WineShop At Home offers a fulfilling lifestyle as well as the flexibility to work from home, part-time or full-time. Is WineShop At Home, however, a genuine opportunity or simply another MLM taking advantage of its salesforce?
Is Having a WineShop At Home a Good Idea? WineShop At Home does not disclose how much its Independent Wine Consultants make, in violation of the Direct Selling Association’s Code of Ethics.
According to industry statistics, fewer than 1% of WineShop At Home Independent Wine Consultants make a profit.
I share the six secrets you must know before becoming a WineShop At Home Independent Wine Consultant in this post.
Read the full article and watch the video, Why You Can’t Win with MLM, to have a better understanding of the enormous financial struggle you’ll face as an Independent Wine Consultant.
Spending a few minutes here may help you save time, money, and grief.
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Is Having a WineShop At Home a Good Idea?
If you like wine or want to get into it, and you’re thinking about starting a company with WineShop At Home, your initial impression may be that it’ll be both enjoyable and lucrative.
There’s a lot more to the tale, however.
WineShop At Home operates on a predatory business strategy that takes advantage of its salespeople. It’s unlikely that you’ll make more money from this opportunity than you spend on wine.
WineShop At Home is a multi-level compensation scheme called a “Career Plan” that is used by a direct selling business.
Multi-level marketing firms, or MLMs, are referred to by industry critics.
For the company’s founders and a few experienced marketers at the top of the salesforce, the MLM business model is ideal.
Unfortunately, the majority of MLM rank and file sellers do not make a profit.
In most cases, they will lose money and leave after the first year. Many people are in credit card debt.
WineShop At Home is another MLM that hides the reality about how tough it is to succeed.
WineShop At Home seems to be wary about implying that it is a business opportunity. Rather, it refers to the offer as a job chance.
The double-speak of WineShop At Home is only one of several warning flags.
As an Independent Wine Consultant, “you are NOT a company owner,” according to the WineShop At Home Training Manual.
It’s not a company, whatever WineShop At Home is selling.
The potential for revenue cannot be estimated without a record of how much WineShop At Home Independent Wine Consultants make and how much they spend on costs.
We infer that the potential for revenue as an IWC is commensurate with the industry norm since WineShop At Home deliberately withholds this information. Dismal.
According to extensive study, just around 1% of MLM marketers make a profit. A minimum wage part-time work pays more.
Because of the way the business model is organized, an MLM salesperson’s earning potential is bleak.
‘MLM is a game that is stacked against you,’ says Tracey L. Coenen, a corporate fraud investigator.
WineShop at Home does not seem to be a real opportunity since the business is not open about the entire cost of becoming an Independent Wine Consultant and the earning possibilities.
6 Unknown Facts About WineShop At Home
- 1WineShop At Home is a multilevel marketing company.
- 2Independent Wine Consultants (IWC) are individuals who do not own a company.
- 3The chances of making a profit are fewer than one percent.
- Every 90 days, 4IWC must produce $300 in revenue.
- 5According to industry standards, the majority of IWC will lose money and leave within a year.
- 6A market is rapidly saturated when using the Party-Plan marketing approach.
Why MLM Isn’t a Good Investment (Video).
Click to watch Why You Can’t Win with MLM if you don’t see the video.
You are the client.
The WineShop At Home Compensation Plan, often known as the Career Plan, is designed to generate money for the business at the cost of almost everyone in the salesforce.
A starting kit must first be purchased by an Independent Wine Consultant (IWC).
The Wine Gig Kit is $59.95, the Wine Cellar Entry Kit is $39.95, the Mini Kit is $79.95, the Starter Kit is $149, and the Premium Kit is $299.
An IWC will be charged $19.95 each month after the first month for a clone website and business software tools. There are also other expenses, such as purchasing business cards via WineShop At Home.
An important thing to remember is that an IWC pays WineShop At Home for the opportunity of generating money for the business.
If that understanding doesn’t give you pause, you haven’t grasped the magnitude of the situation.
This is something that no other industry does.
Most businesses do not expect their salespeople to get compensated for selling their goods.
WineShop at Home, like any other MLM, attracts individuals with the promise of a lucrative opportunity, only to convert them into consumers first and foremost.
A contract with WineShop At Home is also required for an Independent Wine Consultant.
The IWC’s conduct is restricted by this contract, which forbids her from working or engaging in other wine-related enterprises, as well as selling goods for other businesses.
Incentives and sales targets, as stated in the Career Plan, are another method WineShop At Home converts its IWCs into consumers.
Personal Base Volume is calculated based on purchases made for personal use, according to the WineShop At Home Training Manual (PV-V).
The amount of wine sold to others or bought for personal consumption is referred to as an IWC’s Personal Base Volume. It decides whether an IWC is active or inactive, as well as the amount of commissions she receives.
To be deemed active, an IWC must make at least $300 in sales during a 90-day period. That works up to $100 each month.
If an IWC does not fulfill this criterion, they will be considered inactive and may lose their client base as well as the employees they hired.
The motivation for an IWC to buy their way to active status is to satisfy the $300 threshold with purchases for personal use.
That is precisely the purpose.
If an IWC signs up for the Wine Club auto-ship option, they will always fulfill the minimal criteria.
It’s funny how things turn out that way.
It may also become prohibitively costly.
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An IWC must produce $300 in Personal Base Volume each MONTH to qualify for incentives! They may also purchase their way into bonus eligibility.
They may even purchase their way to higher commissions.
An IWC will receive a 20% commission on the wine they sell at the entry level.
They will, however, be eligible to earn a 25% commission on all sales if they achieve $1500 in Personal Base Volume in a single month.
They are eligible to earn 30% on all sales if they achieve $2500 in Personal Base Volume in a single month.
They are also eligible to earn 35% on all sales if they achieve $3500 in Personal Base Volume in a single month.
In other words, there is a strong incentive for an IWC to spend $3500 on wine in the first month of operation.
Independent Wine Consultants lose money in this way. It’s also how WineShop At Home generates millions of dollars.
WineShop At Home is a family-owned business.
It made $37.8 million in sales in 2018, despite the fact that the majority of its Independent Wine Consultants lost money.
The Federal Trade Commission has issued a warning.
The Federal Trade Commission’s website has a lot of information on MLMs. It’s sometimes tough to tell the difference between a genuine MLM and anything else.
Before joining a business like WineShop At Home, the FTC cautions us about two things we should know.
- 1How much do WineShop At Home IWCs actually earn?
- 2Does WineShop At Home encourage recruitment as a source of income?
What Do WineShop At Home Consultants Get Paid?
As previously stated, WineShop At Home does not disclose the real earnings of their IWCs.
To be sure, the business is aware of the amount it spent for its IWCs. For tax reasons, WineShop At Home must keep track of this information.
According to the WineShop At Home Training Manual, any IWC who earns more than $600 for the year will get a Federal Tax Form 1099 from the business.
So, how many of you made more than $600 in a year? We have no idea.
We won’t know since WineShop At Home won’t inform us.
No serious investor would consider a company where the revenue potential could not be determined.
The potential to produce income is directly proportionate to the value of a company asset.
According to a Forbes.com report, a website is worth 24 to 36 times its monthly income.
To put it another way, a site that produces $1000 per month is worth $24,000 to $36,000.
Returning to WineShop At Home, we have no idea how much money Independent Wine Consultants make.
There is no way to know how much the “opportunity” is worth without this knowledge.
If most IWCs were profitable, WineShop At Home would most likely include this information on its website to aid recruiting.
We can only assume that most IWCs do not earn a profit since it does not disclose this information.
The refusal to disclose the information required to assess the offer violates the Direct Selling Association’s Code of Ethics.
Section A, paragraph 8 Earnings Representations, Subparagraph 5.b.3 of the DSA Code of Ethics says that a prospect must be provided adequate information to properly assess the offer.
Despite the fact that WineShop At Home refuses to reveal the exact amount of money its IWCs make, it attempts to get them to spend thousands of dollars on their “implied” potential.
If the MLM industry’s statistics are any indication, an IWC can expect to lose money and leave within the first year.
Does WineShop At Home encourage recruiting as a source of income?
There are nine levels to the WineShop At Home Career Plan.
The initial level, designated as New Independent Wine Consultant (IWC), does not need hiring.
This is a commission-only job.
To earn money, however, all eight levels above the IWC need recruitment.
The FTC’s Warning Has Been Revisited
Remember, the FTC advises us to find out how much most WineShop At Home Career Opportunity Consultants make before signing a contract and investing money.
This is obvious, but if you get caught up in the fun of wine parties, you may lose sight of reality.
The FTC also cautioned us to consider whether recruitment was required to profit from WineShop At Home.
The Unstated Goal of WineShop At Home
WineShop At Home was not developed with the intention of assisting you in making money. It was designed to assist the company’s owners in making money.
Who owns WineShop At Home, incidentally, is unknown. Another red flag has been raised.
Although WineShop At Home advertises a “career opportunity,” it is just a component of the company’s overall marketing plan.
We might expect to see accountant-worthy income statistics to back it up if it was a real chance.
WineShop At Home, as a business, is pursuing the same basic goal as any other firm with competent management. Its goal is to make the most money possible.
There’s nothing wrong with a business trying to maximize earnings. That is the epitome of capitalism.
You may, however, be harmed if you’re on the wrong side of the profit equation.
WineShop At Home is in the business of converting individuals into revenue generators in order to maximize revenues.
You may make money for the business as an IWC by selling a lot of wine. Alternatively, you may make money by purchasing a large quantity of wines.
WineShop At Home makes money in any case.
To make things worse for the IWCs, WineShop At Home imposes operating fees on them.
To put it another way, WineShop At Home shifts the business’s costs to the IWCs by requiring them to pay for the right of generating money for the company.
WineShop At Home, on the other hand, takes the majority of the profit.
Overview of a WineShop At Home.
WineShop At Home claims to be the first direct sales business to promote wine and lifestyle in the wine region. It may be the first, but it is far from the last.
There’s a lot of competition out there.
WineShop At Home likewise promises to provide lucrative wine-related possibilities.
Home wine tasting is provided by Independent Wine Consultants, who also provide bespoke wines and wine accessories. It’s unclear why someone would allow a wine tasting to take place in their house.
IWCs do not sell wine directly to customers in order to comply with state alcohol regulations.
IWCs, on the other hand, accept orders during wine tastings. The business receives the orders. The invoicing, shipping, and compensation problems are then handled by WineShop At Home.
A average WineShop At Home wine tasting will earn approximately $500 in sales and $75 in commissions, according to a BBC WorkLife story.
However, according to the same article, the time spent arranging and driving to the client’s home, as well as performing a 3-hour wine tasting, may only yield a few bucks.
Jane Creed, the CEO of WineShop At Home, is cited in the article as stating that the company has a high turnover rate, with employees coming and leaving all the time.
The WineShop At Home job opportunity has a high turnover rate, which may reflect how tough it is to make a profit.
Compensation Plan for WineShop At Home
I stated before that WineShop At Home does not disclose how much their salesmen make.
This is critical information that must be gathered before we can properly assess the “opportunity.”
A prospect is usually given the Compensation Plan during an MLM recruiting session as evidence of the money that may be earned.
The Compensation Plan, on the other hand, is not a legal instrument. It’s nothing more than a sales pitch.
It’s possible if a Consultant pays enough money and jumps through enough hoops.
The Career Plan is the name given to WineShop At Home’s compensation plan.
I will not duplicate the Plan here because of WineShop At Home’s copyrights.
By selecting Career Plan and scrolling down to page 73 in the Training Manual, you may open a new tab and view the Career Plan.
Realizing that the WineShop At Home Career Plan has nine levels and what it implies is crucial to comprehending it.
The more tiers of a pay scheme, the more the salesforce is exploited.
A classic direct selling business, such as the Fuller Brush Company, only requires three or four tiers. These levels are as follows:
- 1Salesperson
- 2Director
- 3Director, Regional
- 4Director, National
A salesman may earn a full-time salary via retail sales with just four tiers of commission.
Anything more than four layers is a man-made construct that takes from the salesman and delivers to the corporation.
It distributes a sale’s commission to all levels, despite the fact that most individuals in the upline had little to do with the transaction.
Every sale below the top-level earns money for the top-level. Because the WineShop At Home Career Plan’s 9 tiers create such a wide foundation, the highest level gets an override on thousands of sales.
Consider a medium-sized city’s population.
The nine levels form an all-or-nothing game, with the highest levels being the only ones making money. The rest of the world loses.
The majority of the money the top-level receives comes from the wallets of the salespeople below them, due to qualification criteria and deceptive bonus incentives.
A salesman is forced to recruit and attempt to develop an organization at nine levels, but only a handful make it to the top.
This is why corporate fraud investigator Tracy L. Coenen believes the game is stacked against you.
The Final Thoughts on WineShop At Home
I’ve spent the most of this post attempting to address the question, “Is WineShop At Home a good opportunity?”
As you can see, there is plenty of proof, backed up by third-party sources, that WineShop At Home is a bad investment.
I couldn’t find any proof that the WineShop At Home offer was real.
If WineShop at Home really intended to assist its salespeople in making money, it would reduce the sales structure to four levels or fewer, and raise the basic commission to 35 percent.
However, WineShop At Home isn’t in the business of making money for its salespeople. It’s all about making the most money possible.
If you want to earn money, there are many better alternatives than handing up a large sum of money for a phony “opportunity.”
And arranging and presenting wine tastings in people’s homes for hours each week.
WineShop At Home, on the other hand, may be worth it if you’re more interested in wines than in earning money. Keep track of how much time and money you devote on your winery.
If you keep track of how much your company costs you, you’ll be able to see if you’re losing money or earning money fast.
Also, don’t go overboard and invest a large sum of money in the chance. Get in for the cheapest price you can since you’ll most likely leave in a few months.
If you have to charge the opportunity’s cost to a credit card, you should definitely pass. It isn’t worth it to get into debt.
The WineShop At Home job option has a number of hazards that may cost you a lot of money and effort.
The underlying issue with the potential, as previously stated, is that WineShop At Home is based on an outdated and inefficient business model from the previous century.
For the rank and file salesman, the MLM business model has never worked.
To make things worse, at least two additional Wine MLMs, not to mention every chain grocery store, are vying for the retail wine industry.
Moreover, there are hundreds of MLMs vying for recruits and pitching chances.
Even if you are the only wine MLM in town, a market will soon become saturated. Plus, everyone you bring into the company is a competitor.
The more people you hire, the more saturated your market will become.
WineShop At Home, like any other MLM, wants you to sell to your warm market, your trusted acquaintances, family, and friends.
Exploiting your most valuable connections is a terrible strategy to grow a company.
The actual job starts once you’ve completed your warm market.
You must constantly schedule fresh wine tastings as an independent wine consultant.
You’re out of business the minute you can’t schedule wine tastings. It’s just a matter of time until WineShop At Home deems you inactive, resulting in the loss of all you’ve worked for.
Although an Independent Wine Consultant is technically an independent contractor, they must follow WineShop At Home’s guidelines.
Where is the sense of liberty in that?
A Better Alternative
In a word, WineShop At Home anticipates you paying a large sum of money up front for their “opportunity.” Then, once a week, spend hours arranging and presenting wine tastings in people’s homes.
That’s about as effective as a 1940 door-to-door salesperson.
It’s possible to make it work, but it takes a lot of time and effort, not to mention gas money, vehicle wear and tear, and all the money spent getting started and qualifying each month.
We’ve been in the twenty-first century for almost two decades. We have access to the internet.
When you have access to 21st-century technology, why would you want to be a glorified door-to-door salesperson?
Start working on your laptop.
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Why Is Affiliate Marketing Better Than Multi-Level Marketing? |
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Consider creating a website that generates revenue for you 24 hours a day, seven days a week.
You may sell almost anything on your website, even wine.
You’ll never have to leave home to lug wine tasting equipment to someone’s place if you have a money-making website.
Alternatively, bother your friends and relatives.
Alternatively, you may jump through MLM hoops.
You are the boss when you have your own money-making website.
Your website is your own. It can’t be taken away from you.
You may sell it 24 to 36 times your monthly earnings if you wish.
Create as many money-making websites as you like, or diversify your revenue sources.
Your earning potential is almost limitless.
Work less hours. Make extra money!
Starting with Affiliate Marketing is a good place to start. It is both inexpensive and easy to get started.
Furthermore, the abilities you get as an Affiliate Marketer are priceless. You may utilize them to generate extra revenue.
While Affiliate Marketing is cost-effective, it does require patience and dedication, particularly in the beginning.
Have faith in the process. Concentrate on mastering the abilities.
The funds will arrive.
I’ll show you how to do it.
For more than a decade, I’ve worked as an online marketer and know what works. And I’ve witnessed firsthand how Affiliate Marketing can transform someone’s life.
My passion is teaching individuals like you how to use Affiliate Marketing to become financially independent.
That is why I never charge for my coaching services.
However, due to my time constraints, there are a limited number of spots available.
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