Idaho

Bringing the Economy Home

Scentsy Becomes A Multimillion Dollar Business

Emilie Ritter Saunders / StateImpact Idaho

Maggie Clark set up a booth to sell Scentsy at a recent cheerleading and dance competition in Nampa, Idaho.

Many Idaho companies issued a fair number of pink slips during the recession.  But Meridian-based Scentsy didn’t.

Instead, the wickless-candle maker grew.  It’s ranked among the country’s most promising companies by business magazines like Forbes and Inc.com.  In just seven years, Scentsy has become a multimillion dollar enterprise.

Selling Scentsy

Maggie Clark started selling Scentsy products three years ago, just as the company started taking off.  She recently set up a sales booth at a cheerleading and dance competition in Nampa.

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Selling at events are her thing.  “I feel like I get all my selling done in a short period of time, it’s a lot of work, and a lot of on your feet, and chaotic and crazy, but I get it done,” Clark says.

Scentsy

Scentsy's revenue went from $140,000 in 2004 to $535 million in 2011. (Click the chart to enlarge)

Her display is jam packed with those brightly-colored, scented wax bars and the ceramic warmers they melt in.  She’s got lotions, room sprays, and even scented stuffed animals.

Last year, at this same event, Clark sold about a thousand dollars Scentsy products in a day.

And, she never expected to be doing this.  “Who would have thought I would be selling wickless candles as I near retirement age?”

Clark is one of Scentsy’s 170-thousand independent sellers.  It’s a direct sales model.  So Clark gets commission on products she sells at home parties and events.  She also gets a piece of what her recruits sell.

“I didn’t have this master plan when is started,” Clark says.  “I saw it as a way to make some extra money and it’s gradually evolved into almost full time work.”

The number of people she’s recruited, and the amount of money she makes, has doubled each year.  Clark says when she started, a good month would mean taking home about $500.  Now, she feels like she’s failed if it’s less than $1,200.

President of Scentsy North America, Mark Stastny, says the company’s sales people earn a wide range of money.  “We have ladies who’ve joined literally to supplement their income to make a car payment,”  Stastny says.  “We have other ladies that have built very successful businesses and indeed whose husbands are now joining them, that are making very high six figure and in some cases seven figures annually.”

Stastny says the growth of the company, which launched in 2004, has been a surprise.  “We’ve done everything we can to try and keep up with it, but those are good problems to have in a down economy,” says Stastny.

Building A Company

Scentsy was founded by two Utah homemakers and then sold to Orville and Heidi Thompson.  The Thompson’s moved the company to Meridian, Idaho.  They adopted a direct sales model, and watched revenue climb from $140,000 in 2004 to $535 million in 2011.

Their growth didn’t slow during the peak of the recession.  If anything, Stastny says the company grew faster, adding staff daily.  Today, Scentsy has about 1,000 corporate employees spread across its facilities in Idaho and distribution centers in Texas and Kentucky*.

Direct Selling Association

Retail sales went down during the recession and have begun climbing back up. (Click on the chart to enlarge)

Amy Robinson is the Chief Marketing Officer at the Direct Selling Association.  She says while overall sales across the industry were down during the recession, some companies did grow.

“This has a lot to do with the ability of the company to manage growth and support that growth at a corporate level,”  Robinson says.

She says Scentsy’s growth isn’t that unusual.

“Not every company can experience growth the way they have.  But they’re certainly not unique in that they are the only one’s that’s ever happened to.”

Staying Power

Back at her Scentsy booth, Maggie Clark says she lost income when the stock market tanked, she was trying to pay for college for her five kids and not use up her savings.

“I used to be almost embarrassed saying I’m selling Scentsy now,” Clark admits.  “And now I just stand tall and it’s like you know what, I’m college educated, and I’m just going to laugh all the way to the bank – life’s funny twists and turns.”

As Clark grows her business, Scentsy is doing the same.  It’s introduced new personal-care product lines and a new brand – chocolate fondue.

Time will determine if Scentsy has what it takes to become a household name like Mary Kay, Avon or Pampered Chef.

*StateImpact Idaho originally reported Scentsy’s distribution center is in Kansas when in fact the distribution center is in Kentucky.

Comments

  • http://www.facebook.com/profile.php?id=100001384131234 Heather Llanes

    Scentsy has been a big blessing to my family! After just 2 1/2 years of joining Scentsy, it is now paying our family’s mortgage each month, in addition to giving us the opportunity to go on trips to awesome destinations, such as the Bahamas, Riviera Maya, Disneyworld, and this summer will be an all expense paid trip to the Hard Rock Hotel & Casino in Punta Cana, in the Dominican Republic! I encourage everyone to consider the Scentsy Business Opportunity to see what it can offer you. Be selective in choosing your Scentsy Sponsor, as they will be your mentor as you build your business.

  • Julie

    Scentsy has been an absolute blessing in our Burn Foundation’s FUNdraising efforts! We have been Paying Forward 100% of our Scentsy Sales to assist those who have endured serious burn injuries around the USA! The Core Ethos of Authenticity, Simplicity and Generousity is truly the perfect description of the Family Mind Set that the Corporate Office has instilled in their communications and associations with all of the consultants. I am proud to share Scentsy with everyone I meet and more importantly, building a Philanthropic Minded Team that assists our efforts in Sharing the Fire Safety Element, to eliminate dangerous candle fires !!!

  • http://www.spiegelburnfoundation.com/ Julie Spiegel

    Scentsy has been an absolute blessing in our Burn Foundation’s FUNdraising efforts! We have been Paying Forward 100% of our Scentsy Sales to assist those who have endured serious burn injuries around the USA! The Core Ethos of Authenticity, Simplicity and Generousity is truly the perfect description of the Family Mind Set that the Corporate Office has instilled in their communications and associations with all of the consultants. I am proud to share Scentsy with everyone I meet and more importantly, building a Philanthropic Minded Team that assists our efforts in Sharing the Fire Safety Element, to eliminate dangerous candle fires !!!

  • http://profile.yahoo.com/DAAIF2KJOHH5YY44C432EPZ7QM Laura

    Scentsy will be celebrating it’s first birthday in the UK next month and what a whirlwind of a year it has been. I am so thankful to my sponsor for all her support and now I am building a team own.

  • Vglayman

    As someone whose doctor’s refuse to allow me to work in my former career or any other “public” job, Scentsy has been a HUGE blessing to me! Not only am I’m to work my business full or part-time, as my health allows, I have my whole family rallying around me & helping out so that this opportunity just keeps getting better. There’s nothing better than having your own business where the whole family is involved & loving every minute of it! What I thought was going to be a future of HUGE debt due to health issues, has turned into my finding a new job with Scentsy that not only works around MY schedule, but pays those unwanted bills & then some! Thank You Scentsy, for changing my life!!!
    If you’re looking to secure a better future for yourself & your family, feel free to ask me how to help you become independent, and help secure your future, even if YOU thought you could never work another “real” job. If I can do it, I know you can too!

    • http://www.scentsforcandles.com/products/all/ Scents For Candles

      One of the most pleasing things about Scentsy is what they represent. Not only are their core values strong, but their actions help all those around them. They allow people to work from home as well as provide a large number of jobs in Idaho. There is certainly insight at Scentsy. I expect this company to be around for quite some time. I am excited to see how they will grow in the future as they expand in to other industries and markets.

  • Pattyareinhart

    I started selling Scentsy Feb 2010 and been loving it every since!! The first year I gained 9 on my team and had several months I sold over 2000…The 2nd year my group grew to 36 !!! I tell my group just keep sharing..Started with 9 and hit 36 by the end of the year!! I truely believe you have to have goals they are very important..Moved to Chicago to build more but made a goal to hit 40!!! Reached that goal yesterday Thanks to my great team!!! It is the best job I have ever had and I love sharing that with everyone..My goal now is to do Scentsy full time when I hit 62 maybe sooner!! I also want to get a Home on wheels so I can travel and share where ever I go!!!! It has been a true blessing in my life..I want to help each one on my team to reach their goals and make their Dreams happen in 2012!! I have ten two letter words that are very prowerful that I would like to share..IF IT IS TO BE IT IS UP TO ME!!! Let Scentsy change your life:}:}
    Patty Reinhart

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