Scentsy Business Review

About the Company

This company is a relative newcomer to the multi-level marketing arena. The fledgling company was purchased from founders Kara Egan and Colette Gunnell in 2004 by Orville and Heidi Thompson, who then launched it as a party plan direct sales company that same year. The company is currently based in Meridian, Idaho and does business in the United States, Canada, Puerto Rico and Guam.

Scentsy has repeatedly reported an impressive 300% growth in consecutive years and in 2009 was awarded the first-ever DSA “Rising Star” award. This award is given to the DSA member company that showed the most remarkable growth while demonstrating adherence to the DSA’s Code of Ethics. (Source, Scentsy.net) Scentsy also won the DSA’s 2010 Success Award.

The Product Line

Scentsy’s main product is a wickless candle, or “warmer” that comes in two sizes. The warmers plug into an electrical outlet and “use a low-watt bulb to melt specially formulated wax slowly, maximizing its fragrance time.” (Source, company website) Because the “candles” do not actually burn, they are safer and more cost effective than true burning candles. The company offers over 80 different fragrances for use in these warmers. The company also sells a variety of scents in sprays, foam or solid form.

The Business Model

The company uses the direct sales business model to get their products to their customers and is a member of the Direct Sales Association. It is also accredited by the Better Business Bureau. The direct sales system relies on the services of independent consultants, eliminating the need for a retail outlet for the product or services. In fact, in order to purchase the products a customer must do so through a consultant. If needed, the company will help you find one.

Like in any direct sales organization, the company's independent consultants are independent contractors responsible for filing their own Federal and State Income Tax forms. Consultants may contact and sell to individuals face-to-face, one-on-one, by telephone, fax or email, but by far the most popular way (popular with both customers and the representatives I have met) is the “party plan”. This can also be one of the simplest types of business for a consultant because the host/hostess invites friends into their home or workplace to meet the consultant and purchase the products.

Chances are that at some time in your life you have attended at least one party sales presentation, whether it was for Avon, Silpada, Mary Kay or the like. The Scentsy consultant will take a low-key approach where the products are simply made available to touch, hold, smell, admire and hopefully purchase. Sometimes a host or hostess may simply agree to have a “book party” where they pass a catalogue around to their friends, family or co-workers who may be interested in making purchases.

However, that is generally a poor substitute for bringing a party together for socializing and to introduce potential new customers to the product. In return for hosting a party, the hostess may receive discounted or free product, or product credit from the consultant. At the parties, the actual hostess rewards depend upon the amount of sales generated by the party as well as the number of guests who agree to host another party in the future.

Getting Started

To become part of the business, one must sign up through an existing consultant (or sponsor) to become a consultant. For $99.00 plus taxes and shipping, a new consultant will receive a start-up kit which includes demo products, fragrance testers and business supplies. The Scentsy website indicates that there will be ongoing personal and web-based support.

The official company website is attractive and user-friendly and does a thorough job of introducing the company and its products to potential customers. Consultants may earn up to 20-30% commission on their own sales, plus bonuses based on the sales of consultants that they themselves sponsor. There are no sales or party quotas mandated by the company, but consultants must place a minimum of $150.00 in orders during one out of every three months in order to maintain “active” status. There is no penalty for leaving the company at any time.

Final Thoughts

It is my opinion that Scentsy offers a quality product, has a good reputation, offers training and support for their sales representatives, and shows impressive growth in just a few short years. It is also high in the esteem of the Direct Selling Association.

Thank you for reading this review. If you are currently involved with the company as a consultant or customer, we would love to hear your story. Please share a product testimonial or personal success story with the rest of our online community. Just scroll down a little bit on this page and type in your 150+ word message in the webworm. If your story is approved, it will be posted for the rest of the world to see.

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