Multi-level marketing companies, or MLMs, are on the decline. In fact, multi-level marketing makes up less than 1% of the entire retail industry in the UK. This is an even smaller market share than it has in the United States.
That’s not to say you can’t find a decent MLM company to work for. But what’s the best MLM company for you? And should you consider Utility Warehouse for earning extra money?
Compared to the average UK MLM company, Utility Warehouse stands out. This is largely because it’s not a traditional MLM. Utility Warehouse bundles their customers’ energy bills with services like broadband and cellular.
Utility Warehouse attracts customers by promising to simplify billing for them. It does this by combining multiple services into one package. But it stands out because it focuses on giving existing customers commissions for referrals.
It does this instead of relying on traditional advertising.
This referral program is the reason why Utility Warehouse is sometimes confused with a traditional MLM. But is it legitimate, and can you make good money with it?
To learn everything you need to know about Utility Warehouse, keep reading.
Utility Warehouse Review: Company Overview
Utility Warehouse advertises itself as offering all essential services in one convenient bundle. These include electricity, gas, broadband internet, home and mobile phone lines, and even home insurance and boiler care. It also claims to provide these services at a lower cost than its major competitors.
Utility Warehouse currently serves more than 650,000 customers. It bundles essential services and provides a single streamlined bill each month. This simplicity alone is enough to attract a wide customer base, although they boast savings as a major selling point.
Of course, you’re probably more interested in what money can be earned. But can you earn significant money through commissions for Utility Warehouse?
Although Utility Warehouse provides a good service at a decent price to its customers, its referral program is underwhelming. To become a partner and earn commissions, you must first pay a fee, which is higher if you aren’t already a Utility Warehouse member.
When you persuade other people to become customers of Utility Warehouse, you will earn a cash incentive. You also receive other small rewards, including a credit card that lets you earn cash-back rewards from certain retailers.
Although you can earn money with successful referrals alone, to make any meaningful income you will need to recruit other partners underneath you. In this sense it is a multi-level marketing business, although it’s considerably different from companies like Amway or Youngevity.
Pros and Cons of Utility Warehouse
Utility Warehouse isn’t exactly a traditional MLM, and it isn’t exactly a significant money-making opportunity, either. But it has its pros and cons, as seen below.
First of all, Utility Warehouse provides the service it advertises, and it does it fairly well.
It treats its existing customers well, with its support department receiving largely positive reviews from customers. And while it’s not the cheapest way to get all your utilities as it might imply, it is fairly cost-effective.
Its referral program is legitimate as well, even if it isn’t exactly easy to get rich with it. If you have a handful of friends who sign up for the service after you do, you could save a little on your monthly payment, and even earn some extra cash. If you have a wide network of connections, you might be able to get others started in their own referral programs, which will significantly increase the amount you make.
Another positive aspect is that Utility Warehouse has been around for a long time, since 2002. In fact, it’s one of the oldest energy firms in the United Kingdom.
This is refreshing to see, as many companies using MLM-style practices seem to spring up overnight and disappear.
The more services you sign up for, the more money you can save on your Utility Warehouse bundle. If you’re primarily there for the service itself, this can be a great deal.
Despite its advertising, Utility Warehouse doesn’t provide the lowest prices available for its services. For someone primarily interested in saving money, they would be better off comparing prices for individual services.
However, Utility Warehouse does come with the unusual benefit of bundling everything into one simple bill, which may be an acceptable trade-off to some.
More relevant to this discussion are the commissions, which are somewhat disappointing. At the lowest rung of their sales model—that is, when you’re just getting started—commissions start at £20 for every successful referral. The recruitment process itself is typically supposed to take about an hour.
Of course, you can earn considerably more if you have other recruits selling referrals under you. But hoping to earn thousands of pounds per month would be unrealistic for most people.
You must also pay £100 to join the partner program, or £50 for existing Utility Warehouse customers.
A Better Way to Earn
Utility Warehouse is a legitimate company with a potentially lucrative offer for those interested in its referral program. However, unless you have a very large existing network of friends or online followers, you’ll have a hard time earning more than what you pay for the service.
Multi-level marketing opportunities appeal to people who want freedom and financial wellbeing, but they often over-promise and under-deliver.
In order for you to develop your skills, you should consider taking a free or paid marketing course. There are a variety of digital marketing courses you can take from businesses that can help you enhance your skills. As of writing this, over 80,000 new marketers have taken the Online Business Builder Challenge (only $7), and that might be a good starting place for you as well.