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 Europe anniversary

One Year Anniversary for Scentsy Europe

Exactly one year ago (on April 18, 2011), Scentsy Europe officially launched and opened up Scentsy internationally.  Scentsy EU opened up in the UK and Germany, and since has opened up with Scentsy in Ireland now too and is doing well.  Scentsy Europe will continue to expand and will soon announce other Europe countries to open.  I have team members in Scotland, England, Ireland, Spain, Germany, and Belgium, and love working with my Scentsy Europe team - come join us!  Happy one year, Scentsy Europe!  Here's to many more to come.

Scentsy Corporate had some fun celebrating in both the US and at the Scentsy Headquarters in the EU.  Here are some photos of the celebration to commemorate the special first anniversary:Scentsy EU UK, Germany one year anniversary

Scentsy EU one year

Here is an update from March 2012 with the number of Scentsy Europe Consultants and their location. Are you on the map? Come join Scentsy EU and be one of the first Scentsy Consultants in Europe!

As you can see, there are currently 457 Scentsy Consultants in the United Kingdom (UK - includes Wales, England, Scotland, northern Ireland),  70 Scentsy Consultants in Germany, and 209 Scentsy Consultants in Germany.
Number of Scentsy EU Consultants

Scentsy in Ireland

Sell Scentsy Products in Ireland

Scentsy will soon be open for business in Ireland!  Scentsy has been open in Northern Ireland since it opened with Scentsy UK in April 2011 and is growing like crazy.  I have no doubt Scentsy in the Republic of Ireland will take off too!  Be one of the first Scentsy Consultants in Ireland - join and sell Scentsy products as a rep too.  We would love to have you and are so excited to welcome Ireland Consultants to our growing team.

Ireland is a great place to sell Scentsy, whether you live in Dublin, Belfast, Limerick, Galway, Kilkenny, Derry, Armagh, Newry, Cork, or even any little town or village.  You can join the best home based candle business that has grown by leaps and bounds and set all kinds of records since it started in 2004.  Scentsy is sure to be a hit in Ireland as well, and I can't wait to help you start as a Scentsy Consultant in Ireland!

Scentsy Ireland Welcome Meeting in Dublin

Celtic Love Know Warmer

Irish Celtic Love Knot Scentsy Warmer

Exciting news:  on Saturday, October 1, Scentsy will host a welcome meeting in Ireland. This meeting will be open to Ireland residents who want to learn more about Scentsy, our products, and becoming Scentsy Consultants. It will be held in Dublin from 6:00-9:00 p.m. local time, with a formal presentation from 7:00-8:00 p.m. local time.

The welcome meeting will provide potential recruits with all the information they'll need to make the decision to join Scentsy Ireland. It will give our existing Consultants a chance to have their friends, family, and contacts in Ireland learn about Scentsy's European product offerings and business opportunity in person. At the meeting, Scentsy home office team members will demonstrate Scentsy products, explain how the business opportunity works, and answer questions.

Location: The Shelbourne Dublin, A Renaissance Hotel
27 St. Stephen's Green
Dublin 2, Ireland

For more information about the Ireland welcome meeting, email [email protected] or visit the "Welcome Meetings" link on our International Expansion website at http://expansion.scentsy.com/.

How to Sell Scentsy in Ireland

First thing is to sign up to sell and join Scentsy in Ireland!  I am a Star Director and will be your Scentsy sponsor and mentor to train you and make sure you have everything you need to be successful in your new business in Ireland. You can be confident in recruiting to build your own team of Scentsy Consultants in Ireland, and I will be here to support you as you support them!  I have lots of training to help you, but here are a few ideas to get your Scentsy candle business off with a bang:

Join Scentsy Europe

When you join Scentsy in Ireland, you join with the other Europe countries that just opened up in April.  Scentsy is growing very quickly in Europe, and you have the chance to get in and be one of the first Scentsy Consultants in Ireland from the very start.  You can't help but be successful when you join the fastest growing Consumer Goods company, setting all kinds of records at an amazing pace.  Currently, Scentsy Europe includes:

  1. Scentsy UK - Scotland, England, Wales, Northern Ireland,
  2. Scentsy Germany
  3. Scentsy Ireland - Republic of Ireland now joins the ranks!

 

Ireland Scentsy Catalog

Scentsy Fall Winter Katalogue 2011 Ireland

If you're excited at this great work-at-home business opportunity, but are asking yourself:  "What is Scentsy?", feel free to contact me with questions, then come join Scentsy in Ireland with me!

Sell Scentsy in Ireland

Becky Sattler, Scentsy Star Director
208-340-6538
Contact Me