12.12.16

SCENTSY


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Scentsy Fragrance is a direct selling party plan company in the home and fragrance industry. the company was founded in 2003 by sisters-in-law Kara Egan and Colette Gunnell in Salt Lake City, Utah. Scentsy manufactures its products in Meridian, Idaho. The company’s ceramic warmers are made by a partner manufacturing company located in China.


The company’s flagship products are scented and wickless candles housed in decorative ceramic warmers and sold by independent consultants online and through in-home parties. The company also offers plush animals for children called Scentsy Buddies, as well as body fragrances, and laundry products. Scentsy Fragrances generates over $1 billion in global sales annually.

The Good

  • Leadership bonuses
  • High commissions
  • Offers support for distributors

Compensation

Scentsy offers its independent distributors commissions based on personal retail volumes on overall product sales. The company also offers leadership bonuses for recruiting others to become Scentsy independent distributors as well. New distributors earn 20 percent commissions. Once a new enrollee achieves a total of 1,000 Personal Retail Volume points, that person gets promoted to the Certified Consultant rank and starts earning 25 percent commissions on product sales. Individuals who achieved 2,000 Personal Retail Volume Points in any given month are eligible to receive an additional 5 percent bonus commission on product sales.

Scentsy Opportunity

Scentsy has several good attributes that make it a perfect company for an individual who wants to be a direct sales consultant. Here are some of the positives associated with being a distributor for Scentsy:
  • Multiple levels of advancement if you become a Scentsy distributor (if you refer enough new consultants, you get a percentage of the sales).
  • Multiple levels of revenue potential possible (up to 25% of commission from personal retail volume).
  • Monthly compensation available.
  • Easy entry for distributors through a $99 starter kit that contains the following:
    • More than 80 scent testers to share at parties.
    • Demonstration products for home parties and showings.
    • Catalogs, order forms, and marketing materials (brochures and party invitations)

Support

Scentsy also provides excellent support for its distributors, including the following resources:
  • A free website for the first three months ($10/month after the 3-month free period).
  • Web-based workstation to manage your orders and clients.
  • Live support over the phone.
  • Training materials that are available upon becoming a Scentsy member.
Overall, the Glassdoor reviews indicated that Scentsy was a pretty good company to do direct sales for. The consultants liked the product variety and the resources available. One review liked how Scentsy distributors could set their own hours and the training resources available. Scentsy’s wellness program lets distributors know that they are valued as people. The reviews also indicated that the company offers great incentives and that the qualifications for each sales level rank are reasonable.
A distributor also might like the fact that most products are made in the United States. The primary manufacturing sites are located in Idaho, and only a small number of ceramics are manufactured in China.
Clients can purchase Scentsy products by contacting a consultant. Most often, the consultant will host a house party for a client. Also, home visits are available for clients, where individuals can order as many products as they would like. Scentsy also has been recognized for its direct-selling efforts, as well as its green efforts and social responsibility. Their portfolio of awards include the following:
  • Direct Selling Association 2009 Rising Star Award
  • Direct Selling Association 2010 Success Award
  • Integrity Counts! Better Business Bureau Honoree
  • Inc. 500 Ranks Scentsy, Inc. the Fastest Growing Consumer Products and Services Company in the Country
  • Heidi Thompson has received the Idaho Businesswoman of the Year Award in 2011.
  • 2011 Forbes’ List of America’s 100 Most Promising Companies
  • Top Recognition for Green Construction from Green Globes

The Bad

  • Some areas have oversaturated markets
  • Lack of training in sales and marketing

Order Issues

One of the biggest problems consumers encounter with the Scentsy Fragrance company is in actually receiving the products they order. According to consumer complaints available online, sometimes UPS will fail to deliver products on schedule according to customer’s expectations. Other times, past independent distributors have failed to actually place the customer’s order or placed an order for the wrong product. Sometimes, the products customers receive contain defects that started potentially dangerous house fires. While Scentsy successfully answers all consumer complaints it receives, requests for refunds can take longer than expected to process and receive.

Oversaturated Markets

Markets in some cities can be oversaturated and may be difficult to build up a sufficient customer base to make a sustainable income through in-home party demonstrations. As with the majority of multi-level marketing and direct selling companies, launching and building a business can be time-consuming. Individuals with large social networks and strong sales and marketing skills will do exceptionally well.
In order to generate around $1,000 per month in income, you will need to have at least seven qualifying parties per month. While this is completely doable with two parties per week, generating higher levels of income equates with hosting more parties. Individuals need to have strong social skills. Introverted individuals may struggle with this type of business model. However, they can compensate for problems in this area by selling online through a company-provided website with a low monthly maintenance cost.

Training

The company focuses heavily on a multi-level marketing model that relies heavily on recruitment. The model also has an overall negative perception from the general public. Friends and family can grow tired of hearing about the company’s business opportunity and products. You will need to plan in advance how to overcome this sales and marketing challenge and develop a wide network in order to achieve higher compensation rankings. While Scentsy provides business training, it does not offer adequate training in effective sales and marketing techniques and could do better as a company in this area for its independent distributors.

The Bottom Line

Scentsy Fragrances appears to be a reputable business opportunity in the home and personal fragrances industry. The company provides its independent distributors with plenty of support resources, training, and business tools to launch successful home product demonstration businesses.
With over $1 billion in global sales annually, Scentsy provides a financial model that gives independent distributors the ability to create a sustainable income. The company has achieved industry leader status and stability as a company with over 10 years in the marketplace. We recommend investigating the company for yourself to see if it is a good fit for your lifestyle and financial situation. Always research a company fully before signing any agreements and investing in a potential business venture.
Here is some positive highlights we found about Scentsy:
  • Most of their products are manufactured here in the United States in Idaho.
  • Scentsy is a family-owned business.
  • There are some good perks for distributors who do well (up to 30 percent). Distributors are generally paid on a monthly basis, with multiple bonus levels available for distributors who do well.
  • Scentsy distributors have access to a wide array of trainings, either online or through seasoned sales distributors in the market area.
Here are some things to consider before becoming a distributor for Scentsy:
  • Your enrollment as a distributor is contingent upon two key things:
    • purchasing a $99 starter kit
    • maintaining a sales level of $150 PRV in at least 1 month of a 3 month span.
  • Sales leads are sometimes hard to come by.
  • New distributors don’t always get the market they need in lieu of senior distributors who may have a significant foothold in a market area.

More Information

Featured Details

Industry Type

  • Scentsy is in the home and personal fragrance industry.
  • Scentsy ranks #38 on the top 100 list of MLM companies for 2015 on the Direct Selling News website.

Sign Up Cost:

$99

Renewal Cost:

None

Patent Products

  • Warming device, dish for a warming device, and related methods
  • Electrical lighting, and heating modules, assemblies and scent warmers comprising such modules, and related methods
  • Base structures, scent warmers including such base structures, and related methods
  • Wax removers for scent warmers and related methods
  • Stuffed toys having interchangeable scent packets and methods and systems including such stuffed toys
  • Scent warmers having non-incandescent heating and light-emitting devices and related methods
  • Systems and methods for preparing and packaging wax, such as scented wax for use with wickless candles, and other similar products

Product Distribution

  • Become a certified consultant by achieving 1,000 Personal Retail Volume Points

Company Selling Points

  • At Scentsy, we’re a family. We’re honest and hardworking and real. We offer each other support and strive to give anyone who wants to enhance their life the best opportunity to do it.
  • The basis for Scentsy Family’s business philosophy comes from a quote by Albert Einstein — a quote that so inspired Orville Thompson as a young man he kept it posted on his bedroom wall: “Try not to become a man of success. Rather, become a man of value. A successful man takes out of life more than he puts in. A man of value will give more than he receives.”
  • When they launched Scentsy, the Thompsons determined from the beginning to build their business around core values of Simplicity, Authenticity and Generosity.
  • Those key values extend to everything we do.

Company Education

  • Business Supplies and Tools
  • Training Center
  • Personalized Website
  • Sponsors
  • Consultant Support Representatives

Support Programs

  • Business Supplies and Tools
  • Training Center
  • Personalized Website
  • Sponsors
  • Consultant Support Representatives

Glass Door

Pros:
  • Great Products
  • Fantastic Commission
  • Great Benefits and Support
Cons:
  • Time-Consuming
  • Hard to Acquire a Customer Base

Contact Information

Consultant and Customer Support: 1-877-855-0617

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