Is Scentsy A Pyramid Scheme or a Scam?

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I bet you are here because someone introduced you to Scentsy and now you are wondering ”Is Scentsy a pyramid scheme?” and ”Is it a scam or a legit way to make money from home?”.

You just landed in the right place, because in this Scentsy review I will tell you everything you need to know before joining.

Here are some of the things you will learn: what is Scentsy, how does Scentsy work, Scentsy compensation plan, and most importantly is Scentsy a pyramid scheme or a scam.

I will also give you an idea of what to expect from this company. There will be lots of images, videos and comparisons. I will even discuss the pros and the cons to help you make an informed decision.

By the time you are done reading this review, you will know whether Scentsy is right for you.

Let’s begin!

Scentsy Review Summary

Company: Scentsy

Price to join: $99 to start and $150 worth of products each quarter

Business model: MLM selling fragrance products

Do I recommend it? No

Overall rating: 3/10

Summary: 

Scentsy is an MLM company that sells waxes, warmers, and other fragrance products. Their products are legit, but overpriced.

It is hard to be profitable by selling Scentsy’s products. Other than having to sell expensive products to complete strangers, distributors need to hit a monthly sales quota. If they don’t, they will get suspended and not get paid.

The only real way you can make some money is through recruitment. Most people underestimate how hard this is. More than 99% of people who join an MLM end up quitting and losing money.

Scentsy is a pyramid scheme in disguise. Even though they have products, most people make money from recruitment. With pyramid schemes it is impossible for everyone to be profitable. Those at the bottom (aka you) will never earn anything.

Scentsy is a bad business model in my opinion and I recommend you stay away from it!

Better opportunity: If you are looking for a legit way to earn a full-time income online, check out my #1 recommended business model below.

My Top Recommended Training

 

What Is Scentsy About?


Scentsy is an MLM company that sells fragrance products. Scentsy was created in 2004 by Heidi and Orville Thompson. The fact that an MLM exists for so long is surprising. Most MLMs don’t last for more than a couple of years.

Their two main products are Scentsy wax bars and warmers.

Is Scentsy A Pyramid Scheme - wax bars and warmers

I will talk more about Scentsy’s products later in this review, but for now watch the 1-minute video below, created by Scentsy’s consultants.

As you can probably tell, this is video is very biased and it doesn’t give you a clear idea of what is really going on behind the scenes. So the question still remains…

Is Scentsy A Pyramid Scheme?


Technically, Scentsy is not a pyramid scheme. You can earn commissions as a consultant.

However, it is NOT possible to earn a full-time income from home just by selling Scentsy’s product.

Scentsy is a pyramid scheme in disguise. 

If you want to make big money, you need to recruit new members. Most people underestimate how hard this is. You must have professional recruiting skills in order to earn a decent income with Scentsy.

What Exactly Is A Pyramid Scheme?

Pyramid schemes encourage you to recruit new members into the system. They don’t have any real product or service.

Some MLMs that do have something to offer, hide behind their products to seem legit, when in reality the only way you can make money is through recruitment.

This is what I mean by ”a pyramid scheme in disguise” and it is exactly the case with Scentsy.

Pyramid schemes are illegal in all countries and are guaranteed to collapse at some point. It is impossible for everyone to make money in a pyramid scheme. Take a look at the image below to better understand what I mean.

Is Scentsy A Pyramid Scheme - pyramid scheme

Only those at the top make money at the expense of those at the bottom (aka you).

As you can see, pyramid schemes can be hard to spot and some try to hind behind their products to seem legit. Watch the video below for more information on how to spot a pyramid scheme:

 

Why It Is Hard To Succeed With Scentsy 💰🙅


It has been proven that 73% to 99% of people who join an MLM end up losing money. The infographic below shows even more scary facts about MLMs:
Is Scentsy a Pyramid Scheme - MLM stats

Of course not all MLMs fall into that category, but Scentsy certainly does. As you will see from previous income disclosures, Scentsy is just the average MLM company.

But before we get there, let’s take a look how Scentsy works…

 How Does Scentsy Work ?


As mentioned before Scentsy has products in the fragrance niche. They sell all kinds of nice-smelling products, waxes and warmers.

But Scentsy doesn’t advertise these products in the traditional way. Instead they give everyday people the chance of becoming distributors for their products.

In exchange the distributors receive commissions for the products that they sell.

It’s a win-win for everyone or at least that’s how it’s supposed to be (more on that later).

Scentsy Products


If you plan to get involved with any MLM company, you have to be very familiar with their products. The most important thing is that you actually like and recommend the products. Otherwise people will notice you are trying to sell them into something and will be pushed away.

Most MLM companies sell products that are nothing better than something you can find somewhere else for much cheaper price.

Scentsy is no different.

Their fragrance products are legit, but they are nothing special compared to what’s already out there. Other than that, their products are extremely overpriced (more on that in the cons section).

Their two flagship products are the Scentsy Wax Bar and the Scentsy Warmer. These products are not a fire hazard and they do not release  carcinogens (particles that can cause cancer).

Below you can find a video about these product. Keep in mind that the video was created by a Scentsy director, which means that it can be biased.

 

 

The product are way too many for me to go over each one of them in this Scentsy review. If you want to learn more about their products, go to Scentsy’s homepage.

 How Do You Make Money With Scentsy ?


Now to the part you’ve all been waiting for. How do you make money with Scentsy?

There are 2 ways you can make money with Scentsy:

  1. Sell Scentsy’s products for commissions
  2. Recruit people and build a downline

That’s the typical MLM structure, so Scentsy is no different from other MLMs.

Before I start explaining the compensation plan, you are probably wondering…

How Much Does It Cost To Join Scentsy ?


It costs $99 to join Scentsy as a consultant.

This is relatively little, considering that it costs several thousand dollars to start your own business.

But the costs don’t end here…

Once you become a distributor, you will receive a website to promote your products. Don’t think it’s some super special website that will bring you lots of sales. It’s just a duplicated website that everyone is using.

Monthly Fees

You will have to pay $10 a month to keep that website alive, even though you decide to not use it.

But the cost doesn’t end here either…

Most MLMs require their distributors to reach a monthly sales quota in order to get paid. That’s exactly the case with Scentsy.

is scentsy a pyramid scheme - sales quota

You will have to sell products worth at least $150 every three months. Otherwise you will get suspended and not get paid.

Most people underestimate how hard direct selling is, especially with Scentsy’s overpriced products.

Typically, consultants end up buying the products themselves in order to not be removed from the program. This leads to distributors having a lot of unnecessary products just lying around.

And even though you manage to sell over the monthly quota, you are still not guaranteed to get paid. Take a look at the complain below:

is scentsy a pyramid scheme - complain

BUT!…Once again, I found another information available.

is scentsy a pyramid scheme - FAQ

According to the screenshot above, you will have to ‘‘generate sales resulting in 200 points or more in PRV in at least one month within any consecutive four-month period”.

As you can see, Scntsy try to confuse their customers by not providing clear information about how much it will cost.

Below you can see the cost for the 1st year:

  • $99
  • $10 x 12
  • $150 x 4

Total 1 year cost = $819

Scentsy Compensation Plan


Just like most MLMs, Scentsy’s compensation plan is very complicated. For some reason they make it extremely difficult for everyday people to understand what exactly they are getting into.

Below I will try to simplify the compensation plan as much as possible.

According to Scentsy, there are 10 ways you can make money.

  1. Commission (20-25% for each sale)
  2. Bonus from wholesale volume
  3. Frontline bonus TWV
  4. Consultant bonus TWV
  5. Star consultant bonus TWV
  6. Frontline superstar consultant bonus TWV
  7. Director bonus TWV
  8. First generation direction TWV bonus
  9. Second generation direction TWV bonus
  10. Third generation direction TWV bonus

Don’t worry if you don’t understand everything above. To be honest, I don’t either. But from reviewing tons of MLMs on this website, I can tell you that this is the typical strategy that scam MLM companies use.

They make a super complicated compensation plan, without actually giving any useful information to their distributors.

I will tell you more about why I think this company is not worth joining in a minute, but for now take a quick look at the compensation plan chart.

is scentsy a pyramid scheme - compensation plan

To get a better idea of what all of this means, watch the 8 minute video below:

When you remove all the unnecessary talk, there are 2 primary ways you can make money. As I have already said, they are:

  1. Sell Scentsy’s products
  2. Recruit people

BUT!… As you will see below, there is only ONE possible way to make money with Scentsy and it is through recruitment.

Is Scentsy a Scam?


No, Scentsy is not a scam. It’s just a bad business opportunity.

They have legit products and pay consultants, but the odds that you will make money are seriously against you.

If you know someone who likes to buy a lot of these wax products, then you may make some money by selling Scentsy’s products.

However, if your goal is to quit your 9 to 5 job and reach financial freedom, Scentsy is not for you. You have to be an experienced marketer with good recruiting skills in order to make a decent income.

If you are just a regular person who wants to make money from home, but don’t have any marketing skills, grab a copy of my FREE Make Money Online Guide below.

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Scentsy Pros And Cons


Now that I’ve covered most important things you need to know about Scentsy, let’s discuss the pros and the cons to help you make the final decision.

Pros

The Company Has Been Around For A Long Time

The first thing that I noticed about Scentsy is that the company has been around since 2004. This is surprisingly long, considering the fact that most MLM companies dissappear in just a couple of years.

Support For Consultants

Most MLM companies offer people the opportunity to make money from home by selling their products. But these companies don’t really care about their distributors. They take people’s money and then let them figure things out on their own.

That’s not the case with Scentsy. Take a look at what they promise consultants:

is scentsy a pyramid scheme - promises

Of course, you can’t be sure whether they keep all of these promises, but the fact that they make that claim, tells me that they care about their distributors.

Another important thing to mention here is that your success is highly depended on the sponsor you get. If you get a sponsor who knows a lot about marketing and face-to-face selling, that’s great.

If not, you will probably be just like the majority of people who end up losing money.

Money-back Guarantee

Scentsy has a 30 day money-back guarantee. This is a good sign, because it shows that they believe in their products.

Cons

Now let’s discuss the cons. You have probably already guessed some of them, but there are some ugly truths that Scentsy distributors find out way too late.

Expensive Products

As I have already discussed earlier, Scentsy’s products are way too expensive and overpriced.

I did a little research and found out that the wax sold on Amazon costs only $0.75- $0.85 per oz. Compare that to $2.08 per oz, which is the price for Scentsy’s wax.

Who would pay 150% more for the exact same product?

Well, the only ones who will buy these expensive products are the distributors.

Why?

Because they have to reach the sales quota. If they don’t, they will get suspended and won’t receive any commissions.

This leads to my next point, which is…

Scentsy Acts Like A Pyramid Scheme In Disguise

Scentsy’s main focus is recruiting, not selling!

As you saw in the compensation plan, they clearly tell you that there are 10 ways you can make money with Scentsy. They all come down to either recruiting or direct selling.

Only one of these 10 ways involves direct selling. The rest, 9/10 ways, involve recruiting.

You Don’t OWN A Business

They make it seem like they give you the opportunity to start your own business from home, but the truth is that you don’t own anything.

You are just a consultant. They give you a replicated website that THEY own. They have full control over it and it can disappear overnight.

Other than that you are obligated to reach a sales quota.

Does this sound like you own the business? Or does it sound more like someone is controlling you?

Enough working for someone else and making their dreams come true. If you want to be your own boss and have full control over your business, continue reading…

Here’s A Better Opportunity


I am not saying you can’t make money with Scentsy, but there are a lot of unclear and uncertain things about this company, that makes me think it’s a bad business opportunity.

The business model that I recommend is called affiliate marketing. I prefer it over MLM for several reasons:

  • You have full control over your business.
  • You can promote anything you want, without having to create a product
  • No need for direct selling
  • You can start for free

The best place to learn affiliate marketing is Wealthy Affiliate. You can check out my Wealthy Affiliate Review for more information or create your free account and explore the platform yourself.

You will even get the first 10 lessons completely for free, so there is nothing to lose.

I have had nothing, but positive experiences with Wealthy Affiliate and I am sure you will too 😉

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That was it for this Scentsy review. I hope your question ”Is Scentsy a pyramid scheme?” got answered. I tried to cover everything you need to know before joining.

I hope the information in this post helps you make the right decision.

If you happen to have any questions, do not hesitate to ask me in the comments and I will get back to you as soon as possible ;).

 


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12 thoughts on “Is Scentsy A Pyramid Scheme or a Scam?”

  1. Hi Delyana. Very clear and full of info review. Unless I was already in Wealthy Affiliate I would have joined. I would have fallen for that pyramid scheme, but fortunately Wealthy Affiliate has taught me the legit way to make money online.
    This is very trusty and important article. You deliver everything one needs to know before joining. Keep up with the good job.

    Reply
  2. Hi, I’m from Canada and I know for a fact that pyramid schemes are illegal here…
    I know from personal experience that you don’t make a lot of money with MLMs.

    Those who manage to make some money are experienced marketers, who recruit like crazy.

    The truth is that the only one who makes money is the owner of the company.

    Reply
  3. Thanks for another in-depth review of a company to avoid. I appreciate also you taking the time to define exactly what a pyramid scheme is. Although many of these companies are not pyramids in the true sense of the word, they are not distributor-friendly by any means, and one’s time can be better spent elsewhere as you have also mentioned. I appreciate you sharing this information.

    Reply
  4. I have received their products as gifts and they are very nice but the business model definitely is not one where you can expect to make a full income. No different than AmWay and other MLM businesses out there. You spend more money on trying to recruit family and friends and buying products, training tapes and materials only to find yourself in debt and with an abundance of products you have no use for. I did Mary Kay years ago and ended up giving all my inventory away on Christmas once I realized it was not the business for me. I am glad I found WA because it is a real business with real results if you are willing to work at it and make it a real business. No products, no additional costs for training, etc. Great info on here to help others figure out what they are getting themselves into.

    Reply
  5. It never ceases to amaze me how the MLM companies skate so close to the edge with the FTC and DSA rules, really irks me actually!
    Thank you for sharing your insight about Scentsy, much appreciated.
    Blessings always
    Louise

    Reply

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