thanks
    Sorry if this has been answered, but I haven't the time to read all 180 previous pages!

    I've recently lost my job so I went to a local job fair where I met with a Utility Warehouse rep. He gave me all of the spiel and I queried the £100 joining fee (or £50 if you sign up as a customer first) and he said it was a 'mini franchise' of sorts and you soon make the money back. He said you can make about £100 per appointment and you then get 'residual income' whilst your customers are still using the service. There's also then the encouragement to 'recruit' others into your 'team' and you make money off their customers too.

    He gave me some examples of customer bills (with cust info removed, obviously!) and using the cashback card scheme, many of the bills he showed me were at zero, or the customers were receiving cash back. He did me a quote and the gas & elec were £4 a month more and the landline was about £8 a month more, but I could save £20 a month on the mobile tariff, and by using the cashback card, it appears I could effectively get these services free.

    I have two main questions from this really:

    1. Do the majority of customers with the cashback card really pay nothing on their bills? How much do you actually need to spend on things to get enough cashback to cover your bills?

    2. If so many people with the cashback card pay nothing on their bills, how do Utility Warehouse actually make any money? How can they pay their 'distributors' a percentage of the customers' bills if customers aren't actually paying anything?

    Thanks in advance for any help.

    • Quentin
    • By Quentin 12th Oct 17, 8:48 PM
    • 33,044 Posts
    • 16,999 Thanks
    If you are seriously considering this outfit as your bread and butter miss reading this thread at your peril!
    • Mike by the Sea
    • By Mike by the Sea 12th Oct 17, 10:36 PM
    • 799 Posts
    • 218 Thanks
    Mike by the Sea
    As Quentin said, if you have the time , read through some history, if not, just read the intro from Martin to get a flavour of the thread.

    To try and answer your two initial questions......

    1. It is very difficult to earn enough cashback to cover your bills unless the bills are very small to begin with or you spend a lot of money every month with cashback earning opportunities. For example, if you assume cashback rates of 5% you can quickly work out how much you would need to spend to cover you bills.

    2. As above, there would be very few customers that fell into the zero or positive cashback bills.

    Good Luck

    Declaration - I am a "resting" Telecomplus distributor
    Personally I'm always ready to learn, although I do not always like being taught - Sir Winston Churchill
    • PupPup
    • By PupPup 12th Oct 17, 11:11 PM
    • 44 Posts
    • 46 Thanks
    Thank you both for your answers.

    I’ve been out of work for a month and having issues claiming UC/JSA so I am starting to feel a bit desperate to get back into work ASAP so that I don’t lose my home.

    I’ve got Facebook friends who sell ‘Younique’ makeup and this is a similar model of MLM. They don’t ever seem to make any money and all they seem to want is to recruit more people to not sell the products. I’ve had reservations that it’s very similar to a pyramid scheme, and I know those were banned.

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