Is Scentsy a MLM or another pyramid scheme? What in the world is it??
Have you been invited to a "scented candle home party" and then introduced to something called Scentsy?
Instead of exchanging dirty secrets and romantic gossip as you expected, did you have to endure hours of talks about Scentsy? Did you try to up and run? Of course I knew you politely stayed on.
Did you think your friend betrayed you and was trying to lure you into the many pyramid schemes out there today? Or were you a bit interested because your friend did such a wonderful demo of the products that you are thinking whether you should join her on this business opportunity? Well, I am glad that you are here to find out if Scentsy is a MLM that can help you earn or lose money.
Shows that you're not the kind to bow down to peer pressure and throw your money away just because a friend says you should trust her. Way to go, girl.
I have nothing about trusting friends here. But when it comes to your hard-earned money and precious time, I will always call for people to err on the safe side. Never enter into something you have not done any research on!
So welcome to this page and I'll tell you everything I found out about Scentsy. At the end of this, not only will you know if Scentsy is a MLM that you can trust or not, you will also know whether it is an opportunity that can pay off.
Product Name: SCENTSY
Founders: Colette Gunnell, Kara Egan
Recommended: NOT SCAM BUT NO
What is Scentsy about?
Based on the name, seems like this company sells scents. Scentsy is more than a small business of fragrances though. Is Scentsy a MLM, you ask? Yes, Yes, Yes, this Idaho-based company is a Multi-Level Marketing (MLM).
Why? Because apart from a company with products for you to sell, you are also called to recruit others to be a distributor of the company so you can earn bonuses.
If you've attended one of the home parties hosted by a Scentsy consultant, your friend or not, then you will have a good idea that their flagship products are their Scentsy wax bars and warmers. Chances are the consultant has gone on and on about them.
The question here though is not whether these wax bars and warmers will do their job. Instead, the real question is, should you join this MLM?
Before anything though, know that I am in no way associated with Scentsy in any shape or form. I will never sell you anything here, nor pitch about joining this company, or any company for the matter that I do not trust.
Everything I wrote here are based on pure research. If I came by the conclusion that Scentsy is a scam, you bet I would tell you.
And if I made the conclusion that Scentsy is a MLM that you can absolutely trust, then I WOULD OF COURSE TELL YOU TOO.
Hey, if everyone is just looking out for each other and pointing out legitimate ways to earn, then no scammy business would ever prevail!
Since the company has already been around for 15 years, its product roster has already expanded beyond scent-related products.
Apart from their scented wax and warmers, the companys's product line has expanded into relevant product lines:
- Laundry products (Laundry liquid, scented softener, dryer disk, washer whiff, and many more).
- Cleaning products (Kitchen soap, dishwashing liquid, freshener, cleaning sprays and many more).
- Personal care products (Bath soaps, creams, washes, bombs; hand soaps, creams, washes, lotion, and many more).
- Miscelleanous accessories (car and room fresheners, essential oils, diffusers, and other related products).
In a way, you can say that they are all scent-based products, and there is a good chance that most of its consultants and customers will be females.
If you are a female looking for a side hustle or a source of livelihood, there's a good chance that you have come across Scentsy already, one way or another.
How much does it cost to become a Scentsy Consultant?
Becoming a Scentsy consultant will cost you. That's why you are invited to a spa party in the first place. If this is a free-for-all opportunity, then recruiters will not spend just to get you on board.
To be a consultant, you will be paying $99 one-time fee in exchange for the Scentsy Starter Kit. With this kit, you get:
- fragrances that include 80 party size scent testers
- order forms
- business cards
- a warmer
- a scent bar
Essentially, for this fee, you got a mini scent-bar and you can now start getting orders.
What I personally like about the starter kit is that unlike the kits of other MLM companies, you also get a free website. FOR 3 WHOLE MONTHS. Hey, that's a good deal. Running your website, with domain fees and all that rarely comes free. After the 3 months, you will be charged $10/month as maintenance fee. Think of having your very own working shopping site you can refer your customers to!
Of course, selling through digital media is okay too, if not more efficient, but there's something about telling people you have your own website, you know.
In this website, the necessary company information will be there. So will all the products for your potential customers to check. Instead of lunging around brochures and passing around, you can now just refer your clients to the website. They can browse for items they like to their hearts' content, and you yourself can readily check on some product or company info when asked.
The site is not only for information or display purposes. Customers can make their purchases directly from there. If they do, you'll immediately earn commissions.
How to Earn from Scentsy
Similar to any other MLM companies out there, you earn mainly in 2 ways
#1 RETAIL COMMISSIONS
Just sell their products and get commissions for your sale. Direct people to your website and if they buy something, you earn a commission!
One caveat though is that to qualify for these retail commissions, you have to generate a Personal Sales Volume of at least 500PV MONTHLY. Not only that, you have to generate at more than 1000PV per month for your downline teams.
How much is 1 PRV (personal retail volume) in Scentsy?
1PRV equal to $1. So you will need a minimum of $500 to be qualified for getting the commission as well $1000 from your downlines.
Are you up for the challenge? There is the second way though.
#2 RECRUIT PEOPLE
The second way is to recruit people and earn based on the company's compensation plan. It's not as straightforward as you think it is though.
The compensation plan of an MLM company is usually what differentiates it from another MLM business. So you should really learn this by heart if you join. Before you actually take the leap though, study the plan ALREADY to know if you can even achieve what it needs you to do to earn. If not, why even bother?
Essentially, Scentsy's Compensation Plan has a total of 8 tiers or ranks. There are respective requirements to be met before you can go up the next rank and enjoy the higher commissions associated with each higher level.
You start off as an Excential consultant, then go up to being a certified consultant. The next higher ranks are lead consultant, star consultant, superstar consultant, director, star director, and lastly, SUPERSTAR DIRECTOR.
To understand the compensation plan better, look at the video below. I have explained it to my best ability but sometimes I can still miss out on some important detail that can break or make your decision to join, so let's not risk it.
What I like about Scentsy
I like companies that are affiliated, accredited, or membered, if there is such a word, of a reputable industry organization. In this case, I like the fact that Scentsy is a member of DSA or Direct Selling Association. This tells you outright that it is a recognized company - so no, Scentsy is not a scam.
2. Great Support
I like the company's support for its consultants. The free website is a clear winner on my book. Consultants also get free training once they sign up. Some also get continuous training along the way.
3. Money-back Guarantee
This is one feature of Scentsy that I like best. The company offers a 30-day refund policy for all of their products, which is a good thing. It helps you sell the products better because people like knowing they have recourse if the products turn out problematic. It also get you off the hook if it turns out the products really have defects.
Majority of these products are going to come into contact with people's skin, so being careful of what you are selling is a must.
All these for me give Scentsy a certain amount of credibility and reliability.
What I don't like about Scentsy?
Appart from its PROS there are also some concerns that I want to talk to you about.
One of these is the company's preference for their consultants to use "home parties" as their main selling and recruiting strategy. In these parties, you will be telling your audience how to use the wax, enjoy the fragrance and then try to sell to them. While demo-ing is a legit marketing strategy, it's not longer the most effective in this time and age.
People no longer have time to sit on such parties and then feel betrayed that you are just selling them something. It can even well backfire on you. No matter how good the products are, nobody wants the feeling of being lured. More so when MLMs in general do not necessarily have the best of reputations.
What makes it hard to sell is that the products are QUITE expensive. They are much more expensive than similar products in the market. The consultants say so themselves.
This is such minor concern though compared to my next reason not to recommend Scentsy to you. Based on my research, most consultants DO NOT EARN as they expected to. This includes people who did not really think Scentsy will make them rich, but just make them some extra cash, you know? And yet, THEY STILL FAILED TO EARN, EVEN A LITTLE.
Those at the Director rank can earn an average of annual income of $15,590. Seems impressive but it actually boils to just $1,299/month. This is okay for a side hustle but certainly not as full-time income. And what would it take for you to reach the director status, anyway?
Read the screenshot below as it sums up everything I am worried about:
The PROS of Scentsy:
The CONS of Scentsy:
Is Scentsy a MLM? A Legit One? FINAL VERDICT
Is Scentsy a MLM? A legit one or a scam? For me, I cannot find any good reason to say it is a scam. I think it has a passable compensation plan and some really good products, albeit quite expensive.
I think consultants who claimed that the company is a scam because they are not earning as they have expected however, have valid concerns. Just not enough to say the company is NOT LEGIT.
What is the use of joining a company that promises you a livelihood when you cannot earn? However, I still cannot think this a scam.
There are many ways to sell well. The company needs to give better selling support and training though, and not focus solely on telling its distributors to recruit and recruit more. If this is the case, it will one day become a real scam in the eyes of many and the business will just fail.
As I've pointed out above, majority of Scentsy's consultants never went beyond their original ranks and earning literally nothing.
It still boils down to hard work, dedication and all that things, but if that is the case, might as find a more lucrative gig, eh?
Alternative Method to Earn
Tired of MLM schemes like Scentsy promising things that are too good to be true?
Cannot imagine selling expensive products while having to recruit more people to sell the same? Tired of selling the idea of financial security?
Are you fed up? Maybe it is time to try something else. What about doing affiliate marketing where you don't have to sell face to face or recruit people. The best place to learn how this business work is Wealthy Affiliate. You can join them for free and see if this is something you really like to do. THIS IS MY #1 RECOMMENDATION
Another option is dropshipping. Doing dropshipping nowadays is easier than ever before. Some platforms are ready to provide you with full training, tools and a rich database of the wholesalers. If you want to know more about it, see our full review of SaleHoo.