Is Scout And Cellar A Scam? Wine Riches Or Wine Pyramid Scheme?

Hey, are you thinking about joining Scout and Cellar and are wondering if it's a scam or not?

If so this post is just for you!

Below you'll find everything you need to know about this company including background information, price to join, compensation plan and a bunch more. 

By the time you're done reading you'll know if Scout and Cellar is right for you.

Let's get started!

Summary

Company: Scout & Cellar

Price to join: $249 + $99 website fee

Rating: 40/100

Do I recommend? No!

Summary: Scout and Cellar is a MLM in the wine market and while this is an interesting opportunity I don't recommend that you join it. 

There's a few reasons I say this but the main reason is the chances for success are very low - most people who join are going to lose money or make very little of it. 

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What Is Scout And Cellar?

1) What is Scout And Cellar? Scout and Cellar is a MLM that focuses on wine distribution. It's a fairly new company and was started in 2017. The headquarters is in Celina, Texas.

2) Who founded Scout and Cellar? The founder of Scout and Cellar is Sarah and Shadonix. Her journey supposedly started after she discovered there's so many additives and chemicals in mass produced wine. She wanted to make cleaner wine that would be healthier and cause less hangovers.  

3) Is Selling Wine Legal in America? Every state has their own laws and most states do allow wine to be shipped to your home. The following states don't allow shipment from Scout and Cellar: Alabama, Arkansas, Delaware, Kentucky, Iowa, Mississippi, Oklahoma, Rhode Island, South Dakota and Utah. 

4) How do you make money with Scout and Cellar? Like I mentioned before, Scout and Cellar is a MLM. This means you sign up with them and are allowed to make commissions by selling their products. You also get rewarded for recruiting people into your downline. 

5) Are there any similar companies? There's plenty of other wine MLM's out there and some popular ones are Direct Cellars and Traveling Vineyard. 

Is Scout And Cellar A Pyramid Scheme?

Pyramid schemes are illegal in basically every country and Scout and Cellar is definitely not an illegal pyramid scheme.

It does have similarities with a pyramid scheme, however.

To understand what I mean, look below:

The picture up top is what part of the commission structure looks like at Scout and Cellar and it's the part that rewards recruitment. 

An illegal pyramid scheme is when the only way you can make money is through recruitment and there's no real product. In these schemes it's guaranteed the system will collapse eventually and most people lose money.

Now most people will lose money with Scout and Cellar but there's a real product and you can sell straight to customers without recruitment.

MLM's can last as long as any other business and most people aren't going to lose money from collapse. Most people lose money because recruiting is very difficult and so is straight sales. 

Success Is Going To Be Difficult

Here's a secret about the MLM world - it's not easy to make money.

In fact, most studies show that between 73% to 99% of people that join one of these companies lose money instead of make money.

That's horrible.

There's many reasons for this but it's mostly just because MLM's are flawed. You have to try and sell to friends and family and recruiting people is extremely difficult (which is the best way to make money with a MLM).

Check the graph below to understand what I mean:

As you can see MLM's aren't the best way to make money. 

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How Much To Join Scout And Cellar?

I order to sign up for Scout and Cellar you have to pay $249 for their business kit.

With this kit you get:

  • 6 bottle insulated wine carrier
  • Winer makers
  • Pulltaps corkscrew
  • 1.5 ounce measured pouring spout
  • The original vacu vin wine saver
  • Your personal Scout and Cellar website for  year
  • 4 Bottles of wine
  • Business building materials

The website you get is factored into the $249 for the first year and every year after you have to pay $99 per year to keep it running. 

Scout And Cellar Compensation Plan

Every MLM has a complicated compensation plan and I'm going to try and simply things as much as possible for you. 

If you want to see the entire thing for yourself, watch the video below:

There's a lot to digest there and here's a summary of the main points:

Affiliate ranks

At Scout and Cellar there's 6 different affiliate ranks and you move from one to another by hitting certain goals and you get bonuses for doing so.

Here's the ranks you can achieve:

  • Consultant - This is just the rank you achieve when you sign up and pay your $249 fee.
  • Second Consultant - To reach this level you must have a personal sales of $200 and downline sales of $500. 
  • Executive Consultant - This rank requires you to have personal sales of $300 and downline sales of $800.
  • Associate Manager - To reach this level you have to have $400 in personal sales and $1500 in downline sales. 
  • Senior Manager - To reach this rank you have to have $500 in personal sales and $3000 in downline sales. 
  • Executive Manager - To reach this rank you have to have $600 in personal sales and $2000 in downline sales. 

There's additional requirements once you reach the 4th rank and it has to do with legs in a binary commission structure. Most people don't get past the second rank so it's not necessarily important to know about the binary leg requirements.

If you're interested just watch the video up top.

Retail Sales

This is the part of the compensation plan that rewards sales directly to the customer. Here's the various commissions you can earn based on your sales volume:

  • Sales under $499 - 12% commissions
  • Sales between $500 to $1499 - 15% commissions
  • Sales between $1500 to $2999 - 20 commissions
  • Sales over $2999 - 25% commissions

These are pretty good commissions but you'd have to sell a lot of wine to make a living wage from retail sales.

Residual Commissions

Here is where you'll make the majority of your money and this is paid out in a binary structure which looks like the following:

How much you make and how many levels you earn from depends on what rank you are.

For instance, a 2nd rank makes 3% on level 1 and a 6th rank makes 8% on level 1 and earns on levels past level 1.

Smaller Bonuses

There's other bonuses you can earn and these bonuses are smaller and you shouldn't worry about them until you're already making money.

The video up top will go more in depth into them. 

Scout And Cellar Compensation Plan

Besides some merch and shirts, Scout and Cellar's product is wine and they have termed their wine as "clean wine."

This means they use less additives and chemicals. The picture below is one they like to share about their wines:

I'm not the biggest wine aficionado (I basically never drink wine) so I can't really tell you if this makes a major difference or tastes better or anything like that. 

The prices seem reasonable and you can get a single bottle of wine for as low as $17 and the highest single bottle is around $55.

You can get package deals as well and get 12 bottles of wine for $429. 6 bottles for $186 and 4 bottles for $88.

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What I Like About Scout And Cellar

I don't recommend that you join this company but there's still a few things that I like including:

  • Good price: Again, I'm not a wine expert but $17 to $50 for a bottle of wine seems pretty reasonable to me.
  • Good products: Clean wine seems like a pretty good sale's line as long as the wine tastes good.
  • Retail sales are good: The commission rate seems pretty good with this company too and you can earn up to 25% commissions on your sales. 

What I Don't Like About Scout And Cellar

At the end of the day there's more here that I don't like and the main things I dislike are:

  • Not available in every state: Most states allow for wine to be shipped but there's a few that don't. Plus there's many different state laws you'll have to navigate as well. 
  • Low success rate: MLM's have a very low success rate and many studies show 99% of people end up losing money. This is horrible and shows how bad the MLM business plan is.
  • Bothering friends and family: The only thing worse than losing money is having to bother friends and family as you lose money. The problem with Scout and Cellar is you'll have to organize wine tasting parties and try to get money from close ones. This can really strain relationships. 
  • Have to buy through Scout and Cellar website: Another thing that stinks is you can't take the orders yourself. The people you're selling to have to buy it through the Scout and Cellar website and put you down as an consultant. If the buyer doesn't put you down as consultant than you lose your commissions. 

What I Like About Scout And Cellar

Scout and Cellar isn't a scam.

They have real products and a compensation plan that rewards certain activities - it's up to your to sell and recruit.

The problem with Scout and Cellar is, however, that it's a bad business opportunity. Most people just end up losing money or working hard and making a couple dollars a day.

The MLM system is a very flawed one and it's very hard to succeed with.

Because of that I think you should avoid Scout and Cellar.

What I Like About Scout And Cellar

Hopefully by now you've decided this opportunity isn't right for you.

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To learn more, click below:

Dylan
 

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