Scentsy Income Disclosure Statement
Following on from on from our Scentsy business opportunity review, we thought it was time to take a closer look at how much these consultant huns are actually earning.
To figure it out, we started with a copy of the US Scentsy Income Disclosure Statement. Here they have done their best to provide us with as little information as possible, as shown in the image below:
We’re not sure how this is compliant with the FTC MLM guidance, but Scentsy has divided all their consultants into just 2 groups. Group 1 are consultants who were active for the entire 12 months. Group 2 would be those who joined during the calendar year and we assume any that earned at least one commission and ended up quitting Scentsy.
Adding up the columns in the top row, we see that in 2018, there were 133,384 Sentsy Consultants in the US. Of these only 41,571 had been consultants for the full 12 months. This should be a major concern. After all, if the opportunity is so good, then why does it seem that only 31.16% of Scenstsy Consultants have been there for more than a year.
Given that this hunportunity has been running since 2004, you’d think that the majority of consultants would have been there for more than a year. But it appears that 68.84% have not. They might try and tell you that this is because of ‘significant growth’, or some other excuse. We see this as an indicator that most Scentsy Consultants quit after just one year.
We took the average incomes for each group and found that the weighted average commission for all Scentsy Consultants was $784. That equates to $65 a month. In other words,on average Scentsy Consultants earn $2 a day in commission.
While that may not sound like a great income, it is heavily inflated by the few at the top of the ancient Egyptian structure, who are earning a lot more than the rest. This can be seen when we look at the mean income. In statistics, when the data is heavily influenced in either direction, the mean can be more useful than the average.
Applying the same weighted formula to the mean, we see that for all consultants, it is $301. That’s $25 a month. From this expect that you will earn less than $1 per day in Commission as a Scentsy Consultant.
Despite how bad these earnings look, they would in fact get worse if we were to truly look at profit instead of just commission. If we were to include all the time and expenses it takes to ‘work your side gig’, we find that most Scentsy Consultants are losing money.
For posts like this check out our list of MLM Income Disclosure Statements. If you notice one that you think should be added to the list, let us know and we’ll do our best.