10 Things to Know About Scout and Cellar MLM Business

As an individual interested in MLM business, you need to know that several companies offer the MLM business opportunity. And one of these best opportunities comes from scout and cellar. This article contains ten facts about the said business, making it stand out among other network marketing ventures. Here are some important facts for your consideration:

1) WHAT IS A SCOUT AND CELLAR MLM BUSINESS?

This is a MLM or multi-level marketing company that offers wine products. It was founded by Jason Guck in 2005, but it wasn’t given the name “Scout and Cellar” until later on. The wine comes from all over the globe because it has distributors in many markets. The CEO of this company is Robert Siegel, who has been involved with other companies like HSN, QVC, and Lillian Vernon Corp.

2) WHAT IS THE MISSION OF SCOUT AND CELLAR MLM BUSINESS:

Their mission statement on their website is “To develop a culture that empowers individuals to make smart, everyday wine choices—a culture where people are not intimidated by wine.” There is also an explanation on what they mean by “Culture”: “Scout & Cellar builds up helpful resources like our Wine Buying Guide (for example) for people looking to improve their knowledge about which wines to buy at the supermarket or retailer”.

3) HOW MUCH MONEY DO YOU NEED TO INVEST IN ORDER TO BECOME AN INDEPENDENT DISTRIBUTOR/DEALER?

There is no initial investment required to sign up as a dealer, you only have to pay fees if you sell wine under your own name (online/offline). You can start out as an independent dealer for free. If you want to be able to sell wine under someone else’s name, there is a $39 fee. They also charge fees if you wish to operate your own website or blog with them which can cost about $100-$300 monthly.

4) HOW MUCH MONEY CAN YOU MAKE?

This question has no definite answer because it will depend on your effort and ability to sell the wine bottles in bulk quantities to other distributors within your team or to outside buyers who are not yet under your system. You can earn money through this business model in two ways. The first is through retail profits, where you can get a 40% commission on each bottle of wine you sell. In contrast, there are also exponential growth commissions currently being offered at 5%. You will get rewarded with 3% of your team growing by 6-7 people, 4% if it becomes 8-9 people, and so on.

5) SCOUT AND CELLARS PRODUCTS

The company offers different types of wines from all over the globe that can be purchased in bulk for resale purposes or simply for personal use. Some offer white wines, while others have red varietals. However, they come in large bottles that could be shared with friends or family during social events like game nights, and dinner parties. There are also cases of wines that can be purchased in case of quantities instead.

6) SCOUT AND CELLARS COMPENSATION PLAN

The company uses a binary system which means you will have two legs or chains containing your frontline distributors (recruits). You will then earn money through retail profits if the recruits under your leg purchase wine bottles for their consumption or for resale purposes to other buyers who want to get in on this business model. In constrast, you will earn exponentially growing commissions every time they buy products, too, thus helping strengthen your team hierarchy up to the top with you as its leader.

7) IS SCOUT AND CELLAR MLM A SCAM?

There’s no solid proof from various reviews that confirms that they’re running a scam and no proof that they’re 100% legit. There is no evidence of a scout and cellars MLM scam. There are also positive feedbacks from previous distributors, as well as negative comments saying that the company went downhill during its initial launch, but it is still considered legit even now. If one were to read the testimonials on their website, you would think 90% of all participants make a 6 figure incomes. Unfortunately, for many, it’s not the case.

8) SCOUT AND CELLAR PROS

* They have high-quality products sourced from different parts of the globe that customers will appreciate because these wines come at competitive prices compared to others who sell lesser quality or imitation wine brands (such as Two buck chuck).
* The multi-level marketing pay plan involves two ways of earning, which means you can potentially make money through both retail profits and exponential growth commissions. You can also earn by recruiting others to your team who will do the same activities as you. That is referred to as an earning referral system
* They offer different kinds of wine bottles that people may want for their personal use. It also comes in large bottle volume, which means distributors can share or store them properly without having to worry about running out of supply quickly

9) SCOUT AND CELLAR CONS

* The only negative feedback of this company is its product’s unsuccessful launch at first, which eventually fizzled out afterward
* There are no minimum purchasing quotas on their products, so there are chances that consultants will try to make money even though retail profits only instead of trying to recruit buyers below them
* Many MLM companies have already worried about this business model due to its high-risk factor and low return on investment (ROI), even though there were successful cases of it during the initial stages

10) SCOUT AND CELLAR COMPLAINTS

There were only some minor complaints, such as the following:

* The products are overpriced, although they come in high quality, which means some distributors may not be able to sell them as easily as others
* There is a big chance of failure during the first several months because scouts and cellars were already losing steam before its release
* Due to the MLM business model, consultants need to buy products for themselves. That means that distributors will not only recruit more people, but they will also have to do personal purchases with their own money to participate in the company’s compensation plan
* Many people have been worried about scout and cellars MLM business model because it has a high failure rate during the initial stages of its release. However, this does not mean that it will fail eventually. There were successful cases posted online where some consultants could generate significant returns with their team.

The MLM business model is also not a new concept, but it has already been tried and tested several times before – although the number of successful tests was limited. The key to success with scout and cellars MLM is for consultants to derive profits from retail purchases and recruit others below them, which will strengthen team hierarchy.