I will review Scentsy here which is a fragrance company based in Idaho. The MLM was founded back in 2004 and now has over 100,000 consultants all over the world. They run a big operation which runs solely on direct selling and multi level marketing. Just in 2016, Scentsy declared that their revenue was around $456 million.
They also got onto the 2017 DSN Global 100 List with their model and revenue stream. According to the company, they give ‘aspiring entrepreneurs the opportunity to launch a business without making a huge financial investment,’ which is the true nature of any MLM company.
So how do you get to join Scentsy in the first place? You can log onto their website and find out all the basic details from there. This is how it works: you will pay either $99 or $149 for a basic or enhanced kit respectively.
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These are both kits for beginners so you’ll be taken care of in terms of resources and training. In a nutshell, you will have everything you need to get your consultant business up and running. Once you’ve paid for your kit, you will get a bunch of product samples. Of course, you will receive more samples with the enhanced kit.
The kit also includes business tools such as digital lessons and resources. There is also free 3 month access to your own Scentsy website where you can customize your selling pitch as many times as you want. After the 3 months end, you will have to pay $10 per month to keep your access.
Now Scentsy works a little differently to other MLMs in the sense that you will not be able to buy their products on wholesale prices. When you do make a purchase you will have to pay the full retail price for every product.
This may make you feel like just another customer as opposed to an affiliate, but then consider that you will get paid a commission every month depending on your PRV (Personal Retail Volume). This commission starts off at 20% but increases up to 25% once you hit 1000 PRV points. This means you will have to buy this much product to actually get this commission percentage.
This could be okay if you have enough initial investment available but the alternative is that you will be spending more money than you are making.
However, if you actually hit 2000 PRV you will be able to hit a bonus of 5% in commissions. All this math means that you will be able to get 30% in commissions eventually if you work hard enough. Moving away from the retail compensation model, you will be able to earn serious money if you create a strong downline of salespeople.
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You can recruit these people and start urging them to buy products from Scentsy. Once they do this, you will get commissions on all their purchases as well.
Scentsy Compensation Plan?
The Scentsy compensation plan isn’t explained so well but this is how I have interpreted it. This is how it will go down: if you have ordered products that are around at least worth 500 PRV per month and your sponsored consultants are also ordering the same amount of product, you will qualify for a Scentsy rank that pays out more than just the basic package.
For example, the Superstar Consultant will earn you 7% of commissions on sales made by your sponsored consultants.
This plan then goes on. So if someone in your personal frontline qualifies to earn wholesale commission, then you will also earn a differential commission on their particular wholesale volume. And then further on, if you’re a star consultant, you will get up to 4% wholesale commission from each leg that you’ve created in your downline.
This goes on so that if someone you have in your frontline reaches the rank of Lead Consultant, then they will get up to 2% wholesale commission. However, just on this leg, you can earn 2% of the difference between their rank and yours.
If you keep going and hit the rank of Director, you can qualify for the wholesale commission of 9%. You will now also qualify for a Director bonus and this will be paid based on the wholesale volume of any other directors in your personal downline. There is also the Superstar Director rank which entails the ultimate bonus for you and your team.
Scentsy seems to be a pretty solid opportunity if you don’t mind constant recruitment and performance checks. However, it’s not my #1 way to make good money. I can tell you a lot of other ways in which you can actually quit your day job and make a decent living!
There are other ways to get rid of your 9-5 and make money online without MLM's, bother your family/friends, ponzi schemes and recruiting people!