Direct Cellars is one of the many mlm opportunities to make money selling wines.
Direct Cellars claims to be the owner of the 3rd largest wine club in the world. However, I am unable to confirm this.
Since we are discussing the Direct Cellars business opportunity, there no need to investigate the wine club ranking.
I understand you are searching for an opportunity to build a life dream of financial freedom, and you are interested in the Direct Cellars distributor business opportunity.
Hello and welcome to our mlm coffee talk.
It smarts for you to stop by and read this Direct Cellars review before investing with the program.
In this review, we’ll discuss the following:
- What is Direct Cellars?
- How to become a Direct Cellars distributor?
- The costs to launch a Direct Cellars wine distributing business?
- Can you make money with Direct Cellars? And
- Is Direct Cellars business scam or legit?
Reading this Direct Cellars review, you should be able to decide if this is the right opportunity for you to achieve your financial goals and dreams.
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Direct Cellars Review Summary
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Name: Competitors: |
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Business Opportunity: Initial Investments: Annual Revenue: $25 Million |
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NO FACE-2-FACE SALE – NO RECRUIT – JUST PASSIVE INCOME
CHECK OUT THIS #1 HOME-BASED BUSINESS
What Is Direct Cellars?
Direct Cellars is a wine company that adopts the mlm business model to distribute and sell premium wines. The company offers people a cheaper alternative to start a wine business by signing up as a distributor, which they refer to as “Business Partners”.
Direct Cellars business was launched by David DiStefano in 2014 which began as a small internet wine club.
At the time of writing this review, Direct Cellars estimated sales revenue is $25 Million, which is considered to be a small and risky investment.
Being a small mlm company, Direct Cellars has room for growth and expansion.
A big warning to all investors is, Direct Cellars doesn’t publish the income disclosure statement (IDS)Guideline This document provides important financial information regarding the profits and losses of operating a Direct Cellars business.
You must carefully evaluate and compare Direct Cellars business with other home-based opportunities before joining.
You can use My #1 Business Opportunity to make a comparison.
Become A Direct Cellars Distributor
You will need a sponsor to become a Direct Cellars distributor.
However, if you don’t know a distributor, you can still join, and Direct Cellars will assign a sponsor.
To build a business and make money with Direct Cellars, you are required to purchase a business building package, remain active, and qualified for commissions. I’ll discuss all of these requirements in the next sections of this Direct Cellars review.
The Cost To Become A Direct Cellars Distributor?
The cost to become a Direct Cellars distributor is $249.95 or $499.95, depending on the business building package you purchased.
Both packages come with products and marketing materials for you to launch your Direct Cellars business. The difference is the commission rate. The $499.95 package offers the highest commission, 40%.
Besides the cost of the business building package, you must maintain an active and qualified status to make money with Direct Cellars.
All Direct Cellars distributors must pay a $99.95 monthly wine membership fee.
To remain active, distributors are required to generate 40 QV (Qualifying Volume) each month, approximately $75.95 or more.
A qualified distributor is a distributor with two active recruits, one on the left leg and one on the right leg.
There are other qualifications required according to your leadership rank, which I’ll discuss in the compensation plan section of this Direct Cellars review.
As you can see, the cost to join Direct Cellars is more than the business building package. You must purchase products every month to stay active and qualified to receive the commissions.
Direct Cellars business is a Pay and Play opportunity. If you want to earn, you have to pay.
Any distributor fails to maintain an active and qualified status is not allowed to receive the bonuses and commissions.
The expenses above do not include your time, the marketing costs, travel expenses, and gas.
Purchasing wines to maintain the active and qualified status can destroy your business profits if you cannot resell them. They become business losses.
Other home-based businesses, such as Affiliate Marketing, you earn the commission on every sale, no need to be active and qualified.
To learn why mlm opportunities, such as Direct Cellars, require distributors to maintain active and qualified status, you should read our discussion on the FTC MLM Guideline.
Direct Cellars Compensation Plan
It’s very difficult to make money under the Direct Cellars compensation because it adopts the binary system, and the commissions are calculated using QV not dollars.
Qualifying Volume (QV) is points assigned to each product by Direct Cellars.
Binary means you must build two successful teams, the right and left, to make money. So, to qualify for downlines commission, you must recruit a minimum of 2 active distributors.
To determine your commissions on each order, you must first look for the total QV.
Let say you have an order of $75.95 with a total of 40 QV. You at the 40% commission level. For this order, you earn $16 (40QV x 40%), not $30.38.
Now, I’ll provide a brief explanation of the Direct Cellars compensation plan
below. To see the full version, just download a copy to read later.
There are two options to make money with Direct Cellars: selling products and/or building a team.
Make Money Selling Wine
As discussed above, your retail commission rate is based on the business building package you have purchased, either 20% or 40%.
You earn the retail commission by making sales at in-home wine parties, through your own Direct Cellars replicated website or by purchasing products to resell.
It sounds simple to make money, right?
But, can you sell Direct Cellars wines on the market?
I visited Direct Cellars website and found the wine prices were very competitive.
A wine bottle starts at $30 for retail and $20 for members.
If you are a wine drinker, you know that it’s not easy to decide the wine price by looking at the bottle.
I think Direct Cellars wine prices are reasonable.
Make Money Recruiting Others
As long as you remain active and qualified, you have an option to make money, recruiting others to join your team.
Fast Start Bonus
A one-time Fast Start Bonus is earned when you personally enroll a distributor purchasing either a Premium or an Elite business building package.
You will also earn a fast start bonus when your preferred customers recruited a distributor that purchased one of the business building packages.
Unilevel Bonus
Direct Cellars offers between 2% to 10% of unilevel bonus up to 9 levels determined by your title.
To receive any this bonus, you must maintain active status, qualified, and achieve the rank title by satisfying all the sales quota requirements for that title.
Dual Team Pay
You must at least achieve the title rank of Wine Enthusiast to receive Dual Team Pay.
You can potentially earn between 6% to 20% commission every time both teams reached the total sales volume of 400 BV.
There are other leadership bonuses and incentives which require more purchasing of wines to qualify. You should refer to the compensation plan for more information.
As you can see, there are multiple ways to earn with Direct Cellars. But to get paid, you must maintain an active and qualified status.
This is how mlm works. Ways to earn is not the same as qualifying to receive the commissions.
You can potentially earn nothing with Direct Cellars because the costs to maintain an active and qualified status might exceed the commissions received.
Can You Make Money With Direct Cellars?
You need the Direct Cellars income disclosure statement (IDS) to determine whether you can make money with this opportunity, not the compensation plan.
The IDS is a financial document that reports distributors’ income for the prior year.
Mlm company with high distributor failure rates rarely publishes the income disclosure statement. They don’t want the public to know. This might be the case with Direct Cellars.
So, how do you get a copy of the IDS?
You can request one at the time of enrollment. The law requires Direct Cellars to provide you a copy together with the compensation plan.
As a business review writer, I look to the actual incomes to evaluate a business opportunity.
If Direct Cellars refuses to provide you a copy of the income disclosure statement, don’t join. This is a bad sign. It’s a scam.
But you don’t need a copy of the IDS to know that 99% of mlm businesses failed.
Why?
Because the Direct Cellars compensation plan is not designed for you to make money. It’s designed for Direct Cellars to sell wine.
Just go back and review the compensation plan discussion above, why you think distributors must maintain an active and qualified status to earn commissions?
Is Direct Cellars A Scam?
Direct Cellars is using the multilevel marketing model to promote and sell wines, not for you to make money. This doesn’t make Direct Cellars a scam.
Direct Cellars is an mlm business opportunity. Every business has risks.
You are responsible to carefully research, study, and investigate the Direct Cellars business opportunity before investing.
Reading this Direct Cellars Review is a good way to learn the risks and rewards associated with this home-based business.
As the owner of an Online Business Review, I have evaluated hundreds of mlm businesses to help investors identified and discover the right opportunity to invest.
As a business opportunity, Direct Cellars business is not a scam. It is a very competitive, risky, and unprofitable business opportunity.
Is Direct Cellars A Pyramid Scheme?
Direct Cellars is a legit mlm company if they follow the FTC guideline.
But who invest in a business opportunity just because the company follows the laws?
You need to look at the company’s compensation plan and distributors’ income when evaluating an investment.
If you look at the Direct Cellars compensation plan, distributors are forced to purchase overpriced products to earn commissions.
Recruiting is the best option to make money. The more people you recruit, the more money you make. This is how a pyramid is built.
Distributors are customers of Direct Cellars. They are not business owners. They purchase products to maintain an active and qualified status.
Direct Cellars looks like a pyramid scheme.
Well, you don’t have to agree with me.
But you can’t deny that the compensation plan was designed to turn you into a customer, not a business owner.
Is Direct Cellars Worth It?
Direct Cellars is worth it if you enjoy drinking wine and love the discounts.
But as a home-based business opportunity, Direct Cellars is not worth the investment.
The chance of achieving your financial dream with this opportunity is near zero, impossible.
However, the decision to join the Direct Cellars is yours to make.
Let me ask you this,
Do you know why you want to start a home-based business?
To earn extra money from home, to be your own boss, or to achieve financial freedom?
And to make money, we invest in a PROFITABLE business!
There are much better and less risky home-based business opportunities.
If you want to be an owner of a lucrative and profitable business that generates six-figure passive income, then read my #1 recommended online business opportunity.
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One other business issue that you must consider before joining Direct Cellars is “Business Control”.
As a Direct Cellars distributor, you must obey Direct Cellars business rules and policies to make money.
You have ZERO control over what products to sell or how to promote your business.
What happens if Direct Cellars quit the mlm business or goes out of business?
All distributors are out of business! You lose everything and nothing you can do about it.
You start a business to build long-term incomes.
You want to create a system that generates money far into the future. Isn’t this the #1 reason you want to build a successful business?
There’s a lucrative method that I and millions of people have been using to generate six-figure passive income online.
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Direct Cellars uses the mlm opportunity to recruit customers, not business owners.
Don’t be surprised when only a few distributors at the top, with large team members, earn the most money. They make money from downlines purchasing wines to stay active and qualified.
If you join Direct Cellars to distribute and sell wines, you will be disappointed. I don’t think you are going to make a lot of money selling wines on commissions.
There are much better home-based business opportunities compared to Direct Cellars.
But the investment decision is yours.
I hope this Direct Cellars review answers your question, what is the Direct Cellars, a scam or legit?
Until next time.
Please share your own Direct Cellars experiences below.
