What Is Scentsy?
Scentsy represents another direct selling company that has capitalized on the massive marketing opportunities available through social media. True to its name, the company specializes in scent-related products, with flameless candles serving as one of their flagship offerings. While Scentsy maintains a solid reputation in the marketplace, most distributors struggle to achieve profitability selling these products. This comprehensive review examines Scentsy’s business model and opportunities.
Scentsy Company Overview
History Of Scentsy
Scentsy’s origins trace back to 2003 when co-founder Kara Egan drew inspiration from watching Oprah’s “Millionaire Moms” show. Recognizing the need for safer home fragrance solutions, Kara believed there had to be a better alternative to traditional open-flame candles. She partnered with her sister-in-law Colette Gunnell to develop this concept.
The duo launched Scentsy from their basement, quickly discovering strong consumer enthusiasm for their innovative approach. Initially, the company operated without a multi-level marketing structure—Kara and Colette handled sales directly. However, rising operational expenses began creating financial pressure for the fledgling business.
A pivotal moment came in 2004 when the founders encountered Orville Thompson at a Utah trade show. Their booths were positioned directly across from each other, leading to a casual trade where Kara exchanged several Scentsy products for a video game controller her children wanted. When Orville brought the products home, his wife Heidi became an instant enthusiast.
Watching Heidi share the products with friends and host informal scent-testing gatherings, Thompson recognized the potential for a “party” sales model. The Thompsons acquired Scentsy from its original founders in May 2004, immediately implementing a direct selling strategy. This transformation sparked rapid growth, eventually propelling the company into the Top 50 largest direct selling companies globally.
Today, Scentsy employs over 1,000 full-time staff members and maintains a distributor network of approximately 100,000 consultants. Notably, this figure represents a decline from their 2012 peak of nearly 170,000 distributors. The company generates annual revenues of roughly $450 million and earned recognition on Forbes’ 2018 list of America’s Best Midsize Employers.
Company Investigations
From a product standpoint, Scentsy maintains an excellent track record with minimal customer complaints. Consumers consistently express satisfaction with product quality, and documented product-related issues remain rare. However, the company’s income promises and certain distributor marketing approaches have attracted scrutiny.
Critics have accused Scentsy of specifically targeting military spouses, capitalizing on their frequent relocations and resulting employment challenges. According to one analysis, consultants must work an average of four years to earn what someone makes working three and one-half hours weekly at minimum wage. It’s worth noting that this targeting allegation extends to many MLM companies, not just Scentsy.
Income expectations presented to new consultants constitute the primary criticism from Scentsy detractors. Following typical MLM patterns, most distributors experience net losses while very few achieve sustainable full-time earnings. Generally, less than 1% of Scentsy distributors generate income comparable to traditional full-time employment.
Current Company Structure
Orville and Heidi Thompson continue serving as co-owners and co-CEOs, maintaining their leadership roles since the acquisition. The company operates from its headquarters in Meridian, Idaho, where the Thompsons relocated operations shortly after their purchase. They’ve built a comprehensive leadership team to oversee everything from product development to consultant support and growth initiatives.
The company achieved $450 million in revenue during 2017, operating across 11 countries worldwide. Scentsy embraces a “contribute more than you take” philosophy, striving to offer family-friendly business opportunities to consultants while creating products that enhance sensory experiences.
Scentsy Product Lines
True to its name, Scentsy’s entire product ecosystem revolves around fragrance. The company has dramatically expanded beyond its original wickless candles, though their wax warmers remain among the top-selling items. These product lines allow customers to purchase a warmer and then choose from hundreds of available scents to create their desired ambiance.
The company’s portfolio now includes various diffusers and essential oils designed to transform any space with aromatic appeal. Additionally, they manufacture portable options like car bars and room sprays for on-the-go fragrance. Scentsy even creates scented stuffed animals for children, featuring delightful fragrances like bubble gum and sugar cookie.
The product range has expanded into household essentials like scented laundry detergents and personal care items. Their bath and body collection features soaps and lotions infused with signature fragrances. The company even caters to pet owners with specialized products including detangling sprays and deodorizing mists.
Company Marketing Practices
Scentsy’s preferred marketing approach centers around the “party” selling methodology. Consultants host gatherings where prospective customers can experience different fragrances firsthand, observe warmers in operation, and engage in product discussions with friends. This interactive model has proven highly effective and originated from the vision of owners Orville and Heidi Thompson.
When promoting business opportunities, the company faces delicate balancing requirements. Following accusations of overstating income potential, Scentsy must maintain honesty and transparency while still attracting new consultant sign-ups. This challenge has become increasingly difficult as their consultant numbers have steadily declined in recent years.
Making Money With Scentsy
Does the declining consultant base signal emerging opportunity or a business in decline? The answer likely falls somewhere between these extremes. While Scentsy’s sales figures remain relatively stable, the vast majority of consultants earn minimal income—a pattern consistent throughout the MLM industry.
Examining Scentsy’s 2019 Income Disclosure Statement reveals telling statistics. Among consultants active for more than 12 months, half earned less than $700 annually. Since business expenses aren’t factored into these figures, many consultants likely operated at net losses. These numbers clearly demonstrate why promises of substantial income rarely materialize.
How To Enroll
Getting started as a Scentsy consultant requires minimal effort. Interested individuals can register through the company website and purchase a starter kit. The basic package costs just $20, while an expanded option is available for $99. After the initial three-month period, consultants pay $10 monthly for their personalized website enabling online customer orders. Starter kits include scent samples, quick-start guides, and the larger package even includes a warmer.
Compensation Plan
Scentsy’s compensation structure offers more clarity than many MLM programs. Consultants receive 20% base commission on sales up to 1,000 points, then 25% on additional volume. The company provides various bonus opportunities based on sales performance and achievement timelines.
Recruiting additional consultants unlocks enhanced bonus potential through downline sales commissions. Consultants can earn from both their immediate group and broader team sales. However, these bonuses depend on achieving specific total sales volumes across the entire organization.
Sales And Marketing Techniques
Successful Scentsy consultants typically maintain extensive personal networks for product sales. Social media provides one avenue for leveraging existing followings to promote products. While virtual “parties” offer convenient product showcasing, in-person gatherings prove more effective since customers can actually experience the fragrances. Maximizing party frequency directly correlates with consultant success potential.
Scentsy Compared To Other MLM’s
With numerous MLM companies like Young Living and Mary Kay competing for attention, how does Scentsy stack up? Relative to other MLM organizations, Scentsy maintains strong credibility and reputation. Customers genuinely appreciate their products, and the company has avoided major controversies or regulatory issues. While the scent market doesn’t match the size of health and wellness sectors, Scentsy products demonstrate solid sales performance and generate strong revenues. Their compensation plan provides greater transparency than many competitors, and earning potential aligns with industry standards.
Conclusions For Scentsy
Despite being a relatively young company, Scentsy has achieved rapid growth and earned consumer trust. The company creates distinctive products with broad market appeal. While some consultants generate impressive annual earnings approaching $1 million, the probability of achieving even modest full-time income remains extremely low. Scentsy represents a reasonable choice for individuals interested in entering the MLM space, but not an optimal path for those seeking substantial income opportunities.
