Did someone just invited you to join Scentsy to earn extra income? Can this really work for you? I would like to give you an overview on this company and its opportunity and some advice on what you will need to achieve your financial goals.
1. Scentsy, a Direct Sales MLM Company
Based in Meridian, Idaho, Scentsy was founded in 2004. The company offers various types of candle warmers, or wick-less candles, which is safer than the regular candles.
The candle warmers simply release highly scented Fragrances within the wax, without creating fire risk associated with lighting a candle.
Scentsy is an MLM company that sells their product using Direct Selling. As an independant consultant, you will sell the product directly to the customers. When you sell above certain sales amount, you will receive commissions. Leadership Bonus are also paid out to team/group leaders who built teams of consultants, and these bonuses becomes the residual income.
2. How to Join Scentsy as a Consultant?
To begin, you will purchase a $99 starter kit, which includes selected Party Fragrance Testers, demonstration products and a good range of business supplies such as party/training DVD, Brochures, Business Cards, etc.
There after you will need to remain active by maintaining $150 Personal Retail Volume(PRV) every 3 months.
You can also subscribe to a replicated webstore/website for US$10 per month, which your customers can visit to purchase products.
3. Commission and Bonus Structure
As a start you will be paid 20% of your PRV. In the beginning, you get paid 20% of your PRV
Upon reaching the $1,000 PRV, you will be able to receive a 25% commission for your subsequent sales. Furthermore, you can stand to receive 2-9% of the wholesale volume based on your minimum PRV and Group Wholesale volume, once you have built a team of consultants.
4. Party Plan and Scentsy
Scentsy is a big fan of party plan and had been using this marketing strategy since its inception, although it has allow its independent consultants to decide their own marketing approach. This strategy had been successful for a handful of consultants and helped them to realize their financial goals. The downside of party plan is that it requires a lot of time and manual effort to organize and follow up. Alternatively there are also many top earners in Scentsy leveraging on online automated tools and systems to put them on the fast track of success.
5. Inexpensive products
Scentsy products are not high ticket, which makes it is easier to sell. However it also mean that you would need a very high volume to achieve a significant commission amount.
6. How much commission can you make?
As an example, here is what you need to make a $1000 commission:
A Sampler Multi Pack cost $105, your commission will be 20% at $21.
You will receive about $210 for first 10 sales.
You will receive $813.75 for the next 31 sales.
In total you will need to sell 41 sets of Sampler Multi Pack to receive $1023.75 commission.
This is totally workable if you can invite 5 new friends to a Scentsy party each time, organize 8 Scentsy parties and make sure each of your friends buy at least 1 sampler Multi pack.
Although this might seem easy, it does involve a lot of hardwork, new contacts and time. Fortunately, Scentsy does allow you to market your products online and thus leveraging your time and effort to promote the products and services. However what Scentsy does not provide is a Marketing System that will help you to generate new leads and convert these leads to customers or independent consultants.
A good system will be able to generate endless leads for your business, and convert these leads to cashflow even if they do not buy your Scentsy product or join your business.