Hey all, welcome to my Scout and Cellar review!
Yes, just another MLM company but this time, it’s a unique and pretty yummy product – wine!
If you haven’t heard of Scout and Cellar yet, well this time you will know whether you’d want to actually join their MLM program and make money or simply brush the whole idea off.
I’m by no means associated with Scout and Cellar, so please know that this is my unbiased 3rd party review.
I’ve done MLM for a year before, and I wish someone would have told me what I wish I’d known back then. And this is just my own way of reviewing MLM companies and telling you guys what to look out for before signing up to become a distributor.
You guys are already doing something ahead of me, which is reading up online reviews of the company before joining – which I didn’t do before.
So for that, I must congratulate you!
Now, if you’re here to find out whether Scout and Cellar is a legit company to join to make money, well let’s get on to it!
Here’s my honest Scout and Cellar review..
|Scout and Cellar Summary|
Product: Scout and Cellar
Founder: Sarah Shadonix
Product Type: Wine
Price: $249 Upfront + Miscellaneous fees + $129.95 Annual Fee
Summary: Scout and Cellar is a company that sells “clean-crafted” wines to users with multi-level marketing operation to promote the products to consumers. Founded by Sarah Shadonix, they have come up with different types of wines that were told to be free from “yucky” ingredients.
The company made $20mil in their very first year with its network marketing structure and only sell their products via an e-commerce store.
If you’re tired of finding ways to make money, here’s my #1 favorite way of making money online that’s sustainable and won’t need you to find recruits under you:
What Is Scout and Cellar?
Scout and Cellar was founded by Sarah Shadonix in 2017 when she was on a journey to bring better, clean-crafted wines to the consumers once she’d studied on what ingredients are actually being put in the making of wines.
If you’re not sure what clean-crafted wine is (as do I before doing this review), you can check out their statement below:
Or you can also give this video from Scout and Cellar a watch as she talks about the process they go through to bring the “clean-crafted” wines from farms to glasses.
When I was doing the research for clean or vegan wine (yes, vegan wine), I found out that Sarah wasn’t exactly the first one that has brought clean wine to retail.
One famous celebrity (Cameron Diaz) has also come up with her own line of wine called Avaline that’s better known to have “organic” wine.
I’m not sure about you, but this is really something new to me.
I drink wine but I’ve never been one to really research about wine. I’m not a wine enthusiast. That being said, I like to go for wine tasting with friends and have some cheese but so far, no one has ever introduced any clean wine to me.
So as I was doing the research, I found this article from The Guardian, talking about this clean-wine wave. You can check out the full article and make your own judgment.
As I now have drastically reduced my alcohol consumption, I just have to agree with this statement:
Again, this is just my opinion. You’re free to agree or disagree.
Anyway, coming back to Scout and Cellar, like any other MLM companies out there, they also have a membership program called the Wine Club or ScoutCircle.
Wine Club Membership (ScoutCircle)
1. Choose your wine
2. Choose how many wines you want
3. Choose how frequent you want them to be shipped
It’s a very straightforward way to become a member. I couldn’t see any additional payment that you have to make in order to become a member.
If you’re an avid wine drinker, this can be an option for you to take. But like any other review on MLM membership program, it’s good to just try one product first and see whether or not it suits you.
One of the common complaints with MLM membership is that it’s very hard for you to cancel your membership, even though they said it’s hassle-free to cancel. So just take note of this.
You can watch the video below on what you’re going to get if you were to join the ScoutCircle.
Now that you have an idea of what Scout and Cellar is all about, let’s go to the next section of whether or not it is a legit company you can trust.
Is Scout and Cellar A Legit Company?
Even though they are not accredited by BBB (like how I like companies to be), they are still a legit company. They are still a very young company, only in operation for about 3 years so they still have a long way to go to prove themselves.
If you’re wondering whether you will get the quality wines you’re promised or whether or not you will be scammed – well, no you’re not going to get scammed.
As for the quality of wines, I can say much as I haven’t tested it. Because there are only limited states that they actually ship their wines to which I’ll dive deeper into the section below.
Is Scout and Cellar An MLM Company?
Scout and Cellar IS an MLM company. They use this structure to rack in $20 million in their very first year – that’s a very good number by the way.
If you’re thinking of joining them because you love their wines or just love drinking wine in general, you might want to think twice because 99% of distributors or agents are actually losing money.
No matter how great the product is and how attractive the compensation can be, you just need to know and be very careful before joining any MLM scheme.
Scout and Cellar included.
I’m going to tell you more about Scout and Cellar ugly truths but before we move on, you need to also know whether or not Scout and Cellar is a pyramid scheme.
Is Scout and Cellar A Pyramid Scheme?
Fortunately, Scout and Cellar is not a pyramid scheme.
But like any other MLM company, they are very close to becoming a pyramid scheme. If you don’t know what a pyramid scheme is, you can check out the video below:
In a pyramid scheme, they are solely focusing on recruiting people. Sometimes they do have a product to disguise but you can tell by how the company trains their distributors.
When I joined an MLM before, they are heavily focusing on motivating the distributors on the amount of money they can make by recruiting more people under them. NOT how the products can actually improve people’s lives.
Thankfully with Scout and Cellar, they do have a legit product – wines and are actually selling them pretty well. But they still make money from the sales of the products and some profits when distributors join the company.
Now that you know they are actually making profits when you join them, you might be wondering how…
That brings me to the next section.
How Much Does It Cost to Become A Scout and Cellar Consultant?
This is really important for you to know before joining them. Because they don’t really say much about how much you have to pay on their website.
You have to dig deep – like reading through their contracts as well as trying to really become a member to see how much you need to fork out. At least, that’s how I did it.
So let’s talk about how much does it cost to become a Scout and Cellar consultant.
1. Buy the Business Basics Kit
You need to buy this Business Basics Kit that includes some products, shareable materials and some merch.
They said that this contains all the tools that you will need to get started as their agent.
But it’s not so cheap… as you can see in the picture above, you need to pay $249 just to get started… This is expensive.
2. Additional Miscellaneous Fees
This is taken from the contracts, there are other fees that you might incur, and even though they are not expensive or an exorbitant amount, I don’t know about you, but I don’t like it when there are sudden charges on my credit cards.
3. Annual or Renewal Fee
The annual fee used to be $99 and now it’s been increased to $129.95 plus tax.
This is just to maintain your website and other training tools. This is expensive, guys. And I’m going to show more on why I say so based on a realistic amount of money that you can actually make from joining them as a consultant.
Also, they have increase the price of the renewal fee from last year to this year. There’s a high possibility that they are going to increase it again in the future too.
How To Make Money With Scout and Cellar?
Like any other MLMs out there, you are going to be paid based on 3 things:
1) Your personal sales
This is based on your customers’ orders as well as your own purchases. The more you refer customers, the higher the percentage of your commissions.
2) Your downline sales
You will get a cut of your downline sales. This is just how MLM works. The more you grow, the higher your percentage will be.
3) Multiple bonuses.
Each MLM companies have different bonuses and it’s very tedious to go one by one. But these bonuses are usually when you get a higher rank or you were able to grow fast within your first to three months upon enrolling.
Now that’s how you can make money with Scout and Cellar. But let’s talk about just how realistic it is for you to earn a good income with them.
1) Let’s first calculate how much you will be needing to pay in your first year of becoming a consultant.
$249 + ($1.75 X12) + ($1.50 X 12) = $288 per year or $24 a month.
2) Now let’s talk about a realistic income if you were to join Scout and Cellar as a consultant.
You can check out their income disclosure below:
We will use the median numbers as they are far more accurate.
So 59% of ACTIVE consultants actually don’t make any money. They earn $20.78 but they have to spend at least $24. They are actually LOSING money.
98.75% if their active consultants make less than $1,000 per month.
Yes, they are in profit but that does not include their other miscellaneous expenses like hosting a wine tasting, gas money, going to lunches to promote the wines (and possibly pay for other people’s lunches too!). Their energy and time.
People who are actually making money out of this spend a lot of time to make this work, guys.
I know many agents of an MLM company practically work on it the minute they wake up till they go to sleep.
Is working that hard worth it just to make about $1,000 a month?
To me, it’s not. There are other better and more sustainable business you can do.
What I Like About Scout and Cellar?
Despite not being a fan on their compensation plan and becoming an agent, I will share a few things that I really like about them.
1. I Love Their Website
This might not be anything to you but it really gives an impact to users. If consumers go to the website to purchase the wines and see how dated the website is, they are more likely to have some doubt on the company’s credibility.
It’s not like that with Scout and Cellar.
When I went to their website, I was in awe. I really appreciate the bright colours and easy to navigate website.
2. Recyclable Packaging
If you’ve watched their membership unboxing video, you will see that they are using recyclable packaging – which is an awesome way to help the planet.
3. Satisfaction Guarantee
I like the fact that they offer a satisfaction guarantee. Though each case will have different terms and conditions, it’s still pretty good for them to offer this. A summary of what they offer:
a) Don’t like the product
Write to them within 60 days and you’ll get credits to your account for you to purchase another product. There’s no refund.
b) Cancellations – one time orders
Write to them within 48 hours of the order date to cancel your orders to get your money back. However, this is on one-time orders and you need to make sure that the products haven’t been shipped yet.
There are some cases of MLM companies saying that once they are already packed to be shipped, customers can no longer cancel their orders. You just have to be very careful about this.
c) Flaws or defects
It’s a little bit vague when it comes to flaws or defects. You can check out the picture above but it’s either within 30 to 60 days and you can get credits or a full refund excluding handling and shipping fees.
What I DON’T Like About Scout and Cellar
1. Expensive To Join
We have to address the fact that you need to prepare more than $200 just to join in becoming an agent. Not knowing whether you will be able to make that money back.
I can tell you there are many other programs that are free to join and won’t need you to fork out that much money when you’re just starting out.
2. Expensive Products
Their wines, are expensive. You can find the exact same kind of wine but cheaper – I’m not even sure how that’s possible but take a look below:-
Yes, imported wines tend to be more expensive but you don’t need to quadruple the price.
3. Limited Shipping Destinations
Look at the list of states that they actually ship their products too. Is your state one of them? Yes? Well, lucky you.
But just imagine how big is your pool for you to get customers.
What’s the point of having a website that’s supposed to attract global users when they’re only shipping to a handful of states?
4. Not BBB Accredited
It gives me a little bit of relief once I know the company is BBB accredited.
When an MLM is NOT BBB accredited, I’ll just stay away.
MLM can be accredited by BBB by the way when their business practice and operation is considered within the law and regulation.
5. Only Buy Via Website
Another part that I have a problem with is that if you’re a consultant, yes you can get customers to purchase with you but what kind of incentive does a customer have to be partnered with a consultant when buying online…?
I have tried purchasing online and even though they do encourage customers to find a consultant, it doesn’t mean I have to….
So you can put a lot of hours to promote to a customer or via your website and they can just go to the main website to purchase, without putting any consultant.
That can happen.
And you won’t even make your cut. Hmmm.
I won’t really mind if this is something that you’re doing passively but MLM is an active way to earn money. The capital plus the time and energy to convince someone to buy only to get them not recognize you on the main website is pretty….. uncool.
Should You Go With Scout and Cellar?
It’s a no from me.
Too much just didn’t add up for me.
1. Not BBB accredited.
2. I do think clean-wine is a marketing gimmick
3. I always have to recruit people to make money
4. The capital is too expensive with very little return
When it comes to getting money or adding an income stream to my life, I want to make it as passive as possible.
Like creating this website or my many other websites.
I can create one today, create content for the website, and still be making money 5 years from now. I don’t need to be commission eligible or fork up that big amount of capital.
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