Is Direct Cellars a Scam? What You Should Know About This Business Opportunity

If you are a wine enthusiast looking to make money from home then it is no wonder that Direct Cellars caught your eye. But what you need to know is that although this sounds like the most amazing opportunity every, it isn’t all it’s hyped up to be.

If you are wondering is Direct Cellars a scam, I can assure it is not. But while you can make money with your own Direct Cellars business, and possibly a heck of a lot of it, there are some serious downsides to this business that you need to be aware of. In this review I’m going to be bringing these downsides to life so you know what you are getting yourself into if you do end up joining.


direct cellarsDirect Cellars Business Opportunity Review

  • Name: Direct Cellars
  • Website: directcellars.com
  • Price: $249.95 minimum to join
  • Recommended?: For some, more on this

To be clear, I am reviewing the business opportunity that Direct Cellars has, not the products themselves.

Overview Of The Company

Direct Cellars was started in 2014 by David DiStefano. They specialize in selling wine and offer memberships where you can get new wines sent to your home each month.

The reason you are here is because of how this company is built upon “direct selling”, which means that anyone can become a member and start their own Direct Cellars home based business, selling wines to customers and making money.

Another important aspect of this company is there compensation plan, which is mlm in structure. This means that you can recruit new members into the business and earn commissions from their efforts.


The Cost of Getting Started

If order to get started you will have to become a member by purchasing one of their packages.

These packages include business materials such as a website and back office access, as well as wine club access where you can choose to get wines each month.

There are 2 packages you can choose from if you want to become a distributor yourself. These include

  • Premium Wine Lover
    • Costs $249.95 one time payment
      • Get 4 bottles of wine along with a business package that includes a website and access to their back office
    • $79.95/month for 4 bottles of wine
  • Premium Wine Lover Elite
    • $499.95 one time payment
      • Get 12 bottles of wine along with a business package that includes a website and access to their back office
    • $79.95/month for 4 bottles of wine

They really push you to purchase their most expensive package Premium Wine Lover Elite for $499 but this is just to make more money and you don’t have to. The only real reason to purchase the more expensive one would be if you are a major wine connoisseur, because both packages give you the same business materials and opportunity.


The 2 Ways to Make Money

In this business you will be able to make money in 2 main ways. You will be able to make direct sales to customers and you will be able to recruit in new business builders.

Customer Sales

This is when you get someone to buy wines as a customer. They can purchase a monthly auto-ship membership or they can just buy a one-time order.

Recruiting

This is when you get someone to buy the Premium Wine Lover or Premium Wine Lover Elite package where they will get wine as well as access to the business opportunity.


The Compensation Plan Explained

There are 4 ways to make money with this comp plan, all of which stem from the 2 main ways I just briefly went over. There is the Fast Start Bonus, the Binary, the Uni-level, and the Check Match.

Fast Start Bonus

The FSB is the fastest way to start making money. This is a bonus you will receive instantly for recruiting a new members.

You earn 50% of what they purchase. So if they buy the Premium Wine Lover Elite package for ~$500 then you will make ~$250.

Binary

You can start earning commissions from people you recruit into the business once you have 2 personally sponsored business builders.

“Bi” means 2, and once you have two people beneath you the binary structure opens up.

The amount you can make depends on your rank. You will start out at the Wine Enthusiast rank which means you will only earn 6% off of the weaker binary leg. But once you move up the ranks you can make as much as 20% off of the weaker leg.

I’m not going to get into all the ranks, but all you need to know is that if you want to move up the ranks then its all about recruiting more members in.

Uni-level

Your uni-level consists of the level directly beneath you which is made up of all the people you personally recruited into the business as distributors.

You get paid 10% commissions on the auto-shop volume of your entire first level.

The cool thing is that this goes 9 levels deep. The commissions decrease with the level as follows…

  • level 1: 10%
  • level 2: 5%
  • Level 3: 5%
  • Level 4: 4%
  • Level 5: 4%
  • Level 6: 3%
  • Level 7: 3%
  • Level 8: 2%
  • Level 9: 2%

And you earn these percentages on all of these levels for the monthly auto-ship volume alone.

Check Match Bonus

Basically this bonus is a percentage that you get as a bonus depending on your team’s success.

You will earn a check match bonus based on the commissions that your team members make on the binary and uni-level.

You will receive a certain percentage of what they make as follows…

  • Level 1: 10%
  • Level 2: 5%
  • Level 3: 4%
  • Level 2: 3%

So if one of your personally recruited members gets a binary check for $200, you will get 10% of that which is $20. And if one of the people that person recruited (2nd level) gets a binary check for $200, then you will get $10… and so on.


The Real Way To Make Money

The bottom line here is that the only way you are going to make good money is if you take full advantage of the mlm structure that this business has.

You aren’t going to make good money just getting customers. You need to go out and recruit new business builders like crazy so that you can make money off of the money that they make. You are going to have to be a recruitment machine.

Everyone that actually makes good money in this business knows this is how it works. You have to build up that base beneath you and go out and recruit like a mad man.


Isn’t This a Pyramid Scheme?

Is Direct Cellars a pyramid scheme?

I decided to add this section in here because I know there are a lot of people asking this.

The answer is no… although they lean slightly toward being one.

A pyramid scheme’s revenues rely too heavily on recruiting new members into the business rather than sales to the general public. And although Direct Cellars does really push towards recruitment, I don’t think it could be reasonably classified as a pyramid scheme. I would just call it a shady mlm.

Related Reading: Difference Between MLM’s and Pyramid Schemes


This Isn’t Easy

This might sound like an awesome opportunity but the fact of the matter is that being successful in mlm businesses like this is quite a hard task.

Like I said above, you HAVE to be a recruitment machine. And if you are.. then you might be able to make it. If you aren’t, then you don’t have a very good chance.

With mlm’s like this over 95% fail to bring in a full-time income.


Final Thoughts & What I Recommend

First off, Direct Cellars is not a scam, although they may be a little on the shady side due to how they really push you to go out and recruit more business builders. But that alone doesn’t make them a scam.

They provide some very good wines, from what I’ve heard and read. So I can’t complain there.

I would recommend this business opportunity to someone who loves wine (obviously) and who has the sales person type of personality. Because if you can’t recruit you aren’t going to make it. So if you have a knack for sales and a love for wine, this just might be what you are looking for.

If you are like me and are just not the salesperson type and don’t think a recruitment style business like this is right for you.. and you want another option for making money with your own business, you should take a peek at how I make a living working online (link below). I work for myself online and its a pretty awesome career. In the post I wrote I explain what it is that I do, how it all works, and how others can do the same.

–> Click Here To Read It

Comments, questions, concerns??? Leave them below in the comment section and I’ll get back to you soon  🙂

Kyle

My name is Kyle and I am the owner of Online Financial Success Story. I created this website in 2015 to teach others how they can make money online. To learn how I make a full-time income online, Click Here

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