Hello all and welcome to my scout and cellar review.In this review we are going to talk whether scout and cellar is a pyramid scheme or not.
This review will help you decide whether to join this mlm or not.
One thing I want to clear before going into this review is that I am not associated with scout and by any means and this review is going to be completely unbiased.
Without wasting further time,let’s dive into this review of Scout and Cellar.
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Scout And Cellar Review
Scout and Cellar is a multi level marketing company which is focused on distributing wine.
It is a very new company and was started in 2017.
Its quarters are in Texas(USA).
Founder of Scout and Cellar is Sarah and Shadonix,and she done quite remarkable things in the past.She earned $20 MILLIONS in sales.
Their journey started when they thought that there are masses of wine.
And this wine can be sold to others without having any harm or hangovers.
The next question is whether states in America allow wine to be shipped at your home or not?
If you are living in these states then I think that this mlm company is not for you.You can check out my number one recommendation to make money online.
The states are..Utah,Alabama,Lowa,Mississippi,South Dakota and Rhode island.These states do not allow wine to be shipped at your home.
If you are still looking for some mlms then I want to check out other mlms like scout and cellar which are Direct sellar and Traveling Vineyard.
Is Scout And Cellar A Pyramid Scheme?
This might be question,Is scout and cellar a pyramid scheme or not?
No scout and cellar is not a pyramid scheme,it is an outright pyramid scheme.
This means that like all mlms there are two ways for you to make money in Scout and cellar.By selling wines directly to others and making commissions on it.
The other one is that you can recruit people under you and make money on it.
Pyramid scheme is when you are just recruiting people under you and that’s the only way to make money with that company.
Why most of the people are saying Scout and Cellar is a pyramid scheme is because you can also make money by recruiting people under you.
And pyramid scheme are illegal in USA and most of the time headed by the scammers.Whenever noticed,FTC bans them.
This is why I think that to get a clear idea on whether scout and cellar is a pyramid scheme or not is necessary.
Here are my two pennies to make your life easier.
These are the two questions that you can ask to the person who is trying to recruit you under him.
First one is that how much money he is making from retail sales,if they are making less then 50% from retail sales then it can be a pyramid scheme.
Second question to ask is that how big is their downline,if they have more then 5 people under them,it can be a pyramid scheme.
This is because FTC allows a maximum of 5 people to recruit under you.If you recruit more then this,then the company must be a pyramid scheme.
Now,let’s talk about the facts of this mlm company.
Success Is Rare
This is why I usually do not recommend mlms to my readers.The fact is that success rate in most of the mlms is very hard.
People who invest their hard earned money in mlms,most of the time lose it all.
Most of the stats showed that people who joins mlm,73% to 99% people in them end up losing their money.
This means that success rate in mlms is about 0.1%.
I have reviewed more then 200 mlm companies and after reviewing them all I reached the conclusion that it’s the worst business model to start in 2020 and moving forward.
If you want to make money online than Mlms are not for you.
You can see the success rate of all mlms in this graph.
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In order to sign up for scouts and cellars you have to pay them money.
Probably $249 for their business kits.With this kit you will get a website.
To keep this website in your hands you have to pay them 99 bucks every year.In this kit you will get these things..
- 6 Bottle Insulated Wine Career
- 4 Wine Bottle’s
- Business Building material
- Personal website for a year.Until you pay them $99 for another year.
- Original vacu vin career.
Scout And Cellar Compensation Plan
Well,like all mlms out there,there are two ways to make money from scout and cellar.
The first one is by selling wine directly to people and making commission on it.The second one is to recruit people under you.
First talk about the affiliate ranks that are designed by the company.
Here are the ranks that you can achieve..
- Consultant Rank – This is the rank that you will pay them $249 for.
- Second consultant – For this you have to make personal sales of $200 and downline sales of $500.
- Executive Consultant – To achieve you will have to achieve personal sales of 300 bucks and downline sales of $800.
There is more to this…
One thing’s for sure that when the rank is going higher,more things are expected from you.
Task is going bigger and bigger.
Scout and Cellar is that kind of mlm,which wants more and more from their distributors,instead of giving them something back.
Yeah I Know there are other ranks too which I did not mention in this review.
The reason for this is that ALMOST 0.01 of the distributor of Scout and Cellar do not reach these levels.Most people do not even get passed second rank.
If you want to go more in detail than watch this video..
Retail Sales
It is the amount of commission you will make by directly selling their products to others.In this case you will get this amount as following structure..
- Sales Under $499 – %12
- Sales Under $1500 – %15
- Under $3000 – 20% commissions
- Sales over $3000 – 25%
Residual Income
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.
Bonuses
They also included bonuses in it.Bonuses will vary according to your performance.
Scout And Cellar Products
Well,you may be thinking what scout and cellar taste like.
For this I want to tell you that I never drink and that’s why I cannot tell you anything about this one.
But I listened to most of the people and they are saying that scout and cellar products worth the price.
The price of their products are as..
The single bottle minimum price is $17 and the highest single bottle price is around $55.
They have also packages for you if you want these in wholesale rate.
Overall I am impressed by their price tags.
Talk about cons and pros of this mlm company.
What I Like About Scout And Cellar
These are the things that I liked about scout and cellar..
Good Price – Like all mlms they are not selling their products expensively.Their products rates are very good in my opinion.
Good Products – These products are good too.
Commission rate – Commission rates are extraordinary too.
What I Don’t Like About Scout And Cellar
There are many things which I did not liked in this mlm,but here we are going to talk about the main ones.
Scout and cellar is probably the worst mlm when it comes to numbers of bad points among the mlms I reviewed so far.Here are those..
Not Available In Every States
As during the review,I said that this mlm is not available in every state.
So,because of this reason I would advise you to check state rules before diving into this mlm.
The reason behind this is that their wine contains HTC which is toxic and has side effect.People feel high after smoking it.
I reviewed a mlm which was also banned in some states like scout and cellar called Kannaway.
The reason was that it sell CBD and CBD has sometimes HTC in them.I explained the reason in detail in that post,if you want to give it a read..Kannaway Review.
Most People Fails
Most of the people that join this mlm fail.
Yes,you read it right.Overall 95% of the people that join mlms lose their money.And when it comes to scout and cellar these numbers increase.
Rules
The basic rule is that if you want to join scouts and cellar then you have to buy their website which I do not like in this mlm.
Also the cost of the site is expensive too.Kannaway,another CBD oil mlm I reviewed,was giving it for $55.
And other benefits too,not in scout and cellar.
How To Sell
Most of you guys,I think are total newbies in the online feild and do not know how to sell.
This is the reason that you can have difficulties selling scout and cellar.
And when most of the people find it hard to sell,they reach out their friends and family members.this is why I hate mlm.
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- Almost 99% participants of all multi level marketing companies lose money,According to the FTC.
- There are 38% more chances of you profiting from your own any kind of small business than joining these mlms.
- Success Rate of online business,which will give you financial and time freedom,is 20% more than joining mlms for making money.
- The odds of you winning a lottery worth $10k among 10,000 people is 300 times higher than actually making money from mlms.
- According to the AARP foundation,47% distributors of all mlms lose their money,apart from this 27% do not make a single penny.
- Remaining 26% that actually make money,53% of them make less than $5000/year.
- 39% among those 53%,who are making $5000/year quit because recruiting and selling crappy products to friends and family members jeopardized their relationships.
- Forget about building a long term business with mlm,because 50% of all mlms participants quit within one year.
- 75% people that join mlms say that they will never ever join any kind of mlm.
- A poll was conducted in 2018 among 1050 mlms distributors and it was found that most of them makes 70 cents an hour and 20% of them did not make a sale.60% of them makes less than $500 in sales over the past 5 years and 32% of them acquired credit card debt to finance their mlms involvements.
SOURCE:
Is Scout And Cellar A Scam?
The truth is that scout and cellar is a legit mlm company that focuses on selling products that are worth the money and time.
Scout and Cellar is not a scam but I do not recommend it to you for some reasons that I talked about earlier.
The bad part is that it’s totally up to you to sell and recruit people under you.
Company has got nothing to do with this.
They are not training their distributors like all other mlms inside the system.
The problem with this business is other than it is a bad business opportunity,scout and cellar’s distributors end up losing their hard earned money.
I have a question for you,why join mlm companies when there are better business models out there?
With scout and cellar you are going nowhere.
This is not a long term,scalable and sustainable business model.
Mlms are destined for failure,Mlm = Waste of time and money.
After reviewing hundreds of mlms,I came to a verdict where I feel that it is the worst business to start in 2020 and moving forward.
And to be really honest with you,I hate selling to relatives.
Been there done that,not more fond of mlms.
Here is a better business model,Lead generation.
In this business,you have to generate leads for business owners and charge them money.
Let’s say that you generated lead for denstist and he closed that customer and made $1000 on it.He will be more then happy to pay you $100 on that single lead.
Now imagine if you can generate 100 leads for him every single day?That’s $30k/month for you.
Yes,most of our students are making $100k/month and thousands are making $10k,$20k,$30k/month.
Simple,proven,legit and repeatable business model.
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That’s it for today’s review.
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