Wine of the Month Club:Direct Cellars MLM Review
Name: Direct Cellars
Price: $249 -$499
Membership: Premium Wine Lover, Premium Wine Lover Elite
Owner/Operator: David Distefano
Training: Online & Mentorship, Webinars, Conference Calls
Support: Up Line
Danger! Danger! Another MLM…
I told myself a million times, I would never get involved in another MLM ever again.
But this one was distributing WINE!
I had been looking for a wine of the month club, and this one was linked to an MLM.
I suffer from MLM Exhaustion. This comes from being a member of various MLMs’ over the years. Each one promised to be the answer to my financial woes. Each one was not.
Somehow, I became a member of MLM after MLM, sometimes as a favour to others, sometimes because of the miracle product that was going to (Fill in the Blank).
I can blame no one but myself. I am accountable. Yes, Your Honour, I joined AGAIN.
Each time, I would attend yet another meeting, and be sitting there thinking “If that guy is doing so well, earning so much money, why is he schlepping himself to these high pressure, high performance meetings, in the middle of January, when it is -30° outside? If I was earning that much, I would be on a sunny beach…
In addition to that I was struggling to buy product each month, that was overpriced, and I really did not need, just to qualify for another month???
How Dumb Could I Be?
So after that last one, which was in 2002, I vowed there would never be another MLM that could possibly make me join…As God As My Witness, I Will Never Be Hungry Again… opps, wrong day dream….
Never Say Never…
I saw a small FaceBook ad for an MLM with a single product: Wine!
My first thought was: Brilliant. My Second thought was: Danger!
I did not respond to the ad for a couple of reasons. I did not want to get onto someones call list so they could start pestering me. I wanted to find out as much as I could before I broke my vow. I also wanted to find an up line in Canada.
Wine of the Month Club Goes MLM
The name of the company is Direct Cellars. They refer to themselves as a Wine of the Month Club. They are the FIRST MLM to have wine as their product.
Their slogan is Get In. Get Wine. Get Social.
It is true, their only product is wine.
They claim there is no selling. Turns out this is true. You see, wine has alcohol in it, hence it would be illegal for an individual who does not have a liquor licence, to sell any of the wine they have received. The wine that is purchased monthly is for consumption only, which included sharing with others. Makes sense.
Ok, so this means I only have to deal with one product that is pretty straight forward. I have been in MLMs’ where you needed a Masters’ Degree to explain the compound in the health drink you were trying to unload.
Not much to explain about wine, red or white, the name of the grape and where it is from. Cool.
Another marketing tool they use is to quip “Drink Wine For FREE” here is what they mean by that: if you are a member who is not hell bent on building a business, all you have to do is recruit 3 new members who will hopefully be duplicating what you are doing. Of course if your goal is to have free wine and make extra cash, your recruiting will be ongoing.
Another claim of Direct Cellars is that their compensation plan is refreshingly simple. I would believe that until I hear the word Binary…..
The Direct Cellars plan is a binary plan which they call Dual Team Pay. This is a fancy name, but it is still a binary plan, where you have 2 legs and each side needs to be qualified with a personally sponsored member.
I am not a good person to ask to decipher the ins and out of a binary compensation plan. Thank goodness they have infographics that explain everything!
They have a Fast Start feature that seems to be an incentive to get a commitment from a member.
And they have their “Refer 3 and It Is Free” program.
The bottom line is that the compensation plan is actually quite simple.
Retention is always problem in network marketing. MLMs.net says “when someone gets on a shake diet and gets into a bit of a grove. How long do they stay on it? 30 days? 60? maybe…but then they revert back to their built in habits and the next auto shipment hit’s there bank account. You can bet the guilt sets in and they’re cancelling. That’s the reason why we love Direct Cellars. People are ALREADY buying wine. most people love it, and most people i know who don’t love it, buy it anyway because either give it away or keep it on hand for guests. Wine is a product that needs no introduction, it is very easy to share, and because it’s VERY easy to get for free, the retention rate is likely to be big-which blesses distributors with predictable income.
The product, of course, is wine. You can choose a membership at 4 bottles per month as a Premium Wine Lover, or 12 bottles per month as a Premium Wine Lover Elite. You are allowed to choose your ratio of Red to White. Each month there is a new wine, as selected by the Wine Whisperer. They offer a Satisfaction Guarantee, which means you love the wine or they send you a new bottle, no questions asked.
The wines are premium, and come from all over the world. There pricing, per bottle is reasonable.
The wine is delivered to the door by UPS, and someone over the age of 21 must be there to accept delivery. Shipping is FREE.
I love this part:
Since you are consuming your product, or share it through your business, or socially, there is no hording product, taking up space in your garage.
Another tip about creating a business with this company: the wine becomes tax deductible. By extension, any wine you buy, at a restaurant or elsewhere, also becomes a tax deduction! Score!
Who might benefit from this Program?
The obvious answer to this would be anyone who loves wine, to be sure.
One specific group that would be able to dovetail this into their existing career are Real Estate Agents. They do not have to do anything that they are not already doing. Wine is an ideal open house gift or gift at close, or any circumstance where a gift is offered. Turn the open house into a wine tasting, with Direct Cellars business cards on the table. They are often already giving a gift of wine, they could make it income producing.
A strategy is to give the wine to the new client, and a one year membership to Direct Cellars. When their year is up, they let the client know they can continue by becoming a member. Thus the Realtor has created a passive income that coincides with the real estate business, and continues AFTER Real Estate ends.
It allows the real estate agent the opportunity to have ongoing contact with their clients.
Does any MLM ever really create a passive income? I suppose it does, for those who work like dogs, to get to the level of recruitment that is truly passive.
However, with so simple work input, I believe it is possible to make extra income, and create a favourable tax situation.
The primary method of presenting this business is through Wine Tasting Parties. The is one meeting where people actually show up, and they bring their friends! Most people are receptive to and invitation to a free wine tasting.
To Sum Up:
There are a few disadvantages to this company.
This company originated in the USA. However, it is not available in all states (Alabama, Arkansas, Delaware, Kentucky, Mississippi, North Dakota, South Dakota, Oklahoma, Rhode Island, & Utah) It has recently opened in the UK and is slated to open next in Canada and Australia.
There are restrictions on delivery: they only deliver to areas that accepts UPS delivery, which does not include outlying areas.
If you are a wine drinker, this is the club for you. With minimal effort, you can get to the level of where your bottles of wine free each month.
Every career Real Estate Agent should definitely get together with a Direct Cellars representative to understand how this program could enhance their income.
The cost of this business is not prohibitive.
There is nothing to learn, the product is wine!
It is very low pressure, have a wine tasting, people will show up!
It can also be fun!
My Rating for Direct Cellars is 98/100. They loose points because of recruiting, and I dislike recruiting. This can be done 100% online, which is fare more duplicatable than old school recruiting. I find this more manageable.
With Direct Cellars, you can work towards getting your wine for free, and you can also create a business that will earn you extra cash.
On a Different but Related Note:
If you are looking to earn a steady income, without ever leaving your home, then I have an exceptional recommendation.
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For a more detailed description, click here, to see my somewhat whimsical review of Wealthy Affiliate.
If you have questions or comments, I welcome them below.
This post may contain affiliate links. Please read my disclosure for more info.