Hello, and I thank you for finding your way here to my Scentsy Review! I just love products that add alluring fragrance and create ambiance in my home. That is what drew me to researching more about Scentsy and its scented waxes. But whether this company will be a way for you to generate some income remains to be seen. Should you wax on or wax off with this MLM?
I am not a distributor for Scentsy, nor have I ever been. However, I have researched this company as your consumer watchdog and I present my report here for you. As I see it, we are not in a position to be shelling out lots of money and working our tail ends off at this stage of life. My mission is to investigate what these so-called ‘business opportunities’ are all about and present my findings to you so that you can make an informed decision as to whether you want to invest in them or not.
Let’s take a closer look at this company.
What is Scentsy?
Scentsy is a multi-level marketing company that sells scented wick-less candle wax products and warmers as well as other items including:
- essential oils and diffusers
- home cleaning products
- laundry soaps and fabric sprays
- personal care items
- kid’s products
- pet shampoo and deodorizing spray
- speciality/seasonal gift collections
Who is Scentsy For?
Scentsy is for those who enjoy filling their homes with fragrance and using nice-smelling products. You can join as a Host and just hold parties to get discounts and free products for yourself, or join as a Distributor and make money on selling products as well as earning commissions from those whom you recruit from your family and friends to join you in the business.
It is geared more towards women. Their target potential distributor is the stay-at-home mom, including the military spouse since they move around a lot and might be looking to make a supplemental income from home. It could be good for retirees as well, perhaps as a means to supplement retirement income, but before you think this could be a fun idea, let’s see how much it is going to cost you and what you have to do to make any kind of significant income.
Brief Details and Price:
owners/founders: original founders: Kara Egan and Colette Gunnell. Scentsy is now run by Orville and Heidi Thompson
price and what’s included:
$99.00 (plus tax and shipping) for the starter kit which includes:
- wax warmer
- scented wax testers
- order forms
- 3 months of your personal replicated website (after which you will have to pay an additional fee)
- product samples
guarantee: there is no income guarantee
rating (out of 10): 4
My Review of Scentsy
Scentsy was founded in 2003 in Salt Lake City, Utah by Kara Egan and her sister-in-law Colette Gunnell. In 2004 the pair met Orville Thompson who was a struggling entrepreneur. He was interested in their wick-less candle product and decided, along with his wife Heidi Thompson, to purchase the company, move the company headquarters to Meridian, Idaho and relaunch it using the multi-level marketing business model.
how it works
Once you become a Scentsy Distributor, you can invite hosts to hold parties at their homes and other locations for you (and there are perks for the host such as discounts and free products), or you can host a virtual party online via Facebook. Scentsy products are not available in retail stores and can only be sold by Distributors.
In addition to selling the products to customers, you can earn commissions from friends and family that you have recruited below you in your team, or downline. This is the very nature of multi-level marketing.
I do like the kinds of products they are selling at Scentsy because I have always been a fan of candles and aromatherapy. These are their signature products which are wick-less candles so there is no flame involved. You just put the wax in a warmer and it gradually melts, giving off the fragrance of your choice.
Items they sell include:
- warmers and mini-warmers
- scented wax bars to put in the warmers
- warmer dishes and lids
- bulbs and accessories
Products to keep your laundry fresh:
- fabric softener
- fabric spray
- laundry liquid
- dryer disks
In the personal care category they offer:
- body wash
- hand soap
- Scentsy soak
- body cream
- fragrance mists
Stuff for kids:
- Scentsy Blankie Buddies
- Scentsy Buddy Clips – to attach to the kids backpack for example
- Scentsy Sidekicks – for babies that have teething rings and attach to car seats
Stuff for pets:
- detangling spray
- dog de-odorizing spray
As always, the compensation plan is so confusing to look at, which is deliberate of course, but I will try to break it down in a simpler way.
PRV is the global point value assigned to a particular product which is then converted to your local currency.
In order to stay active and be able to receive commissions, you must generate sales of 200 points or more of PRV (which is your Personal Retail Volume), which can come from your replicated website, online orders or individual customer orders.
How much you earn is up to you of course based on how much you can sell. Believe me, you will have to have recruited a lot of people in your downline to make any kind of significant income and you will be needing to work this type of business full-time.
There are 8 rank levels at Scentsy ranging from entry-level Escential Consultant through to Superstar Director.
Starting at the entry-level of Escential Consultant, you will need to sell 200 points of PRV, as we saw above. Your commissions or ‘monthly rewards’ at this level is 20%. Remember that this is sales before taxes, too.
Once you reach 1000 PRV sales, you achieve the rank of Certified Consultant, which means you are Certified for life (unless you drop out of the company I guess). At this level you will receive 25% commission on your PRV.
At the next rank, called Lead Consultant, and above, the compensation plan becomes more complicated. At this level, you will have sponsored your first team member. You will now have to have sold 500 PRV yourself. Additionally, your Group Wholesale Volume, or GWV must be at 1000 points. This is what the people in your downline, that you have recruited, must be generating and this must be maintained monthly. You also need to have a new consultant below you that is hitting the target of 200 PRV.
The requirements for what your team below you must sell as you go up in rank also increases and you can accumulate points for being consistent with your personal sales and your group sales which will go towards incentives such as a trip.
The whole thing is so complex and even the explainer videos I viewed on YouTube cannot give accurate details and calculations for the different ranks. It is all explained away with comments such as ‘don’t worry, it will all be calculated for you.” They won’t divulge all the details until you actually join.
In any case, here is the compensation plan for you to see.
Scentsy does give us their income disclosure which shows transparency not seen by many other network marketing companies. The figures, however, aren’t much to get excited about.
Group 1 is Scentsy Distributors who were with the company for all of 12 months in 2018 and Group 2 is consultants who were with Scentsy for less than 12 months in 2018.
In Group 1 the annual average commissions were $1989.00 and the median annual figure is $697.00. This is gross by the way and does not reflect any business expenses associated with running a business. That works out to only about $165.00 a month.
Even though Scentsy displays their income disclosure statement and are also members of the DSA (Direct Selling Association), the facts for making any kind of money when involved in network marketing are depressing.
It is well-documented that 99% of anyone who is involved as a distributor in a multi-level marketing business model will not be able to earn a full-time or even part-time income. This article from the Consumer Awareness Institute goes into the dismal figures in detail.
There are many complaints on the internet that you can easily Google yourself and they seem to focus on poor customer service at Scentsy.
Pros and Cons
- authentic products
- can hold a virtual online party
- high failure rate due to MLM model
- have to harass family and friends to join
- lots of complaints about customer service
Final Thoughts on Scentsy
I have to admit that the Scentsy website is well set out and they at least provide a lot of information on what they offer and how to join. I think it might be fun to try a few of the products, though I have read many complaints about them. Still, they have some unique items that you don’t see everywhere and you might purchase a few just to see if you like them. Scentsy is not a scam. They offer genuine products, but you had better be prepared to lasso your family and friends, and lots of them, to build a team under you to make any kind of consistent income.
Sadly, nice smelling products that enhance the ambiance of your home or make your laundry smell good (or your dog), is not going to help your bottom line when it comes to generating income with this flawed multi-level marketing business model. In fact, to better help you understand what is involved with becoming a multi-level marketer, I have created this checklist that will give you some insight on what kind of personality you need to be to have any hope of success in the network marketing world. Please, beware!
Therefore, I cannot recommend that you join Scentsy as a consultant and this is definitely a wax off situation. You won’t make money here. The figures speak for themselves.
Are you a Scentsy Consultant yourself and have you had success with this business model? If you have, we would love to hear about your experience in the comments section below.
There Is A Better Way To Generate Online Income
Frankly, Philip and I would never invest in a network marketing (MLM) business opportunity. I have read too much now to ever fall into the trap of being stuck with one product line and dictated to about how to run my business from people in an upline.
When we were researching ways to generate online income in our retirement, we finally found a business model that we thought made sense and was easy to set up. It is called Affiliate Marketing. However, there are many companies out there that purport to teach you the skills necessary to succeed as an online entrepreneur, many of which are very expensive.
Enter Wealthy Affiliate, a friendly Canadian company that started up over 14 years ago. We checked it out and found that we could actually enter the platform for FREE before committing one single cent. That really appealed to us! Inside we found a welcoming global community of like-minded people, full training, tools and resources to get our business up and running in no time.
We hope you will come in and just check it out yourself and see if you agree. There is no obligation.
Hope to see you there!