Welcome to our Scentsy Review MLM Coffee Talk.
Scentsy is a popular mlm company for the ladies.
This is the largest mlm fragrance company in the world.
Besides offering 80 different scents of candle warmers and wax, Scentsy offers you an opportunity to make money as an Independent Consultant.
Scentsy says that they are a party company that offers aspiring entrepreneurs a fun way to launch a home-based business without making a huge financial investment.
This sound like a good business opportunity.
But I am very skeptical when it comes to mlm opportunities. All of them claim to be the best.
Reading Scentsy marketing claims, the word SCAM immediately comes into my mind.
We start a business to make money and achieve financial freedom.
You don’t want to be a victim of a scam.
I am writing business reviews to expose the scammers.
In this Scentsy Review, we are going to discuss:
- Is Scentsy a scam or legit opportunity?
- How to become a Scentsy consultant?
- How much does it cost to join Scentsy?
- What is the Scentsy compensation plan? And,
- Can you make money with Scentsy?
After reading this Scentsy review, you should be able to decide if Scentsy is a scam or a legit.
Tired Of Scams And Pyramid Schemes?
Scentsy Review Summary
Annual Revenue: $449 Million
Business Earnings Estimate:
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What Is Scentsy?
Scentsy is a private mlm company offering in-home and personal fragrance products with a network of over 133,384 independent consultants.
The company was started by Orville and Heidi Thompson in July 2004 with headquarters in Meridian, Idaho, USA.
Scentsy offers over 80 fragrance products including Scents on the Go, Scent Pak, Groom, Skin, Kids, Laundry, Clean, Room Spray, Car bars, and more.
The company recently added new product lines, Essential & Natural Oils and Ultrasonic Diffusers.
Scentsy popular products, scents ceramic warmers, are manufactured by a partner company located in China.
The company reported an annual sales revenue of $449 million dollars in 2018 with operation in the United States, Canada, Mexico, Germany, Austria, France, Spain, Ireland, the United Kingdom, Australia, and New Zealand
The company published its 2018 income disclosure statement with over 68% of consultant earned an average annual income of $239. This suggests your chance of earning a decent income as a Scentsy consultant is near Zero.
Before investing, you must compare Scentsy with other home-based opportunities.
You can use My #1 Business Opportunity to make a comparison.
How To Become A Scentsy Consultant?
You need a sponsor to become a Scentsy independent consultant.
If you don’t know a current Scentsy consultant, you can visit the company website to search for one near you.
A local Scentsy Independent Consultant will contact you to schedule a business meeting or an in-home party. This is a face-to-face- sale.
This is an mlm. So, your sponsor is your upline.
As a Scentsy Independent Consultant, you do not make money unless becoming Active and/or Qualified, which I’ll discuss more in the Scentsy compensation section of this review.
How Much Does It Cost to Join Scentsy?
The cost to join Scentsy is $99 for the Starter Kit. This kit includes products for you to start promoting your Scentsy business.
Besides the joining fee, there are other expenses to operate a Scentsy mlm business.
Your biggest monthly expense is the Active Expense, which Scentsy refers to as Personal Retail Volume (PRV).
Every Scentsy consultant must generate 200 PRV in the month to maintain an active status.
You can place a $200 order each month to meet this PRV requirement.
The $200 PRV is a business expense, known as, “Pay and to Earn!” If you want to earn, you have to pay.
An Independent Consultant that fails to meet the PRV requirement is not allowed to participate in earning the commission.
This monthly Active Expense can destroy your chance of making a profit because if you cannot resell the products, it becomes business losses.
Other home-based businesses, such as Affiliate Marketing, you earn the commission on every sale, no personal purchase required.
Do you know why mlms and Scentsy have the PRV requirement?
Well, they need to sell products and to avoid being classified as a pyramid scheme under the FTC guideline. (Check our MLM vs Affiliate Marketing for the discussion on the FTC MLM Guideline.)
Scentsy Compensation Plan
The Scentsy compensation plan looks simple, but it’s not easy to earn.
Let’s me to explain.
I’ll provide you an overview of the Scentsy compensation plan. To learn in detail, just download a copy.
There are two ways to make money with Scentsy, sell products and/or recruiting others.
Make Money Selling Scentsy Products
Scentsy Independent Consultants earn a commission each time they order or sell products to a customer.
The commission starts at 20% for the first $1,000 PRV. After this, the commission is 25%.
As you should know, most Scentsy consultants are encouraged to order $1,000 to increase their commission to 25% and resell them for profits.
But, can consultants sell Scentsy product at the overpriced on the market?
Well, I did a search online and found many Scentsy Wax Bar selling as low as $2.50 with free shipping.
The same item on Scentsy website retails for $6.00.
Overprice is the reason why you can never sell mlm products on the market for a profit.
It will be a challenge for Scentsy consultants to make money selling products.
Make Money Recruiting Others
The trick with Scentsy compensation is that there is no wholesale price.
You purchase products at the retail price, then Scentsy sends you 20% based on your monthly PRV.
To generate PRV and stay in business, your best option is recruiting others to join.
According to Scentsy, consultants that sponsor others are 60% more likely to stay in business and earn more PRV.
PRV determines your commission. If you can generate over $2,000 PRV each month, you earned up to 30% commission, a 25% based commission plus a 5% bonus.
The game is when you enroll new consultants, they are required to generate a minimum of $200 PRV each month. Their PRV also count toward your monthly PRV volume.
If you recruit 6 people to join Scentsy, then every month you have met the $2,000 PRV.
Scentsy consultants can earn residual income and leadership bonuses from 2% up to 9% based on the rank.
The lowest rank to earn 2% is Lead Consultant rank, and the highest rank is Superstar Director.
The profits, leadership bonuses, and residual incomes are sound exciting. But, it’s not easy to earn with Scentsy.
This is the trick with mlm opportunities. You have multiple ways to earn. But, to receive the commission, you must be Qualified.
Qualification means you must generate more PRV by recruiting others or purchase products.
You might end up making no money because the monthly qualification purchased far exceeded the commissions earned.
Under the Scentsy compensation plan, earning is one thing and receiving the money is another.
When evaluating an mlm opportunity like Scentsy, you need to know the actual income received by the Independent Consultants.
Actual incomes will give you an idea of the business profit and loss.
Can You Make Money With Scentsy?
Don’t fall for the trick of believing that you can make a good income based on the compensation plan.
This is what I mean.
The compensation plan shows POTENTIAL EARNING, not the actual income received by Independent Consultants.
You need to look at the Scentsy Income Disclosure Statement (IDS). This financial document contains the ACTUAL INCOMES received by consultants from Scentsy.
I have a copy of Scentsy IDS for 2018.
Based on the IDS, the total Scentsy consultants was 133,384.
But 91,813 Scentsy consultants were active for less than 12 months.
This number tells us that over 68% of Scentsy business failed in the first year. This is extremely high.
The remaining 41,571 consultants, approximately 32%, earned the average annual commissions of $1,989.
The annual earnings above do not include the business operating expenses.
Do you remember the $200 PRV each month?
If we deduct this business expenses from the annual earnings, most Scentsy consultants lost money in 2018, ($1,989 – $1,200 = – $789).
Now, Scentsy consultants might tell you the top consultants earned $961,423 in 2018.
When you just start out as a new Scentsy consultant, you are unlikely to become the top earner. You are lucky if you break even.
Most top earners are with the company for years. Sometimes the top earner is the founder.
Using the average annual earnings is the best number to evaluate this mlm opportunity.
It’s not unusual for more than 99% of consultants making little or no income.
You can request a recent copy of the IDS from Scentsy at the time of enrollment. Scentsy is required by laws to provide you a copy together with the compensation plan.
As a business review writer, I look to the actual business incomes to advise clients on an investment. Potential earnings are just a guess.
Don’t be surprised if the majority of Scentsy Independent Consultants make no money.
Never join Scentsy until you see the IDS. If they refuse to provide you a copy, this is a sign of a potential scam.
Is Scentsy A Scam?
Yes, your chance of making money with Scentsy is low. But this doesn’t make Scentsy a scam.
Scentsy offers you a business opportunity. Every business opportunity has risks.
The risk of losing all your investment when joining Scentsy is real. You need to carefully research and study the opportunity before joining.
Reading this Scentsy Review is a good way to learn the risks and rewards associated with this home business.
Many entrepreneurs hire a professional business analyst to evaluate every business opportunity to discover a profitable investment.
As a Business Review Writer, I evaluate mlm opportunities to help you recognized and understand the risks.
Scentsy is not a scam. It’s a competitive and unprofitable business opportunity.
Is Scentsy A Pyramid Scheme?
Scentsy will never agree that they are a pyramid scheme.
However, I have a different view of mlms.
Why do I think Scentsy is a pyramid scheme?
Based on their compensation plan.
Independent Consultants are forced to purchase overprice products to earn the commission, and the best way to make money with Scentsy is recruiting others to join.
Once you join, you are forced to purchase a minimum of $200 PRV each month to remain as active and qualified.
This is how mlms make money. Independent Consultants are the company primary customers.
The more people join your team, the bigger the monthly PRV, and the more money you make.
Recruiting is the key to get promoted and make money with Scentsy.
Doesn’t this make Scentsy a pyramid scheme?
Well, not everyone will agree with me.
But based this Scentsy Review, you must agree that it is not easy to achieve financial success with Scentsy.
The Scentsy failure rate is over 68% in the first year. This business opportunity is not profitable.
Is Scentsy Worth It?
I have shared with you the important financial information in Scentsy Review. You should be able to answer this question.
For me, Scentsy mlm is not a good home business opportunity.
I’ll never start a business when the chance of failure is greater than 68%. The risk is too high.
Do you know why you want to start a home-based business?
To earn extra money from home, to be your own boss, or to achieve financial freedom?
And to make money, we invest in a PROFITABLE business!
There are much better and less risky home-based business opportunities.
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The best part, you are working on the computer in your own home or anywhere you like.
Mlm companies come and go. The same is true with Scentsy.
If Scentsy goes out of business. You are out of business. There is nothing you can do about this. You must carefully consider before joining Scentsy.
Starting a business is to build a future stream of income.
Being able to make money in the long-term is the #1 reason we start a business?
If you want to be an owner of a lucrative and profitable business that generates six-figure passive income, then…
You should read my #1 recommended online business opportunity.
Can you write?
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You have seen the Scentsy failure rate in this Scentsy Review.
Even though Scentsy is not a scam, but it’s not easy to make money.
This home business is risky and not profitable.
I want to thank you for joining our mlm discussion.
Until next time.
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