Is Scentsy a Pyramid Scheme? – My Review Exposes MLM!

Scentsy Pyramid Scheme Review

Welcome to the Scentsy pyramid scheme review.

Scentsy is a fragrance product MLM that provides a chance to earn money by selling its products and bringing in new members.

If you are interested in learning:

  • Is Scentsy a pyramid scheme
  • Is Scentsy a legit MLM
  • How they help you earn
  • The real cost to start
  • Are students getting results
  • And more!

You’ve clicked on the best website!

I’ve dedicated a few days to analyzing this MLM program, taking notes, uncovering hidden info, and thoroughly going over the program so that I can provide you with the most helpful Scentsy MLM review.

📘 About

Fragrance product/MLM company.

💰 Cost

$99 for a starter kit and $10 a month for website maintainance.

Pros

Lots of support for distributors. Lucrative compensation plan. Focus on digital marketing. Members of DSA. Money-back guarantee. 

🛑 Cons

Lots of fake marketing. Expensive products (harder to sell). Strong focus on recruiting. Low success rate among distributors. 

⚠️ Verdict

Overall, Scentsy is another hot and cold MLM that works the best for those on the top of the "pyramid."

📈 Rating

I Want To Know…

About the Reviewer

Hey, I’m Ivan Brozincevic!

Since 2018, I’ve been making a full-time income online, which allowed me to quit my old job (about me).

Initially, I struggled to identify legit courses and avoid ones that were just out for my money.

That’s why I created this website – my main goal is to help you steer clear of pitfalls and discover the top online business courses.

Every week, I invest hours reviewing online courses and writing reviews based on my fact-driven review guidelines to assist you in making an informed choice.

Related: Check out my FREE training program for making money online.

What Is Scentsy?

Scentsy is a Multi-Level-Marketing firm that markets fragrance items to make your home smell scrumptious. Their primary product is the Scentsy wax bars and warmers.

Electric candle warmers are a much safer choice than typical candles as there is no nude fire involved. They likewise don’t release hazardous toxins right into the atmosphere. We’ll go into these a bit more later on in this Scentsy review.

Who Founded Scentsy?

Scentsy was founded by Kara Egan and Colette Gunnell in Salt Lake City, Utah in 2003. Kara had a desire to create fragrant items that were both risk-free as well as lasting, and so the front-runner Scentsy item was born – an electrical candle warmer.

In 2004, a having a hard time entrepreneur with several short company attempts under his belt bought Scentsy. His name was Orville Thompson, and today Scentsy is owned by Orville as well as his other half, Heidi.

Related MLM Review: It Works!

Is Scentsy an MLM?

Scentsy is an MLM business, yes. You will find more than 100,000 consultants operating in Scentsy networking. Business creates more than $450 million in income yearly.

In 2018, Scentsy made it right into the Forbes list at # 35 for ideal mid-size employers in America.

A lot of MLM companies are likely to have a “unique marketing point” as they often provide items which are fairly popular and very similar to items you can find in other places easily.

Scentsy isn’t any different. Here’s their product line…

What Products Does Scentsy Sell?

Scentsy offers a variety of home and personal fragrance products, including scented wickless candles, oil Diffusers and decorative ceramic warmers, which together provide a safer alternative to burning wicked candles.

Scentsy Products

Scentsy’s Warmers houses a low-watt light bulb that slowly melts the Scentsy candle bar, filling your home with one of more than 80 distinctive and long-lasting scents.

Their flagship warmer and wax stand out compared to candles because:

  • They do not release carcinogens (which can result in cancer).
  • They are not a flame hazard.
  • The warmers are generally safe and load up the room with scent.

But there is a whole range of other smelly products such as:

  • Laundry – Laundry liquid, scented softener, dryer disk, washer whiff, etc…
  • Cleaning – Kitchen soap, freshener, multipurpose kitchen cleaning spray, etc…
  • Personal Care – Bath bomb, body cream, body wash, hand cream, hand soap, lotion, etc…
  • Other accessories – Car bars, room spray, diffuser, essential oils

How Does Scentsy Market Its Products?

Instead of investing tons of cash in marketing and advertising, Scentsy advertises its items differently.

They have countless “professionals” promoting the items for them. In return, these consultants (day-to-day people) can earn money from compensation and bonus offers.

It’s like a win-win … Scentsy saves a lot of dough on advertising and marketing expenses, and everyday individuals, can generate income from home.

Let’s focus on the next part of the Scentsy MLM review to learn more about how you can make money and why some people say that Scentsy is a pyramid scheme in disguise…

How to Earn With Scentsy MLM?

There are 2 ways you can make money from Scentsy as a consultant:

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

This is pretty standard for most MLMs and Scentsy is no different. But keep in mind that the focus is on recruiting new members in your downline that looks like this…

Scentsy Pyramid Scheme MLM

Can you see now why Scentsy resembles a pyramid scheme?

However, as I said, since you can make money in two ways, this is a questionable claim. Let’s take a look at how much you could earn through their compensation plan…

Scentsy Compensation Plan

I took a look at the Scentsy compensation plan to see how to generate income as a Scentsy Consultant. Just like the majority of multi-level marketing settlement strategies, it was pretty challenging to comprehend.

Anyway, there are 10 ways that you can generate income with Scentsy, in the forms of compensations and benefits:

  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

Now honestly, this all simply looks ludicrous to me, and despite a lot of long-winded titles, there aren’t a lot of details below.

Scentsy Compensation Plan

However, what we can collect is that the vast bulk of means to make money with Scentsy (9 out of 10) include employment.

This is usually in the form of ‘rewards’ for how much your group markets, in addition to how large your group grows etc.

While not explicitly giving out benefits for hiring individuals, 9 out of 10 methods to earn money with Scentsy involve having a ‘group’ below you, therefore there is a clear motivation to grow your team.

To get more information about the Scents compensation plan, see the video below…

How Much Does It Cost to Join Scentsy?

It costs $99 to sign up with Scentsy as a professional. Compared to the majority of brick-and-mortar businesses this is pretty impressive.

Once you sign up, you will receive your starter kit and a license to resell the brand and recruit others into the Scentsy MLM scheme. The kit includes products, catalogues, and even a website.

Scentsy Pyramid Scheme Starter Kit

Extra Costs

You have to pay $10 a month to keep your “website site” up and running. But this is nothing compared to what’s coming.

It’s quite common for online marketing programs to make their experts need to reach a “regular monthly sales quota”. If you don’t strike this quota then you won’t be paid.

So it feels like there used to be this demand to offer $150 well worth of products every 3 months. If you do not market this amount, you will be “suspended” and can not get any compensation.

This normally indicates specialists will have to get these items themselves and therefore, wind up with lots of added products to store and extra cost.

But there is very little information on this which is a red flag.

See, numerous multi-level marketing firms like Scentsy make it super confusing and challenging to understand EXACTLY what you need to do to start and also what the monthly expenses will be.

Related MLM Review: Team National

Can You Make Money With Scentsy MLM?

It’s been found in numerous studies that between 73% to 99% of all MLM representatives, lose money.

Nonetheless, not every network marketing business is the same. But as you will soon figure out, from Scentsy’s previous income disclosures, they fall under the typical (negative) multi-level marketing statistics.

How Much Money Can You Make as a Scentsy Consultant?

To see whether it is likely that you will ever make money as a Scentsy Specialist, I took a look at their UK 2020 Income Disclosure Statement (IDS).

An Income Disclosure statement is a file which lays out exactly how many individuals are registered as Scentsy Professionals and how much cash they are making.

Scentsy Income Disclosure

Scentsy’s Earnings Disclosure Declaration is split into two columns.

The first column shows the average earnings of Scentsy Professionals dealing with Scentsy for the entire year. And the second column, reveals the revenues of those that did not remain in the business for the complete 12 months.

Of all Scentsy Professionals, only about 25% were marketing Scentsy for the whole year. This is because multi-level advertising, in general, has a high failure rate.

Related MLM Review: Juice Plus

Is Scentsy a Pyramid Scheme?

Scentsy isn’t a pyramid scheme. Certainly, Scentsy specialists can market Scentsy items as well as get a commission for doing so.

Nevertheless, is it viable to make enough money just by selling Scentsy items? The response is no. For that reason, Scentsy could be easily thought about as a “pyramid scheme in disguise.”

What Is a Pyramid Scheme?

According to Wikipedia, “A pyramid scheme is a business model that recruits members by promising payments or services in exchange for enrolling new members into the scheme, rather than providing investments or product sales”.

You can check out a short video below to learn more…

So why do so many people assume that Scentsy is a pyramid scheme?

It’s because you can make cash by hiring a lot of individuals right into the multi-level marketing plan. That’s the most significant reason some individuals call it a pyramid scheme in disguise …

Is Scentsy a Pyramid Scheme in Disguise?

As I said in my review so far, Scentsy is not a scam pyramid scheme. They promise you commissions based on the sales made by you and others you register.

And since there are no straight repayments just for getting them to sign up, there is no shady activity. That said, Scentsy, once more, is not a pyramid scheme.

To put it simply, the company sells real items for people to consume.

The bottom line is that in pyramid systems you are forced to hire others in order to generate income from that firm. While in a multi-level advertising firm, you can earn money by hiring or marketing some physical items to prospects.

This is why Scentsy is not a pyramid scheme. But is it legit?

Related MLM Review: Isagenix

Is Scentsy a Scam?

Scentsy Scam or Legit

Scentsy is not a scam in my review. They sell legitimate products as well as pay their professionals for selling items like they claim they will.

Nonetheless, even if it’s legitimate does not imply it’s the best chance for you to make money. There is a lot of work to be done ahead of time, no genuine assurance of success, and most notably, the actual commissions are tiny.

Now, there’s nothing incorrect with front-loading the work, recruiting a team and making the cash later from their effort. But if you’re grinding it out for 3 months and then your reward is a $50 payment, it’s not worth it.

The bottom line is that Scentsy MLM is not a scam. But I have a hard time recommending this business to anyone. There are much better ways to make money from home.

Is Scentsy a Legit MLM?

Yes, Scentsy is legit and they have real products. And the products are great! Yet, when it comes to building a business, you have plenty of better options.

And even if you’re dead set on becoming a networker, you can find much better choices than Scentsy.

Related MLM Review: 7k Metals

Scentsy MLM Review – Pros

Specialists Get Support

Multi-level marketing is pretty negative for this. The idea behind MLM is wonderful. Help individuals build their “very own company” and create a group of people to help them.

The problem is that most MLMs never offer the support you need to start your own successful home-based business.

Here is what Scentsy offers you as a specialist though …

Scentsy Support

Seems like there is a lot of what you need to become successful here. But still, it may appear a bit far better than it is.

You’re still quite dependent on who your “personal enroller” is. If you get a good one that understands internet marketing, great! If not, you will probably go to the negative MLM statistic.

Money-back Guarantee

Some MLMs simply create items that individuals don’t like. They make a fast dollar and then hide and use “poor customer service” as their justification for not reimbursing them.

Scentsy uses a 30-day money-back guarantee. This shows that Scentsy is not a scam.

Member of the DSA

This is also an excellent sign that Scentsy is not a scam or a pyramid scheme.

Scentsy DSA Certificate

The Direct Selling Association is a company that checks up on different “direct selling” (aka multi-level marketing/ MLM) firms and makes certain they are not breaking the law.

If an MLM firm is not registered with them, may be a signal that it is a rip-off.

Related MLM Review: ACN

Scentsy MLM Review – Cons

Their Products are Not All-Natural

So Scentsy makes a huge noise regarding their “all-natural products”. This seems their distinct selling point is to make them stand out from the group.

However, they do not make it clear when something isn’t natural. Such as the front runner Scentsy bars.

However, when you go into the active ingredients in other Scentsy items you will read that synthetic oils are being utilized and also a “secret mix of ingredients”.

Expensive items

This is always the first thing I look for in any type of MLM. It’s a red flag for me that the items are greatly overpriced compared to comparable items on Amazon, for example (see image below).

  • Scentsy wax = $2.08 per oz
  • Amazon = $0.75- $0.85 per oz
Scentsy Expensive Products

Why would anyone choose to pay 150%+ for the same product?

And that’s for a banal thing such as candles! I’m sure their “all-natural” formula is the reason for the difference in the price. Once again, it’s a great selling point.

But still, head over to Amazon and you can find equally good products for far less money.

Scentsy Seems Like a Pyramid Scheme in Disguise

As with all MLMs, the focus is not on marketing items but on hiring individuals. This is the greatest reason that Scentsy imitates a pyramid scheme in disguise.

The number of means you can get paid by marketing products as a consultant is 1. The number of ways can you earn money by recruiting people is 9!

Seriously leap back to the payment strategy. The ONLY method you can make great cash is by RECRUITING INDIVIDUALS. Hence the reason why Scentsy seems like a pyramid scheme.

Only 1 out of 200 people make more than $15k a year

You need to sell $100,000 of Scentsy items in a year to earn $16,667. Can you live off that amount of money?

Scentsy Pyramid Scheme Low Income Potential

And guess just how easy it is to sell 6 figures of $5 items. Yeah difficult, it’s around 20,000 wax products you would need to sell in one year!

You can see from the income disclosure that only 1 out of 200 experts makes over $15k a year from Scentsy!

It’s Not Your Business at the End

If all of this had not been sufficient did you know that you won’t even have the business? If you don’t hit your sales allocation, or don’t follow Scentsy’s policies, you can have your whole “organization” closed down overnight.

Your website is a replica that you do not regulate. You don’t own anything by becoming a Scentsy professional.

Related MLM Review: Pampered Chef

Scentsy MLM Review – Conclusion

As stated in this review, Scentsy is not a scam or a pyramid scheme. You can join their program, and get compensation for re-selling their products in more than one way.

Yet do I promote Scentsy MLM to you as a genuine business possibility? You see, the only means you can make REAL cash from this is by recruiting a lot of individuals right into the same service.

As well as you need to do that understanding that 93% of them will lose money.

In my point of view, this is not ethical. But on the other hand, individuals understand what they are entering, as well as they must make ANY service chance work for them.

The bottom line is that I don’t recommend multi-level marketing in general.

Instead, I like and recommend affiliate marketing because you do not need to get the items, pay to play, work with others build a downline, and so on. You don’t also need to sell!

To learn more, read the rest of this page…

Thanks for reading my Scentsy MLM review. What is your opinion? Is Scentsy a pyramid scheme/scam? Were you a part of or maybe still are a member of this business?

Feel free to leave your reviews at the end of this page!

Related MLM Review: USANA

📘 About

Fragrance product/MLM company.

💰 Cost

$99 for a starter kit and $10 a month for website maintainance.

Pros

Lots of support for distributors. Lucrative compensation plan. Focus on digital marketing. Members of DSA. Money-back guarantee. 

🛑 Cons

Lots of fake marketing. Expensive products (harder to sell). Strong focus on recruiting. Low success rate among distributors. 

⚠️ Verdict

Overall, Scentsy is another hot and cold MLM that works the best for those on the top of the "pyramid."

📈 Rating

The Best Way To Make Money Online

I earn online by creating simple affiliate websites to connect people with products they are already looking for.

It’s called affiliate marketing and it is the best way to make money online (at least in my humble opinion).

If you want to learn more about how to start making money online with affiliate marketing, I strongly suggest you sign up for the free training on the next page.

And don’t forget to share this Scentsy MLM review with your friends and family!

All the best, Ivan @freeaffiliatemarketingbusiness.com

Related MLM Review: Shaklee

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