Is Scentsy An MLM? - The List

Scentsy has some great products, from handcrafted warmers and diffusers to body creams. Over the years, it won several awards and generated billions in revenue. For example, Forbes put it on America's 100 Most Promising Companies list in 2011 (via Scentsy). Three years later, it was named the Philanthropic Business of the Year. The company also ranked as one of the top midsize employers in the U.S. and one of the most successful privately held businesses in Idaho. Plus, it has an annual revenue of over $472.9 million, according to Dun & Bradstreet.

Given these aspects, it's fair to say that Scentsy is a legitimate business. However, it does operate as an MLM and hence cannot guarantee the success of its distributors. The Federal Trade Commission (FTC) explains that MLMs rely on independent consultants to market and sell their products. As a consultant, you can make money from direct sales and by recruiting new distributors, but there's also a risk of losing your investment.

Scentsy requires an initial investment of $99 — that's what you'll pay for a starter kit, plus shipping and local tax. After that, you must sell products worth at least 200 points per month to maintain your membership. All consultants get access to online training, free marketing resources, business tools, and ongoing support. How much you can earn depends on the time and effort you put in. Just because Scentsy is an MLM doesn't mean you won't make money. 

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