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Is Networking Marketing A Scam?

Network marketing itself is not a scam but many scams use network marketing. The issue is that many networking compainies are on the edge of being scams and are operating illeagel pryimid ponzi schemes.  So how do you tell the difference?

I will make a disclaimer now, I am involved in a network marketing company and have been for over 10 years.  The company is Utility Warehouse based in London in the UK and is listed on the London stock market as TelecomPlus PLC.

There are some simple ways to work out if an opportunity is an illegal pyrimid ponzi scheme or OK.  If any of the following questions result in a yes it is a SCAM so stay well clear.

  1. You must buy the product or service to take part in the business opportunity – Your upline will try techniques such as “You need to buy a starter kit to show customers”.  The real reason is so they can earn commission of your purchase which is then duplicated down the team.
  2. The product is overpriced and poor quality – Very common in the health industry and protein shakes which you can normally buy cheaper and better at your local supermarket.
  3. The product suggest it can cure all illness and make you a super hero!
  4. There is no real product of service – Very common in the Bitcoin crypto currency scams which are nearly all scams.  Really ask yourself “Is there are REAL product here”.
  5. You get paid to recruit new distributors – This is a big warning sign.  It is ok to recruit and build a team but you should only be paid on REAL customers your team sells products too.
  6. The company accounts are hidden – Good companies publish their financial accounts detailing their revenues, profits, commission paid to distributors and size of their REAL customer base.

If the company you are considering or are part of results in a yes to any of the questions above, sorry you are part of a scam.  If the answer is NO to all questions above then congratulations then carry on and don’t quit.

In the UK the best and only networking markerting company I promote is Utility WarehouseYou can join here.

Why are they the best networking marketing company in the UK in my opinion?

  • You do not have to be a customer to be a distributor.
  • Utility Warehouse competes on price and wants to save there customer money. The products and services have won lots of awards especially Which? Magazine best buys for Broadband, Energy and Mobile phones.  If you join and dont like them just switch to another provider.
  • They make no claim their products will cure any illness or turn you into a super hero.  However my mum thinks I’m a super hero anyway.
  • Utility Warehouse sell services everyone uses every day.  Imagine not having your mobile phone for just 1 day, or the internet at home not working, or no electric.  Exactly these are essential services everybody needs.
  • We  earn exactly £0 on recruiting distributors.  Even if you had a 1000 distributors in your team you would earn exactly £0.  However if those distributors signed up customers you would earn about 35p a month on each customer every month.  Not a lot, but imagine the team has signed up 1000 customers, you would earn £350 every month.
  • Utility Warehouse financial accounts are in the public domain.  Infact you can see them here.

This video explains how you could earn money with Utility Warehouse.  You could earn up to £350 for every customers you introduce upfront.

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