utilitywarehouse

[muddyjames]

has anyone heard of this utility warehouse conmpany? A friend is trying to get me to sign up for it but I am very reluctant as it seems to be a pyramid scheme which has been going for ages.

anyone doing it and know more or know a very good reason to make my friend stop calling me! :lol: He wants me to go to a big confrence thing to meet directors to make me a person who finds people. I gave a very good reason why I cant do that!

Web site is https://www.utilitywarehouse.co.uk/home/

I am thinking no but open minded!

[V8MoneyPit]

I don't have any experience of this, but surely you have answered your own question? The very fact you have doubts should tell you not to bother.

[Disco Matt]

Googling "Utility Warehouse" caused the autocomplete thingy to offer "utility warehouse scam". When I searched that term I got almost 42k results. I'd suggest you do this and read some of the discussion threads about the behaviour of the company, as considering the sheer number of complaints I don't think this can be put down to troublemakers.

If it has a square base, is made of stone and contains a dead Egyptian king then it's probably a pyramid...

[crazymac]

According to http://www.guardian.co.uk/money/2009/dec/05/utility-warehouse-telecom-plus-distributor it isn't a scam or a pyramid selling scheme!

the article also says  "The Utility Warehouse brand is owned and run by Telecom Plus plc, which is listed on the London Stock Exchange, and it is licensed by energy regulator Ofgem and regulated by Ofcom."

There are however some on this site http://www.consumeractiongroup.co.uk/forum/utilities-gas-electricity-water/187546-utility-warehouse-scam.html complaining and calling it a scam

Pays your money takes your chance I guess??

[jkseries]

Firstly let me declare my interests. I'm not a part of the utility warehouse but I am involved in another MLM (multi level marketing) company.

The Utility Warehouse is not a Pyramid scheme (how very 80's thinking) but is one of the many MLM companies that operate within the UK.
The MLM industry is highly regulated in an attempt to get the general public away from the pyramid paranoia.  Saying that there are schemes that start every year that don't fall within the MLM guidelines but they are easy to spot as they only last a very short period of time and expect you to stump up LOTS of cash to join.

The MLM industry has been recognised as a growth industry and is common place within the US. There are some MLM companies you will of heard of. Betterware, Avon, Virgin V to name a few. Again I'm not involved with any of these.

I was very sceptical when we first started looking into joining the company but I'm so glad we did.

A word of advise. Don't just join it because your friend wants you to.  You need to be committed to it to make it work.  Look at the other options before joining and join the best company for you.  And a big one. Look at what they are selling and decide if you can see yourself selling that product over and over again.

Fee free to contact me if you need to.  Our experience has been very positive but not all peoples are.

I hope that helps.

J

[dxmedia]

http://en.wikipedia.org/wiki/Multi-level_marketing

MLM companies have been a frequent subject of controversy as well as the target of lawsuits. Criticisms have focused on their similarity to illegal pyramid schemes, price-fixing of products, high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and use the company's products, potential exploitation of personal relationships which are used as new sales and recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members enthusiasm and devotion. Not all MLM companies operate the same way, and MLM groups have persistently denied that their techniques are anything but legitimate business practices.

Have a read of the compensation plan section ;)  it's like there's a very wide base, and a level up with less people, and a level up... the higher up you are.

Wait a sec....   ;)

[jkseries]

That thick black stuff is going on with a very wide brush.

Do your homework before parting with ANY money. If it's too good to be true then it often is but as it says in the quote "not all MLM companies operate the same way"

[Saffy]

ah one of those Telecom MLM where in the geek press recently -

http://www.networkworld.com/news/2010/031210-a-year-later-zer01s-web.html

disappeared up its own ...

[dxmedia]

I've been trying to find a reference that Avon is a MLM company. So far I can only find MLM's who use Avon as an example, nothing from Avon itself.  Same with Betterware.

It appears that betterware avon and the rest are affiliate marketing though. The employee pays a small dividend to become an affiliate of the company and then earns a percentage from each sale. B I G difference.

It does appear that everything I've found says the same thing.

MLM's are the new version of pyramid schemes.  Here's a pretty picture.



and a very quick and consice article.

http://paymentblogger.com/2007/08/06/multi-layer-marketing-vs-affiliate-marketing/



If it looks like a fish, smells like a fish, flops like a fish, it's probably pretty fishy.

[MudRat]

There are two things in this world that smell of fish, and one of them is a fish!!  :dance: :dance: :dance:

[crazymac]

As I understand it, the difference between MLM and pyramid schemes, are essentially that with MLM you hold no stock! You sell the product then order for the customer but the pyramid scheme you buy the stock then try and sell it to someone else for more money! Then they try and sell it on to another for more money and so on!!

[V8MoneyPit]

......................but the pyramid scheme you buy the stock then try and sell it to someone else for more money! Then they try and sell it on to another for more money and so on!!

That sounds like just about every retail business on the planet though. Top of the pile is the raw material supplier, then the manufacturer, then the wholesaler, then the retailer...... then the eBayer!!

Obviously, the first two layers are adding value, but the wholesale and retail relationship is just as you describe a pyramid scheme.