Welcome to my comprehensive review of Scentsy, a popular multi-level marketing (MLM) company known for its wide range of fragrance products. If you’ve ever wondered, “Is Scentsy a pyramid scheme or a legitimate business opportunity?” then you’re in the right place. In this review, we will delve into the origins of Scentsy, examine its product offerings, explore how consultants make money, and critically evaluate whether it’s a viable business venture.
Scentsy has garnered both praise and criticism in the MLM world. While some celebrate its innovative products and supportive community, others question the emphasis on recruitment and the overall profitability for the average consultant. Through this review, we’ll provide a balanced perspective, highlighting both the pros and cons, and ultimately offer a recommendation based on our findings.
Whether you’re considering joining Scentsy as a consultant or just curious about how it operates, this review aims to provide all the information you need to make an informed decision. Let’s start by exploring what Scentsy is all about and how it came to be.
Disclaimer: This Scentsy review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn from that information are my own opinions.
Scentsy MLM Review Overview
Product Name: Scentsy
Owner: Heidi & Orville Thompson
Product Type: Fragrance Product MLM company
Price: $99 for a starter kit and $10 a month for website maintenance
Best For: Established Network Marketers
Pros
- Specialists get support
- Money Back Guarantee
- Member of the DSA
Cons
- Their Products Are Not All-Natural
- Expensive Products
- Resembles a Pyramid Scheme in Disguise
- Low Earnings Potential
- Lack of Business Ownership
Quick Summary
Recommended? No, it only really benefits those already established at the top of the pyramid
Table of Contents
What Is Scentsy?
Scentsy is a multi-level marketing (MLM) firm that specializes in fragrance products designed to make your home smell delightful. Their primary products are Scentsy wax bars and warmers.
These electric candle warmers offer a safer alternative to traditional candles, as they eliminate the risk of an open flame and do not release harmful toxins into the environment. We’ll delve deeper into these features later in this Scentsy review.
Who Founded Scentsy?
Scentsy was founded by Kara Egan and Colette Gunnell in Salt Lake City, Utah, in 2003. Kara aimed to create fragrant products that were both safe and sustainable, leading to the creation of the flagship Scentsy product – an electric candle warmer.
In 2004, Orville Thompson, a struggling entrepreneur with several previous business attempts, purchased Scentsy. Today, Scentsy is owned and operated by Orville and his wife, Heidi.
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Is Scentsy an MLM?
Yes, Scentsy is an MLM business. With over 100,000 consultants working under its network, the company generates more than $450 million in annual revenue. In 2018, Scentsy was listed at #35 on Forbes’ list of the best mid-size employers in America.
Most MLM companies have a “unique selling point” and often offer products that are popular but similar to those you can easily find elsewhere. Scentsy is no different. Here’s an overview of their product line:
- Wax Bars and Warmers: The core products that started it all, offering a variety of fragrances and designs to suit any home decor.
- Essential Oils and Diffusers: Expanding into the wellness market, these products provide aromatherapy benefits.
- Laundry and Cleaning Products: Scentsy offers fragrance-enhanced laundry detergents, fabric softeners, and cleaning sprays.
- Kids’ Products: Including stuffed animals with scent packs and nightlights, making fragrance fun for all ages.
- Car Bars and Travel Tins: For those who want to take their favorite scents on the road.
By offering a range of products that integrate seamlessly into daily life, Scentsy aims to create a unique niche within the MLM landscape.
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What Products Does Scentsy Sell?
Scentsy offers a wide variety of home and personal fragrance products, including scented wickless candles, oil diffusers, and decorative ceramic warmers, which together provide a safer alternative to burning traditional candles.
Scentsy Warmers: These warmers house a low-watt light bulb that slowly melts the Scentsy candle bar, filling your home with one of more than 80 distinctive and long-lasting scents. Compared to traditional candles, Scentsy’s warmers and wax have several advantages:
- No Carcinogens: They do not release harmful carcinogens.
- No Flame Hazard: They pose no risk of fire due to the absence of an open flame.
- Safe and Effective: The warmers are generally safe and efficiently scent a room.
Product Range:
- Laundry Products:
- Laundry Liquid: Scented detergents for fresh, clean clothes.
- Scented Softener: Adds fragrance while softening fabrics.
- Dryer Disk: Infuses laundry with long-lasting scent.
- Washer Whiff: Enhances laundry scent in the wash.
- Cleaning Products:
- Kitchen Soap: Cleans and scents your dishes.
- Freshener: Keeps your kitchen smelling fresh.
- Multipurpose Cleaning Spray: Cleans surfaces while adding fragrance.
- Personal Care:
- Bath Bomb: Provides a fragrant and relaxing bath experience.
- Body Cream: Moisturizes skin with a pleasant scent.
- Body Wash: Cleanses and fragrances the skin.
- Hand Cream and Soap: Keeps hands clean and moisturized with appealing scents.
- Lotion: Provides hydration and fragrance for your skin.
- Other Accessories:
- Car Bars: Keep your car smelling fresh.
- Room Spray: Quickly refreshes any space with scent.
- Diffusers and Essential Oils: For aromatherapy benefits at home.
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How Does Scentsy Market Its Products?
Scentsy takes a unique approach to marketing. Instead of spending heavily on traditional advertising, Scentsy leverages a network of independent consultants to promote and sell their products. These consultants, often everyday people, earn money through commissions and bonuses, creating a mutually beneficial relationship.
- Consultant Promotion: Consultants use personal networks and social media to showcase and sell Scentsy products.
- Compensation Structure: Consultants earn money based on their sales and the sales of their recruited team members, encouraging a broad reach and personal investment in the brand.
This approach allows Scentsy to save significantly on marketing costs while providing an income opportunity for individuals looking to work from home.
Up Next: Let’s dive deeper into the Scentsy MLM review to learn more about how you can make money and why some people claim that Scentsy is a pyramid scheme in disguise…
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Turn Your Passion into Profits
How to Earn With Scentsy MLM?
As a Scentsy consultant, there are two primary ways to make money:
- Selling Products: Earn a commission on the sales of Scentsy products.
- Recruiting New Consultants: Earn bonuses based on the sales generated by the consultants you recruit.
This structure is typical of most MLMs, and Scentsy is no exception. However, the emphasis on recruiting new members can make it resemble a pyramid scheme. Here’s a closer look at how this works:
Recruitment Structure: Recruiting new consultants creates a “downline” where you earn bonuses based on the sales of those in your downline.
This can create a hierarchical structure that some argue resembles a pyramid scheme. However, because income can be generated through direct sales as well, this claim remains debatable.
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Scentsy MLM Compensation Plan
I examined the Scentsy compensation plan to understand how income is generated as a Scentsy consultant. Like many MLM compensation plans, it is complex and difficult to decipher.
Here are the 10 ways to earn money with Scentsy, encompassing commissions and bonuses:
- Commission: Earn 20-25% for each sale.
- Bonus from Wholesale Volume (TWV): Additional income based on the total wholesale volume.
- Frontline Bonus TWV: Bonuses for the total wholesale volume of your directly recruited consultants.
- Frontline Consultant Bonus TWV: Additional bonuses for sales generated by your frontline consultants.
- Frontline Star Consultant Bonus TWV: Bonuses for frontline star consultants’ sales.
- Frontline Superstar Consultant Bonus TWV: Additional bonuses for superstar consultants’ sales.
- Frontline Director Bonus TWV: Bonuses for sales generated by frontline directors.
- First-Generation Director TWV Bonus: Bonuses for the sales volume of your first-generation directors.
- Second-Generation Director TWV Bonus: Bonuses for the sales volume of your second-generation directors.
- Third-Generation Director TWV Bonus: Bonuses for the sales volume of your third-generation directors.
While these various bonuses provide multiple ways to earn, they heavily rely on the recruitment and sales of your downline.
Recruitment Emphasis:
- 9 out of 10 Income Methods Involve Recruitment: Most of the ways to earn money with Scentsy revolve around building and supporting a team, which incentivizes recruitment.
Video Explanation: For a detailed breakdown of the Scentsy compensation plan, you can watch the video below:
While the Scentsy compensation plan offers numerous ways to earn money, the focus on recruiting new members raises questions about its resemblance to a pyramid scheme. Understanding the balance between direct sales and recruitment is crucial for anyone considering becoming a Scentsy consultant.
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How Much Does It Cost to Join Scentsy?
Joining Scentsy as a consultant costs $99. This initial investment is relatively low compared to starting a traditional brick-and-mortar business. Once you sign up, you receive a starter kit that includes products, catalogs, and a personalized website, allowing you to begin selling Scentsy products and recruiting new consultants immediately.
Starter Kit Includes:
- Various Scentsy products
- Product catalogs
- A personal Scentsy website
Scentsy MLM Additional Costs
While the initial cost is low, there are additional ongoing expenses to consider:
- Website Maintenance: You need to pay $10 per month to keep your Scentsy website active.
- Sales Quota: To remain active and eligible for commissions, consultants must meet a sales quota. Historically, this has been around $150 worth of products every three months. Failure to meet this quota can result in suspension, meaning you won’t receive any commissions.
Implications of Sales Quota:
- Consultants often end up purchasing products themselves to meet the sales quota, leading to additional costs and excess inventory.
- The lack of transparent information about these requirements is a red flag and can be misleading for new consultants.
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Can You Make Money With Scentsy MLM?
It’s crucial to understand the earning potential and risks associated with Scentsy. Studies have shown that between 73% to 99% of MLM representatives lose money. While not all MLMs are the same, Scentsy’s income disclosures indicate that they follow similar patterns to many other MLMs.
Key Points:
- Earnings Disclosures: Previous income disclosures from Scentsy highlight that the majority of consultants earn very little, with a significant portion not making a profit.
- Typical MLM Statistics: Scentsy’s earnings data often reflect the broader trend within MLMs, where most consultants struggle to achieve substantial income.
Conclusion: While it is possible to earn money with Scentsy, the reality is that most consultants face challenges in achieving profitability. The costs and sales quotas can add up, making it difficult for many to maintain a sustainable income.
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How Much Money Can You Make as a Scentsy Consultant?
To determine the earning potential as a Scentsy Consultant, I reviewed their 2023 Income Disclosure Statement.
Here’s a summary of the findings:
Income Disclosure Highlights:
- Group 1: Consultants who were active for the entire year of 2023.
- Average Annual Commissions: $1,191.48
- Median Annual Commissions: $324.65
- Minimum Annual Commissions: $0
- Maximum Annual Commissions: $1,061,357.54
- Group 2: Consultants who were with Scentsy for less than 12 months in 2023.
- Average Annual Commissions: $179.31
- Median Annual Commissions: $58.01
- Minimum Annual Commissions: $0
- Maximum Annual Commissions: $416,827.37
These figures reveal a significant disparity between the highest earners and the average consultant, reflecting the challenges typical of MLM earnings. The median values, particularly, suggest that many consultants earn modest amounts, with a substantial portion not making a profit when considering business expenses (Scentsy) (Scentsy Top Notes Blog).
Understanding the Earnings Structure
Scentsy’s compensation plan offers multiple ways to earn income:
- Personal Sales: Consultants earn a base commission of 20-25% on personal sales.
- Bonuses: Additional bonuses are available based on sales volume and team performance, which can significantly enhance earnings for those who build and manage large teams.
Challenges and Realities
- High Failure Rate: As with many MLMs, Scentsy has a high turnover rate, with many consultants not staying active for the full year.
- Income Variation: The wide range in earnings indicates that while a few may achieve high income, the majority earn much less.
- Expenses: Monthly expenses, such as the $10 website fee and the need to meet sales quotas, can add up, potentially diminishing net earnings.
Conclusion
While it is possible to make money with Scentsy, the reality is that most consultants earn relatively low incomes. Prospective consultants should carefully consider the financial and time investments required and the realistic earnings potential based on the company’s income disclosures.
For a detailed breakdown of Scentsy’s compensation plan and updated income statistics, you can visit Scentsy’s official compensation and income disclosure page (Scentsy Top Notes Blog).
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Is Scentsy a Pyramid Scheme?
Scentsy is not a pyramid scheme. Scentsy consultants can sell Scentsy products and earn a commission for doing so. However, the viability of earning substantial income solely through product sales is limited. This has led to the perception that Scentsy could be considered a “pyramid scheme in disguise.”
What Is a Pyramid Scheme?
According to Wikipedia, a pyramid scheme is a business model that recruits members by promising payments or services primarily for enrolling new members rather than providing investments or product sales.
Why Do Some People Think Scentsy Is a Pyramid Scheme?
The primary reason for this perception is the significant emphasis on recruitment. In many MLMs, including Scentsy, substantial income often comes from building a large downline rather than from direct sales alone.
Is Scentsy a Pyramid Scheme in Disguise?
Scentsy is not a pyramid scheme by definition. The company offers legitimate products, and consultants earn commissions based on product sales. There are no direct payments just for recruiting new members, which differentiates it from a classic pyramid scheme.
However, success in Scentsy, as with many MLMs, often requires building a large network of consultants. This structure can resemble a pyramid scheme to some because of the heavy recruitment focus.
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Is Scentsy a Scam?
Scentsy is not a scam. It sells legitimate products and pays consultants as promised for product sales. However, the potential for high earnings is limited, and the effort required may not justify the returns for many people.
Is Scentsy a Legit MLM?
Yes, Scentsy is a legitimate MLM with real products. The products are generally well-received, but building a sustainable income through Scentsy can be challenging. There are often better opportunities available for those looking to make money from home or through network marketing.
Conclusion
Scentsy operates within the legal framework of an MLM and is not a pyramid scheme. While it offers legitimate products and a compensation plan, the emphasis on recruitment and the challenges of earning substantial income make it a less appealing opportunity for many. Prospective consultants should carefully consider the time and effort required compared to the potential financial rewards.
Sources:
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Turn Your Passion into Profits
Scentsy MLM Review: Pros
When evaluating the potential of joining Scentsy as a consultant, it’s important to weigh the benefits that come with this MLM opportunity. Here are some key pros that highlight the advantages of becoming a Scentsy specialist.
#1 Specialists Get Support
One common criticism of MLMs is the lack of adequate support for new consultants. However, Scentsy distinguishes itself by offering several supportive measures to help consultants build their businesses. Here’s what Scentsy provides:
- Training Resources: Access to a variety of training materials and resources to help you get started.
- Mentorship: Guidance from your personal sponsor, who can be a valuable asset if they are knowledgeable and experienced in network marketing.
- Community Support: Participation in a community of fellow consultants who can share tips, experiences, and encouragement.
While these resources can be incredibly helpful, the level of support you receive heavily depends on the quality of your personal sponsor. A good sponsor can significantly enhance your chances of success.
#2 Money-back Guarantee
Scentsy offers a 30-day money-back guarantee, which is a positive sign of their commitment to customer satisfaction. This policy ensures that if customers are unhappy with their products, they can get a refund, demonstrating that Scentsy is not a scam.
#3 Member of the Direct Selling Association (DSA)
Scentsy is a member of the Direct Selling Association (DSA), which is a reputable organization that monitors and regulates direct selling companies to ensure they comply with legal and ethical standards. Membership in the DSA is an indicator that Scentsy adheres to industry regulations and is committed to ethical business practices.
These advantages highlight some of the positive aspects of joining Scentsy as a consultant, offering potential consultants reassurance about the company’s legitimacy and support structure.
Scentsy MLM Review: Cons
While Scentsy offers several advantages, there are also significant drawbacks that potential consultants should consider. Here are some of the key cons associated with joining Scentsy.
#1 Their Products Are Not All-Natural
Despite Scentsy’s marketing emphasis on “all-natural products,” not all of their offerings meet this standard. For instance, while Scentsy wax bars are a flagship product, some items contain synthetic oils and unspecified ingredients. This discrepancy can be misleading for consumers seeking truly natural products.
#2 Expensive Products
A common issue with MLM products is their high price compared to similar items available elsewhere. Scentsy products are no exception:
- Scentsy Wax: $2.08 per oz
- Comparable Products on Amazon: $0.75 – $0.85 per oz
This substantial price difference raises questions about value, especially when equally good alternatives are available at a lower cost.
#3 Scentsy Resembles a Pyramid Scheme in Disguise
The heavy emphasis on recruitment over product sales is a hallmark of pyramid schemes, and Scentsy exhibits similar traits. While there is one way to earn money through product sales, there are nine ways to earn by recruiting others. This imbalance can make Scentsy appear more focused on expanding its network than on selling products.
#4 Low Earnings Potential
According to Scentsy’s income disclosure, only 1 out of 200 consultants makes over $15,000 annually. To put this into perspective, a consultant would need to sell $100,000 worth of products in a year to earn $16,667. This high sales target is daunting, considering the low price of individual items, such as wax bars.
#5 Lack of Business Ownership
Finally, as a Scentsy consultant, you do not own your business. If you fail to meet sales quotas or violate company policies, Scentsy can terminate your consultant status, effectively shutting down your operation. Additionally, your Scentsy website is a replica controlled by the company, limiting your autonomy and control.
These cons highlight significant challenges and risks associated with joining Scentsy, making it essential for potential consultants to carefully consider these factors before committing.
Scentsy MLM Review: Conclusion
In summary, Scentsy is neither a scam nor a pyramid scheme. The company offers legitimate products, and consultants can earn compensation through multiple avenues, including direct sales and recruiting others. However, the primary means of earning significant income often involves building a large downline, which can be ethically and practically challenging.
Ethical Considerations: While the business model is legal, the high failure rate among consultants (93% losing money) raises ethical concerns. Potential consultants must recognize these risks and understand the commitment required to succeed in such a structure.
Recommendation: Based on these factors, I do not recommend multi-level marketing as a viable business opportunity. Instead, I advocate for affiliate marketing, which offers several advantages:
- No need to purchase inventory or pay to participate.
- No requirement to recruit others or build a downline.
- Focus on promoting products and earning commissions without direct sales pressure.
Affiliate marketing provides a more straightforward and less risky path to generating income online.
Your Thoughts: Thank you for reading my Scentsy MLM review. I invite you to share your opinions and experiences. Do you believe Scentsy is a pyramid scheme or a legitimate business? Have you been a part of Scentsy, or are you currently involved? Feel free to leave your reviews and comments below!
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