Scentsy is an authority in the wax warmers and home scents category. The company has been around since 2004, offering wax melts, warmers, laundry products, and even body care items.
From a consultant standpoint, Scentsy has a fairly standard multi-level marketing (MLM) structure. The consultants serve as distributors, being the point-of-contact for sales. Generally, you won’t find Scentsy products in retail stores because of the company’s design.
As with any MLM company, many people worry that Scentsy is a scam. While “scam” may be a bit harsh, it isn’t necessarily easy to be successful with Scentsy.
Most MLM companies require an upfront investment on the part of consultants. In the case of Scentsy, you need some initial product, business cards, and a website.
The starter kit, which is a requirement, comes in at $99 before tax and shipping. It includes a warmer, scent testers, product samples, and a range of “business tools.” Some of the cost is ongoing, as consultants are largely responsible for maintaining their testers and samples. Further, if you host a party and want inventory available, you’ll likely need to purchase it up front.
While the cost may change, the website alone has a $10 per month maintenance fee. However, new consultants do get their first month free.
Every new Scentsy consultant has to work under a “sponsor,” another consultant who already sells Scentsy products. If you don’t know someone, you get a sponsor assignment from the company.
Theoretically, the sponsor helps guide you as a new consultant. However, if you don’t know your sponsor in advance, results may vary.
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Scentsy consultants do have to meet minimum sales requirements. The company lists these at 200 or more points in personal retail volume (PRV) a month.
PRV is a system for assigning points according to what a consultant sells. Generally, you earn one point per dollar on retail sales.
The compensation plan is somewhat complex with Scentsy, as it is with many other MLM companies. Part of what consultants earn is a commission, or a percentage of their sales. The initial rate is 20 percent, though it climbs to 25 percent once you earn 1,000 PRV points.
Accessing additional compensation requires advancing through the tiers and, usually, you’ll need consultants under you to make that happen. The company labels these other forms of compensation as bonuses, which are mostly based on team wholesale volume metrics.
Ultimately, it is possible to make money with Scentsy, but it usually takes a big team or incredibly high sales to make a substantial sum.
Does that make Scentsy a scam? No, not really. Most people like the products, so there isn’t an issue with what is being sold. However, selling enough and building a team is difficult, particularly if your market is saturated.
In the end, it depends on how much work you’re willing to put into it. If you are a selling genius and build a strong team, you can make a living with Scentsy. However, many people won’t make it far enough to do that.
Are you a Scentsy consultant? Tell us about your experience in the comments below.
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