Scentsy is an American multi-level marketing[2][3] company based in Meridian, Idaho that sells scented products including wax warmers and other home and body products.[4][5]
| Company type | Private |
|---|---|
| Industry | multi-level marketing |
| Founded | 2003 |
| Founders |
|
| Headquarters | Meridian, Idaho, U.S. |
Area served | North America, Europe, Australia and New Zealand |
Key people | Heidi Thompson (CEO), Orville Thompson (CEO) |
| Products | Scented products |
Number of employees | 1,056 (2018)[1] |
| Website | scentsy |
The company was founded by Kara Egan and Colette Gunnel in 2003.
History
Scentsy was founded by Kara Egan and her sister-in-law Colette Gunnell in Salt Lake City, Utah in 2003.[6][7] At a small business event in 2004, they met Orville Thompson, a struggling entrepreneur who had previously started several unprofitable business ventures.[8] Thompson took an interest in the pair's wick-less candle company and a few months later, he and his wife Heidi Thompson purchased the company from Egan and Gunnell.[7][8][9] The Thompsons moved the company's headquarters to Meridian, Idaho and on July 1, 2004 they re-launched Scentsy using a multi-level marketing distribution model.[7][10][11][4]
Marketing materials for Scentsy were created by a Layton, Utah-based graphic design company, ScentsySuccess (an authorized division of Ann Dalton Design Inc.). ScentsySuccess was acquired by Scentsy in 2008, at which time they moved to a new distribution centre and showroom in Layton.[12]
In 2009, the company expanded into Canada and in 2011, it expanded again, into the United Kingdom and Germany.[13] In 2012, the company had over 170,000 active independent consultants.[14] At the end of 2015, this number had fallen to 95,891.[15] Co-founder Kara Egan remained with the company as a consultant and had over 42,000 down line consultants as of 2012.[14][6]
In 2017, the company reported over $450 million in annual sales, putting it as number 44 on Direct Selling News' list of the top direct selling companies in the world.[16][17] It was also on the Forbes magazine 2011 list of America's 100 Most Promising Companies and the 2018 list of America’s Best Midsize Employers.[10][16]
Scentsy opened an east coast distribution center located in Rock Hill, South Carolina in summer 2021.[18]
In 2021, Dan Orchard became the interim CEO while Heidi and Orville Thompson moved to London to serve as a mission president couple for the Church of Jesus Christ of Latter-Day Saints.[19] Orchard previously served as the general manager of emerging markets.[20] The Thompson's will return to their CEO duties at the end of their mission service in 2024.[19]
In 2023, Disney announced they would partner with Scentsy to create "Smellephants on Parade" a Dumbo-themed activity with smellable attractions.[21]
Business model
Under the multi-level marketing (MLM) model used by Scentsy, all products are sold exclusively through independent consultants, with no retail sales.[14] Consultants can also receive a portion of the sales of any new consultants that they recruit.[22] In a 2011 interview, CEO Orville Thompson said that they chose a direct selling model because their wickless candles were "an experiential product" that were best showcased in home-based parties and that MLM distributing allowed them to offer a larger selection of products than was possible to offer in the limited space of a retail store.[9]
Scentsy has been criticized for its heavy recruitment of American military spouses, whose families' frequent moves mean they often have trouble finding consistent employment.[23][24][25] The military humor site Duffel Blog satirized this practice by announcing the creation of SCENTCOM, "focused on unifying efforts of highly scented products sold on military bases through 'consultants.'" [26]
According to its 2015 income disclosure statement,[15] about 66,000 or 65% of active Scentsy consultants receive an average of $463.34 per year, before expenses. The top 200 or about 0.2% of consultants, earned an average of $113,363.98, with the highest income earner making nearly 1 million dollars.[27] According to a military.com article, it takes most consultants over four years to earn a yearly income equivalent to working three and a half hours per week at minimum wage, not counting business expenses.[23] The blog Bottlesoup calculates that a consultant will have to sell 639 Scentsy products per month to earn the equivalent of a full-time, minimum-wage job.[28][better source needed] An analysis by The Finance Guy blog, claims that 99.45% of Scentsy consultants were not able to earn a full-time income.[3][better source needed]
Scentsy was profiled in a study about the rhetoric used by companies in the 'direct selling industry'.[29] Scentsy's recruitment material was noted to emphasize personal agency within the context of Bormann's fantasy theme analysis and convergence theory.