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Scentsy
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] The company was founded by Kara Egan and Colette Gunnell in 2003. HistoryScentsy was founded by Kara Egan and her sister-in-law Colette Gunnell in Salt Lake City, Utah, in 2003.[6] At a small business event in 2004, they met Orville Thompson, a struggling entrepreneur who had previously started several unprofitable business ventures.[7] 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.[6][7][8] The Thompsons moved the company's headquarters to Meridian, Idaho, and on July 1, 2004, they relaunched Scentsy using a multi-level marketing distribution model.[6][9][10][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 center and showroom in Layton.[11] In 2009, the company expanded into Canada and in 2011, it expanded again, into the United Kingdom and Germany.[12] In 2012, the company had over 170,000 active independent consultants.[13] At the end of 2015, this number had fallen to 95,891.[citation needed] Co-founder Kara Egan remained with the company as a consultant and had over 42,000 down line consultants as of 2012.[13] 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.[14][15] 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.[9][14] In 2021, Scentsy opened an east coast distribution center in Rock Hill, South Carolina.[16] That same year, 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.[17] Orchard previously served as the general manager of emerging markets.[18] The Thompson's will return to their CEO duties at the end of their mission service in 2024.[17] In 2023, Disney announced they would partner with Scentsy to create "Smellephants on Parade", a Dumbo-themed activity with smellable attractions.[19] Business modelUnder the multi-level marketing (MLM) model used by Scentsy, all products are sold exclusively through independent consultants, with no retail sales.[13] Consultants can also receive a portion of the sales of any new consultants that they recruit.[20] 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.[8] Scentsy has been criticized for its heavy recruitment of American military spouses, whose families' frequent moves mean they often have trouble finding consistent employment.[21][22][23] According to its 2015 income disclosure statement,[24] 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.[25] 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.[21] 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.[26][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.[27] Scentsy's recruitment material was noted to emphasize personal agency within the context of Bormann's fantasy theme analysis and convergence theory. See alsoReferences
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