In today’s guide, our interest is focused on Scentsy consultant company. We look forward to the history of Scentsy, the sign up process, how can you make money with Scentsy among others. Most important, we shall present to you our evaluation on whether Scentsy a pyramid scheme or not.
Additionally, we present our research, and in the end, we give our verdict on whether Scentsy is the right company to invest your resource. Without wasting more time, let’s get over this.
It’s an MLM company that sells fragrance products. The business was founded in 2003 by Collete Gunnel and Kara Egan in Utah.
Growing up, Kara dreamt of creating scented products that are safe. And that’s how the electric candle warmers were born. However, in 2004, the company was acquired by Heidi Thompson and Orville.
After acquiring Scentsy, the owners moved the company from Utah to Idaho. And almost immediately, they changed the business model to an MLM structure. Today, Scentsy boosts around 100,00 consultants in the USA alone. Plus, the emphasis of the business is on the “party plan” sales technique.
How to Become a Scentsy Consultant
Like Other MLM companies, Scentsy offers an opportunity for people to sell their products. Besides, you earn commissions for promoting the business if you sign up.
To get started, sign up here. If a friend referred you, you need to ask them for a signup code. Nonetheless, if you don’t, visit the sites, and have a sponsor.
The signup process involves purchasing a starter kit. The kit costs $99, and it consists of the essential tools and fragrance, including;
- Business cards
- Order forms
- 80 scent testers
Once you sign up, Scentsy gives you a free website for three months. After that, you pay $10 monthly. The website allows you to track all your business information in one place. Besides, through the website, you get access to different products.
Note, aside from the $99 membership fee, you need to order products worth $150 quarterly to keep your account active.
It’s no surprise Scentsy is doing this. Like other MLM companies, you’re required to buy goods worth a certain amount for your account to remain active.
Scentsy Product Line.
Before you sign up for any MLM company, you need to understand their product lines.
Even better, it would help if you tried them yourself.
Most Multi-Level-Marketing companies have unique USPs. Often, they sell standard products. Thus, having a unique selling point sets them apart.
And Scentsy is no different.
Their main product line consists of lovely-smelling household items. For instance, their flagship warmer and wax stand out because;
- They’re not fire hazards
- They don’t release carcinogens.
The wax and warmers are considered safe and fill the room with fragrances (different varieties).
Besides the warmers, they have a whole range of products such as;
- Cleaning: Fresheners, kitchen sprays, kitchen soaps, etc.
- Laundry: scented softeners, laundry liquids, dryer disks, among others.
- Personal care: body wash, body cream, hand soap, bath bomb, lotions, etc.
Find more about their products here.
How to Make Money with Scentsy.
Primarily, there’re four ways to make money with this program.
Recruiting people and being their sponsor.
Selling products. As a consultant, you get the products at discounted prices. You can sell the products at a profit.
Personal Website: As a consultant, you’ll have your own PWS. For the first three months, it’s free. However, you will pay $10 per month after that.
Scentsy parties: You can find people to hold Scentsy parties and earn commissions from the sale of the products. Besides hosting the party, your host gets a gift hamper as an incentive in return.
Scentsy Compensation Plans
The running and starting costs are affordable. But how about their compensation plan?
This is the elephant in the house. Getting your head around the overly complicated compensation plan causes headaches to many.
But not to worry. We are here to explain everything.
Scentsy Affiliate Ranks
There are a total of 8 affiliate ranks within the Scentsy compensation plan.
- Escential Consultant
- Active Escential Consultant
- Certified Consultant
- Lead Consultant.
- Star Consultant.
- Superstar Consultant.
- Star Director
- Superstar Director.
Qualifications for Respective Ranks.
- Escential Consultant: This status is achieved when you earn at least 200 points in PRV in 12 months. Besides, you need to be active for at least one month during the consultative period.
- Active Escential Consultant: To achieve and maintain this status, you need to generate 200 PRV monthly.
- Certified Consultant: You need to generate 1000 PRV cumulatively. However, there’s no time limit for achieving this.
- Lead Consultant: Should recruit and maintain one Active Escential consultant. Additionally, you must generate 1000 GV and 500 PRV a month for this status.
- Star Consultant: Should generate 2500 GV and maintain 500 PRV a month. Besides, they should recruit at least two Active Escential Consultants.
- Superstar Consultant: You need to generate 6000 GV and maintain 500 PRV for this status. Additionally, you must recruit and maintain three AEC or higher.
- Director: Should generate 10,000 Group Volume (GV) and 2000 TWV. Besides, they should maintain 500 PRV and keep three personally recruited AEC or higher.
- Star Director: Should generate 30,000 Group Volume and 6000 TWV. Besides, they should maintain 500 PRV and support one personally recruited AEC or higher. Also, they should have two directors or higher under their umbrella.
- Superstar Director: Should generate 80,000 Group Volume and 10000 TWV monthly. Also, they should have one trained AEC and three directors or higher under their wing. It’s worth noting that Scentsy equates PRV (Personal Retail Volume) to sales volumes.
How much can you make as a Scentsy Consultant?
The straight answer is, it depends on your level.
Scentsy has nine ranks. Each rank has its requirements and commission eligibility.
For example, if you’re at the Escential consultant level, you will earn a 20% commission on PRV on 1000 PRV.
Note that the 1000 PRV is cumulative. Thus, it doesn’t matter how long it takes to achieve the points.
As you move up the ladder to a certified consultant position, you’ll earn 25% of PRV. And you graduate from this level once you strike 500 PRV points.
Besides commission, Scentsy allows you to recruit people. When the people you recruit and sponsor pull some sales, you get compensated on all the purchases.
So, how do you get Wholesale Commissions?
The wholesale commission starts from the Lead Consultant Level.
Thus, if someone you sponsor reaches the lead consultant level, they qualify for a 2% commission.
Note, as you progress up, you’ll make as much as 4% on wholesale commission volumes. And from the director level, you can generate up to 9% on commissions.
How does Scentsy Compensation Plan Work?
The compensation plan allows you to make 20 to 25% in commissions on your retail volume. The payment is made every month.
However, when you get 2,000 Personal Retail Volume in a month, you get a 5% reward bonus.
Despite the well-documented Scentsy compensation plan, let’s look at the Scentsy Income Disclosure statement for 2020. You can view the document here.
According to the Scentsy income disclosure document, the annual average commission for people who have been consultants for less than 12-months is $452.
Imagine dedicating your time to an average of $452? How much can you do with that?
Well, this is the reason why most people don’t last in MLMs for even a year.
There’re a few ways to make money as a Scentsy Consultant. If you’re thinking about joining the MLM program, here’re some points to sway you.
1. Consultants Support Team
Most MLMs suck at this. Oops! Sorry, but that’s the truth.
However, for Scentsy, you’re in good hands as a consultant. Once you join, the company helps you create your own business. Also, they provide a supportive group in case you need any help.
On their website, Scentsy claim to provide the following;
- Personal sponsor (and team)
- Business tools and training.
- Free marketing resources
- Consultant Support Team, and
- Ongoing business and personal development.
Although this looks lucrative and good on paper, it depends on your sponsor.
If you get a better understanding of internet marketing, you’re suitable for a great start.
Yet, if you fail to, then you’re destined to fail.
2. 30-Day-Money Back Guarantee
This means they trust their products.
Some of the MLMs manufacture average products that don’t sell. Their end game is to make quick bucks and get off the hook by hiding behind poor customer service. In the end, they don’t refund the client’s money.
But this is not the case with Scentsy. They offer a 30-day money-back guarantee, which ensures they trust their products. Additionally, this is a positive indicator that they are not a scam.
3. Social Networking
Besides your PWS, you can use social networks like Twitter, Instagram, Facebook, or LinkedIn to share product information.
4. Products Made in the USA
All Scentsy products are made in Idaho, USA. Also, their distribution centres are in Kentucky, Texas, Australia, Mexico, etc.
5. Member of DSA
Besides offering money-back, this is also an indicator that Scentsy isn’t an outright pyramid scheme.
The DSA continuously checks the “direct selling” companies to ensure they’re not breaking any laws.
Pro Tip: If an MLM company isn’t registered with DSA, it could be a pointer that it’s a scam.
6. Safe Products
The products are safe to use on different occasions. Besides, the products can be customized for individuals and come in different scents.
What’s more, the fragrance lasts long, and the warmers don’t burn out too fast.
Despite having numerous merits, you must be wary of the following.
1. Synthetic Products.
Scentsy USP is that their products are natural. However, when something isn’t natural, they don’t declare it. There have been claims that not all products are natural.
For instance, by checking the ingredients for Scentsy bars, it turns out the use synthetic oils.
2. Expensive Products
For any MLM we review, we first check on pricing. And on this, there’s a huge price discrepancy compared to other products in the market.
Take, for instance;
Scentsy costs $2.08 per oz while Amazon cost between $0.75-0.85 per oz.
Final Thoughts: Is Scentsy MLM Worth Your Time?
Do you think people care about scented candles? Well, yes. But I doubt if people will be willing to subscribe to a monthly scented candle plan. Or do you? Plus, looking at the cost variables, most people would prefer buying scented candles or warmers off the counter.
As for your pain points;
- Can you make money through Scentsy?
- Is Scentsy a Pyramid Scheme, a scam, or a legit business?
- Or is it an MLM company? Is the consultant job worth it?
Well, here is your takeaway.
Scentsy is a legit MLM company and not a scam. However, it’s not worth your time. Due to its business model, making money as a Scentsy consultant is an uphill task.
Although the business revenue disclosure might lure you, the people making money are at the top of the MLM and the company owners. Check the average monthly revenue for group 1 on their site. These are the people at the top tier of the business.
However, if you like the products and have a few friends who want their homes to smell nice, you could earn a few bucks each month.
Note that people are different, and it may fit your situation perfectly.Nonetheless, you’re not going to make anywhere enough money to quit your 9-5 job. So why even waste your resource on it?
With Scentsy, you’re restricted to what you sell. And to make more money, you’ve to recruit more people to the company. Be sure to check other good business opportunities that can help you earn even more.