Scout and Cellar Scam: MLM or Pyramid Scheme? [Review]

If you’re looking for ways to make some extra cash online, you may have come across Scout and Cellar. Perhaps you’ve heard about it from a friend or family member, and you’re wondering if it’s a scam. Well, you’ve come to the right place!

As an online entrepreneur, I’ve reviewed countless online programs over the years – including Scout and Cellar. And let me tell you, I’ve done my homework.

So, without further ado, let’s dive into everything you need to know about Scout and Cellar.

What is Scout and Cellar?

Founded in 2017 by Sarah Shadonix, a former lawyer turned entrepreneur, Scout and Cellar is a wine company that’s making waves in the industry. Not only do they sell wine, but they also claim to offer healthier options since their wines are free of artificial ingredients.

scout and cellar review

But that’s not all – Scout and Cellar is also an MLM company. This means that anyone can become a distributor and earn money by selling their wines. And with over 10,000 distributors in the United States alone, they’re definitely making an impact.

What sets Scout and Cellar apart from other MLM companies is that they’re still relatively new to the game. This means that the market isn’t yet saturated, which is good news for anyone looking to join as a distributor. And with plans to expand globally within the next year or two, Scout and Cellar could become the next Avon or Herbalife.

You may also want to read our article on the top MLM companies.

If you’re interested in learning more about Scout and Cellar, check out their 2-minute video.


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Is Scout And Cellar A Pyramid Scheme?

When it comes to MLMs, the term “pyramid scheme” often comes up, but Scout and Cellar is not a pyramid scheme. In fact, their products are genuine, and the company operates as a multilevel marketing business.

At its core, Scout and Cellar’s main objective is to sell wine through their consultant program. As a consultant, your primary responsibility is to sell their products. Unlike a pyramid scheme, the focus is not solely on recruiting.

In a pyramid scheme, the only way to make good money is by being at the top of the scheme, with just a select few earning significant profits. Those at the bottom end up doing most of the work but receive very little compensation.

To see how a real pyramid scheme operates, you can watch this YouTube video. But rest assured that Scout and Cellar operates as a legitimate MLM, with real products and a focus on sales rather than recruitment.

You may read our article on the difference between MLM and pyramid schemes here.

Praises For Scout and Cellar

Transparent Compensation Plan

Scout and Cellar is proud to offer a compensation plan that is easy to understand and transparent. Unlike other MLMs, the company’s plan is straightforward, so you know exactly what you’re getting into.

No Harmful Ingredients

Mass-produced wines often contain GMOs, copper sulfate, synthetic pesticides, and other harmful ingredients. Scout and Cellar wines, on the other hand, are free of these harmful substances. This means that you can enjoy your wine without worrying about what you’re putting into your body.

Healthy Wine Products

Scout and Cellar’s natural wine products are not only free of harmful ingredients, but they also provide health benefits. Natural wines are known to contain antioxidants, which can help boost your immune system and reduce inflammation.

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Criticisms For Scout and Cellar

Success Rate of Scout and Cellar is Low

Like most MLMs, the success rate of Scout and Cellar is low. Most statistics show that 73% to 99% of people who join MLMs end up losing their money. This means that MLMs are not the best way to earn money online.

Scout And Cellar Is Not Available In Every State

Scout and Cellar is a relatively new company, and their products are only available in the U.S. and in selected states. This can be frustrating for people who live in areas where Scout and Cellar is not yet available.

Scout and Cellar Does Not Make Income Disclosure of Members

Scout and Cellar does not disclose their members’ incomes, which may indicate that they do not earn very much. While this is not uncommon in MLMs, most of them provide income disclosure to attract new members. The company’s reluctance to share its income disclosure can be a turn-off for potential employees.

Scout and Cellar Costs Money to Join 

To join Scout and Cellar, members need to purchase a website, which can be expensive. This can be frustrating for people who are looking for a low-cost way to start their own business.

Hard to Sell the Products of Scout and Cellar

Selling products can be difficult for people who are new to the online world and do not know how to sell. This is why most people reach out to their friends and family, which can strain relationships. MLMs like Scout and Cellar rely heavily on personal networks for sales, which can be a turn-off for many people.

Scout and Cellar Products are Expensive

Scout and Cellar’s products are more expensive than similar wine brands, which can be a concern for people who are looking for affordable options. This can be a red flag for some people, as it may indicate that the company is more focused on recruiting than selling products.

Personal Websites are Useless

Customers of individual representatives must buy from the main website rather than their personal website, which makes the $99 annual fee for a personal website essentially worthless. This can be frustrating for people who have invested in their personal website and do not see a return on their investment.

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Is Scout and Cellar a Scam?

Scout and Cellar is not a scam. It is a direct selling business opportunity that offers clean crafted wines, and its founder is a reputable individual.

It’s true that Scout and Cellar uses multi-level marketing to sell their products and grow their business, but that doesn’t make them a scam. They provide real and high-quality products, and they follow their compensation plan to pay their members on time. I haven’t come across any comments suggesting that they don’t pay their members.

However, if you do your research, you might come across some negative reviews claiming that Scout and Cellar is a pyramid scheme. Some people complain that they don’t make much money because they have to keep recruiting others. While it’s true that Scout and Cellar operates like a pyramid scheme, it’s important to note that they are a legal direct selling business opportunity.

Scout and Cellar is a relatively new startup founded in October 2017. Despite being a newcomer, they have generated over $5 million in sales within their first seven months. If you’re interested in joining their network marketing business, you might find less competition compared to other established wine alternatives.

Learn more: Make Money Online Scams: How to Avoid Them?

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Who Is the Founder of Scout and Cellar?

Sarah Shadonix is the brilliant mind behind Scout and Cellar, a company that offers organic wine options. Originally from Richmond, Virginia, Sarah pursued her passion for law and wine by obtaining her law degree from Arizona State University’s College of Law and her doctorate from Richmond University. But that’s not all, she’s also a certified winemaker thanks to the Wine and Spirit Education Trust granting her a certificate for advanced winery studies.

Before founding Scout and Cellar, Sarah worked at Wine Country Connect as a distribution channel manager. However, she noticed something was off in the industry and decided to make a change. She wanted to create a company that only offered wine made from organic farmers and vineyards, so she scoured the world to find them.

What are the Scout and Cellar products?

If you’re considering joining an MLM, it’s important to understand the products being sold. In the case of Scout and Cellar, they’re a winery that sells “Clean Crafted Wine”. But what exactly is “Clean Crafted”? According to their website, it means that their wine is made with organic grapes and without any added chemicals, sugars, or synthetic pesticides.

Their wine collection includes four types: Sparkling, White, Rosé, and Red. Each type has detailed information about its history, taste, origin, and what makes it unique. Prices range from $19 to $48 per bottle, with the priciest at $48.

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Where Does Scout And Cellar Wines Come From?

Scout & Cellar sources their wines from all over the world, collaborating with farmers and manufacturers who share their Clean-Crafted Devotion. They go the extra mile by visiting wineries, inspecting storage facilities, and eating alongside winemakers to ensure the wines are of the highest quality.

The Clean-Crafted Distinction is the hallmark of Scout & Cellar wines. To earn this distinction, their wines undergo two rounds of private lab testing to ensure they’re free of artificial pesticides, chemical additives, and contain less than 100 ppm of total sulfites. They evaluate and review several methods of growing and manufacturing wines to ensure they meet their high Clean-Crafted standards.

So why do they do this? Because they hold themselves to a higher standard than the norm. Standard wines can contain up to 350 parts per million of sulfites, as well as other ingredients that aren’t required to be disclosed on the label. These include artificial pesticides, genetically-modified ingredients, and even sweeteners like sugar concentrate.

Scout & Cellar wines, on the other hand, contain fewer ingredients. In fact, their wines only contain grapes, less than 100 ppm of sulfites (often less than 50 ppm), and about two grams of carbohydrates per five-ounce serving.

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Scout And Cellar Compensation Plan

If you’re curious about the Scout and Cellar compensation plan, we’ve gathered some information to help you understand how it works. As a consultant, you’ll earn commissions based on the products you sell, and you can also receive bonuses for exceptional performance.

Product Sales Commissions

The commission rate you earn on product sales depends on the total value of your sales. Here’s how it works:

  • 12% commission on sales worth $500 or less
  • 15% commission on sales worth more than $500 but less than $1500
  • 20% commission on sales worth more than $1500 but less than $3000
  • 25% commission on sales worth more than $3000

Rank Advancement

In Scout and Cellar, you can advance to higher ranks by achieving specific sales goals. Here are the ranks you can achieve:

  • Consultant: The starting rank, achieved by registering and paying a $249-pack fee.
  • 2nd Consultant: Requires a personal sales volume of $200 and a downline volume of $500.
  • Executive Consultant: Requires a personal sales volume of $300 and an indirect sales volume of $800.
  • Associate Manager: Requires a sales volume of $400 and a downline volume of $1500.
  • Senior Manager: Requires $500 in personal sales and $3000 in downline volume.
  • Executive Manager: Requires $600 in personal sales and $2000 in downline sales.

Once you reach the fourth rank, there are additional requirements related to legs in a binary compensation scheme.

Retail Sales Commissions

In addition to the product sales commissions, you can also earn commissions on retail sales. The commission rate depends on your sales volume:

  • Less than $499: 12% commissions
  • Between $500 and $1499: 15% commissions
  • Between $1500 and $2999: 20% commissions
  • More than $2999: 25% commissions

Residuals (Binary)

Scout and Cellar also offers a binary compensation scheme, where you can earn additional income based on your rank and the levels from which you can make money. The commission rates vary depending on your rank and the level.

Bonus Opportunities

Scout and Cellar offers bonus opportunities for exceptional performance. For example, there’s a fast launch reward scheme where you can earn a bonus by selling $2000 within your first four months. You can also earn advanced incentives for each level you reach and each representative you mentor who progresses.

How Much Does It Cost To Join Scout and Cellar MLM?

If you’re interested in becoming a wine consultant for Scout and Cellar, you’ll need to purchase their Business Basics Kit (BBK). The kit costs $249 and includes four bottles of wine as well as promotional materials to help you get started. But that’s not all you get for your money! Here’s a breakdown of what’s included:

  • A six-bottle insulated carrier, perfect for transporting wine to tastings or events
  • Wine makers to help you learn about the wine-making process and improve your tasting skills
  • A Pulltaps corkscrew for opening bottles with ease
  • A one-and-a-half oz gauged pouring spout for serving wine accurately
  • The genuine Vacu Vin wine saver to keep your wine fresh after opening
  • Your own personal Scout and Cellar webpage for a year
  • Business building and promotional kit to help you market your wine business

In addition to the BBK, you’ll also get access to a portal called The Cellar, which costs $99 a year. This website allows you to manage your business and connect with other Scout and Cellar consultants.

One of the great things about working with Scout and Cellar is that there are no monthly sales quotas to meet. However, you will need to maintain a personal sales volume total in order to remain active.

When you sign up to become a consultant, you’ll need to accept their policies and sign an agreement to get started. Once you’re up and running, you’ll earn money based on how many people you can recruit and how much wine you can sell.

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Can You Really Make Money With Scout And Cellar?

Let’s face it, Multi-Level Marketing (MLM) can be a tough nut to crack. While it’s true that you can earn some serious cash if you put in the time and effort, the reality is that most people who join an MLM end up losing money instead of making it. In fact, a report by the Federal Trade Commission from 2011 shows that 99% of recruits don’t make any money and that 100% of MLMs are focused on recruiting new members rather than selling products. This means that only a small percentage of top-tier promoters receive the bulk of the commissions.

So where does Scout and Cellar fit into all of this? Well, the truth is that it operates in a similar way to most other MLMs. While it is possible to make some money with this company, the odds are not in your favor. If you’re looking for a reliable and sustainable way to make money, then it’s probably best to look elsewhere.

Final Verdict

If you’re thinking about joining Scout and Cellar to earn some extra cash, I wouldn’t recommend it. After taking a closer look, I found that this company doesn’t offer any training for its employees, which could make it tough for newcomers to sell their products and compete with online and store-bought options.

Plus, it’s not easy to recruit people to join your team unless you’re tapping into your personal network. And even then, I haven’t seen many success stories from MLM programs like this one. More often than not, people end up losing money and wasting their time.

But don’t worry, there are plenty of other ways to make passive income online. In fact, I’ll share with you the easiest and most legitimate method in the next section.

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The Best Alternative to Scout and Cellar MLM For Making Money Online

If you’re searching for an alternative to Scout and Cellar to start your online business, you should check out Wealthy Affiliate. It’s a one-stop-shop for building your own affiliate marketing business, even if you’re just starting out.

When you sign up for Wealthy Affiliate, you’ll have access to top-notch web hosting services, keyword research tools, community support, in-depth training, writing tools, and other software to help you build your online business from scratch. Plus, you can register for a free account, which lets you get started with affiliate marketing without spending a dime.

If you like what you see, you can upgrade to a premium membership to gain access to all the features Wealthy Affiliate has to offer. There are no hidden costs or upsells.

But what kind of income can you make with Wealthy Affiliate? Well, one 21-year-old student made $7,395 in just one week, thanks to what he learned from Wealthy Affiliate. That’s more than $1,000 a day!

You can read our full review of Wealthy Affiliate here.

Wealthy Affiliate Testimonial

You may read our article about the difference between MLM and affiliate marketing.

Wealthy Affiliate has been around for 15 years, and it has more than a million members. So, you can see how popular this platform is. It has many success stories from the past decade, which proves that it is a reliable platform for affiliate marketing.

If you want to join Wealthy Affiliate, the pricing is simple. You can choose between a free starter membership and a premium membership, which costs $49 per month or $395 per year. You can sign up for the free starter membership without providing any credit card details, and you can stay a free member for as long as you like.

As a starter member, you can access the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, and the keyword tool. All these benefits are available to you at no cost, so you can try out the platform and see for yourself if it’s a good fit for your business.

In conclusion, Wealthy Affiliate is an excellent alternative to Scout and Cellar for anyone who wants to start an affiliate marketing business. Sign up for a free account today and start building your online business!

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