Is Scentsy a Pyramid Scheme?

Pyramid Schemes

Every now and then I tell people how my husband and I support* our family with our Direct Sales business. Inevitably the conversation leads to this question, “Oh, so it’s like a pyramid scheme?”.

No, Scentsy is not a pyramid scheme. After a while, I began to wonder what exactly is a pyramid scheme. Why do so many people consider any direct selling business to be one?

What Is a Pyramid Scheme

So first, what is a pyramid scheme? When in doubt, turn to Wikipedia! 🙂 –

Pyramid schemes—also referred to as franchise fraud or chain referral schemes—are marketing and investment frauds in which an individual is offered a distributorship or franchise to market a particular product. Participants earn the real profit, not by the sale of the product, but by the sale of new distributorships. Emphasis on selling franchises rather than the product eventually leads to a point where the supply of potential investors is exhausted and the pyramid collapses.”

Often, the term pyramid scheme is associated with direct selling businesses.  However, it actually happens just as much if not more often in the financial sector.

Pyramid Scheme 101

Examples 

I did a Google search for the term pyramid scheme. The first result was an article about a Montana woman.  She pleaded guilty to using money from new investors to make payments to earlier investors, between 2008 and 2016. The article states that "she's accused of taking $1.5 million from 28 different people. At least four of the investors were identified as vulnerable persons because of their age, and one was mentally disabled." 

That type of "business" is bad, and should get a bad wrap.  It's also illegal (with good reason).

Here is an another article in Investopedia about pyramid schemes in the financial sector. There's also a great short video on that page explaining pyramid schemes.

How to Know if a Business Is Legitimate

Below is a video from the Direct Selling Association in Australia called "Understanding Illegal Pyramid Schemes".  The video outlines they key points of how to identify whether a business is a legitimate direct selling business or a pyramid scheme.

vimeo id="145132190"

MLM organizations

Specifically with regards to Multi-level marketing organizations the same Wikipedia page states –

According to the U.S. Federal Trade Commission legitimate MLM, unlike pyramid schemes:

"...have a real product to sell. More importantly, MLM's actually sell their product to members of the general public, without requiring these consumers to pay anything extra or to join the MLM system. MLM's may pay commissions to a long string of distributors, but these commission are paid for real retail sales, not for new recruits."

Selling of Goods is Key

In summary, any business model in which members make money from the signup fee of someone else rather than any actual selling of goods or services is a pyramid scheme. Additionally, in exchange, the organization promises its new members a share of the money taken from every additional member that they recruit. If a percentage of your sign up fee goes directly to those who enrolled you, or if you are a member of a business that rewards you financially when someone joins under you – then you are part of a pyramid scheme.

The FTC also has more information at this link- FTC Pyramid Schemes - to help consumers understand the difference between legitimate direct selling businesses and scams.

So do I sell products? Absolutely! Scentsy has a fantastic brand with amazing, innovative products namely, Warmers, Diffusers, Buddies, Laundry, Skin, and, of course, it's very, very popular fragrances!

To buy Scentsy online simply visit my Scentsy Website to browse all of the fantastic items I sell.   

Pyramid Scheme Promises

Pyramid Schemes come in all shapes and sizes but all make massive promises.  Generally speaking, these schemes also leave their members, except the few at the top, worse off. This same Wiki page tells of about a dozen notable pyramid schemes all over the world.  These businesses have caused riots and robbed thousands, if not millions, of people lots of money.

Pyramid schemes are illegal ploys to rob people.  They promise an income to convince more and more people to pay the enrollment fee, of which they get a portion.

Structured to Defraud

In a Forbes magazine article by Nancy Collamer, she clarifies that “MLM’s are sometimes erroneously referred to as “pyramid schemes” – companies structured with the intent of defrauding the public”. These organizations are designed to make money, but NOT generated by the sale of any product or service. Money is made when individuals pay an enrollment fee - to a small group or individual at the top and are illegal.

Is Scentsy a Pyramid?

In Scentsy, I do get potential leadership bonuses from the amount my team sells. However, I don't get a sign-up fee when they join.  I am paid for helping new team members join and start a successful business, selling actual products. 

Many ask the question of how is a Scentsy consultant paid; can I really make money with Scentsy?  You can watch this video I created to explain the Scentsy Compensation Plan and how we make money.

Start a Legit Business

And as always if today is the day you’re and ready to be your own boss and looking for a legitimate business opportunity, come join my Scentsy team! Ever wonder if you’d make an awesome Scentsy Consultant? Check out my blog post answering that very question – Could I be an awesome Scentsy Consultant?

Are you ready to work hard to earn trips, make great friends, make money, and be able to enjoy more time with your friends and family? Then come on over to my Scentsy website and Join Scentsy!

Is Scensty A Scam?

Want to learn more about Scentsy, the company? Here's a little history about Scentsy in an article answering the question Is Scentsy a Scam?

*When I talk about income from our Scentsy business, the FTC requires that I add results are not typical, and include this Income Disclosure Statement.  Results are not typical, but honestly, neither are you.  I worked hard to make this happen, and so can you.

Scentsy Mexico Join Promotion

Viva Scentsy Mexico!Join Scentsy Mexico

Our busy holiday selling season is upon us, so it’s a great time to start a Scentsy business in Mexico!

If new products from our Fall/Winter 2015 Scentsy Catalog and Harvest and Holiday collections aren’t enough enticement to join, our Viva Scentsy! join promotion is just the thing to get potential recruits in Mexico to sign up and start living the life they’ve always dreamed of!

Scentsy Mexico Escential Starter Kit

When new Scentsy Consultants in Mexico join from Oct. 1-31, 2015, they’ll get an Escential Starter Kit filled with everything they need to launch their new business, including demonstration products, catalogs, marketing materials and more than 40 scent testers to share with party guests for just $1,059 (MXD), including shipping and IVA.

Free Scentsy Shooting Star Kit

Plus, when your new recruit earns 500 points in Personal Retail Volume in their first 15 days as a Consultant, they qualify for the Shooting Star Enhancement Kit and will earn $5,625 (MXD) in FREE Scentsy products to grow their business!

Sell Scentsy in Mexico

While you’re thinking about the opportunity, don’t forget the commissions, bonuses and all-expenses-paid trips to exciting destinations such as Hawaii, Greece, the Bahamas and New York City for qualifying Consultants!*

This offer is available exclusively for Scentsy in Mexico during October 2015.

*Qualification for incentive trips are changed yearly. In 2014, approximately 1 percent, or 1,317 of the eligible North American Consultants, earned incentive trips. Qualification periods take place between August and January.

Scentsy Mexico FAQ

Scentsy Mexico

ÚNASE A LA TRAVESÍA

¿Qué significan $1,999 para usted?

Alcanzar sus metas. Disfrutar la aventura. Unirse a Scentsy.

En Scentsy queremos inspirar a las personas con deliciosas fragancias que las transporten a lugares maravillosos, y necesitamos la ayuda de gente apasionada como usted.

Si a usted le encanta Scentsy, éste es el momento de comenzar su propio negocio y convertirse en Consultor. He aquí por qué:

ES UNA INVERSIÓN EN USTED.

Comenzar su negocio Scentsy solamente cuesta $1,999.* Tan pronto como se una a Scentsy, le enviaremos un Kit de Comienzo con todos los productos y materiales de trabajo que necesita para comenzar. Póngase la meta de recuperar su inversion con las comisiones de la reunion de lanzamiento y dé la bienvenida a un nuevo comienzo.

PUEDE SER UN EMPRESARIO.

Parece un sueño, ¿verdad? ¿Ser dueño de su propia empresa y trabajar cuando desea? ¿Ganar comisiones de 20% a 36% y bonificaciones por compartir productos que le encantan? ¿Hacer algo divertido junto a personas realmente increíbles (¡sus nuevos amigos!) y ser por fin totalmente independiente?†

Lo parece porque lo es.

PUEDE SER PARTE DE ALGO REALMENTE IMPORTANTE.

Su familia, su comunidad, una necesidad. Queremos ayudarlo a ayudar a la gente y las causas que le importan. Cada temporada, los Consultores Scentsy presentan ideas para un nuevo producto Causa Noble y una nueva organización a la cual respaldar. ¿Le interesa alguna en particular? Deje que Scentsy lo ayude a hacer algo por la comunidad.

Únase a Scentsy hoy!

Unase a Scentsy!ACABAMOS DE LANZAR UN NUEVO CATÁLOGO.

Dos veces al año, MILLONES de fanáticos de Scentsy desde Idaho hasta Irlanda se reúnen en torno a una nueva colección de fragancias y exploran todas las nuevas maneras de disfrutarlas. Unirse en estos momentos es como lanzar su negocio en la vía rápida.

PUEDE SER USTED MISMO.

Y puede dirigir su empresa como usted quiera. Scentsy está constituida por miles de personas increíblemente únicas y apasionadas. Empieza en la oficina central, donde tenemos un equipo grande que trabaja duro todos los días para ayudarlo. Le proporcionamos una enorme variedad de capacitaciones y de herramientas, pero a fin de cuentas, su empresa Scentsy es sólo SUYA.

 *Más impuestos y gastos de envío. El contenido puede variar.
†Los Consultores ganan una comisión de 20% sobre los primeros 1,000 puntos de Volumen Minorista Personal (VMiP) y de 25% por todas las ventas siguientes, además de una bonificación de 9% sobre el Volumen Mayorista Personal basado en el rango, y una bonificación de 5% cuando las ventas mensuales superan los 2,000 puntos de VMiP. También pueden ganar bonificaciones de liderazgo basadas en las ventas de la línea descendente. Todos los años se determinan los requisitos de calificación para los viajes de incentivo.

Beneficios de ser Consultora Scentsy

 

Scentsy Mexico Frequently Asked Questions

What is Scentsy?

Scentsy is a Direct Sales company that uses Independent Consultants to have home parties to present home fragrance products to party guests.  A consultant can also build their business with fundraisers, selling Scentsy at bazaars and fair booths, catalog parties, and many other fun ways.  As a Scentsy Consultant in Mexico you can sell Scentsy products, as well as recruit and build your own team of Scentsy Mexico consultants!

How do I become a Scentsy Mexico Consultant?

It's easy to sign up to be a Scentsy Mexico Consultant on my website and you can be one of the first ever in all of Mexico!  The Scentsy Fragrance Mexico Starter Kit will cost $1,799 (MXN).

Sell Scentsy in Mexico

How Do I choose the Best Scentsy Mexico Sponsor?

Join Scentsy Mexico

Choosing a good sponsor and mentor is very important; they will be key to helping you build a successful Scentsy business in Mexico.  I would love to be your sponsor and mentor to help ensure you have proper training and help.

I love being a Scentsy mentor and have earned Scentsy's prestigious Annual Mentor Award the past two years.  I will put in the time and effort to support you in your Scentsy business in Mexico as you are one of the founding Consultants in Mexico!

Are there sales requirements or quotas for a Scentsy Mexico Consultant?

Yes, as a Scentsy Mexico Consultant, you will be required to sell 150 PRV every three months.

What tools will I have as a Scentsy Mexico Consultant?

Each Scentsy Mexico Consultant will receive a Scentsy Fragrance Mexico Starter Kit that will contain business materials, marketing materials, and products so you can successfully launch your business.  Each Scentsy Mexico Consultant will also receive a free website for three months.

How often do Scentsy Mexico catalogs change?

Scentsy catalogs are released twice a year:  Fall/Winter catalog in September and Spring/Summer catalog in March.

Where do products ship for Scentsy Mexico?

All Scentsy and Grace Adele products will ship from the Distribution Center in Coppell, Texas.  There will be a 10 business day shipping guarantee for products to arrive in Scentsy Mexico.

How do I buy Scentsy products in Mexico?

You can order straight from my Scentsy website.  Click on the flag in the upper righthand corner to change to the Mexico flag and find all of the authentic Scentsy products you want!  You do not have to attend a party; you can buy Scentsy directly online and it will ship straight to you in Mexico.

What shipping costs will be associated with orders in Mexico?

Mexico WORKSTATION Minimum Maximum Shipping Charge

Individual Order  
$0.01 - $599.99 = $120
$600 - $2,799.99 = 20%
Party Order $2,800 - Unlimited = FREE

Party Order - Direct Ship
$0.01 - $599.99 = $120
$600 - Unlimited = 20%

Scentsy Family Store Order
$0.01 - $799.99 = $150
$800 - Unlimited = FREE

Mexico PERSONAL WEBSITE (PWS) Minimum Maximum Shipping Charge

PWS Order 
$0.01 - $749.99 = $150
$750 - $2,799.99 = 20%
$2,800 - Unlimited = FREE

PWS Order Attached to a Party
$0.01 - $749.99 = $150
$750 - Unlimited = 20%
*Orders sent directly to a customer instead of to the primary shipping address chosen by the Consultant.
The shipping charges listed are VAT inclusive. Shipments are limited within Mexico.

How are items taxed in Mexico?

Mexico has a Value Added Tax (VAT) of 16 percent. The added tax must be included in the listed price of products. For instance, if a Scentsy Warmer is listed at $43 (AUD), that price includes tax; if a  Grace Adele Bag is listed at $1,485 (MXN), that price is VAT inclusive.

How are commissions calculated in different countries that use different currencies?

Scentsy has a global Compensation Plan designed to support multiple countries. The commission calculation is: PRV x Commission Percentage x Peg Rate = Commission amount in local currency.
Current peg rates:
United States: 1
Australia: 1.3
Mexico: 16

 

 

Scentsy Mexico

Mexico Scentsy

Scentsy is coming to Mexico!!

So excited to announce that September 1, 2013 Scentsy Fragrance and Grace Adele brands will open in Mexico!

Join Scentsy in Mexico

Contact me for information or to get ready to sign up and be the first Mexico Scentsy Consultant ever!!  If you know someone who might be interested in joining Scentsy in Mexico too, I'd love your referral!

More info on selling Scentsy in Mexico and FAQ.

Sell Scentsy in Mexico

The exciting news is that if you live in the United States and Canada, you can recruit and sponsor new team members in Mexico, but you can also sell Scentsy in Mexico if you sign the cross-border agreement!  What exciting news!

Buy Scentsy in Mexico

If you live in Mexico and would like to buy Scentsy, I can help!  Give me a call or order Scentsy in Mexico online on my website and it will ship to you in Mexico starting September 1, 2013.

~Becky Sattler,
Scentsy Star Director
208-340-6538