Candle home parties have become popular hangouts these days. You might get invited to one by a friend or relative. They could also have told you about a lucrative “work from home” arrangement. Maybe someone also tried to sell you a package of scented wax warmers and melts?
When you ask for more information, they lead you to a business called Scentsy. It is not surprising that you might want to Google words like “Scentsy scam” or “Scentsy MLM.” There seems to be a lot of confusion about whether Scentsy is a pyramid scheme or not.
But right off the bat, Scentsy is a legitimate company with an essential business strategy. However, it might not be the best option to make a stable amount of money every month.
What Is Scentsy?
Scentsy is a business that focuses on selling fragrance products. They aim to make households smell fresher, livelier, and more delectable. They have a Multi-Level Marketing (MLM) strategy. Of note are their wax bars and warmers, known for their distinct aroma.
Scentsy was one of the first companies to introduce unique warmers and wax bars on the market. Their products have a lower fragrance melting point than other companies. This particular function means that the products release the scents at lower temperatures—ideal for large rooms and houses.
An essential benefit to their low-temperature products is that they do not disperse wax into the air. Only the fragrance makes it to the air, ensuring that people do not inhale harmful chemicals. The polish itself remains on the products or gets discarded as it melts.
Scentsy’s products also have a lifetime guarantee. Purchasing products from authorized dealers is safe and secure.
Scentsy Review: Is Scentsy a Pyramid Scheme?
On a technical level, no. While Scentsy may seem like one, it is not a pyramid scheme. Pyramid schemes are noted for promising members payments if more people join the program. Actual pyramid schemes do not have products or services in the marketing plan. They are illegal in many countries due to their dishonest, costly, and deceptive ways.
So, while Scentsy consultants can earn money from selling products or recruiting other people into the fold, the program itself is not a pyramid scheme. However, you cannot work full time from home just by selling Scentsy products.
Is Scentsy an MLM?
Yes, Scentsy is classified as an MLM company. When you consider joining an MLM business, it is crucial to investigate what products you will sell. It is advisable to try these products for yourself, as you do not want to receive complaints if customers are not satisfied.
MLM businesses have a “unique” characteristic. Each one has its gimmick to help sell itself, such as popular items. Although these can be found through other retailers, they package and market them in lucrative ways. These tactics allow consultants to get more sales from people.
Scentsy is not different from other MLM companies. Their business model relies on fragrant household items, such as candles, wax bars, and warmers. Just like other reputable MLM companies, Scentsy has legitimate products and goods.
However, some MLM companies disguise themselves through products and services but only seek to recruit more employees to earn profit.
How to Make Money with Scentsy
Scentsy’s primary goal is to deliver fragrant and appealing products to every household. But instead of using their tools and resources to market what they have to offer, they use consultants. These are the people you know recommending you to Scentsy.
There are two ways that consultants make money from Scentsy. First, they can sell their products. These include candles, wax warmers, and others. Each sale entitles them to a commission. Secondly, they can also recruit other people as consultants. Getting more people to join will give them bonuses on their sales income.
This form of revenue is usually seen in many MLMs. Scentsy is not different from others, and they subscribe to the usual MLM practices. Thus, regular citizens make money from sales commissions and recruitment bonuses. They advertise this as a “win-win,” with Scentsy cutting back on advertising costs and the consultants making income.
How Much Does It Cost to Join Scentsy and Scentsy Monthly Cost?
The upfront cost of joining Scentsy is $99. This fee entitles people to become consultants. Compared to other businesses that charge an upfront fee, this is on the lower side. If you compare it to setting up a local restaurant or your shop, the rental and material costs could reach thousands of dollars.
It is not surprising then that people flock to Scentsy. They do not have to shell out so much money to have “their own business.” However, the upfront cost is just the first of many payments. Consultants need to pay $10 a month for costs related to their “duplicated website,” which is used for marketing the consultant’s Scentsy products.
Besides the monthly fee, consultants must meet a quota. The quota is a set number of sales they need to reach per month. If they fail to reach it, the consultant does not get paid.
Is Scentsy a Scam?
Scentsy is not a scam since they produce their products. These goods are sold to people by consultants who get a commission from each sale. That sets them apart from MLMs that are pyramid schemes. They have a distinct niche in the market, even if recruitment is part of their business model.
Is Scentsy Legit?
Scentsy is a legitimate company. Consultants sell to other people, and they get a commission. Products include wax warmers, candles, soap, and others. People enjoy the scents of their diffusers and other goods, with a guarantee on each item. However, it is not advisable to make Scentsy your main source of income as a consultant.
Frequently Asked Questions
While Scentsy is a legitimate operation, there are some catches to their seemingly solid pitch to budding consultants. Here are a few questions you might have about Scentsy:
Are Scentsy products completely natural?
Scentsy markets its products as “natural.” Natural branding is part of their unique selling point, and their consultants emphasize this whenever they want to make a sale. However, their definition of “natural” is not clearly defined. Items such as Scentsy Bars and essential oils all have these labels, although they contain some synthetic ingredients.
These synthetic products are infused with natural components. They are often hidden under the guise of a “secret combination,” which in itself is a red flag. Those who look at product labels will find it fishy that a company does not disclose what is included in their items. These can also be harmful to those who might be allergic to some substances.
Are Scentsy products priced appropriately?
The products sold by Scentsy are not exactly unicorns. They can be found in conventional retailers, although their packages and fragrances might be different. But if you are looking for soap or candles, you want to carefully weigh your options. Will it be worth it to pay for something that is more expensive?
The Scentsy wax bar costs around $2.08 per ounce. By comparison, other brands on Amazon sell the same thing for $0.75 to $0.85. There is a considerable difference. The price disparity is almost 150%, which can raise some eyebrows.
The reason for this price difference is the sales quota for all consultants. If they do not meet the amount of money required, they will not get paid. Without sales from other people, the consultants themselves have to buy the products.
Does Scentsy focus on recruitment?
Although it is not a pyramid scheme outright, Scentsy’s model is focused on recruitment. The products are secondary to the biggest income provider: getting more consultants.
Do people really make a lot of money from Scentsy?
The answer is no. People who make six-digit earnings a year are the minority. To paint a picture, selling Scentsy products worth $136,000 will only give consultants around… $22,700. That is a very low amount of money for all the hard work of selling.
Do you really own a business?
No, you do not. As a consultant, you are only an employee doing the work Scentsy hands out. Not meeting the sales quota or defying anything that they tell you subjects you to their sanctions. That is not how our own business works.
In addition, the website you pay for monthly is just a replica. You cannot control what goes on it and how it is used.
In summary, Scentsy is not a scam or a pyramid scheme. However, you cannot make a considerable sum of money by merely selling their products. Recruiting is the best way to make money out of being part of Scentsy. And if you really value the sales aspect, it is not exactly a fulfilling way to earn.
In addition, it is not sustainable. You can only recruit so many people, and you will eventually run out of them. The products are also quite expensive, so sales will not be stellar all the time.