I’m surprised it didn’t happen sooner. As we review MLM companies, Direct Cellars stands out as it takes on an industry that has never successfully paid on a multi-level plan. Although it was already a national wine club before completely forming it’s MLM compensation plan in 2016, Direct Cellars is now catching the ears, and tongues, of networkers everywhere.
The Direct Cellars Company
Based in Florida, Direct Cellars distributes wine to by mail to 48 of the 50 states (Utah and North Dakota, I believe, are the only two states that don’t allow wine shipments).
Originally they started as a typical wine club with monthly shipments of wine to their customers consisting of wines from boutique wineries from around the world.
A Move to MLM
In 2016, Direct Cellars changed their marketing strategy and went all-in on a network marketing model. Network marketing simply allows someone to build their own sales team and get paid based on the sales of their team.
You can see by the Google Trends chart, that the interest has started to climb since opening their MLM plan:
As many of you know, some of the most complicated, yet important, functions a network marketing company has to master is shipping product on time, and paying on time.
Even in a pre-launch phase, there hasn’t been a hiccup yet that’s been visible to the distributors which is likely due to the success of the company prior to being in network marketing – they’ve already worked all of those bugs out. That’s great news to distributors who are getting in early as it’s less likely Direct Cellars will have a fatal fumble early-on.
Direct Cellars Wine
Sourcing artisan wines from boutique wineries and vineyards from around the world is no small feat, and Direct Cellars is doing it nicely. As customers ourselves, we can attest to the quality of the wine, but also the timely shipments.
Ordering online and selecting a monthly wine shipment is easy. Either 2 bottle or 4 bottle options are available for both customers and distributors and either can be made up of your choice of red or white wines.
I’m always picking up wine as party gifts, so having wine on hand that is high-quality is wonderful. If you’re in any type of sales industry, having bottles for clients is also a win.
What’s amazing here, is that even as a customer – you can refer people to the wine club and get your wine for free after 3 of your referrals join. They can even join as a lower-volume customer than you!
The Direct Cellars Compensation Plan
Direct Cellars offers a binary on the front-end and a 9 level uni-level plan on the backend. It’s a strategic move to offer a high-paying binary pool that could mean a full-time income all by itself, but the uni-level is really where the long-term residual opportunity is.
Three and It’s Free
The first phase of the compensation plan is simply referring 3 customers or distributors to the club, making your monthly club membership completely free. Again, this is true even if your customers are paying a lower amount per month than you!
A fast start bonus of $125 or $250 is paid on new distributor enrollment. The cost for a distributor to enroll is either $250 or $500. The $250 gets you 4 bottles of wine up front and the $500 gets you 12 bottles. Obviously, if you’re planning on having wine tastings and bringing people in, 12 bottles is great to start.
After that, the monthly cost of the subscription is just $50 for 2 bottles, or $80 for 4 bottles.
The Binary Comp Plan
A binary compensation plan is simply referring to 2 legs – a left and a right. As people come into the business, new distributors spill-over to distributors below and fill out the binary legs.
At the end of the pay period, a calculation is done and you’re paid up to 20% on the calculated volume. Typically in binary plans, you’re paid a percentage of the smaller leg each period.
Although this can get distributors earning money quickly, it’s typically not regarded as a safe long-term compensation plan all on it’s own.
The Uni-level Comp Plan
The uni-level part of the plan consists of your personal organic network of distributors. Everyone you enroll would be on your first level, their direct enrollees on your second level, and so on.
Direct Cellars pays through 9 levels on their uni-level plan.
The uni-level is the most secure long-term plan for distributors and companies. It’s predictable, which leaves no surprises or conflicts for the company to deal with. It’s also stable for the distributors because as the team grows and stays (we’ll talk about retainment in a moment), the volume grows and creates a stable base of sales for commission to be paid every month.
The check-match bonus from Direct Cellars gets paid directly to you, up to 10% on the earnings of your first 4 levels in the uni-level part of the pay plan.
This really encourages team-building and support and we love it anytime we see a company add in a check-match bonus to their pay plans.
The Elephant in the Room
Retention. The retention rate in network marketing companies is historically bad. Think about it – when someone get’s on a shake diet and get’s into a bit of a groove. How long do they stay on it? 30 days? 60? Maybe…
But whenever they revert back to their built-in habits and the next auto-shipment hit’s their bank account. You can bet the guilt sets-in and they’re cancelling.
No matter how high quality a product is, it takes a major breakthrough to hack a human’s behavioral patterns.
That’s another 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 they either give it away or keep it on hand for guests.
Wine is a product that needs no introduction, it’s very easy to share, and because it’s VERY easy to get for free (just referring 3 customers), the retention rate is likely to be big – which blesses distributors with predictable income.
Join Direct Cellars
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