Is Scout & Cellar an MLM? Let’s Spill the Wine

If you landed here, you probably Googled something like, “Is Scout & Cellar a pyramid scheme?” after someone slid into your DMs asking if you “want to join the wine biz” or try some “clean-crafted” wine. Let’s not beat around the bush. Yes, Scout & Cellar is a multi-level marketing (MLM) company.

Wait… What’s an MLM Again?

MLMs are basically legal pyramid schemes. They sell a product (in this case, wine), but the real money comes from recruiting people into your downline. You’re paid based on what your recruits (and their recruits) sell, not just what you sell personally.

So, What Is Scout & Cellar?

Scout & Cellar is an MLM that sells “clean-crafted” wine. This means that the wine is supposedly free of pesticides, synthetic additives, added sugar, and most sulfites. Their CEO, Sarah Shadonix, refers to these things as “yucky stuff.” Personally, I don’t trust adults who say “yucky” or “yummy” unironically.

Also, fun fact: sulfites don’t cause headaches. If they did, raisins would be the enemy. But hey, that’s another post for another day.

The Consultant Starter Kit: A $249 Entry Fee

On Scout & Cellar’s website, there’s a big “Become a Consultant” button. If you click it, you’ll learn about the Business Basics Kit, which includes four bottles of wine, some shareable marketing materials, and a few “must-have” items.

The cost to join? $249 up front and $99.95 each year after that. If you live in North Dakota, congrats, you’re legally protected from being forced to buy the kit.

The page is full of testimonials about freedom, flexible income, and professional skills. A lot of it sounds like corporate-speak for “I now spend my evenings DMing strangers on Instagram.”

Reading the Fine Print (So You Don’t Have To)

Curious and mildly skeptical, I clicked “get started” and actually read the terms and conditions. Here’s what stood out:

🚩 You’re Not an Employee

“Consultants shall not be treated as employees of Scout & Cellar… including tax purposes or retirement benefits.”

No benefits, no retirement plan, no protections. You’re an independent contractor.

🚩 You Cover Your Own Expenses

“Consultants are solely responsible for paying all expenses incurred… including license requirements or fees.”

Unlike a typical company that might reimburse you for work-related costs, everything here comes out of your own pocket.

🚩 You’re Not Technically in the Wine Business

“I represent and warrant that I am in the business of marketing, promotions and education.”

Then why does the website say “Want to join the wine business?” Someone’s not syncing their messaging…

🚩 You Pay to Work

“I agree to purchase a non-commissionable Business Kit… and to pay any renewal fees.”

Paying a company to work for them? Sounds backwards because it is.

🚩 Here Comes the Downline

“A Consultant’s ‘Downline’ includes the group of Consultants directly mentored by that Consultant…”

Here’s where the pyramid shape starts to take form. Downlines = the MLM business model.

More Red Flags: Policies & Procedures Edition

The terms and conditions aren’t the only place you’ll find red flags. Their policies and procedures are full of them too:

“The Program is defined as… marketing… mentoring… building a downline… advancing through levels… etc.”

So yeah, it’s not just about wine. It’s about climbing that MLM ladder.

“Consultants may mentor other persons… [but] earn commissions only from marketing and promotion.”

You technically don’t get paid for recruiting people, but you do get paid from their sales. Tomato, tomahto.

“Consultants may not make income claims, share checks, or show bank statements.”

This one’s actually a good thing, too many MLMs use fake flexing to lure people in. But still, it raises the question: if people were making real money, wouldn’t the company want them to talk about it?

Let’s Talk Numbers: How Much Do Consultants Make?

Consultants earn based on monthly sales:

• $0–$499 = 12% commission

• $500–$1,499 = 15%

• $1,500–$2,999 = 20%

• $3,000+ = 25%

But it resets each month. If you sold $3,000 worth of wine every single month for a year, you’d only make $9,000. That’s a lot of wine for a pretty low payout.

And that’s just personal sales. You can also earn from your downline, but the payouts are tiny. If two people in your downline each sell $700, you’d make under $45. That’s… not great.

So what do consultants do? Recruit more people. And those people recruit more people. Before long, your business model starts looking suspiciously pyramid-shaped.

The FTC Has Entered the Chat

According to FTC research, 99% of people lose money in MLMs. Let that sink in.

To break even on your $249 kit, you’d need to sell at least $1,670 in wine. That’s assuming no other expenses and you and I already know there will be.

Final Sip

I’ll leave you with this gem from Scout & Cellar’s policies:

“Consultants may not use blog spam… Comments Consultants create or leave must be useful, unique, relevant, and specific to the blog’s article.”

So, to any consultants reading this: Please keep it classy in the comments.

2025 Update Disclaimer

This post was updated in 2025. Since the original version, Scout & Cellar has expanded to include coffee alongside wine. Because what’s better than waking up with a latte and ending the day with a Chardonnay you maybe paid too much for?

Also, companies change! Policies may have shifted, rebranded, or been legally forced to sound nicer. If you’re considering joining, please read the most up-to-date documents on their website… and maybe talk to a financial advisor, a lawyer, or your most skeptical friend.

And no, this isn’t blog spam. It’s just a very specific and lovingly researched roast.