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FAQ
The following FAQ's (Frequently Asked Questions) are provided to help existing members answer most queries by prospective new members. If the FAQ's here do not answer a specific question, feel free to email us at info@vineclub.co.nz and we will get back to you with an answer as soon as we can.
Q. Is VineClub a ‘Pyramid’ Selling Scheme?
A. No. Pyramid schemes are illegal all around the world because they end up ripping people off. They rely on the introduction of new members via recruiting by existing members and the existing member gets paid commission on the recruitment or joining fee. There are generally no products to buy or sell; just a concept or maybe a paper on marketing techniques for example. You may get charged hundreds of dollars for this paper and you recoup your money by introducing others to the system and retaining some of the new members joining fee.
VineClub is a legitimate business that sells wine and other products via its website with the difference being it pays members a percentage commission on product purchased by those members in their downline or group. Pyramid schemes don't have a product to buy whereas legitimate network or referral marketing systems do.
Q. Is VineClub just like Amway or Herbalife or Avon?
A. In some ways yes. VineClub operates a binary system structure to reward members for products purchased by introduced members, commission or bonuses at varying percentage levels. The difference is we haven’t inflated prices enormously to guarantee large payouts to top distributors.
Q. Why is there a membership fee?
A. VineClub endeavours to pay approximately 50% of the profit generated from product sales back to members in the form of bonuses or commissions. As you can appreciate, keeping our prices low enough to compete in the market and pay bonuses back to members doesn’t leave much for the company to run itself, let alone invest in better computer systems, warehouse costs, staff training, and the like. Please note that there is no fee payable should a customer just wish to purchase wine from our website or does not want to share in the referral marketing bonus system.
Q. Why is there a maintenance fee?
A. A maintenance fee of $5 is only payable from any bonuses earned over $40 in the volume month. VineClub as a company uses maintenance and membership fees to operate as approximately 50% of the profit generated from sales is paid back to members in the form of bonuses and commissions.
Q. What does ‘Downline’ and ‘Upline’ mean?
A. Anybody that you personally introduce to the VineClub system and anybody that they introduce, form part of your downline. This is also known as your ‘group’. Anybody above you in your line including your sponsor or introducing member is your upline.
Q. How much commission can I earn and is there a limit to what I can earn?
A. Please refer to the Marketing Plan on our website to answer this question but essentially, you get paid commissions on volume of purchases made by your downline, at varying percentage levels. Your income level is decided purely by how much effort you put into sponsoring new members into the system who purchase product.
Q. Once I earn over $1,000 from my group and ‘breakaway’ into another group or income centre, do I have to buy another case of product each month to qualify for commissions in the new group?
A. No. You are only required to purchase product to the value of $180 excl GST per calendar month to qualify for any commission regardless of the number of income centres you have achieved.
Q. Do I have to buy a whole case of wine?
A. Please refer to our Terms and Conditions page on the website. VineClub only ships in case lots e.g. 12 bottles of wine to a case. Lesser quantities can be purchased from local supermarkets who won’t pay you commission for sending friends there.
Q. Do I have to purchase a whole case of wine every month?
A. Please refer to our Policies and Procedures manual on the website. NO member is required to purchase any quantity of product as part of the membership, however in order to receive commissions from group purchases, a member must purchase a minimum of $180 of product excluding GST and freight in the volume month.
Q. Is there anything else available to purchase other than wine?
A. At this early stage of the company, only wine is available but the intention is to add other product lines such as mineral water, beer, spirits and maybe some food items.
Q. Are the wines from VineClub more expensive than the local liquor store or supermarket?
A. That’s a bit like comparing the price of Plasma TV’s! The same label of wine if available from the supermarket is likely to be comparable if not cheaper from VineClub. Bear in mind that supermarkets often do ‘loss leaders’ on wine to get people in their doors but if you are looking at normal recommended retail prices, VineClub wins!
Q. Are the wines good quality and from well known vineyards?
A. A lot of the wines available from VineClub are ‘on premise’ or ‘restaurant only’ lines and will not be available from supermarkets or bottle stores, but nevertheless are known labels and of good quality for the price level.
Q. Can I put my membership on hold?
A. To retain membership, members must make at least one purchase in a six month period.
Q. Can I still buy wine from VineClub if I don’t have a credit card?
A. We accept Visa, MasterCard and American Express at this stage. No other forms of payment are available.
Q. Can I buy product with a Debit Card?
A. In NZ, the only debit card that acts like a credit card is Westpac’s Visa debit card, and VineClub accepts payment through Visa.
Q. Can I make a regular monthly order and get the same wines each month?
A. Yes you can auto ship the line of product you prefer i.e. Chardonnay wines, but at this early stage of the company, choice of product by label is not available but will be shortly.
Q. How long does delivery take and what is the cost?
A. We endeavour to deliver the product within 7 days of placing your order but generally three days is the norm. Delivery prices are $10 anywhere in the main islands and extra charges will apply for delivery outside these areas e.g. Waiheke Island or Stewart Island.
Q. What do I do if I get a wine I do not like?
A. Please refer to the Policies and Procedures manual for returning product to VineClub. Not liking a wine supplied as part of a mixed case of various labels is no reason for return of product; much the same way as if you bought a bottle of wine from the supermarket and didn’t like it, they wouldn’t give you a refund either. We will however, happily replace faulty, damaged or corked wine.
Q. Will the wine selections change each month or will I get the same wines?
A. Wine mixes will change due to vintage changes or out of stock by suppliers. A mixed case of wine will usually contain six different wine brand labels with two bottles each of that brand.
Q. If I join someone up and they decide to leave VineClub can they get their joining fee back and am I penalised because they leave?
A. There are no refunds on membership fees however if VineClub elects to refund the membership fee it may do so. There is no penalty to you if someone leaves or resigns their VineClub membership. However you may potentially lose bonuses on product that they may have purchased.
Q. Is there someone I can get interested parties to talk to if I am having trouble explaining how the VineClub system operates?
A. This FAQ page should answer most questions and the website itself is full of enough information to get new members on their way to enjoying good wine, referring people to the system and earning some money. If however you can't answer a specific question you could try your upline or a fellow VineClub member otherwise feel free to contact us at info@vineclub.co.nz
Q. Are there any hidden costs?
A. All product purchases exclude GST and freight and these are added at the point of sale. We pay commissions on the GST exclusive amount otherwise we would be paying the GST amount twice if it was added to commissions. Member fees and maintenance fees are the only other costs and are explained at the beginning of this document.
Q. Do I pay tax on commissions earned from VineClub?
A. All income derived in New Zealand is subject to tax. We advise that you seek independent advice on the tax laws or visit www.ird.govt.nz
Q. If I earn commission from VineClub, when do I get paid and how do I get paid?
A. VineClub will endeavour to pay commissions by the 15th of the following month after the volume month has expired or sooner if possible. Commissions will be paid into your nominated bank account.
Q. If I shift to another city is my membership still valid?
A. It doesn’t matter where you live in New Zealand, we can still ship product to you and because of the nature of referral marketing and our bonus structure, many of the people in your downline will be located all around New Zealand.
Q. Why can’t I see the people above me on the Vine Club organisational chart?
A. Members can only see what is happening in their downline or group. Watching your business grow will help you plan on where work is needed, what downline member is growing a fast business etc etc. There is no benefit to you to see what your upline is doing; everything they do will help you in some way.
Q. If I tell you of a wine I like, can you get it for me – at a better price than I currently pay?
A. VineClub will continue to add wines to the current range of products as the business grows. You can appreciate that there are dozens of suppliers and literally thousands of wine makers and no one business can hold stock of every wine available on the market.
Q. Can I sponsor my friends and family overseas?
A. Please refer to our Policies and Procedures manual. VineClub only operates in New Zealand at this time.
Q. Can VineClub ship wine to overseas addresses?
A. No. To be honest, we could but the costs are prohibitive.
Q. I want to join as a member and receive rewards every month, but I won’t be able to drink 12 bottles of wine per month. Can I buy 6 bottles and receive rewards?
A. In a nutshell, no. We have set the amount of $180 excl GST as the qualification amount to receive bonuses. We intend to soon allow members to buy in smaller quantities as consideration for budgeting/affordability issues but the level of purchases still has to be $180 excl GST in the volume month to receive a bonus.
Q. Can I sell any surplus wine I have?
A. Not unless you hold the relevant liquor licence as detailed in the Sale of Liquor Act, 1989.
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