Today we will be reviewing a company called Scentsy. Is Scentsy a pyramid scheme or scam?
We will look at the company, its products, and how you can make money with it.
Should you consider investing in it? Find out as you read the review.
Spotting a scam is not as easy as it used to be. as scammers have found ways to circumvent the system.
There are scams that look exactly like the real thing they portray.
Phishing sites look like the legitimate sites they imitate. Even the URL looks legitimate.
This is because the scammers have found a way to make their sites’ URL look legit. It is pretty smart, but of course, scamming can land you in jail.
Because of these instances, people continue to fall for scams. One common example of a scam is a pyramid scheme. These companies disguise themselves as legitimate businesses.
I can teach you how to spot a pyramid scheme.
You should learn how to tell whether the opportunity is a pyramid scheme or not, or you might fall for it.
If you invest money in a pyramid scheme, you will definitely not see that money again.
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What is Scentsy?
Scentsy is a multi-level marketing company that sells fragrance products.
The company was founded in 2003 by Kara Egan and Colette Gunnell.
The company peddles its products through independent sellers, which they refer to as Scentsy Consultants.
According to their website, Scentsy sells the following products:
- wax scents
- oils & diffusers
- fans diffusers & pods
- laundry products
- personal care products
- pet care products
The company is currently based in Idaho, United States.
Is Scentsy a Pyramid Scheme?
Since Scentsy members earn money both by selling products and recruiting new members, then it is safe to say that Scentsy is not a pyramid scheme.
I advise against joining Scentsy.
I am certain that legitimate businesses should not be focused on recruiting more sellers than actually selling products.
Since Scentsy is doing just that, it makes them look suspiciously like a pyramid scheme.
90% Fail Ratio
You can view the Scentsy 2019 Income Disclosure Statement here.
According to this document, the average annual commissions for those who have been consultants for less than a year is $190.
As we all know, most people do not even last a year in MLMs.
That commissions is definitely one of the reasons why.
$190 is not even enough to cover what you paid for the starter kit you have to buy.
That amount is not even equal to minimum wage. $190 is not enough to cover all your efforts; from selling, marketing, and shipping products.
You are already thinking about this exact statement right here: Is Scentsy a pyramid scheme?
At this point, it does look like one.
Is Scentsy a Scam?
No, Scentsy is not a scam. However, if you want to get into some truths about Scentsy, then I recommend this video.
Yes, our data clearly states that there are still people who make money from Scentsy, despite of the low payout from sales.
However, this does not mean that Scentsy is already faultless. They have a lot of red flags surrounding their name.
How To Make Money From Scentsy
There are primarily two ways to make money with Scentsy.
- Selling products. As a Scentsy consultant, you get products at discounted prices. You can sell those for retail prices for a profit.
- Recruiting people to your downline. Again, scummy.
Before you even start with this so-called opportunity, you have to pay a hefty fee. Color me surprised.
How to Join Scentsy
Before you join Scentsy, watch this video. This will give you a quick tour around the registration process and how the company operates.
To become a Scentsy consultant, click this link.
Here are the steps you need to follow to ensure a smoother application process.
- Find a sponsor. You can do this providing your zip code. The website will present you with consultants that are located in your area.
- Pick a starter kit.
The registration process is pretty straightforward. You can complete it easily with a few clicks.
Things I Like in Scentsy
Honestly, I am not a fan of fragrance products. I am alright with just using colognes or perfumes.
I know a lot of people who are sensitive and sometimes allergic with certain smells, so I do not recommend Scentsy to anyone. It is also quite annoying smelling something all the time.
I do not like Scentsy at all.
Things I Dislike in Scentsy
Toxic Recruit Process
I do not think I can stress enough about how toxic this recruitment process works.
You would have to recruit people to your downline to be able to start making money with Scentsy.
As always, instead of trying your best in sales, you should just give up on that entirely.
If you want to earn big, you should recruit. Forget sales, marketing, and training, just recruit.
It is both outrageous and disgusting.
In general, who even thinks about having a house smelling like something unnatural all the time?
If I want a certain scent, I would rather buy some cologne or perfume for the mall.
I would not think about committing to selling stuff that smell good.
Unfortunately for Scentsy, I am not really a fan of fragrance products.
Also, there are already a lot of companies (which are not MLMs) who sell cheaper products. Try the mall, for example?
Get in Debt While Smelling Nice
You need to spend a lot of money in order to get higher percentages in commissions.
Isn’t that what all MLMs are like?
Yeah. That is also what Scentsy is like. It is despicable.
Do you think you can sell thousands of candles a month just to earn less than minimum wage? No? Well, no normal person does.
Scentsy Compensation Plan
The Scentsy compensation plan can be viewed and accessed through this link.
Here we are again with another compensation plan which makes me dizzy.
Look at all those colors. At least it is colorful, but it does not explain anything to me properly.
I suggest that you watch this video instead so you can at least try to grasp what this colorful table is about.
This is the most helpful video I can find, and it is 35 minutes long.
I suggest that you get yourself a drink and maybe lunch. I do not even know why a compensation plan has to be this complicated.
There are 8 total ranks that you can reach in Scentsy. To advance to the next rank, members should meet specific requirements and maintain them on a monthly basis.
- Escential Consultant
- Certified Consultant
- Lead Consultant
- Star Consultant
- Superstar Consultant
- Star Director
- Superstar Director
10 Shocking MLM Statistics That You Need To Know!
- Almost 99% participants of all multi-level marketing companies lose money, according to the FTC.
- There are 38% more chances of you profiting from your own any kind of small business than joining these MLMs.
- Success rate of an online business, which will give you financial and time freedom, is 20% more than joining MLMs for making money.
- The odds of you winning a lottery worth $10k among 10,000 people is 300 times higher than actually making money from MLMs.
- According to the AARP foundation, 47% distributors of all MLMs lose their money. Apart from this, 27% do not make a single penny.
- In the remaining 26% that actually make money, 53% of them make less than $5000/year.
- 39% of those 53%,who are making $5000/year quit because recruiting and selling crappy products to friends and family members jeopardized their relationships.
- Forget about building a long term business with MLMs, because 50% of all MLMs participants quit within one year.
- 75% people that joined MLMs say that they will never again join any kind of MLM.
- A poll was conducted in 2018 among 1050 MLM distributors and it was concluded that most of them made 70 cents an hour and 20% of them did not make a sale. 60% of them made less than $500 in sales over the past 5 years and 32% of them acquired credit card debt to finance their MLM involvements.
Final Verdict ? Scentsy
Have you ever asked someone if they are interested in candles or scented oils?
You don’t. It is because there is very little chance that people do not care about candles at all.
Sure, people use scented candles, but I do not think that they would need to subscribe to a monthly “candle plan”.
I am not really a fan of aromatherapy. To be honest, I am not a fan of having to smell something unnatural for extended periods of time.
I do not recommend Scentsy because it is a company that is not necessary.
If you want scented candles, you can easily go to a mall and buy one there without any complications.
I see a lot of small businesses selling candles, scented oils, and fragrances so I suggest that you support those instead of this company.
Also, why would people think of buying these things from someone who has no proper training and experience and selling these particular products?
Like other MLMs, Scentsy will make you annoy your friends and family into signing up.
This is not acceptable and is very predatory.
You would not want to lose people close to you because of some company selling overpriced candles.
Just think of how many candles you would need to sell just to climb up the ranks and get some benefits.
Too much. And surely you will not be able to sell that much to get to the highest rank.
Scentsy would not give you a stable and sustainable paycheck.
People will choose to buy from reputable shops and from stores that are readily available to them.
If you still want to join Scentsy, then I suggest that you look at their income disclosure statement again.
The numbers never lie.
That’s it for today’s review.
I do not recommend MLMs. but if you want to make money online, you should check out my #1 recommendation to making money online after reviewing 300+ MLM companies.>>>Free Training Reveals 3 steps formula to Make $10k/month With High Ticket Affiliate Marketing<<<