Making a little extra money by having parties seems like a no-brainer. All you have to do is have someone host a party and you collect orders for products. Continue doing this and it could reap some great financial rewards. This is how Scentsy works. A company I’m sure you’ve heard of because it’s well known and has been around for years. In this Scentsy MLM review, I’ll check out the products and the company to see if this opportunity will be a great way for you to make money.
What is Scentsy MLM?
Scentsy was found by Colette Gunnell and Kara Egan in May 2004. The company is headquartered in Idaho and has consultants in many countries. The products are sold by direct marketing also known as multi-level marketing. In 2018, Forbes ranked it #35 on their Best Mid-Size Employer list for the USA. And Direct Selling News listed Scentsy among the 13 best places to work in the U.S.
There products are all centered around scents. Diffusers, wax bars, room sprays, travel tins, dryer disks, all-purpose cleaners, fabric softeners and even products for pets.
Are Scentsy Products Worth Their Price?
Scentsy products are not available in retail stores. This will give you a bit of an edge in selling. Their flagship product are the Scentsy wax bars and warmers.
The wax bars come in 68 different scents. The average retail price for each wax bar package is $6.00. They are made of paraffin wax and there are eight break-apart cubes in each package. Place a cube in a warmer and it will burn for a few hours giving your room a lovely smell.
There’s a wide selection of the warmers (above) that use the wax bars. These warmers are pretty pricey though. They range in price from $30-$60 retail. All of the Scentsy products would appeal to a female audience.
Customers may feel that the wax bars are a decent price but may be put off by the price of the warmers. These products are more of a luxury buy. They are not a necessity purchase. There are other products such as the cleaning products and the laundry products that may be more competitively priced. But the big selling point here is that you can’t buy these products in retail stores so that gives you an edge.
The Scentsy MLM Opportunity
To join Scentsy you need to have a sponsor. If you don’t have one, you will be appointed one through the website. Once you join and have your starter kit, you can then start promoting and selling Scentsy products. There are a few different ways to sell these products. One of the most common would be to have someone host a party. This gets the products right in front of potential customers where they can see the quality. You would earn commissions from the orders. If you can get $200 in orders, your host will qualify for a free gift.
How Much Does It Cost to Join Scentsy?
If you join and buy the starter kit, you will pay $99. There are a number of different kits you can choose from such as warmers, cleaning products, waxes, laundry products and fragrance testers. If you host a party, any products sold can be applied toward a Host-Exclusive Starter Kit. Your membership will need to be renewed each year. You may also need to buy third party insurance to cover any business related theft, damage to business equipment or damage to inventory.
Can You Make Money with Scentsy?
There are a few different ways that you can sell Scentsy products and make money. If you can use all the methods below, it’s possible to make money with Scentsy.
As an Scentsy Consultant, you will have your own personal website space. The first three months are free. After that, you have to pay $10 per month after 3 months.
Find people to host Scentsy parties and you earn a commission of the sales of all products. In addition, your host receives a free gift as an incentive to have the party.
Scentsy On The Go
This is one of the easiest ways to get product orders. Just have someone pass around a Scentsy basket at work, school, church, or wherever. Let people sample the products and collect and place orders when the basket is returned to you.
Recruiting people to be on your team is another way you can make even more money. You will be responsible for training and managing your recruits but you will also get a portion of commissions on their sales.
All products are given a PRV which is Personal Retail Volume. Your commissions are based on the PRV you attain each month. This point value is converted into a local currency using a peg rate that is specific to each individual country. Commission rates start at 20% and can increase to 25% once you’ve made 1,000 PRV points worth of sales. Consultants get paid on the 10th of each month via a Scentsy VISA pay card for the previous months sales.
In order to remain as an active Consultant, you need to generate 200 points or more in sales at least one month within a four-month period. The image below will give you an idea of the compensation you can expect.
Who doesn’t want a free trip? If you work really hard selling, promoting, and recruiting, you may qualify for a free trip. But here’s the catch. In order to qualify, your sales numbers have to be in the top 50. If you can recruit a decent downline, this may be possible.
There are some positive things about being a Scentsy Consultant. If you are thinking about joining Scentsy, the following points may be enough to sway you.
A few of the Scentsy products have a limited lifetime warranty. Scentsy Diffusers, Scentsy Go Solid and Scentsy Go are guaranteed to be free from defects. If any defects are found within the first 30 days of purchase, Scentsy will replace the product for free.
Made in the USA
All products are made in Idaho, USA with distribution centers in Texas, Kentucky, Idaho, Mexico, Australia and the Netherlands.
Along with your personal website (PWS), you can also use social media networks such as Facebook, LinkedIn, Instagram, and Twitter to share product information.
Available in Many Countries
Scentsy Consultants are in many countries including Canada, Mexico, Australia and a select few across Europe. The opportunity to become a consultant is not limited to the U.S.
But on the other hand, you should also know the reasons you may want to give them a pass. And you should be fully informed in case any prospective customers ask about them.
The Scentsy bar wax fragrance contains DEP (diethyl phthalate) which is known to be dangerous to human development and reproduction. It can cause allergies and is a known endocrine disruptor. This chemical is commonly used in perfumes and plastics.
While there are many people who have praised Scentsy on the BBB (Better Business Bureau) website, there were several complaints listed as well at the time of this review.
Pay Your Own Expenses
So not only do you work on commissions, you also have to pay all your own expenses including gas, food, phone, and any other expenses.
Slow Ordering Process
When consultants place their product orders, Scentsy has up to 10 days to fulfill and ship those orders. There are anecdotal complaints where customers have waited up to six weeks for their order while other customers have received their products within a week.
Poor Customer Service
The poor customer service is not limited to just the customer. Even the consultants have had trouble getting their problems solved through the Customer Service help lines. In some cases, they are told not to call back or calls are simply never returned. Issues are usually around products not being shipped or customers don’t receive their orders.
Is Scentsy a Scam?
It sounds like a blast to promote products through a party, right? Customers don’t even know they are being sold to. You demonstrate the products and the orders roll in. But let’s not forget what it will take to get there. You have to find someone to host a party. They have to invite a bunch of friends. The host has to at least provide some refreshments and maybe some snacks to create the illusion of a party. All in the hope of selling enough products to earn a decent commission. Then you have to do it all over again. That’s the bare minimum.
Sure, you can also sell through your website and recruiting. Just keep in mind that if you don’t sell products, you don’t get paid.
Scentsy has been very successful for many years. If this wasn’t the case, they would not have Consultants in other countries. People do seem to like the products when they do receive them. So I can’t say it’s a scam but I can say it’s hard work.
One thing that people tend to forget about when it comes to MLMs is the money they have to invest before they make a penny. There’s usually a kit you have to buy and a membership fee. Then there’s the hidden expenses–your personal expenses. So even if you manage to make some decent commissions, how much is left after you subtract your expenses?
If you wanted to avoid all the work and expense that a job like this would take, then check out my #1 recommendation on how to build your own business. You’ll get everything you need including a website, hosting, training, awesome tools and 24/7 support.