Scentsy
| Company type | Private |
|---|---|
| Industry | Multi-level marketing, Fragranced products, Home and personal care |
| Founded | 2003 in Salt Lake City, Utah, U.S. |
| Founder | Kara Egan, Colette Gunnell |
| Headquarters | Meridian , United States |
Key people | Orville Thompson (CEO), Heidi Thompson, Dan Orchard (interim CEO in 2021) |
| Products | Wax warmers, fragranced products, home and personal care items |
| Website | scentsy |
Scentsy is a U.S.-based multi-level marketing enterprise situated in Meridian, Idaho, focusing on fragranced products including wax warmers as well as home and personal care items. Established in 2003 by Kara Egan and Colette Gunnell, the company underwent a change in ownership and was reintroduced in 2004.
History
The inception of Scentsy took place in 2003 in Salt Lake City, Utah by founders Kara Egan and Colette Gunnell. In the following year, business leaders Orville Thompson and his wife Heidi purchased the firm, moving its main office to Meridian, Idaho, and implementing a multi-level marketing structure.
Initially, promotional content was developed by Layton-based ScentsySuccess, which Scentsy acquired in 2008 along with a new distribution facility and showroom. The company broadened its reach internationally by entering the Canadian market in 2009, followed by expansions into the UK and Germany in 2011. By 2012, the network included over 170,000 active independent consultants; however, this number declined to roughly 95,891 by 2015. Co-founder Kara Egan continued her involvement as a consultant with a considerable downline.
In 2017, annual revenue surpassed $450 million, placing Scentsy at number 44 on the Direct Selling News global rankings. The company also earned recognition on Forbes’ lists for America's Most Promising Companies in 2011 and Best Midsize Employers in 2018.
A new distribution center on the East Coast was inaugurated in Rock Hill, South Carolina, in 2021. That same year, Dan Orchard stepped in as interim CEO while Heidi and Orville Thompson temporarily stepped away to undertake mission work abroad; they returned to their leadership roles in 2024. Prior to this appointment, Orchard oversaw emerging markets.
In 2023, Scentsy collaborated with Disney to launch "Smellephants on Parade," a scent attraction themed around Dumbo at Walt Disney World.
Business model
Scentsy utilizes a multi-level marketing (MLM) framework where products are sold solely through independent consultants rather than retail outlets. These consultants receive commissions based on their own sales as well as those generated by their recruited team members. CEO Orville Thompson noted that direct selling was chosen because their wickless candles are "experiential products" that are best demonstrated during home gatherings, allowing for a wider product assortment than what typical retail stores can offer.
The company has faced scrutiny for extensively recruiting spouses of U.S. military personnel, who often require flexible job options due to frequent moves. According to Scentsy's income disclosure from 2015, approximately 65% of active consultants earned an average of $463.34 annually before deducting expenses. The highest-earning 0.2% averaged $113,363.98, with the top individual approaching $1 million. Nevertheless, most consultants take more than four years to reach earnings equivalent to minimum wage before expenses are considered. Research indicates that about 99.45% of consultants do not attain full-time income levels.
Scentsy has been analyzed for its direct selling recruitment language that highlights individual empowerment and motivation as central elements of its business approach.