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How will I get paid? (The Compensation Plan)

You can download a pdf copy of 'The Opportunity' booklet here.

Contents

Partner positions

Payment Plan - overview and definitions

Payment Plan - how you get paid

Glossary

Introduction

Utility Warehouse Distributors have a unique opportunity to build a substantial regular monthly income by helping people save money on their utility bills.

There are no monthly qualifications to meet in order to receive an ongoing income, as long as you maintain just three personal customers, and you can start earning money with us from day one.

This is not a ‘get rich quick’ scheme, but a way to build a meaningful monthly income by investing consistent time and effort in building your Utility Warehouse business. It is essential for you to help train and support new Distributors you recruit, as well as gathering customers who take as many of the services offered by the company as possible. This is the best way to build a strong business and maximise your income from the Compensation Plan.

You can have confidence in the future income stream you will receive, because Utility Warehouse is part of Telecom Plus PLC, one of the UK’s largest and most successful Public Companies. They are simply sharing with you the profits they make each month from supplying a wide range of essential utility services to your customers.

If you are new to the concept of Referral Marketing, it may take a little time to understand our Compensation Plan ('The Plan'). The concepts however are actually quite simple and once you get used to it, you’ll find it easy to explain to potential new recruits. The objectives of the Plan are:

  • To reward customer-gathering;
  • To reward effective team-building; and
  • To encourage the duplication of strong teams throughout the business to provide long-term security and a growing income for all our Distributors.

Coming up, we'll describe the ‘Promotion Structure’ of our Plan, and show you how to develop your business in order to earn bonuses and maximise your income. We call this the Stairway to Success. Each step has a specific purpose to encourage and enhance your earnings as a Distributor. We use the generic term ‘Partner’ to describe the following three ways in which a new recruit can join the business:

Independent Distributor (ID)

This Partner position is designed for an individual who wishes to generate a regular additional monthly income by combining customer gathering with building a team of other Partners who also gather customers. With consistent and effective effort, substantial earnings can be generated.

The joining fee to become an ID is £100, including VAT and postage. Existing Utility Warehouse members can pay a reduced joining fee of just £50. New IDs receive a comprehensive training programme and a Starter Pack containing all the information and marketing materials you need to start building a Utility Warehouse business.

New IDs can also earn a bonus of £100 in their first 30 days as a Distributor.

All IDs must complete the College of Excellence (COE) Online Training before gathering any customers yourself. You must also attend the COE Getting Started Classroom training before you can earn any commission or become a QD. Both the COE Getting Started Online training and the Getting Started Classroom training are entirely free of charge, and Distributors can complete these as many times as they wish in order to gain the confidence they need to start promoting our services effectively. This can be done in our Training Centre website, available from the Partner Portal.

 

An overview of our Payment Plan

The Distributor Payment Plan rewards IDs who gather customers who take our services, and successfully build a team by recruiting other Partners who they support and help to build a successful Utility Warehouse business too. This section explains the main terms that we use and summarises the different types of bonuses and earnings you can receive.

Main definitions:

Joining Date

For all Partners, the Joining Date is the date we successfully process their Partner application. This date is used for Fast Start Bonuses. Where we refer to something that needs to happen within the first 30 days, this is the 30-day period starting from the Joining Date of the new Distributor. 

Eligible Service

An ‘Eligible Service’ is any of the following main service types that we offer:

  • Home Phone
  • Broadband
  • Mobile (includes Mobile Broadband)
  • Gas
  • Electricity
  • Insurance

Gold Customer

There are five types of ‘Gold Customer’:

Gold Talk – a customer who takes Home Phone, Broadband and Mobile (or Mobile Broadband).

Gold Talk customers benefit from one of the UK’s lowest line rental charges, guaranteed savings on phone calls, a Free Mobile Protection Scheme, and an extra 10% discount is available on the cost of broadband and line rental. Plus Gourmet Society membership if you take a CashBack card.

Additional benefits available include:

  • Up to £200 to help you switch – for use towards any early termination fees charged by previous Home Phone, Broadband, Mobile or Energy suppliers.

Gold Energy – a customer who takes Home Phone and Broadband as well as at least one energy service (Gas or Electricity).

Gold Energy customers benefit from our cheaper energy prices. Plus the option to have all their existing light bulbs replaced free of charge with energy efficient LED bulbs.

Double Gold – a customer who takes Home Phone, Broadband and Mobile (or Mobile Broadband) as well as at least one energy service (Gas or Electricity).

Double Gold customers benefit from all the benefits of Gold Talk, our cheapest energy prices, and our ‘Double the Difference’ price promise; they are also eligible to have all their existing light bulbs replaced free of charge with energy efficient LED light bulbs.

Daffi Double Gold – a Double Gold customer who has received our free LED bulb replacement service, and who qualifies for QUIP payments.

Business Gold – a Business Club customer who applies for at least four Eligible Services (from Gas, Electricity, Landline Phone, Broadband and Mobile).

Business Gold customers benefit from £200 to help them switch, 10% extra discount in their first year on Gas and Electricity, free Broadband for six months, Free Mobile Phone Protection Scheme, new phone line installed for 75% less than BT and free Landline Phone calls to Utility Warehouse mobiles and landlines (see the Business Club Tariff Guide for full details).

Notes on Eligible Services and Gold Customers:

i) All new customers gathered must successfully apply for at least one Eligible Service excluding Insurance which is not available to new customers in order to count as part of your Personal or Group customer numbers, and/or to meet any activity requirements under the Compensation Plan. But you can still receive Residual Income at the applicable rate on any commissionable calls made by customers who do not have any Eligible Services (eg. a customer that takes only Mobile).

ii) For the purpose of calculating any bonuses or Group Residual Income, multiples of the same types of service are ignored. However, you will be eligible to receive a share of the customer’s spend (“Personal Residual Income”) on each service they are using, including multiples.

iii) Any ‘Mobile Only’ customer you sign up, with or without a handset, will not count towards any monthly activity requirements under the Compensation Plan, and will not be included in personal or group customer numbers for purposes of achieving Promotion or maintaining Status. For clarity, this does not apply to ‘Mobile Only’ customers signed up before 10 July 2013 and has no impact on Residual Income or CGB.

(iv) Both Residential and Business Gold customers must pay by direct debit.

(v) Energy-only prepay meter members will not count as an eligible service for the purposes of Business Builder Points (see below)

’Double Counted’ customers

Where you sign a member and you subsequently sign them up as an ID at a discounted rate, and the member account is moved to the new ID position, then you (the Recruiter) will earn exactly the same benefits, payments, rewards, bonuses and incentives that you would have received under the Compensation Plan, as if they had remained as your own personal customer.

We do this by ‘double-counting’ them. So they will count towards the activity requirements, Personal Customer numbers, and towards any incentives (like holidays) for both the Recruiter and the new ID (but obviously they will only be counted once within any Group Customer totals). And that means both the Recruiter and the new ID can earn full Personal Residual Income on that member.

Please note that this will not apply if the new ID is subsequently placed underneath a different ID by the Recruiter.

Activity Points

To receive the Car Plan bonuses in our Payment Plan you need to earn Activity Points. Each ’Gold Customer’ you gather counts as one Activity Point, and each new ID you recruit counts as two Activity Points.

Business Builder (BB) Points

BB Points measure and reward your business building activities. BB Points contribute to QUIP payments you can earn.

 

Summary of the various payments and bonuses you can receive

Customer Gathering Bonus - CGB

Partners can earn a Customer Gathering Bonus for every new customer they gather. For IDs, the more services the customer takes, the higher the amount of CGB available. To generate CGB, the customer must become active with at least one live Eligible Service. There is no limit to the number of customers you can gather or the amount of CGB you can earn – in fact, the more the better, as the more personal customers you have, the quicker your monthly income will grow.

Remember – an experienced Distributor (either the person who recruited you or another experienced Distributor they have nominated or requested) is available to accompany you in your first 45 days of face-to-face meetings to help you gain confidence in your ability to promote our services successfully. You do not earn CGB on your own account if it was signed up by a Recruiter or another ID.

Fast Start Bonus

New IDs can qualify for a £100 Fast Start Bonus if they gather three Gold customers within 30 days of their joining date.

Target 1 – New IDs who personally gather at least three ’Gold Customers’ within 30 days of their Joining Date will receive the ‘3’ bonus, a payment of £100 – that’s equivalent to earning back the joining fee!

For all Partners who joined before 10th September 2018

Target 2 – If a new ID personally gathers at least six ‘Gold Customers’ within 90 days of their Joining Date they will receive the ‘6’ bonus, a payment of £150.

Target 3 – An ID who personally gathers a total of 20 personal customers within 180 days of their Joining Date, at least 10 of which are ‘Gold Customers’, will receive the ‘20’ bonus, a payment of £250.

Target 4 – Finally, if an ID personally gathers a total of 50 personal customers within one year of their Joining Date, and at least 25 are ‘Gold Customers’, the ID will receive the ‘50’ bonus, a payment of £500.

Instead of Fast Start Bonuses, new CFRs and IRs can earn a ‘90-Day Starter Bonus’ equal to the joining fee they paid by successfully introducing 12 customers, within the first 90 days.

Residual Income

Residual Income is the way we share with our Partners the profits we are making from the customers they have gathered personally (Personal Residual Income), and also (but at a different rate) a share of the profits we are making on customers gathered by Partners in their team (Group Residual Income). Both types of Residual Income are calculated at the same time and paid monthly, based on the amount that customers were billed for using our services, or the number of services they paid to use in the preceding month. It is also possible to accelerate payment of Personal Residual Income that you will earn on certain new customers by opting into QUIP (see below).

All IDs with a minimum of three personal customers (each taking at least one Eligible Service) who have completed the COE Getting Started Online and Getting Started Classroom training courses and whose identity has been verified by the date the commissions are calculated, are eligible to receive Personal Residual Income. All IDs who joined after 23 March 2014 are eligible to receive Group Residual Income as soon as they have successfully completed the Team Building training course.

Additional eligibility requirements apply to IDs before they can receive Personal Residual Income or Group Residual Income on Home Insurance.

Personal Residual Income is calculated at different rates for each type of service; in general, the higher the profit margin we earn on a service, the more Residual Income we can afford to pay! The rate also depends on a number of other factors including whether the customer is a Home Owner or a Tenant, the position you have reached on the Stairway to Success (which we call your Status), the size of your personal customer base, and whether you successfully gathered a customer during the previous calendar month.

On average you can expect to earn Residual Income of between £30 and £60 per year from each ’Gold Customer’ you have gathered personally. So, if you work consistently and gather one of these each week for your first two years, you could build a monthly income of around £300 - £500 just from your Personal Customers. In addition, you will also be receiving Group Residual Income from the activity of your team!

Our Quick Income Plan (QUIP) is designed to help you recruit more new Partners, give you the opportunity to earn more money, more quickly and enable you to build your UW business on a full-time basis, by accelerating payment of the commission you will earn on Daffi Double Gold customers. With QUIP, you can accelerate payment of between £50 and £300 of Personal Residual Income for each relevant new customer

Group Residual Income is calculated at a fixed amount for each service being supplied to customers gathered by members of your team. The rate at which this is paid increases as you climb the Stairway to Success; for many Distributors, this eventually forms the main element of the residual income they are receiving each month from their Utility Warehouse business.

Although this may all look quite complicated, the principles are very simple: the harder you work, the more customers you gather, the better their quality, the more they spend, and the larger your team becomes, the higher the amount of Residual Income you will receive.

Supporter Bonus - SB

In order to encourage coaching, we pay all IDs that assist new Partners to gather customers in the first 45 days matching CGB on the first six face-to-face customers gathered by each of their new IDs within 45 days of their (the new ID’s) Joining Date.

Leadership Development Bonus - LDB

To encourage Leaders to drive and support promotions within their teams, Group Leaders and Senior Group Leaders can qualify for a LDB as detailed on page 30.

Promotion Bonuses - PB

To encourage and reward those IDs who are working consistently at building their business, a Promotion Bonus is payable on achieving promotion to a new title of Team Leader or above within a pre-determined period of their most recent promotion. The value of the Promotion Bonus increases with your title, from £300 when you reach TL up to £20,000 on becoming NNL - you could earn a total of up to £38,500 in Promotion Bonuses as you climb the Stairway to Success!

TL and STL Gold Bonuses

For Partners who joined prior to 10th September 2018

We recognise and reward new IDs who achieve the Status of Team Leader, (your second step on the Stairway to Success), within 90 days of their joining date. Attainment of TL Gold means they will receive double the standard TL Promotion Bonus and an exclusive lapel badge. To qualify for STL Gold, you must reach Senior Team Leader (STL) within 6 months of your Joining Date. An ID who achieves STL Gold receives an exclusive badge and double the standard STL Promotion bonus.

Plus Clubs

Any ID who has gathered 50, 100, 200, 500 or 1,000 Active personal customers is automatically promoted to our exclusive ‘Plus Clubs’. While they remain a Plus Club member, they are paid a higher level of Personal Residual Income each month and are eligible to receive a range of other valuable benefits.

Distributor Car Plan

Once you have successfully established yourself as a Team Leader with an average monthly Residual Income of £200 (or less if you have opted into QUIP - see point 11 of the Payment Plan section for more details) over the previous three months, you can apply for a brand new BMW Mini (or if you are SGL in Status, you can apply for a brand new BMW X5). Additional bonuses (based on earning Activity Points) are available to IDs on the Car Plan, which can help bring down the cost of owning these cars.

HomeStarter

HomeStarter is designed to give IDs the opportunity to get onto the housing ladder, by providing them with a £25,000 deposit to use towards purchasing their first home. Full details of this incentive are set here.

Retirement Plan

IDs who have achieved a Status of SGL (or above) can choose to retire from the business and ‘lock-in’ their future entitlement to Residual Income. Under our Retirement Plan, your income can even continue to grow depending on activity within your Group.

 Payment of Commissions and Bonuses

All commission and bonus payments are made based on your highest Status during the Commission Calculation Period (ie. to continue receiving Residual Income as a TL, you must have the Status of a TL at some time during this period). Promotions will be calculated and applied immediately prior to the payment of each month’s commission. No payments are made for recruiting Partners or on purchases of marketing materials. A single monthly statement will be issued showing all commissions and bonuses due. You’ll find these summarised in the table below.

complan-summaryearn

Please be aware that no commissions are payable until you have attended the COE Getting Started training course. Also, submitting a customer application for anyone other than yourself before you have completed your Getting Started Online training course is a serious breach of our Policies and Guidelines, and may result in the immediate termination of your position. The only exception to this is if you are in your first 30 days and you are accompanied by an experienced ID who is authorised to sign up your customers with you present. Any customers signed up without an experienced ID present will be passed to our corporate Sales team to process (in line with Ofgem regulations) and will not be included within your customer numbers for any purpose under this Plan.

Building your ’Status’ as an IDcomplan-stairway

The Initial Stages The following positions are the building blocks of your business as an ID (and for the avoidance of doubt are not available to CFRs or IRs). Each promotion will increase the rate at which you receive Group Residual Income, for as long as you maintain your new Status. The qualification requirements for each of these are set out as follows. Each Title, once achieved, is permanent, although your Status will always be based on the Status of the Partners in your Downline and your Personal and Group customer numbers at any point in time.

Distributor – ‘D’complan-d

As a new ID, you can earn CGB on all the new personal customers you gather provided your identity has been verified. Your first objective is to become a Qualified Distributor (QD) by completing the compulsory training and gathering a minimum of three personal customers who each take at least one Eligible Service. The more personal customers you gather, the quicker you’ll start building a substantial monthly income and the more Fast Start Bonuses you’ll receive, in addition to the other commissions and bonuses you will have earned. While you can start building your team by introducing new IDs straight away, we recommend you also complete the COE online ‘Team Building’ course, or attend the COE ‘Team Building and Sponsoring Skills’ training, so that you can learn how to effectively Sponsor new IDs and start building your team. You will start to earn Group Residual Income once you have completed one of these courses.

Qualified Distributor – ‘QD’complan-qd

While you can start building your team by introducing new IDs straight away, we recommend you have completed the COE Getting Started Online training and Getting Started Classroom training, and have three personal customers, you will be promoted to Qualified Distributor (QD). As a QD you will continue to receive CGB on every personal customer you gather, and will also start earning Residual Income on your personal customers as well. Once you have completed Team Building Training you will also receive any Group Residual Income from your Group customers.

Team Leader – ‘TL’complan-tl

A Team Leader must have a minimum of 10 personal customers and have three separate QD legs. The Partners making up these legs may not all have been personally sponsored by you (see example 2). You must also have a total of 50 Group Customers, including your personal customers. As a TL you are eligible to receive a promotion bonus of up to £500 (depending on how long you have taken to achieve TL Status). NB: CFRs and IRs with a minimum of three personal customers will count as a QD leg towards promotion to TL, however, to be a TL your downline must include at least one qualified ID (QD) leg

Senior Team Leader – ‘STL’complan-stl

To become a Senior Team Leader you must develop your group to have five separate qualified legs, of which at least two must be TL legs. You also need a minimum of 15 personal customers and at least 250 group customers (including your own personal customers). Once you are promoted to STL, you are eligible to receive a promotion bonus of up to £1,000 (depending on how long you have taken to achieve STL Status).

Group Leadership Positions

Utility Warehouse offers you the opportunity to continue climbing up the Stairway to Success through a range of Group Leadership Positions. We’ve already shown how you can reach STL. From there, if you want to move upwards, you need to work with your team to help them become STLs as well. This is a very positive process because it results in both customer gathering activity and team building, which in turn increases the monthly income of everyone involved. On the Stairway to Success there are four Group Leadership Positions:

 coms-gl-pos

Once you have achieved promotion to a Group Leadership position, we provide commission protection to enable you to consolidate your new team structure. Your commission will be calculated at the rate which applies to your new Title for a period of 90 days. Thereafter payment is always based on your Status, not your Title, during the commission calculation period. This protection will not affect the payment to any upline who will be paid Group Residual Income in accordance with the true Status of anyone who is protected, except in the case of a newly promoted NGL where the Status protection of that leg will apply to any upline NGL or NNL for a period of 90 days.

Important notes on Status and Promotions

  1. Promotion (and determination of your own Status at any time) is based on the Status of the Partners in your downline and your personal and group customer numbers.
  2. If an ID in your downline achieves a higher Status than you, for the purposes of calculating your total group customer numbers, only 25% of the customers in their group will be included in your group numbers.
  3. In order to build your team and gain promotion, we allow you to place new Distributors you have recruited in your downline. You have seven days (one week) from the date we process their Distributor application form in which to make this decision; once placed, they cannot subsequently be moved.
  4. If a Partner in your downline opts to retire their position at SGL then it will be held at SGL status for the purpose of the upline structure, however, only a single SGL leg can be permanently secured for an upline status.

SGL Stars

An SGL working their business and progressing towards NGL can be recognised by earning up to 3 Stars as the structure of their business grows. 

complan-sgl

Notes on SGL Stars

  1. The SGL legs in the team are based on Title.
  2. SGL Star Titles do not affect any payments under the Compensation Plan.

NGL Stars

As an NGL builds their business towards NNL, they cab earn NGL Stars; these increase the maximum monthly residual income they can receive:

ngl-strc-comp

NNL Status

Achieving promotion to NNL requires sustained effort and commitment. To acknowledge this, an NNL will be protected from another Partner overtaking their Status alone if they maintain their status at NGL 3 Star or higher, and will be paid at their underlying status. NNLs who maintain a status of NGL 3* or higher will be capped at their NNL Star status.

NNL Stars

nnl-stars-coms

Customer Gathering Bonus - CGB

For each new customer an ID gathers they will be paid a Customer Gathering Bonus (CGB). The amount of CGB is dependent upon how many different types of Eligible Service the customer takes at the time they join us and is paid as follows.

complan-cgb

Insurance is not an Eligible Service type for the purpose of calculating CGB.

No further CGB is payable if a customer subsequently takes additional services from us and CGB is only paid once on each type of service, irrespective of how many different services of the same type the customer had requested (eg: a customer who successfully applies for three mobile services, and no other service types, will only generate a single £2.50 CGB payment).

Bonus CGB of £10 is payable on customers who take Ultra+ Broadband, and £5 is payable on Business Club customers who take a Non-Geographic Number (NGN).

CGB is paid during the month after the first service has gone live, at the rates shown in the above table, on all the different service types requested on the initial application form, where the customer was gathered directly by the Distributor. CGB is not paid where an existing customer moves to another property or adds additional services to their account at any time, or in respect of new occupiers who move into a home previously occupied by a Club member, or where the application was processed over the phone by our Sales Team for any reason or where a new customer applies for services following a referral from an existing customer (under the refer a friend plan), or on any applications which result directly from company-sponsored marketing activities that are fulfilled without any direct involvement by the Distributor.

Where a customer provides a referral that leads to a new Gold customer, the ID submitting the application will be paid 50% of the standard CGB and the referee will receive shopping vouchers, and the new customer will be a Personal Level 1 customer for the ID. Where the referral is signed up as a member without the direct support of the ID, the new customer will be a Level 2 Group customer and no CGB will be payable.

If a customer has an outstanding balance on their account at the time that the commission run is carried out, or moves home, within their first 90 days, the total CGB will be reclaimed from the ID on their next commission statement. If a customer cancels a service, or gives notice of cancellation, within 90 days of its live date, or a service does not go live within 90 days of the first service live date, the CGB previously paid in respect of that service will be reclaimed from the ID on their next commission statement. Any CGB which has been reclaimed will not be re-credited if a cancelled service is re-instated or the customer subsequently pays their outstanding bills.

If we become aware that an ID is systematically providing inaccurate information on the residential property status of their customers (eg: owner/tenant), then the Company reserves the right to withdraw their entitlement to CGB on any future customers they gather

CGB is only payable once a Partner has completed Online Training and Getting Started Skills Training and has had their identity verified. Matching CGB will be paid to qualified Supporting IDs in respect of assisted customer sign-ups on behalf of a new ID. CGB will not be paid to a new ID on their own customer account if they are a member before signing up as an ID.

 Fast Start Bonus

New IDs can qualify for a £100 Fast Start Bonus if they gather three Gold customers within 30 days of their joining date.

Target 1 – New IDs who personally gather at least three ’Gold Customers’ within 30 days of their Joining Date will receive the ‘3’ bonus, a payment of £100 – that’s equivalent to earning back the joining fee!

For all Partners who joined before 10th September 2018

Target 2 – If a new ID personally gathers at least six ‘Gold Customers’ within 90 days of their Joining Date they will receive the ‘6’ bonus, a payment of £150.

Target 3 – An ID who personally gathers a total of 20 personal customers within 180 days of their Joining Date, at least 10 of which are ‘Gold Customers’, will receive the ‘20’ bonus, a payment of £250.

Target 4 – Finally, if an ID personally gathers a total of 50 personal customers within one year of their Joining Date, and at least 25 are ‘Gold Customers’, the ID will receive the ‘50’ bonus, a payment of £500. The bonuses are summarised in the table below:

complan-fsb

Notes on the Fast Start Bonuses

  • Fast Start Bonuses are credited on the commission statement as single, one-off payments. They will be paid as part of the commission run that takes place immediately following the achievement of the target.
  • ’Gold Customers’ will not count towards a target if any of the Eligible Services they have applied for has been cancelled, or if we have been made aware of a query which is preventing us from provisioning any such Eligible Service, within the respective periods from the Joining Date for the different targets; however if the customer had applied for four or five Eligible Services and one of these is subject to a query (or has been cancelled), but the remaining services still make up a Gold bundle then they will still count. Similarly, for the purpose of calculating Target 3 and 4, personal customers who are not ‘Gold Customers’ must have at least one service ‘live’ (excluding Mobile-only) without having given us notice of cancellation, within the respective periods from the Joining Date for the different targets.
  • IDs can qualify for each bonus, whether they successfully achieve the other bonuses or not.
  • Target 1: Each customer must have been gathered within 30 days and have at least one service live within 60 days of the ID’s Joining Date.
  • Target 2: Each customer must have been gathered within 90 days and have at least one service live within 120 days of the ID’s Joining Date.
  • Target 3 and Target 4:
    • Customers must have been gathered within 180 days (Target 3) or 365 days (Target 4) of the Joining Date.
    • The customers gathered must be of reasonable quality based on bad debt.
    • Where the proportion of the customers gathered who are tenants exceeds 45%, the bonus will not be paid.
    • All Distributors will benefit from a 60-day window to allow their customer’s services to go live, after the 180/365 day deadlines for gathering the total number of customers needed to achieve these targets. Only customers with at least one live service on the date each commission run is processed will be counted for the purposes of assessing whether the total customer target has been achieved, and a customer will only be considered a ‘Gold Customer’ if they have the required number of live Eligible Services on that date.

Future Team Leader

Between QD and TL there is a £200 bonus on offer if you are QD in title and status, with:

  • 25 or more group customers.
  • One QD in your downline.
  • At least one other leg at D status with one group customer.
  • The £200 bonus for achieving Future Team Leader is not time-limited; this means you will receive this bonus as soon as you achieve one QD and one D leg and a minimum of 25 Group customers.
  • You do not need to have earned the Fast Start Bonus in order to receive the FTL bonus and/or TL bonus.

Partners who joined before 10 September 2018

Partners who joined before 10 September 2018 can also earn the FTL bonus (which will be paid on the April 2019 commission run) provided that:

(i) You have not already been promoted to TL prior to MAD 2018;

(ii) You have achieved the FTL structure above prior to 31 March 2019 (including any gathered before MAD 2018); and

(iii) You earn a minimum of 30 Holiday Points between 1 October 2018 and 31 March 2019.

Residual Income

Residual Income is the way we share the profits we are making on the customers you have gathered, with you, each month. It is payable on products and services which generate a reasonable profit margin for the Company, including most telephone calls, Insurance premiums, fixed monthly charges on all our current bundled mobile tariffs, Gas and Electricity consumption, and the fixed monthly charges for Home Phone Line Rental, Broadband, Mobile Broadband and Landline Value Calling Features.

It is important that all IDs focus on gathering the best quality customers possible. This means creditworthy customers who are taking multiple services and are owner-occupiers. These create the lowest levels of administration for the Company, generate the highest profits and are most likely to pay their bills. The structure of Residual Income payments reflects this. An owner occupier taking multiple services will generate the highest levels of Residual Income. A tenant who is just taking energy will typically generate far less.

Once a tenant has been a member of our residential Club for at least 24 months then, providing they are paying by direct debit and there is no money outstanding on their account, we shall deem them to be an Established Tenant, and Personal Residual Income and Group Residual Income will be payable on their usage at a higher rate. Tenants who join our Residential Club before 1 April 2016 shall be deemed as Established after 12 months if they meet the criteria above.

Examples of customer spend where we make insufficient profits to pay any Residual Income include certain special call types such as Premium Rate, Directory Enquiries and non-geographic numbers; mobile calls made whilst roaming; certain old mobile tariffs; some other monthly fixed charges; charges for minimum monthly call spend or equipment rental; any Mobile Broadband tariff subsidised by the Online Activity Bonus; CashBack card spend; and any energy used by customers where a prepayment meter has been installed in their property, or where the meters have been installed or changed by us at the customer’s request.

Residual Income is paid on Business Club services at the rates shown in the relevant table on the following pages. In addition, if a Business Club customer’s total commissionable call spend on Landline Phone exceeds £500 over the first three months, then you will qualify for a one-off commission payment of 15% of the customer’s eligible Landline Phone call spend during their third month.

The Residual Income that an ID is eligible to receive is dependent on their highest Status during the commission calculation period and will be paid subject to the detailed notes set out on the following pages. There is no limit to the number of levels in their group down which an ID can receive Residual Income, although the rate at which it is paid reduces after a certain number of levels have been exceeded. The following tables show the percentages and rates at which IDs can receive Residual Income.

complan-pri-res

complan-pri-bus

Although Residual Income is payable on all your group customers down to infinity, it is paid at a lower rate as you go deeper into your group. The following percentages are applied to the ‘pence per service’ amounts shown in the Group Residual Income table above in order to determine the downline Group Residual Income you will receive, but subject to the other rules of the compensation plan:

complan-down

Example: If you are an STL, you can earn 10p per service on all your customers on levels 2-8, 5p per service on your customers on levels 9-16, and 2.5p per service on customers on level 17 and below.

Monthly Group Residual Income limits

To provide a powerful incentive to Leaders to climb the Stairway to Success, and to enable us to continue paying Group Residual Income to infinity, there is a limit on the maximum monthly group residual income that a Distributor can earn at any Status within the business, as shown below. The higher up the Stairway you climb, the greater your monthly and annual earnings could be – up to a maximum of £1 million as a 5 Star NNL.

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Notes on Residual Income

  1. Residual Income is only payable to IDs who have completed both the College of Excellence Online Services training and ‘Getting Started Skills’ training, with a Status of QD (or above) who have at least three live personal customers on the date the commission run is calculated. If an ID falls below the required three personal customers, payment of Residual Income will cease until they have gathered sufficient new customers to meet this minimum requirement.

    Residual Income on Home Insurance is only payable to IDs who meet the registered insurance ‘agent’ eligibility criteria, including on an annual basis completing insurance training and a declaration of eligibility.

    Group Residual Income is only payable to an ID once they have gathered 3 personal customers and completed one of our Team Building Courses.
  2. (i). Subject to the notes in this section, an ID will receive Residual Income at the full standard rate on Communications and other commissionable non-energy services (from both personal customers and group customers) provided the ID is ‘Qualified’ and has:
    a) Gathered at least one new customer (who has applied for at least one Eligible Service) in the preceding calendar month; or
    b) At least 20 active personal customers; or
    c) A Status equal to or greater than Senior Team Leader.
    2(ii). Subject to the notes in this section, an ID will receive Residual Income at the full standard rate on Energy Services (from both personal customers and group customers) provided that the ID is ‘Qualified’ and has:
    a) Gathered at least one new customer (taking at least one Eligible Service), in the preceding calendar month; or
    b) At least 50 personal customers; or
    c) A Status equal to or greater than Group Leader. IDs not qualifying to receive commission at the full rate in accordance with this clause will receive Residual Income on Communications and other commissionable non-energy services at half the standard rate, and will not receive any Residual Income on Energy. IDs are reminded that a customer who is just taking our mobile service does not count towards your Activity requirements.
  3. Personal Energy Residual Income for residential customers is paid at a lower rate where we have been unable to verify that the customer owns and occupies the property at the address we are supplying the services (except where our records identify that the customer is also an ID). This verification is based on an automated check at the Land Registry – no other form of evidence of ownership can be taken into consideration, however subject to payment of an administration fee, an ID can request a further Land Registry check at a later date.
  4.  Where you have signed up a member who subsequently signs up as an ID, their customer account will remain in your personal member count and you will receive Personal Residual Income on that customer.
    The member account will also be counted under the new ID as a virtual member and they will also receive Personal Residual Income. Group Residual Income will also be paid to all Partners between your new Partner and yourself but not paid to you. If the new ID subsequently ceases to be a Partner, the virtual member will disappear.
  5. If an ID immediately below you (Level 2) has a higher Status than you during the Commission Calculation Period, you will still be paid down four levels in that leg provided you gathered at least one ’Gold Customer’ in the previous calendar month yourself. You will not be paid on any group customers of an ID in your downline who was not sponsored by you, who has achieved a higher Status than you.
  6. Plus Club members can receive a higher rate of Residual Income on the commissionable spend of their personal customers, as shown in the table on page 31.
  7. The Residual Income on customers introduced to the Utility Warehouse by one of your personal customers under the customer referral scheme will be shown on your commission statement as Level 2 group customers.
  8. Residual Income is only payable in respect of customers who have paid the relevant monthly invoice by the date the commission is calculated and who do not have any outstanding balance on their account.
  9. In the event a Partner cancels their position, they will continue to be displayed on Genie, and the cancellation will not have an impact on the structure or personal customer numbers of the up-line. The only exception to this is where the cancelling Partner has no downline Partners or personal customers; in these circumstances their position will be removed from the genealogy, as will Partners who cancel within their first 90 days. If a closed position subsequently drops down to zero personal customers and no downline they will similarly be removed from the genealogy.
  10. No Group Residual Income is payable on customers who are on the Priority Services Register.
  11. Group Residual Income payable in respect of residential customers is subject to a reduction of 50% where the customer is deemed by us to be a Tenant and 25% where we deem the customer to be an Established Tenant. 
  12. Where an Established Tenant cancels their Direct Debit or balance becomes outstanding on their account then they will cease to be treated as an Established Tenant until such time as the direct debit has been reinstated and all outstanding bills have been paid.
  13. The maximum annual earnings shown on page 26 exclude Personal Residual Income.
  14. Where a customer pays for our Peak Saver or International Saver option, we will pay Residual Income at 2% on the monthly cost of the option. Where a customer is charged for the usage of a Calling Feature (eg. Reminder Call) Residual Income will be paid at 2%. Residual Income is not paid on the monthly cost of the Calling Feature itself.

QUIP

Our Quick Income Plan (QUIP) is designed to help you recruit more new Partners, give you the opportunity to earn more money, more quickly and enable you to build your UW business on a full-time basis, by accelerating payment of the personal residual income on new Daffi Double Gold members who take our free LED Light Bulb Replacement Service; this is in addition to your CGB. The value of each QUIP payment you receive will depend on the number of Business Builder (BB) Points you’ve achieved for the month they were signed up.

BB Points

BB Points measure and reward your business building activities. BB Points contribute to the QUIP payments you can earn. You get one BB Point each time you: (i) Personally gather a new member (excluding ‘Mobile only’, ‘Pre-Pay energy only’ or ‘NGN only’ customers). (ii) Recruit a new Partner (provided they complete Online Training within seven days of their start date).

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Please note that QUIP payments for Daffi Double-Gold tenants will always be £50 irrespective of how many BB Points you earn.

If you receive a QUIP payment on a new member, then you will not receive any further residual income on that member for a pre-determined number of months; the number of months depends on how much accelerated commission you have received as set out in the table above.

Notes on QUIP

  1. QUIP is available on eligible new members gathered after 1 January 2017. If you joined as a Partner before 11 September 2017, you will need to register by calling Partner Services on 0333 777 8777 in order to benefit from QUIP. You will receive QUIP payments on all future Daffi Double Gold customers (including owner-occupiers and tenants) you gather who take our Light Bulb Replacement Service, until you opt-out of the plan. You can opt-out or back into QUIP once every six months by calling Partner Services.*
  2. You will remain entitled to residual income on the normal basis for all other new customers you gather.
  3. QUIP payments will be made at the same time as CGB is paid (ie. on the commission statement that is produced in the month after the customer’s first service went live), is subject to none of the services applied for having been cancelled by the customer or rejected by their current supplier, and there being no outstanding balance on the customer’s account.
  4. New Partners can earn QUIP payments on their first three members, but it will only be paid once they have qualified their position (i.e. once they have completed both the College of Excellence Online Services training and ‘Getting Started Skills’ training, with a Status of QD or above and who have at least three live personal customers on the date the commission run is calculated).
  5. You must keep your tenancy percentage below 45% in order to receive QUIP payments. New IDs who have gathered fewer than 10 personal customers will be paid QUIP where appropriate irrespective of the tenancy percentage.
  6. QUIP is intended as a long-term enhancement to the Compensation Plan. However, we reserve the right at our sole discretion to withdraw it from individual Partners where we consider the quality of the new members they gather is unsatisfactory, or entirely if we consider it necessary to do so. Utility Warehouse reserve the right to clarify or amend the rules relating to QUIP at any time.
  7. QUIP is not payable on any Partner’s own customer.
  8. QUIP payments represent a bringing forward of the payment of future residual income, rather than an acceleration of the residual income itself.
  9. QUIP will be paid on Daffi Double-Gold homeowners at the level determined by the number of BB points you earned during the calendar month in which you originally signed up that member (even if paid at a later date due to delays in services going live).
  10. If the services on a new member’s account have been cancelled before the commission run in the following month (typically around the middle of the month) you will receive no BB points for that new member.

 Online Activity Bonus - OAB

Any ID who has successfully completed the COE COE Getting Started Online and Classroom training course and is a residential Gold customer (taking Gold Talk, Gold Energy or Double Double Gold) can apply via the Partner Portal for our Mobile Broadband tariff. This provides a free pocket wireless router and Mobile Broadband to help them sign up customers and Distributors online. They pay the monthly charges for Mobile Broadband on their Utility Warehouse customer account but can earn an Online Activity Bonus of £4 for each new ’Gold Customer’ (up to a maximum of 2) which will fully reimburse them the cost of their monthly charges for the Mobile Broadband tariff.

No CGB is payable on the Mobile Broadband tariff.

OAB will not be paid if there is any money outstanding on the ID’s own customer account, and eligibility for OAB will cease if the ID ceases to qualify under these terms or cancels their Mobile Broadband service.

IDs on our historic Mobile Broadband Netbook tariff will continue to receive an Online Activity Bonus of £4 for each new ’Gold Customer’ (up to a maximum of four) which will fully reimburse them the cost of their monthly charges for the Mobile Broadband Netbook tariff un

 Supporter Bonus - SB

In order to encourage coaching, we pay all eligible IDs that assist new Partners to gather customers in the first 45 days matching CGB, payable at their QUIP rate for that commission period on the first six face to face customers gathered by each of their new IDs within 45 days of their (the new ID’s) Joining Date.

To qualify for the payment the Supporting ID must be at least a QD, have completed Online and Getting Started training, have twelve or more personal customers and have gathered a customer themselves in the six months before the appointment they are supporting on.

 Leadership Development Bonus - LDB

To encourage Leaders to drive and support promotions within their teams, Group Leaders and Senior Group Leaders can qualify for a LDB as follows:

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The Bonus will be paid to the first upline Leader in GL Status* and the first upline SGL in SGL Status* who meet the following qualification criteria:

  • The Leader must have gathered a minimum of 5 Business Builder (BB) Points in the previous 6 months.
  • The Leader must have attended MAD or Express Day in the previous 12 months
  • The number of new Partners recruited in the Leader’s Team over the preceding six months must exceed the number of Partners in the Team at the start of the period multiplied by [10%]. Example: If you have a team of 50 Partners at the start of the period, your team need to signup 50 x 10% = 5 new Partners during the six month period.
  • The number of services taken by the new members who are gathered by your team over the preceding six months must exceed the number of Services being taken by your Group customers at the start of the period multiplied by [5%].
    Example: If you have 1,000 Group customers at the start of the period taking a total of 3,500 services, then the new members (who your team have gathered over the preceding six months) need to have applied for 3,500 x 5% = 175 new services (roughly equivalent to gathering around seven new members per month).

If the first upline Leader in GL Status is not qualified under these rules the Bonus will go to the next eligible upline Leader in GL Status, and if the first upline Leader in SGL Status is not qualified the SGL bonus will go up to the next eligible SGL.

A Leader will not qualify for the bonus if the promoted team member is below a Partner in their downline of a higher Status than themselves. If there is no qualifying upline Leader then the bonus will not be paid.

A Leader may be disqualified from LDB if they are also working in another MLM business.

(i) All Leaders who satisfy the general eligibility rules (Status, 5 BB Points, attendance etc.) will be entitled to receive LDB for the period 1/6/18-31/12/18.

(ii) The target percentages shown above in square brackets ‘[ ]’ are for activity in the period 1/7/17-31/12/18 and will determine entitlement to receive LDB in January 2019, and thereafter by checking the percentages for the previous 6 months on a rolling basis.

(iii) The target percentages have been set at a level which we expect up to 75% of eligible Leaders to receive LDB; it will be adjusted for future periods in line with the competitive environment and the growth of the business to ensure that a similar proportion continue to receive LDB going forwards.

(iv) LDB will be paid on the commission in the month following the qualification

* Status is measured as the highest Status achieved by the Leader in the 30 days preceding a team member promotion

 Promotion Bonus - PB

You will receive a Promotion Bonus each time you are promoted to a new Title of TL or above within the following timeframes.

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Notes on PB

  1. To receive the above payments you must have achieved the relevant Status within the timeframe set out above. 
  2. All promotions are based on Status. Your Title simply reflects the highest Status you have achieved.

TL Gold and STL Gold Bonuses

We recognise and reward new IDs who achieve the Status of Team Leader (your second step on the Stairway to Success), within 90 days of their Joining Date. Attainment of TL Gold Status entitles you to earn double the standard TL Promotion Bonus (ie. £500 instead of £250) and an exclusive lapel pin.

We similarly recognise and reward new IDs who achieve the Status of STL within six months of their Joining Date. Attainment of STL Gold Status entitles you to earn double the standard STL Promotion Bonus (ie. £1,000 instead of £500) and an exclusive lapel pin.

Newly promoted TL Gold and STL Gold IDs will also receive an invitation to the exclusive Chairman’s Lunch at the next Express Day.

Plus Clubs

Our Plus Clubs are designed to recognise and reward those IDs who have achieved a particularly large base of active personal customers.

Plus Club members receive an uplift on their Personal Residual Income calculated in accordance with the following table:

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This provides a significant financial incentive to achieve (and maintain) membership of our Plus Clubs.

For example, a member of the 200+ Club with 250 good quality personal customers could be receiving around £7,500 personal Residual Income on their customers’ energy, and around £8,000 personal Residual Income on their customers’ telephony each year.

This new uplift would give them around an extra £1,750 per year. And Plus Club members receive a number of other special benefits too

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Notes on Plus Clubs

  1. Extra Residual Income on personal customers will only be paid where the ID has at least 50 Active personal customers (including ‘Double Counted’ customers) on the date the commission is calculated. For 200, 500 and 1000 Plus Club members, the extra commission is similarly dependent on retaining the requisite number of personal customers.
  2. Customers must have at least one Eligible Service to be included in the required customer numbers. 
  3. On achieving 200 Plus Club membership, an ID will be rewarded with the use of a Porsche Boxster for a month, a benefit that is repeated every time they add another 200 Active customers to their total (ie. on reaching 400, 600, 800, etc. active customers). Supply of the Porsche is subject to the ID being eligible for inclusion on the Company’s insurance policy – ie. over 30 years old and has a driving licence which is valid to drive in the UK with no more than three penalty points.
  4. On achieving 500 Plus Club membership (and whilst they maintain at least 500 Active customers), an ID will receive an invitation each year to participate in a luxury ‘all expenses paid’ European weekend for themselves and their partner.
  5. On achieving 1000 Plus Club membership (and while they maintain at least 1000 Active Customers), an ID will receive an all-inclusive luxury weekend break in the city of their choice anywhere in the world (up to 12 hours’ flying time from the UK) including business class flights, 5* hotel and spending money. Members will also receive an invitation to spend a morning with the Senior Management team at Head Office.
  6. Where the proportion of an ID’s personal customers who are tenants (excluding Established Tenants) exceeds 45%, then the ID will not qualify for any uplift in Residual Income.

Distributor Car Plan

A Utility Warehouse branded car is a useful tool in helping established Distributors to continue climbing the Stairway to Success, and a valuable enhancement to all the other benefits they are receiving.

The Car Plan is heavily subsidised by the company. This means that an active ID could benefit from driving a brand new car at a very low cost.

Eligibility Criteria for the BMW Mini

  1. You must have a Status of TL or above. 
  2. You must have a minimum of 75 active personal customers.
  3. You must have met one of the following minimum Residual Income levels for at least three consecutive months immediately prior to applying for your car:
    £200 per month if you have not opted into QUIP. 
    £150 per month if you have opted into QUIP and have fewer than 100 personal customers in total. 
    £100 per month if you have opted into QUIP and have at least 100 personal customers. If that is the case, you will be asked to set up a Direct Debit for £150 per month to pay for your Mini.
    Please note that ordinarily, you can opt-in or out of QUIP once in any six month period by calling Partner Services. The exception being that if you have opted out to boost your Residual Income in order to qualify for the Mini, you can opt back in sooner, once you have qualified.
  4. Your personal customer account(s) (including those which may not be in your name but for which the Company reasonably believes you are responsible) must be in good order.
  5. Customers submitted by you must have been (and continue to be) of satisfactory quality with a maximum of 45% tenants (including Established Tenants). 
  6. You must be able to obtain (and maintain) comprehensive insurance cover for the vehicle for the duration of the Agreement.

How it works

Under the Car Plan, eligible IDs can apply for a BMW Mini or a BMW X5 with special ‘Utility Warehouse’ branding.

The car will be provided to the ID on an interest-free hire purchase agreement between Utility Warehouse and the ID. The scheme is open to all eligible IDs irrespective of personal credit status.

For the BMW Mini, rental payments are £175 per month for 60 months or £150 per month for 70 months if you have opted into QUIP. At the end of the period, the ID can either hand back the keys and owe nothing, or make a lump sum payment of £3,750 and gain full ownership of the car (representative APR 0.06%).

For the BMW X5, rental payments are £400 per month for 60 months. At the end of the period the ID can either hand back the keys and pay an excess mileage above 50,000 miles at the rate of 8p per mile, and owe nothing further, or make a lump sum payment of £20,000 and gain full ownership of the car.

The ID is responsible for all running costs of the car including insurance. However the car will be supplied with the first year’s road fund licence, three year warranty and Mini TLC which provides free servicing for the first 50,000 miles or five years, whichever comes first.

For the avoidance of any doubt, the Car Plan Bonuses below will only be credited to those IDs participating in this scheme and for a maximum of 60 months. In addition, SGLs who elect to participate in the BMW X5 plan can also receive Car Plan bonuses for a maximum of 60 months, but bonuses can only be applied to one car scheme at any one time.

IDs fulfilling the eligibility criteria set out above who wish to apply for a car under the Car Plan, or would like further details, should send an email to: iwantamini@utilitywarehouse.co.uk or write to the Network Director at Head Office.

Car Plan Bonuses

We will make the following additional bonus payments available each month for the first 60 months of the Agreement and these may be used by the ID towards the rental payments.

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For having the Status of Group Leader at the time the commission is calculated £25

For having the Status of Senior Group Leader or higher at the time the commission is calculated £50

This means that for the first five years, a TL earning the maximum £100 in Bonuses and using these towards the rental payments, would end up paying as little as £75 a month (or £50 a month if opted into QUIP) for a brand new Mini. A GL doing the same would pay £50 a month (or £25 a month if opted into QUIP) and an SGL £25 (or £0 if opted into QUIP).

In order to be eligible for any of the above Bonuses, the ID’s customers must have been (and continue to be) of satisfactory quality with a maximum of 45% tenants, and the ID must have a Status of at least TL and have attended at least one Opportunity Presentation in the previous month. GLs and SGLs not earning the maximum customer gathering and recruiting bonus of £100 will not be eligible for the Status Bonus.

Example:

An ID with the Status of GL at the time the commission is calculated, who gathered 7 Activity Points such as three new personal customers and recruited two IDs in the previous month would earn (3 x £15) + (2 x £30) = £105, capped at £100 in additional bonuses plus a £25 bonus for having GL Status. A total of £125 in additional Bonuses!

Subsequent Cars 

An ID who has participated in the Car Plan and completed their first HP agreement can order a replacement new branded BMW Mini One from the Company subject to the following terms:

  1. They must have a Status of STL (or above); and
  2. They must have averaged at least £350 in Residual Income per month (net of any deductions) for a minimum of three consecutive months immediately prior to ordering any such subsequent car; and
  3. They must have recruited or gathered (in total) at least 20 Activity Points the six months immediately prior to ordering the new car; and
  4. Personal customers gathered during the preceding two years must have been of a satisfactory quality with a maximum of 45% tenants (including Established Tenants); and
  5. They must be able to obtain (and maintain) comprehensive insurance cover for the vehicle for the duration of the Agreement; and
  6. Rental payments are £175 per month for 60 months. At the end of the period, the ID can either hand-back the keys to the car in a clean condition with no damage to the bodywork (and owe nothing) or make a lump sum payment of £4,770 and gain full ownership of the car (representative APR 3.34%); and
  7. There are no additional bonus payments available; and
  8. Any requested upgrades or changes to the specification of the standard BMW Mini One must be paid for in advance by the ID; and
  9. Their previous BMW Mini (supplied by the Company) must either have been purchased by the ID from the Company at the end of the full term of the HP agreement in accordance with its terms (ie: after five or six years depending on when the car was supplied), or returned to the Company by the ID in a clean condition with no damage to the bodywork at the end of the full term.
  10. An ID who is an SGL (in both Status and Title) may apply for the BMW X5 irrespective of whether they have previously received a Mini from us but will remain liable for any remaining payments due in respect of their Mini. An ID may not apply for a subsequent BMW X5 under any circumstances.

HomeStarter Loan

HomeStarter is designed to give Partners the opportunity to get onto the housing ladder, by providing them with a £25,000 deposit (in the form of a loan) to use towards purchasing their first home. Partners who already own their home can also participate in our HomeStarter Plan, and use their £25,000 towards paying off their mortgage, building an extension, home improvements, or anything else they want.

To receive the £25,000 deposit (which is a loan) you will need to successfully gather one member a week (on average) over five years. There are no monthly targets, but you must gather a minimum of 40 gross new members each year for at least four years and achieve the overall targets for this incentive.

After receiving your HomeStarter Loan, then provided that you continue gathering (on average) four customers per month for another five years, we will write-off the loan so it never needs to be repaid; this is explained in detail below. Important note: Your HomeStarter deposit is a Loan repayable out of future income generated by your Utility Warehouse position. If you do not meet the minimum activity requirements after receiving your £25,000 Loan, then interest and repayments will be deducted from your monthly commission as set out below.

Eligibility Criteria

If you join as a Partner on or after 19 March 2017 (ie. new Partners), then you must achieve membership of the 200 Plus Club within a maximum of six years from your start date as a Partner. If you joined as a Partner before 19 March 2017, you need to increase your current number of personal customers by 200-x, where x equals your current number of personal customers divided by 4. So, for example, if you currently have 100 personal customers, you need to add another 175 net. If you currently have 200 personal customers, then you only need to add another 150 net. Your personal HomeStarter growth target will be shown on the Partner Portal.

Important note: You need to register for HomeStarter on the Partner Portal if you want to take advantage of this exclusive Partner benefit. The minimum annual activity requirement of gathering at least 40 new members each year applies to all Partners from the date you register for HomeStarter until the date on which you receive your HomeStarter Loan.

Repayments and Interest (and Representative Examples)

If you continue gathering four new members each month after receiving your HomeStarter Loan, then you will not pay any interest on the Loan or need to make any repayments. In each of the first five calendar years after you receive your HomeStarter Loan, we will reduce your outstanding Loan balance by up to £5,000 if you gathered at least 50 new customers during that year. These loan write-offs only apply during the five years after you receive the Loan, and cease to become available going forward if you miss the annual target in any year (eg. if you don’t get 50 members in the first year after drawdown, then you cannot receive a £5,000 loan write-off in any future years). For this purpose, each ‘year’ runs for 12 calendar months from the date you receive the Loan.

We will monitor your customer gathering activity after you receive your HomeStarter Loan.

The amount of interest you pay and the amount you need to repay, during the first 60 months after receiving a Homestarter Loan, will be based on your activity during the previous calendar month as follows:

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Important note: If your activity changes from month to month then the amount of your repayments and interest will change, with consequential changes to the maximum term, APR% and total amount repayable. There are no other charges for the Loan in addition to any repayments or interest that become payable.

Additional Repayment and Interest Terms

After 60 months from the date you receive the Loan, any remaining outstanding balance will be subject to monthly repayments of £250 (irrespective of activity), plus an interest payment based on activity calculated in accordance with the above table. However, if your personal customer numbers fall below 175, then different rules apply (see below).

If your personal customer numbers fall below 175 at any time after you have received the Loan, then monthly repayments will be collected at £300 per month plus an interest payment of £100 (irrespective of activity), until after the Loan has been repaid or your personal customer numbers exceed 175 - whichever comes first.

Notes on HomeStarter

  1. Partners must sign-up for this incentive to participate; all targets run from the date of registration. New Partner rules only apply where the new Partner enrols within 30 days of their start date; otherwise they will be treated as an existing Partner.
  2. Partners who are participating in this incentive can continue to receive QUIP provided (a) the monthly residual income they are earning is sufficient to cover loan repayments and interest as they fall due; and (b) they have a minimum of 200 live personal customers.
  3. Partners participating in this incentive can qualify for future ‘holiday of a lifetime’ promotions. However, for each one they attend (excluding the holiday due to take place in summer 2018) the maximum loan write-off they can receive during the 5 years after receiving their HomeStarter Loan will be reduced by £5,000 (eg. if you attend two future holiday-of-a-lifetimes, then the maximum loan write-off you can receive would be £15,000).
  4. Partners who are registered for this incentive are not eligible to participate in weekend holiday break promotions whilst they remain on track for this promotion.
  5. Members gathered under this promotion must meet certain minimum quality criteria as follows: (a) Maximum percentage of tenants = 45%; and (b) Minimum proportion of Double Gold = 30%. These will be tested immediately prior to making the Loan, and before any £5,000 annual write-offs are credited.
  6. A Partner can apply for their HomeStarter Loan on the 4th, 5th or 6th anniversary of the date they registered for HomeStarter, providing they have met the minimum activity and quality requirements of this Plan during each year, and the overall growth requirement. For the avoidance of doubt, you must have gathered at least 40 new customers each year for a minimum of four years before you can apply for your Homestarter Loan.
  7. After you have received a HomeStarter Loan, your loan repayments and any interest payable will be shown on your monthly Utility Warehouse commission statement.
  8. We will not be taking any additional security for the loan; repayments will only be collected from residual income and other commissions generated by a Partner’s position. Any negative balance will be carried forward and offset against future amounts earned by the Partner’s position.
  9. HomeStarter is available to all existing Partners who register to participate before 31 July 2017, and new Partners who join Utility Warehouse after Express Day 2017 and register to participate before 31 October 2017.
  10. Utility Warehouse reserve the right to refuse to provide a Loan to any Partner who has committed a breach of our Policies and Procedures, or where we have reasonable cause to believe that the Partner will not be able to repay the Loan from their future residual income (eg. due to excessively high churn).
  11. Double Gold shall mean any member who is taking broadband, home phone, mobile and at least one energy service from Utility Warehouse.
  12. The aggregate of any loan repayments (excluding interest) plus any loan write-offs will not, in any event, exceed £25,000.
  13. HomeStarter Loans will be made by Utilities Plus Limited (FCA regulated: 746242), a member of the Telecom Plus group of companies.

Retirement Plan

Once an ID has achieved a Status of SGL or above, they can elect to retire and ‘lock-in’ their residual income irrespective of what happens to their future Status.

After retirement, IDs only receive CGB and Residual Income. They will not be eligible to receive any other commissions or bonuses.

Group Residual Income is paid at the Level 2 Residual Income rates being paid to a QD at the time the commissions are calculated. Group Residual Income will continue to be paid down a number of levels dependent on your Status on retirement as detailed in the table below.

Under the Retirement Plan an ID must continue to abide by the terms and conditions of the Partner Agreements.

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Notes on Retirement Plan

  1. Residual Income on Personal Customers will continue to be paid at the Personal Residual Income rate applicable at the time the commission is paid.
  2. Once an ID has elected to retire, they may not have a beneficial interest in any other Partner position but may continue to recruit new Partners and gather new customers for their existing position if they choose.
  3. Following retirement, any change in the underlying Status of an ID, or promotions within their Group, will not affect the number of levels down which they are paid. Their Status on the date of their retirement will be considered permanent for all aspects of the Compensation Plan, and they will become a permanent leg with that Status, which may assist their upline in gaining future promotions or maintaining their current Status.
  4. There is a cap on the total amount that can be paid out in aggregate to retired IDs, which has been set at 25% of the Residual Income being paid at that time to all live Partners. In the unlikely event that the cap is exceeded at any time, then the amount payable to all retired IDs at that time will be reduced pro-rata. In addition, SGLs can only retire provided they have maintained SGL Status for at least ten of the twelve months immediately preceding retirement.

General Information

Commission and Bonus Payment Times

All commission and bonuses are paid together on or around the 21st day of each calendar month as follows:

  • Commission will only be paid to IDs whose identity has been verified by the Company. We will only accept a UK driving license or passport as acceptable forms of identity.
  • CGB is paid on the commission statement processed the month after the first service has gone live.
  • Fast Start Bonuses are paid on the first commission statement processed following the Partner meeting all the criteria for the bonus.
  • OAB is paid on the first commission statement produced after the ID has paid for their first customer bill for their Mobile Broadband under the OAB offer.
  • TBB is payable at the same time as the Fast Start Bonus to which it relates.
  • PB is paid on the commission run following the date of qualifying promotion.
  • Where a Partner has not provided the Company with their bank details for payment of commissions and bonuses, a cheque will only be issued once the accumulated amount due to the Distributor exceeds £100.

Where a Partner is VAT registered, they should complete a VAT self-billing declaration and provide the Company with a copy of their VAT registration certificate. This will enable the Company to automatically account to HMRC under the ‘self-billing’ regulations (on behalf of the Partner) for all the VAT payable by them on their commission. In the event a VAT registered Partner chooses not to participate in the self-billing scheme, then any manual invoices submitted by them in respect of VAT on their commission will be subject to an administration charge of £15 which will appear on their commission statement for the following month.

 

Motivational Incentives

Motivational Incentives Money is necessary, but it certainly isn’t everything in life. We all need to be recognised for our achievements, and we like to make sure that we acknowledge the performance and contribution of our IDs.

That’s why we run regular incentives including holidays, special events, and an Equity Share Option Scheme.

Recognition

Nothing is more important to us than recognising your success. We therefore have a comprehensive Recognition Programme, which could see you being presented with Lapel Pins, Certificates, Trophies, Champagne and many other awards – even a Porsche Boxster, or a luxury holiday! We have special Plus Clubs for our top Customer Gatherers, and frequent competitions with superb prizes which everyone can win.

At regular intervals, we run a Partner Express Day when the corporate Directors and Leading Distributors present awards and celebrate your achievements. We recognise not only star performers, but also high flying new participants, as we know how everyone needs encouragement at the start.

Equity Share Option Scheme

At Utility Warehouse, we have always recognised that our Partners are one of our most important assets and we believe that everyone who is contributing to the success and growth of the Company should share in the wealth that is being created.

Utility Warehouse is one of the first Referral Marketing Companies in the world to implement an Equity Share Option Scheme for the benefit of its Partners. The share options issued so far to our Partners have been worth many millions of pounds and the intention is to make further allocations in the future. Equity Share Options give all Partners the opportunity to share in the future success of the Company and create substantial personal wealth, without financial risk.

Important Note

This Compensation Plan is effective from 11 September 2017 and replaces all previous versions of the Compensation Plan. Any disputes in relation to the operation or interpretation of this Plan shall be determined by the Chairman of Utility Warehouse, whose decision shall be final and binding. Utility Warehouse reserves the right to alter or amend the terms of this Plan at any time by giving not less than 30 days’ notice to all participants.

 

Glossary of Terms

Active

An ‘Active’ customer is any customer whose application form has been received and successfully processed within the previous ten weeks and/or has at least one live Eligible Service being supplied by us. Customer targets set for achievement of promotional targets or levels of Status are based on ‘Active’ customers.

Compensation Plan

The various earnings and other incentives available to Partners as set out in the relevant section of this booklet, including potential bonuses and the commission structure.

Commission Calculation Period

The period between the 1st of the month and the date at which the commission is calculated that month, which is normally between the 11th and the 15th day of the month.

Community Fundraiser (CFR)

A Partner who gathers customers in order to raise funds (Residual Income) for a good cause - typically a local community group. CFRs cannot recruit or sponsor other Partners.

Downline

All Partners that you have sponsored, and the Partners that they have sponsored make up your ‘Downline’.

Eligible Services

The ‘Eligible Services’ are: Mobile (including Mobile Broadband), Home Phone, Broadband, Gas, Electricity and Insurance. And the equivalent services for the Utility Warehouse Business Club, excluding Non-Geographic Numbers (NGN). Insurance is not counted as an Eligible Service for CGB purposes.

Energy-only Customer

A customer that only takes energy (Gas and/or Electricity) and no other Eligible Service (eg. a CashBack card does not stop a customer being energy-only).

Gold Customer

A customer who takes one of our residential Gold Bundles (see page 12 for details) or a Business Gold customer or a Historical ‘Gold Status’ customer (see below).

Gold Status

A Business Club customer achieves ‘Gold Status’ by taking at least four Eligible Services from us, provided they pay by Direct Debit. See the back page of the Business Club Tariff Guide for full details. A Historical ‘Gold Status’ customer is a residential customer who joined the Utility Warehouse before 8 November 2013 and who successfully applied for at least four Eligible Services (from Gas, Electricity, Home Phone, Broadband and Mobile).

Group

An ID’s personal customers plus all their downline Partners and their customers, down to, but not including, the next ID of higher Status in each leg.

Independent Distributor (ID)

A Partner who has paid the applicable joining fee and is authorised, in accordance with the relevant Terms and Conditions, to build their own business by promoting the services made available by the Company to customers and, once qualified, is also able to introduce new Partners as members of their team.

Joining Date

The date we successfully process a Partner application. This date is used for all Fast Start Bonuses. Note, for IDs who joined on or after 1 August 2009, but before 18 March 2013, the Joining Date is deemed to be either when they have completed the College of Excellence Online Services training or one calendar month after we process their Partner application, whichever is the earlier.

Leg

Each personally sponsored Partner (Level 2) and all their downline form a ‘leg’ of an ID’s group.

Level

The distance between two Partners in the same leg; eg. You are Level one, all your personally sponsored Partners are at your Level 2; their personally sponsored Partners are at your Level 3. (See diagram on the next page). All customers are included in a Level.

Partner

A generic term for an Independent Distributor (ID) or Community Fundraiser (CFR) or Independent Representative (IR).

QUIP

Quick Income Plan under which Partners can choose to accelerate payment of certain Personal Residual Income.

Recruiter

The ID who has personally recruited a new Partner even though that new Distributor may be placed under another ID who is the Sponsor.

Sponsor

The ID who is the immediate upline of a Partner, (The Sponsor is usually also the recruiter, and is responsible for the new Partner’s guidance and motivation and encouraging their attendance at training (where applicable).

Supporting ID

The Distributor who supports a new ID to gather any of their first six customers and learn the ropes. In most cases, the person who introduced a new ID to the business (the Recruiter) will be the Supporting ID. If a Recruiter is unable to support their new ID, a Supporting ID can be any QD (or above) who has gathered twelve or more personal customers; and completed Getting Started Online and Classroom training; and gathered at least one customer in the past six months.

Status

An ID’s position calculated according to the current structure of their downline in terms of customer and Partner numbers.

Title

The ‘title’ an ID is given represents the highest Status they have achieved. The first title is ‘Qualified Distributor’ and the ultimate target to achieve is that of ‘National Network Leader’.

Upline

A Partner’s Sponsor and all Partners above him or her continuing through to the Company

This diagram will help explain some of the terms defined in this section:

  •  A1 is a ‘Distributor’ with Senior Team Leader (STL) Status. A1 represents ‘level 1’ in his/her group.
  • On ‘level 2’ he/she has 5 Qualified Partners, two of whom, C2 and E2 have achieved Team Leader ‘Status’.

complan-stlmatrix

  • A1 has 5 ‘legs’ in his/her ‘group’, legs B, C, D, E and F.
  • A1 is the ‘sponsor’ of Distributors B2, C2, D2, E2 and F2.
  • Distributor E2, who is on A1’s ‘level 2’, is the ‘sponsor’ of Distributors K3, L3 and M3.
  • Distributor C2 and A1 are ‘upline’ to G1, H3 and J3.
  • If A1 recruits G1 and places him/her under C2, then A1 is the recruiter and C2 is the sponsor.

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