Scentsy MLM Company

Scentsy: what exactly is it?

Scentsy is yet another direct selling company that has emerged recently and capitalized on the enormous business opportunity presented by social media platforms such as Facebook and Twitter. Their name gives away the fact that they provide a wide variety of products associated with fragrance, with flameless candles being one of the most popular items in their inventory. Although it is difficult for most distributors to make a profit selling the company’s products, the company has earned a trustworthy reputation in the marketplace. In this review, we’re going to take a more in-depth look at Scentsy.

An Overview of the Scentsy Company

The Beginnings Of Scentsy

In 2003, Scentsy was launched after its co-founder, Kara Egan, was motivated to establish the company after watching Oprah’s “Millionaire Moms” show. Kara came to the conclusion that individuals in need of a secure method to fragrance the environment around them and believed that there must be a better alternative than the open flame candles that were currently available on the market. She got her sister-in-law Colette Gunnell involved in the process of developing the proposal.

Because of this, Scentsy came into being, and the two of them initially ran the business out of their basement. They rapidly realized that consumers adored the concept, and this led to the commencement of their items becoming fairly famous in the market. Initially, Scentsy did not employ a sales model based on multi-level marketing or network marketing. Kara and Colette were the ones selling the products, and as a result, the company was beginning to incur debt due to Kara and Colette’s operational expenditures.

At a trade show held in Utah in 2004, the company’s founders were introduced to Orville Thompson. Due to the fact that they were located just across from one another, Kara proposed a deal with Orville in which she would trade many Scentsy products for a video game controller that she desired for her children. Orville brought some Scentsy goods into his home, where his wife Heidi immediately took a liking to them.

Soon after his wife began raving about the products to her circle of acquaintances and inviting people over to try out the various fragrances, Thompson had the epiphany that his company could stand to benefit from adopting the “party” marketing approach. In May of 2004, the Thompson family made the decision to buy Scentsy from its original owners and immediately began employing a direct sales strategy. The company expanded at a rapid rate, and as a result, it is now ranked among the top 50 largest direct selling businesses in the globe.

Scentsy currently has a workforce of over 1,000 full-time employees and a network of about 100,000 distributors. It is important to note that this number is far lower than their highest distributor size, which was approximately 170,000 in 2012. The corporation generates somewhere in the neighborhood of $450 million in annual revenue. In addition to that, it was recognized by Forbes as one of the Best Midsize Employers in the United States in 2018.

Investigations into the Company

Concerning the products themselves, Scentsy has received a comparatively low number of complaints. It would appear that the customers adore the products and are content with them. Scentsy products have an extremely low number of reported problems, if any at all. However, their claims about the earning potential and the marketing strategies they use to recruit distributors have been criticized.

The sales approach used by Scentsy has been accused of targeting military spouses. This accusation stems from the fact that military families frequently relocate and have a difficult time finding standard work due to their frequent relocations. One calculation suggests that in order to make the same amount of money as someone who works at the minimum wage for three and a half hours each week, you will need to put in an average of four years of work. In defense of Scentsy, numerous other multi-level marketing organizations have been accused of marketing specifically to military spouses.

Another major point of contention for those who are opposed to Scentsy is the revenue that is promised to new consultants. As is the case with the vast majority of multi-level marketing (MLM) businesses, the vast majority of distributors experience a loss, and very few succeed in generating a living wage from their efforts. Less than one percent of Scentsy distributors, on average, generate enough money from their business to qualify as working full-time if they were employed elsewhere.

The current structure of the company consists of Orville and Heidi Thompson continuing in their roles as co-owners and co-CEOs of the business. The Thompson family transferred the business soon after it was purchased to its current location in Meridian, Idaho, which serves as the company’s headquarters. Within the company, the Thompsons have developed a powerful leadership team in order to handle everything from the administration of consultants and opportunities to the introduction of new goods.

2017 was a record-breaking year for sales for the corporation, which came in at $450 million. Scentsy is a direct sales company that currently works in 11 countries around the world and adheres to the business principle of “give more than you take.” Scentsy’s mission is to stimulate the senses with its one-of-a-kind product lines while also providing their independent consultants with a business opportunity that is suitable for families.

Scentsy is a company that sells a variety of items, each of which focuses on a single aspect: aroma. However, since they first introduced their wickless candles, they have greatly increased the product ranges that they provide. Some of their items, such as wax warmers and wickless candles, continue to be among their most popular sellers. Customers can buy a warmer and then choose a fragrance from among the store’s hundreds of options to put inside the warmer they just bought.

Scentsy also has a wide selection of diffusers and oils that may be used to fill a room with fragrance. Additionally, they have goods such as vehicle bars, room sprays, and other items that are readily transported and can be carried with you everywhere you go. Scentsy even has teddy animals for children that can be purchased with different smell packs like bubble gum or sugar cookie inside.

Scentsy is currently selling other types of items, including as laundry detergents and bath and body products. Their bath products include items such as soaps and lotions, and they provide many of their signature fragrances in these products. Even products for your pets are available, such as sprays to remove tangles and mists to eliminate odors.

Marketing Methods Used by the Company

Using the “party” selling approach is one of the company’s preferred methods of marketing and selling its products. It is strongly recommended that consultants throw parties at which potential consumers can get a whiff of the various fragrances, watch the warmers in action, and chat with their friends about the company’s offerings. Orville and Heidi Thompson, the business’s proprietors, came up with this business strategy, which has proven to be quite successful for the company.

When it comes to marketing the business prospect, the organization needs to proceed with extreme caution. After being accused of making misleading promises of great earning potential, Scentsy needs to strike a balance between being honest and upfront and still luring new people to sign up as consultants for the company. In recent years, they have experienced a decline in their number of consultants, which has made this endeavor more challenging.

Scentsy as a Means of Financial Gain

What does the falling number of consultants suggest about the state of the consulting industry—one that is ripe for new opportunities or one that is nearing its end? Maybe it’s none of those things. The majority of Scentsy consultants are not making very much money, despite the fact that the company’s revenues have been relatively stable. In the realm of multi-level marketing (MLM), this seems to be a recurring issue.

This may be easily seen by taking a cursory look at the 2019 Income Disclosure Statement provided by Scentsy. Even for consultants who had been with the organization for more than a year, fifty percent of them made less than seven hundred dollars for the entire year. This does not take into account the costs incurred by the business, hence it is likely that the majority of those ran a net loss for the year. It is not hard to comprehend the reasons why the claims of a substantial income are, for the most part, incorrect.

How to Get Started

Getting started with selling Scentsy is a simple process. Simply sign up for an account on their website, and then place an order for your beginning package. The basic kit may be purchased for only $20, while the larger kit can be acquired for $99 if you so choose. After the first three months, if you want clients to be able to place orders with you online, you will need to pay a monthly fee of $10 for your own personal website. The aromatherapy beginner kits come with a variety of scented samples, step-by-step instructions, and even a warmer in the larger box.

Plan of Pay and Benefits

The pay model for Scentsy is simpler to understand than those of other multi-level marketing companies. The standard commission rate for sales made by consultants is 20% for the first 1,000 points earned, after which the commission rate increases to 25%. Scentsy has also implemented a number of different types of bonuses that are dependent on sales volume and how quickly a consultant can reach a certain sales threshold.

The opportunity for compensation rises with each new consultant that is recruited by an existing consultant. When a consultant has a downline, they are eligible to get bonuses based on that downline’s sales. They have the opportunity to receive bonuses not just from their group but also from their entire team. These bonuses, on the other hand, are determined by the overall volume of sales generated by the entire group or team.

Methods of both sales and marketing.

Scentsy consultants who are successful have a big network of contacts to whom they can market their products. People can make use of their following in order to sell things through many channels, including social media. Customers are able to acquire a better feel for the fragrances when they attend in-person gatherings rather than virtual “parties,” even though the former are useful for showcasing the products. The ability of a consultant to hold more parties increases the likelihood that they will be successful.

In Comparison to Other Multi-Level Marketing Companies

Scentsy is only one of several multi-level marketing (MLM) companies available today; how does it compare to competitors like Young Living and Mary Kay? In comparison to other multi-level marketing companies, Scentsy is a reliable and well-regarded business. Customers express a high level of satisfaction with the company’s offerings, and there have been no serious complaints lodged against the business or inquiries into its operations. Although the market for Scentsy items is not as broad as the market for other multi-level marketing (MLM) products, such as health and wellness, the products are nonetheless successful sellers, and the company generates healthy income. Scentsy’s compensation scheme is less complicated than those of other competitors, and the company’s earning potential is comparable to that of the vast majority of other multi-level marketing organizations.

The Final Thoughts Regarding Scentsy

Despite the fact that Scentsy is still a relatively small firm, it has experienced rapid growth and has earned the respect of customers. The company provides distinctive goods that have broad appeal across a variety of markets. Although some consultants make nearly one million dollars a year, the chances of even making a living wage as a full-time consultant are quite low. Scentsy is a wonderful option for anyone wishing to join the multi-level marketing (MLM) sector, but it is not a fantastic option for anyone searching for a means to generate a significant amount of money in this industry.

3.88 out of 5, which is the overall rating

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