Does it Make Sense to Start a Scentsy Business?

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If you’ve ever been invited to a Scentsy party, you may already be aware of this company and its brand. However, you may not be aware of how the company operates and what the motivating factors of its consultants might be. If you’re considering becoming a Scentsy consultant, this review will help make your decision easier.

What is Scentsy?

Scentsy was started in 2003 by Orville and Heidi Thompson and is now headquartered in Meridian, Idaho. The company operates via a direct sales model, meaning that most product sales are conducted through word-of-mouth and product demonstrations at home. Scentsy is also an MLM because current distributors recruit new distributors and make a commission from their sales.

Scentsy, which used to be officially called Scentsy Family, offered three product lines:

Scentsy Fragrance– warmers, fragrances, stuffed animals, laundry products, greeting cards.

Velata– fondue warmers, chocolate.

Grace Adele– purses and bags, clutches, clothing accessories.

In 2014, Grace Adele was discontinued; in 2016, Velata was shut down. The company then became Scentsy Fragrance. The company changed its name to Scentsy Fragrance, but still operates under the Scentsy Family corporate name.

Scentsy Fragrance continues to offer scented lotions, scrubs, laundry detergents, room sprays, cards, etc. One of their best-known product lines is the wax warmers, which includes a plug-in warmer containing wax cubes. Once those cubes warm up, the room fills with fragrance.

The products are actually of a decent quality and do smell good. I know this because I have received some of the waxes as gifts. Comparable quality items would include those that could be purchased from stores like Yankee Candle Co or Bath & Body Works.

You can purchase Scentsy products by going online and shopping on the company’s website. However, the company strongly encourages those individuals who are really interested in the products to become “fragrance consultants.”

What are Scentsy Consultants?

Consultants for Scentsy sell products for the company by signing up and purchasing a $99 startup kit. The items includes in this kit “include EVERYTHING you need to launch your business, including fabulous Scentsy products and business tools…”

Not much more detail is provided beyond that.

Once you do become a Scentsy consultant, you are advised to sell company products by hosting house parties and advertising online, especially through social media platforms  like Facebook and Instagram. What’s in it for you?

The company compensates you with a 20% commission for your Personal Retail Volume (PRV) of up to $999.99. In other words, if you sell $999.99 worth of products, you earn almost $200. If you sell $1,000 worth of products or more, you make a 25% commission.

Because you don’t ever earn more than 25% on your PRV, you are motivated to recruit others into becoming Scentsy consultants. Through your downline, you earn anywhere from 2% to 9% via their product sales. In turn, those consultants are encouraged to recruit other consultants so that they also build their downline and kick up more earnings to you.

Is Scentsy a worthwhile business venture?

As with all MLM and direct sale companies, Scentsy requires that you be comfortable approaching others and selling products and/or consultant opportunities to them. Where does Scentsy excel in this arena, and where does it fall behind?

The good:

Product quality– The company’s products are of good quality, have a pleasant smell, and are fairly safe to use.

Product relevance– Scentsy markets its line of fragrance product to women, men and kids. So, you are cornering almost every portion of the available consumer base.

Rewards– If you like Scentsy products, one way to score a deal on them is by selling them to others. If you choose to do this online and have a large following, you could end up making several hundred dollars in party sales. In addition to making 20%-25% in commissions, you’d also gain access to the following rewards:

The not-so-good:

Commissions– The chart below is derived from 2014 data that appear with the Scentsy business disclaimer. Commissions are shown for all levels of Scentsy consultants, from Escential (beginner) to Superstar Director (a Scentsy god).

It appears that the majority of Scentsy consultants are placed at the Certified Consultants level. This is the level where a consultant has sold $1,000 or more of product but has no downline (other consultants). So, these consultants are basically pulling in 25% commissions on their sales.

Scentsy Commission Earnings

As noted in other direct sales/MLM reviews, a low commission makes it difficult to not only earn a sustainable monthly income from a business, it limits your ability to launch product promos and discounts. And, not to mention, recruit other (new) consultants too.

Recruitment– What’s really disheartening about Scentsy is that, no matter how much product you sell each month, you can’t increase your commission beyond 25% unless you recruit other consultants. In fact, at the very top level consultant position, you can earn up to another 44% in commissions from your downlines in addition to the 25% you already earn on your own sales. With that kind of money flowing in, it becomes much easier to run promos, ads, discounts, etc.- and still make a healthy profit from your sales.

Scentsy is a great product, not a great business

Scentsy products smell great and come in a number of attractive scents and unique designs. However, that’s where the greatness stops. By all means, shop Scentsy for your home, office, garage, car, etc. fragrance needs. But do not shop this company if your intent is to start an at-home business venture.

Have you started a Scentsy business? We’d love to hear your experiences in the comments below.

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