What Is Scentsy - Is It a MLM Scam?

What Is Scentsy – Is It An MLM Scam?

When people ask “What is Scentsy,” they are usually referring to the business plan more than the products.

In this review, we will find out if becoming a Scentsy consultant is worth your time and effort or if it’s yet another MLM trap.

What is Scentsy & Is it an MLM Scam?

Could something as soothing as Scentsy’s scented candles, and other fragrance products, be marred by claims of an MLM scam?

Stick around to find out

Product Name Scentsy
FoundersKara Egan and Colette Gunnell. Purchased by Heidi & Orville Thompson in 2004
Price to Start$99.00 initial fee + every quarter $150.00 product purchase + $10.00 P/Mth website maintenance fee
Product TypeScents Products for Home and Personal care
How Marketed Multi-Level Marketing scheme
Origins of Scentsy

Origins of Scentsy

Capitalizing on the notion that fragrances can stir up memories, have a calming effect, and connect us with friends and family, Scentsy first took shape in Salt Lake City, Utah in 2003.

But what makes Scentsy different?

The home-based business owners, Kara Egan and her sister-in-law, Colette Gunnell, developed a scented wickless candle heated in decorative ceramic warmers, proving it to be a better alternative to wicked candles.

One year into their business, the founders sold the company to husband and wife Orville and Heidi Thompson.

Moving Scentsy’s headquarters to Meridian, Idaho, the couple also gave the company a new marketing spin by using an MLM strategy.

In the upcoming years, Scentsy followed a rapid ascent to success, featuring in Forbes magazine 2011 list of “America’s 100 Most Promising Companies”, and in 2018 list of “America’s Best Midsize Employers”.

Today, Scentsy has over 120,000 independent consultants throughout North America, Europe and Australia.

In 2017, Scentsy made an estimated $450 million in sales, placing it at number 44 of the top direct selling list on the Direct Selling News list.

What Does Scentsy Sell?

Over time, Scentsy moved on to sell more than just wickless candles. Its rich repertoire of products also includes:

  • Scent: over the years, Scentsy has created over 1,000 scents! Take your pick between spicy, fruity, as well as Disney and men’s categories.
  • Scentsy Room Spray is a popular Google search.
  • Scentsy Warmers & Wax: 60 warmer designs and 80 wax fragrances.
  • Diffuser & Oils: all-natural scents of different fragrances and strength.
  • Fan Diffuse & Pods: portable & plug-in diffusers.
  • Laundry & Cleaning: from Scentsy laundry liquid to bathroom cleaner, dish soap and everything in-between.
  • Personal Care: skin-pampering products. From scented bar soaps to body lotions.
  • Kids-approved Fragrances: a selection of scents designed especially for children.
  • Pets-friendly Products: from shampoo do deodorants.
  • Other Accessories: Scentsy also has a collection of toys and home décor accessories.

You have to admire Scentsy’s entrepreneur spirit by capitalising on their fragrance expertise to create more products and expand their market reach.

What Is Scentsy - Is It a MLM Scam?
One of Scentsy Promo’s

How To Become A Scentsy Consultant

There are two steps to joining Scentsy:

  1. Find a sponsor, i.e., a Scentsy consultant.  If you don’t know anyone personally, their website has a search option to help you find the nearest one to you.
  2. Buy the starter kit for $99 (plus local tax and shipping).

The Starter Kit includes:

  • Scent testers
  • Product samples
  • Personal website. Free for the first three months and $10/ after that.
  • Catalogues, product forms, marketing materials

How Much Can You Earn With Scentsy?

Once you’re part of Scentsy, there are two things you can do to earn money:

  1. Sell Products
  2. Recruit new members to build your own team and earn various bonuses.

Compensation plan

There are eight levels of hierarchy within Scentsy MLM, as you can see here.

While they’ve tried to make their table visually appealing, it can be a little confusing to understand, which is not uncommon for an MLM Company.

For a more detailed explanation, check out this video:

Generally, however, when you first start out, you earn 20% in commission. As you hit $1,000.00 in Personal Retail Volume (PRV) sales, the commission goes up to 25%. Plus, if you start recruiting new consultants, you can earn additional bonuses on the total volumes of sales that your team makes.

Note: To remain in active status, you have to make at least $150 in sales every three months.

The Pros

Scentsy is a household name known for its quality and long-lasting scented products, making it easier for you to sell them. If you make a lot of sales, Scentsy will reward you well with bonuses.

It’s also worth mentioning that Scentsy is also a member of the DSA (Direct Selling Association), giving it more credibility and reliability. In other words, not a scam.

The Cons

Scentsy still relies on old-fashioned recruiting and selling methods, mainly, home parties. So it’s no surprise that Scentsy has – like most MLM – a high-failure rate.

By selling to your family, friends, and co-workers, you’ll see that your candle-selling business will soon lose momentum, making it hard to make it big. In fact, looking at the chart below, the average income is very low.

Scentsy Income disclosure for 2019. in the article What Is Scentsy - Is It An MLM Scam?
 Unlike most mlms, Scentsy includes retail commission in their income disclosure. These figures do not include expenses.  Running your Scentsy business will cost you time and money.  If  we were to include these costs, we’d find that the average Scentsy consultant lost money on these numbers.

Conclusion

With a BBB rating of A+, Scentsy is a legit company, miles away from being a scam or a pyramid scheme.

However, because of their MLM business model, making money with Scentsy will be an uphill battle.

Rating: 6/10

Elena. info@vivaldocopywriting.com

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5 Comments

  1. Lily 17/04/2021
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