Scentsy Scam: Pyramid Scheme or MLM? [Review]

Are you thinking about joining Scentsy? Maybe you’ve heard about it from a friend or family member, and you’re wondering if it’s legit or just another pyramid scheme. Well, you’ve come to the right place!

As an online entrepreneur, I’ve reviewed hundreds of programs like Scentsy over the years. And in this review, I’ll share with you everything you need to know about Scentsy so you can make an informed decision.

But before we dive in, let me make one thing clear – I’m not affiliated with Scentsy in any way. That means I won’t be biased in my review, and you can trust that I’ll give you an honest opinion.

So, is Scentsy a scam or a legit way to make money online? Let’s find out together! And don’t worry, I’ll also reveal the best alternative to Scentsy that has helped me make a full-time passive income online.

What is Scentsy?

If you’re a fan of sweet-smelling homes, you might have heard of Scentsy. It’s a company that specializes in selling home fragrance products through Multi-Level-Marketing. 

Scentsy’s main product is their wax bars and warmers. Instead of burning the wax, Scentsy’s warmers use electricity to melt the wax, making them a safer alternative to regular candles. Plus, you won’t have to worry about any harmful chemicals being released into the air.

But Scentsy’s not just about wax bars and warmers. They also offer a wide range of scented products, including diffusers, essential oils, and even laundry care items.

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Who Founded Scentsy?

Scentsy is a popular company that sells fragrance products, and it all started with the vision of Kara Egan and Colette Gunnell. These two women founded Scentsy back in 2003 in Salt Lake City, Utah. Kara’s desire to create long-lasting, good-smelling items led to the creation of Scentsy’s most beloved product: the electric candle warmer.

In 2004, Scentsy faced financial troubles, and that’s when Orville Thompson, an entrepreneur who had experienced multiple failed business ideas, stepped in and purchased the company. Today, Orville and his wife, Heidi, run Scentsy together and continue to grow the business. But it was Kara and Colette’s vision and hard work that started it all.

What Products Does Scentsy Offer?

Scentsy offers a variety of home and personal fragrance products that can help fill your space with delicious smells in a safer way.

Their scented wickless candles, decorative ceramic warmers, and oil diffusers are some of their most popular offerings. By using a low-watt light bulb to melt the Scentsy candle bar in their warmers, you can enjoy over 80 different scents that are long-lasting and unique.

But what makes Scentsy stand out from traditional candles? For starters, they don’t produce cancer-causing chemicals or pose a significant fire risk. Plus, their warmers are generally considered safe and effective at filling your room with delightful scents.

In addition to their candle and warmer products, Scentsy also offers a range of other fragranced items like laundry detergent, air fresheners, and personal care products like body wash and hand cream. And if you’re looking for accessories to help spread their fragrances around, they also offer car bars, room sprays, diffusers, and essential oils.

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How Does Scentsy Work?

Scentsy has a unique business model that relies on its team of consultants or independent sellers.

Basically, Scentsy consultants (real-world workers) promote and sell Scentsy products to their friends, family, and community. In return, they earn a commission from each sale they make. But that’s not all! Consultants can also recruit new members into the company and receive bonuses based on their sales.

This business model may seem familiar to you because it’s called multi-level marketing or MLM. It’s a common way for companies to sell their products without relying on traditional advertising. 

However, some people may confuse MLM with pyramid schemes. While both may have similar structures, MLM companies like Scentsy are legal and legitimate businesses as long as their focus is on selling actual products rather than just recruiting new members.

In summary, Scentsy works by relying on its team of consultants to sell and promote its products. Consultants earn money through commissions and bonuses, and they can recruit new members to join their team. So, the next time you see a Scentsy consultant selling their products, you’ll know how they’re able to do it.

Is Scentsy an MLM?

Yes, Scentsy is an MLM company. Multilevel marketing companies, also known as direct sales or network marketing companies, operate differently from traditional businesses. Instead of paying a salary, MLMs offer the opportunity to make money by recruiting others to join your business. When someone you’ve recruited starts making sales and recruiting others, you earn a commission on their success.

The structure of MLMs is multi-level, hence the name. Imagine a triangle, with the person at the top recruiting ten people, and each of those ten recruiting ten more. You’ll receive commissions from everyone in the triangle because they’re all in your direct downline (your recruits) and you’re their upline.

Scentsy, like other MLM companies, offers a range of products, but most people in the business prefer to recruit others because they can earn a lifetime passive income from them. In contrast, selling a product would only yield a one-time commission.

The people at the top of the pyramid make the most money because money trickles up to the top, while those at the bottom make the least. So, the ultimate goal of someone who works for a company like Scentsy is to have as many people in their downline as possible, allowing them to earn large amounts of passive income.

You may also want to read our article on the top MLM companies.

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Is Scentsy A Pyramid Scheme?

No, Scentsy is not a pyramid scheme. Pyramid schemes promise to make you money or offer you services in exchange for enrolling others. However, they’re unsustainable and typically a scam. Members lose money as the number of recruits increases, and the only way to make money is by recruiting more members.

In a pyramid scheme, people at the top of the pyramid profit while those at the bottom lose money. These schemes almost never sell valuable goods or services, and the only source of revenue is from recruiting new members and soliciting more money from current members.

Scentsy, on the other hand, is not a pyramid scheme. While members can make money by recruiting others, they can also make money by selling Scentsy’s products. This means that they don’t have to rely solely on recruitment to make money.

• Learn more about the differences between MLM and pyramid scheme. 

Watch the short video below to learn more:

Scentsy’s Compensation Plan: How You Can Make Money

If you’re interested in becoming a Scentsy Consultant, you’re probably wondering how much money you can make. Well, let’s take a look at their compensation plan!

The payment plan is a bit complex, like most multi-level marketing plans. But, there are ten ways you can earn money with Scentsy:

1. Commission (20-25% for each sale)
2. Bonus from wholesale volume
3. Frontline bonus TWV
4. Frontline consultant bonus TWV
5. Frontline star consultant bonus TWV
6. Frontline superstar consultant bonus TWV
7. Frontline director bonus TWV
8. First generation direction TWV bonus
9. Second generation direction TWV bonus
10. Third generation direction TWV bonus

It’s worth noting that nine out of these ten ways involve having a “group” under you. This means that expanding your team is key to making the most money. While there are no direct benefits to recruiting people, it’s essential to build a strong team to reap the rewards of the compensation plan.

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How Much Does It Cost To Join Scentsy?

It only costs $99 to get started! This is definitely a steal when you consider that most brick-and-mortar businesses require a lot more capital to get started.

When you sign up to become a Scentsy consultant, you’ll receive a starter kit that includes everything you need to start selling and promoting the brand. This includes products, catalogs, and even a website! However, it’s worth noting that you’ll need to pay $10 per month to keep your website up and running.

Now, let’s talk about sales quotas. Like many online marketing programs, Scentsy requires their consultants to meet regular monthly sales quotas. If you don’t make these sales, you won’t get paid. In the past, consultants were required to sell $150 worth of products every three months. If they didn’t meet this requirement, they were suspended and wouldn’t receive any pay.

This can be a bit of a challenge, as consultants may end up having to purchase products themselves in order to meet their sales quotas. This can lead to having a lot of extra inventory to store and may require spending more money than you initially anticipated.

Is Scentsy a Scam?

No, Scentsy is not a scam. It is a direct selling company that offers a range of fragrances and home decor products. According to the Oxford Living Dictionary, a scam is “a dishonest scheme; a fraud.”

But can you really make money selling Scentsy products? Unfortunately, the answer is that most Scentsy reps don’t earn any money. However, there are a few success stories out there, but those individuals usually had to put in a lot of effort. The reality is that the way to make significant money with Scentsy is by recruiting aggressively.

To make matters worse, Scentsy uses disingenuous and irresponsible marketing tactics to recruit new members. This has led some people to consider it a scam.

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Reasons Why I Don’t Recommend Scentsy

Here are the reasons why you might want to think twice before signing up.

The Good Reviews are Written by Scentsy’s Affiliates

Many of the positive reviews you’ll find online about Scentsy are written by affiliates who are paid to promote the company. These reviews may not give you a complete picture of what it’s really like to work for Scentsy.

Very Few People Can Make Money With Scentsy

Like many MLM companies, the vast majority of people who join Scentsy will lose money rather than make it. The sales quotas and requirements make it difficult to earn a profit, and many people end up losing money before they even start recruiting others.

Losses From Scentsy Are Reframed As Investments

Scentsy uplines may try to convince you that any financial losses you experience are just investments in your business. However, in reality, it’s unlikely that you’ll ever see that money again.

Scentsy is a Cult

Some MLM companies, including Scentsy, have been accused of having cult-like cultures. Critical thinking is often discouraged, and those who leave the company are shunned.

You May Need to Purchase Scentsy Products Yourself

If you don’t have a large network of potential customers, you may end up having to buy Scentsy products yourself each month just to stay active. This can be a losing proposition in the long run.

Scentsy Products are Overpriced

Scentsy products are often more expensive than similar products from other brands. This can make it difficult to sell them, especially if your customers can find similar products elsewhere for less.

Scentsy’s MLM Business Model Has a Bad Reputation

Many people view MLM companies like Scentsy as fundamentally flawed and not a legitimate business opportunity. The majority of those who join will not make a profit.

Exaggerated Claims Of Income

Scentsy, like many MLM companies, makes exaggerated income claims. However, the reality is that very few people actually make a good living by promoting Scentsy.

Recruiting is Required to Succeed

Finally, if you join Scentsy, you’ll need to be comfortable with recruiting others in order to make money. This is not for everyone, and many people find it uncomfortable or even unethical.

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Pros and Cons of Joining Scentsy

If you’re thinking about joining Scentsy, it’s important to weigh the pros and cons before making a decision. Here are a few things to consider:

Pros:

• Consultants provide assistance: When you join Scentsy, you become part of a supportive community of consultants who are there to help you succeed. Whether you have questions about the products, need advice on building your business, or just want to connect with like-minded people, there is always someone there to provide assistance.
• A member of the DSA: Scentsy is a member of the Direct Selling Association (DSA), which means that they adhere to strict ethical standards and have a commitment to quality products and customer service.

Cons:

• Expensive goods: Scentsy products can be quite expensive, which may make it challenging to sell them to customers who are looking for more affordable options. It’s important to consider your target market and whether they are willing and able to pay the prices that Scentsy products command.
• There hasn’t been much success: While some Scentsy consultants have been very successful, many have not. It’s important to consider the level of effort required to build a successful Scentsy business and whether you are willing and able to put in that effort.
• You do not own a business: When you join Scentsy, you are technically an independent consultant, but you do not own your own business. You are selling Scentsy products on behalf of the company, and you are subject to their policies and procedures. If you are looking for more independence and control over your business, Scentsy may not be the best fit for you.

Ultimately, whether or not you should join Scentsy depends on your personal goals, preferences, and circumstances. By considering the pros and cons, you can make an informed decision about whether Scentsy is the right opportunity for you.

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Final Verdict

So, I’ve finished my Scentsy review and I have to say that I don’t think it’s a great option for making money. At the start, it can be pretty tough trying to find people to add to your Scentsy commission. Plus, you end up feeling like you’re pestering your friends and family to join, which isn’t a lot of fun.

On top of that, your upline will probably be pushing you to buy more Business Support Material, even though you’re struggling to find people to join your downline. And unfortunately, the statistics back up the fact that you’re more likely to lose money than make any.

In fact, according to a case study on the FTC’s website, 99% of people who join MLMs break even or lose money. It’s no wonder that many people who join these kinds of businesses end up feeling under pressure and eventually leave.

If you’re looking for a way to make money and have a flexible schedule, why not consider starting your own online business instead? This way, you can choose what you want to promote and don’t have to rely on anyone else to tell you what to do.

In fact, in the next section, I’ll share with you how to build a legit online business that can help you make passive income. This is the approach that’s worked for me and allowed me to make a full-time income in just a year. And best of all, it’s 100% legit and sustainable.

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Is There a Better Way to Make Money Online?

If you’re thinking about starting your own online business, you might be wondering which platform to choose. Well, let me tell you, Scentsy is not your best option. Instead, I highly recommend Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform that can help you build your affiliate marketing business from scratch. With Wealthy Affiliate, you’ll get access to first-class web hosting service, keyword research tools, community support, comprehensive training, writing tools, and other software to help you step-by-step.

The best part? You can register for a free account with Wealthy Affiliate and start affiliate marketing without paying a penny. And if you like the platform, you can upgrade to the premium membership to get access to everything on the platform. No upsells, no gimmicks.

You may read our article about the difference between MLM and affiliate marketing.

You might be wondering, “But how much can I really earn with Wealthy Affiliate?” Well, let me tell you, there are many success stories from Wealthy Affiliate members. For example, a 21-year-old student was able to earn $7,395 in just one week while applying what he learned inside Wealthy Affiliate.

You can read our full review of Wealthy Affiliate here.

Wealthy Affiliate has been established for 15 years and has over a million members. So you can see how popular and successful this platform is. And if you need more inspiration, there are many other inspiring success stories from Wealthy Affiliate members.

Joining Wealthy Affiliate is simple. They offer a free and premium membership. The premium membership only costs $49/month or $395/year. But if you’re not sure yet, you can sign up for the free starter membership without even providing a credit card. As a starter member, you’ll get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, and access to the keyword tool. All of this without paying a penny.

So, what are you waiting for? Register for a free account with Wealthy Affiliate and see for yourself why it’s my #1 recommended platform for online business.

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