Utility Warehouse (Telecom Plus) Discussion

Cardew

We really are down to semantics, if we are arguing about the way rewards are offered to UW distributors who recruit fellow distributors.

Perhaps we can all agree on the following definition:

"There is a strong financial incentive for a UW distributor to sign up people to also become a UW distributor"

It really amuses me how vehmently UW distributor deny that there is any similarity between Nework marketing and a Pyramid scheme.

Multi-level marketing (MLM), is a form of Network Marketing (however the terms are often used interchangeably). It is a marketing strategy that compensates promoters of direct selling companies not only for product sales they personally generate, but also for the sales of others they introduced to the company. The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word og mouth marketing.
Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).
Independent distributors develop their organizations by either building an active customer base, who buy direct from the parent company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the parent company at wholesale price.
Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be multiple levels of people receiving royalties from one person's sales.

It is sometimes difficult to distinguish legal and reputable MLMs from illegal pyramid schemes.

Nobody as far as I am aware is accusing UW of any illegal action, but as the quote above indicates there is a similarity between the structure of Network marketing and a Pyramid scheme.

Some people may have seen the BBC Watchdog programme where the lady in question was convinced(or claimed she was!!) that she was 'network marketing' but in fact was operating a Pyramid scheme.

http://www.bbc.co.uk/blogs/watchdog/2008/11/pyramid_gifting.html

The bottom line is that UW's marketing structure depends on distributors recruiting friends and family and signing up some of those people as distributors, who in turn recruit friends and family.

Decado23

Cardew wrote: »

It really amuses me how vehmently UW distributor deny that there is any similarity between Nework marketing and a Pyramid scheme.

Mostly because the 'similarity' is purely cosmetic - ie "there's more people at the bottom than the top - looks like a pyramid!!!" The same, of course, can be said of any traditional business which has a CEO or MD at the top, executives/directors next then middle management, then the ladies and gents that do all the work.

Nobody as far as I am aware is accusing UW of any illegal action

No, they simply post the so called similarity (remember it is a similarity in appearence only and one that is shared by most businesses) without bothering to point out the fundamental diferences between genuine network marketting and pyramid scams.

Of course, they don't need to make the accusation outright - just posting the 'similarity' can be enough to give readers a negative impression. But quentin wouldn't do that deliberately would he? not with his stance on manipulationg minds...


UW Distributor

keggs

Nobody as far as I am aware is accusing UW of any illegal action, but as the quote above indicates there is a similarity between the structure of Network marketing and a Pyramid scheme.

Hi Cardew

You have obviously overlooked my comment to Jimexbox.

Paraphrasing what I said - Pyramid schemes are an abuse of Network Marketing schemes.

Of course there is some similarity in the same way there is a a similar structure between a pyramid and any orgaisation you care to mention from a business to a school. But that's where the similarity ends.

Incidentally talking about illegal pyramid schemes. There is one scheme which you and everyone in this country who works is involved in which in my opinion fulfils the criteria laid down in law as an illegal pyramid but is quite lawful because the government says it is.

Can anyone guess what it is? If not I'll tell you again.

Network marketers have far more protection in law than any other self employed business person because ironically over the years, the government has set out a lot of rules and regulations about how network marketing companies can operate. It's aim was to to destroy pyramid schemes but had the effect of protecting us.

Great I would say.

Steve
UW Distributor & Happy Customer

keggs

Might I also add 2 things:

1. Like Nigewick I'm still waiting for Quentin to apologise to him. Not bothered about apologising to me but Nigewick's is much more serious.

2. Not one of the anti NM people here has bothered to do what I asked namely to give a detailed description of both pyramid selling and network marketing and the glaring differences between them.

If you really do believe in balance as you keepo telling everyone on here you believe in when talking about Britsih Gas etc then in all fairness it isn't too much to ask for these same people to do answer my request.

Steve
UW Distributor & Very Happy Customer

keggs

The bottom line is that UW's marketing structure depends on distributors recruiting friends and family and signing up some of those people as distributors, who in turn recruit friends and family.

This friends and family nonsense is getting a bit much as well. Some distributors will have recruited their friends and family. So what? They do use utilities when all said and done. However, for those who have never been involved in any NM business, most distributors will tell you that talking to friends and family are the worst people to talk to.For many reasons.

Distributors in UW etc talk to anyone who wants to listen - friends, family, whoever.

What is this fixation about friends and family. As I said above but seemingly ignored I have one personal customer who is known to me. The rest I don't know. None of my distributors were known to me before they joined.

So can we please get away from this fixation. Another deliberate maipulation of the facts it seems to me.

Steve
UW Distributor & Very Happy Customer

Quentin

Keggs, you tell us that being a uw rep doesn't have anything to do with ripping people off, and that it's all about caring for people in a genuine way.

I reply with 4 examples we know of that uw use (including one of youir very own) to rip people off in the worst sense of conning people (as in take advantage of their natural good nature and desire to help out a struggling friend who just needs to practice).

You simply ignore these allegations, though previously feigned great insult when I had (wrongly) assumed that your car park trick involved placing your card under neighbouring cars' wipers. In fact you told us you actually place them on neighbouring cars' mirrors!

Never yet any justification for the cynical deceptions!

Quentin

keggs wrote: »

As I said above but seemingly ignored I have one personal customer who is known to me.

No, I didn't ignore you.

I posted the explanation you have given elsewhere why you cannot interest your "warm list".

In your own words!

Originally Posted by keggs

We are constantly told to go after our warm market because they are the people who like and trust us. Personally, I have not found this to be case.

keggs

Try as you might Quentin I have no interest in replying to you, especially until you apologise to Nigewick. And in case you decide to take to task again for daring to break my word I have simply responded to tell you this. Now can I make it absolutely clear to you. You can quote me and comment on what I say as much as you like. You can ask me as many question as you like but I have no intention whatsoever of responding to your posts again.

Just accept it. I rarely look at them in any case. But I just wanted to clarify my position as you seem to have an inability to grasp anything that is said to you.

Quentin

keggs wrote: »

I just wanted to clarify my position as you seem to have an inability to grasp anything that is said to you.

We can take it that the truth is you have no answer, short of resorting to personal abuse.

You are quite happy to "break your word" whenever you see some sort of advantage by doing so, and quite happy to stick to your word when challenged with irrefutable evidence.

Cardew

neil9313 wrote: »

Nothing to do with the above posts, however I saw you all on here at the same time, (Q, Stocky and cardrew and always thought your posts were spot on whatever the subject...........question for you all,

Im on SP fixed 2011 (March) cheap as chips however Im a very low user, I do have to pay the IGT approx £40 PA
Im thinking of being a cashback tart starting with e-on do you all think its worth it, i have carried out my homework and I think I will have a bash.

Cheers

There are far more qualified people than I to advise on that issue.