Is Scentsy a Scam Pyramid Scheme? Exposed!

Are you looking for a Scentsy MLM review? Is Scentsy a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.

There is a good chance that you heard about Scentsy MLM through someone – a friend or family member.

Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through Scentsy MLM.

I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like Scentsy MLM.

To help you make a more informed decision, I have thoroughly researched the Scentsy MLM so I can tell you more about it.

As a disclaimer, I’m not affiliated with Scentsy MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.

At the end of this review, I’ll also tell you the best alternative to Scentsy MLM that has enabled me to make a full-time passive income online.

What is Scentsy MLM?

Scentsy is a Multi-Level-Marketing company that sells home fragrance products. Their main product is Scentsy wax bars and warmers.

Because they do not burn, electric candle warmers are far safer than regular candles. They also do not emit any hazardous chemicals into the atmosphere. We’ll go over these in greater detail in the following section of this Scentsy review.

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Who Founded Scentsy MLM?

Scentsy was founded in 2003 by Kara Egan and Colette Gunnell in Salt Lake City, Utah. Kara wanted to create items that smelled good and were long-lasting. This resulted in Scentsy’s most popular item: an electric candle warmer.

Scentsy was purchased in 2004 by an entrepreneur who was having difficulty and had failed with a number of business ideas. Orville Thompson was his name, and he and his wife, Heidi, now own Scentsy together.

What Products Does Scentsy Offer?

Scentsy sells scented wickless candles, oil diffusers, and decorative ceramic warmers, among other home and personal fragrance products. These products, when combined, provide a safer alternative to burning candles with wicks.

A low-watt light bulb slowly melts the Scentsy candle bar in Scentsy warmers, filling your home with one of more than 80 unique and long-lasting scents.

When compared to candles, their main warmer and wax appear to stand out for the following reasons:

  • They do not manufacture cancer-causing chemicals (which can result in cancer).
  • They do not pose a significant fire risk.
  • The warmers are usually safe and fill the room with scent.

But there are plenty of other stinky things out there, such as:

Laundry: Laundry detergent, scented fabric softener, dryer disks, washer whiffs.

Cleaning: Kitchen soap, air fresheners, all-purpose spray cleaners for the kitchen.

Personal Care: Bath bombs, body cream, body wash, hand cream, hand soap, lotion, and other similar items.

Car bars, room spray, a diffuser, and essential oils are also available as accessories.

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What is MLM?

Before we get into Scentsy MLM, I’d like to explain what MLM is and how it differs from traditional business models.

Multilevel marketing companies are also known as direct sales companies or network marketing companies.

An MLM company does not pay you a salary.

You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.

There are several levels to this (hence multi-level).

Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).

You can earn $1100 by recruiting 10 people.

Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.

People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.

The ultimate goal of someone who works for a company like Scentsy MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.

How Does Scentsy MLM Work?

Scentsy uses other methods to spread the word about their products rather than spending a lot of money on marketing and advertising.

They have a large number of “experts” who sell their products on their behalf. In exchange, these consultants (real-world workers) can be paid and receive bonuses.

Scentsy offers two ways for consultants to earn money:

  1. Sell their products and receive a commission
  2. Recruit more consultants into the company and get bonuses for their sales

This is how most MLM companies operate, and Scentsy is no exception. But keep in mind that the main goal is to recruit new members to your downline.

Can you see how Scentsy resembles a pyramid scheme?

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Is Scentsy A Pyramid Scheme?

A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.

A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.

Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.

The directors of the organization receive a portion of these payments (those at the top of the pyramid).

The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.

Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.

Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.

The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.

Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.

People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.

Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.

Is Scentsy, then, a pyramid scheme?

No. Scentsy does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.

They don’t have to make money solely through recruitment.

Watch the short video below to learn more:

What is the Scentsy MLM’s Compensation Plan?

I looked over the Scentsy compensation plan to see how much money a Scentsy Consultant could make. It was difficult to comprehend, as are most multi-level marketing payment plans.

In any case, there are ten ways to make money with Scentsy through benefits and compensations:

  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

Despite the fact that hiring people has no direct benefits, nine out of ten ways to make money with Scentsy involve having a “group” under you. This implies that you should make an effort to expand your team.

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10 Reasons Why I Don’t Recommend Scentsy MLM

1. The Good Reviews are Written by Scentsy MLM’s Affiliates

You probably have found some other reviews of Scentsy MLM and all of them are saying good words.

But all of them are actually paid to write, meaning they will receive a commission if you join Scentsy MLM via their links. Therefore, their words are often biased and not trustworthy.

Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.

By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!

Therefore, I recommend reading the reviews of those written by the non-affiliates of Scentsy MLM.

2. Very Few People Can Make Money With Scentsy

Success is difficult to achieve with an MLM company like Scentsy.

You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.

The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.

They will not be paid if they do not meet the quota.

As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.

3. Losses From Scentsy MLM Are Reframed As Investments

Scentsy MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom. 

But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.

4. Scentsy MLM is a Cult

Why do people continue to work for Scentsy if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.

Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.

MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.

Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.

Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.

MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.

5. You May Need to Purchase Scentsy Products Yourself

If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.

I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like Scentsy. That’s why in the long term, you are going to lose a lot of money, not to mention making money.

6. Scentsy Products are Overpriced

As with other MLMs, Scentsy offers overpriced products. There are many other brands that offer similar products but at lower prices.

Therefore, you may find it difficult to sell Scentsy products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.

7. Scentsy’s MLM Business Model Has a Bad Reputation

Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.

MLM like Scentsy is fundamentally flawed. The distribution of commissions is skewed toward the top.

The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.

As a result, many people do not consider Scentsy to be a legitimate business opportunity.

8. Exaggerated Claims Of Income

Scentsy, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting Scentsy.

Scentsy’s low retention rate can also be discouraging, as less than 41% of its distributors are active.

According to Scentsy’s payouts to distributors, over 99 percent of Scentsy distributors never make a profit.

9. Scentsy Is Like A Pyramid Scheme In Disguise

If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.

Every system that requires you to recruit people in order to make money eventually looks like this.

Scentsy is not a pyramid scheme in the traditional sense because you can earn money by selling their products.

However, in order to make a living, you will need to hire others in reality.

10. Recruiting is Required to Succeed

I don’t recommend MLMs to people for this reason. MLMs like Scentsy put a lot of effort into recruiting. Eight out of ten ways to earn money with Scentsy require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.

My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this Scentsy review.

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How Much Does It Cost To Join Scentsy?

To become a Scentsy business owner, you must pay $99. This is quite impressive when compared to most businesses with actual buildings.

When you sign up, you’ll receive your starter kit as well as a license to sell the brand and recruit others to the Scentsy MLM scheme. The kit includes products, catalogs, and even a website.

You must pay $10 per month to keep your “website site” operational. But what’s to come will be far worse.

Online marketing programs frequently require their experts to meet “regular monthly sales quotas.” You will not be paid if you do not meet this quota.

So it appears that there was once a requirement to sell $150 worth of products every three months. If you do not sell this much, you will be “suspended” and will not be paid.

This usually means that specialists will have to buy these items on their own, which means they will have a lot more to store and will have to spend more money.

Scentsy MLM Positive and Negative Feedbacks By Real Users

Positive Feedbacks

  • Consultants provide assistance.
  • A member of the DSA

Negative Feedbacks

  • Expensive goods
  • There hasn’t been much success.
  • You do not own a business.

Is Scentsy MLM a Scam?

I cannot say Scentsy MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary. 

Can you make money selling Scentsy products? We already know that a majority of Scentsy reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from Scentsy is by recruiting aggressively.

Also, Scentsy blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider Scentsy MLM a scam.

My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.

I will tell more about my #1 recommended platform at the end of this review.

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Final Verdict: Scentsy MLM Review

Here comes the conclusion of my Scentsy MLM review. Overall, I don’t recommend joining Scentsy MLM to make money.

You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your Scentsy commission.

The worst part is that you practically have to ask your family and friends to join your Scentsy business opportunity. It’s not fun.

Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.

The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.

People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave. 

Why not consider starting your own online business if you want to earn money and have a flexible schedule? 

Thus, you can choose what you want to promote rather than having someone tell you what you must promote.

Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.

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The Best Alternative of Scentsy MLM To Make Passive Income Online

If you’re beginning your online business journey, you deserve a programme much better than Scentsy MLM.

My #1 recommended platform is called Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch.

When you join Wealthy Affiliate, you can get access to the first-class web hosting service, keyword research tools, community support, comprehensive training, writing tools, and other software to help you build an online business step-by-step.

You can register a free account with Wealthy Affiliate, which enables you to get started with affiliate marketing right away without paying a penny.

If you like the platform, you can then upgrade to the premium membership to get access to everything on the platform. There are no upsells afterwards.

But How Much Can You Earn with Wealthy Affiliate?

A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while applying what is taught inside Wealthy Affiliate.

Scentsy MLM Review

Compared with Authority Hacker, Wealthy Affiliate has a much longer history, which has been established for 15 years and there are many success stories in the past decade. Actually, Wealthy Affiliate has more than a million members so far, so you can see how popular this platform is.

To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

Where to Join Wealthy Affiliate?

Wealthy Affiliate has a very simple pricing scheme. It has a free and premium membership. The premium membership only costs $49/month or $395/year.

If you want to feel about Wealthy Affiliate, you can sign up for the free starter membership here (no credit card required). You can select to be a free member with no time limit.

And as a starter member, you can get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, access to the keyword tool.

You can enjoy all these values without paying a penny.

So I strongly recommend you to register a free account and see it yourself.

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