If you're wondering how Scentsy works, you've come to the right place. This article can learn all you need to know about this direct selling company, tax write-offs, and home party business. You can also get started today and start selling the wonderful scents of your own company in no time. Then you can make a profit off of it, too! Follow these tips to make the most of your Scentsy business and make it your own.
Scentsy is a direct selling company.
Among the largest direct selling companies, Scentsy is the most successful. Founded in 2006 to create a safer alternative to scented candles, Scentsy has expanded to include a variety of cosmetics, laundry items, and bath products. As a result, the company is now one of the fastest-growing in the consumer products industry, and its fragrances are now sold in over 145 countries.
The compensation structure of Scentsy is based on a multilevel marketing model. Independent distributors earn commissions on the sales of their downline. The distributor does not earn commissions for recruiting new members but for the sales of the people they sponsor. While recruits are not obligated to purchase the products, the more people a distributor can recruit, the higher their commissions will be.
Independent consultants contact customers through their websites and social media pages to sell Scentsy products. Some consultants also Mann booths at events or on the company's website. Besides traditional methods of selling the products, Scentsy also uses digital media sites such as Facebook, Twitter, and YouTube to increase its brand awareness and word-of-mouth marketing. Scentsy's main website links to its corporate blog, social media pages, and Facebook page. In addition, some customers place their orders online.
Scentsy's party plans are designed to be fun and rewarding for independent consultants. Many Scentsy enthusiasts are looking for ways to save money on scented products. By hosting Scentsy parties, party planners can profit from the products they sell without paying salary or taxes. Scentsy also allows individuals to host their party at their homes or a location.
It is an MLM
A Scentsy consultant does not earn money from Scentsy, but Scentsy pays you commissions on your recruits' sales. The company pays out a commission on every sale made by a Scentsy consultant, including commissions on the sales of qualifying products that a Scentsy consultant purchases. However, it is important to note that Scentsy consultants do not make money by selling its products by themselves. Instead, they must assemble a large team of people who sell Scentsy candles under their leadership.
While most MLM companies are based on a marketing model centered on the idea of recruiting new members to sell their products, Scentsy offers something unique. Their products do not release carcinogens or pose a fire hazard. The warmers are also safe to use, and there are various scents available. To become a Scentsy consultant, you must find a sponsor, sign up on the Scentsy website, and receive a free website for three months. You then pay $10 a month to maintain your website and track your sales.
Another benefit of joining an MLM is earning money without being a consultant. You will earn commissions on the sales of retail customers and the purchases of your recruits, as long as they continue to do the same. Your recruits then become your downline. While there are some complaints about Scentsy, the company sells legit products and is a member of the direct selling association.
Many people are attracted to the monthly recurring revenue of MLM schemes. However, most people who get taken in by these schemes quickly discover that the well runs dry faster than they had hoped. This type of marketing makes people look like cult members and causes a strain on relationships. There are many risks associated with this type of business. If you are interested in becoming an independent Scentsy consultant, carefully research this company before signing up for any business opportunities.
It is a tax write-off.
You may have heard of the potential tax write-offs of being a Scentsy consultant. You can take these deductions as long as you register as self-employed, which you can do if you live in the same household as your partner. However, if you're selling the Scentsy family products, you must have two individual Consultant IDs. In addition, selling the Scentsy family products at a flea market is not tax-deductible, but yard sales do qualify because they're considered temporary events.
The income you earn from selling Scentsy products is considered self-employment income. As a self-employed person, you can deduct expenses related to running your business, such as marketing costs and home office expenses. Scentsy consultants must report all their income to the IRS separately. However, if you choose to work for Scentsy in the corporate office, you are a W-2 employee and do not need to report business expenses.
You can deduct business expenses related to your Scentsy business on Schedule C, Part II. For example, expenses that you incur while running your Scentsy business include:
- Marketing materials.
- Demonstration supplies.
- Shipping costs for receiving product orders.
- Vehicle expenses for training seminars.
You must report all of your expenses on Line 28 and then deduct them from your income on Line 7 and the total income you earn from Scentsy online 31.
It is a home party business.
If you haven't heard of Scentsy yet, you're not alone. Many people start their Scentsy business to sell online, but they miss the value of basket parties and home parties. These home party types are effective ways to market Scentsy products and find new consultants. Aside from generating revenue, home parties also allow Scentsy consultants to socialize with customers.
If you're interested in spreading the word about Scentsy, you should create a Facebook business page. You can also create a VIP customer group on Facebook. Create a website that includes a personal photo and links to your PWS. Consider using Google ad words to advertise your business. Be sure to create a list of at least 100 people and update it regularly. When attending events, make sure you have a sample of Scentsy products to sell.
Make sure to prepare and inform your guests about the products and the benefits they'll get by hosting the party. It would help if you let your guests know what to expect from the Scentsy host program, such as booking coupons and sending them invites via mail. Inviting guests to your Scentsy party requires 40 to 50 RSVPs. Make sure to personally call and remind them to RSVP, as otherwise, they'll be left waiting in the cold. Set up a host party page on your website, as outside orders will count towards your total. A minimum of $150 in sales is needed for a successful home party.
While the Scentsy home party is traditional, it can be held anywhere. You can choose to host a Scentsy party in a public location or host a Scentsy party remotely. You can even opt to ship Scentsy products to your guests individually. Your guests can even earn free rewards. The possibilities are endless! It's an ideal home party business for those who like the idea of home parties.
It is a tax write-off.
If you're thinking about starting a Scentsy business, there are many advantages to working for yourself. You will be earning income from your Scentsy business, but you will also be able to deduct business expenses, like marketing materials, demonstration supplies, and shipping costs for product orders. You can even deduct vehicle expenses, such as travel to training seminars. You must report your total business expenses on Line 28 of your tax return to claim this deduction. You must then subtract your total business expenses from your line 7 income to claim the deduction.
You can claim these Scentsy profits as a tax-write as long as you maintain detailed business records. Your fundraising events are also tax-deductible, so gifts for downline team members and hostess bookings are often tax-deductible. In addition, Scentsy products are great incentives and prizes for your downline team. You can use these incentives to encourage new sales and reward those who have been successful.
FAQ
How long can you burn Scentsy wax?
Scentsy wax can be burned for up to 20 hours.
What do you do with Scentsy wax?
There are a few things you can do with Scentsy wax. One is to use it in a Scentsy warmer. Another is to put it in a candle warmer. You can also melt it down and use it in a diffuser.
How many Scentsy cubes do you use?
I typically use two Scentsy cubes in the living room and one in the bedroom. This is enough to fill the entire house with a nice scent.
Why can't I smell my Scentsy wax?
There are a few reasons why you might not be able to smell your Scentsy wax. One possibility is that the scent has faded over time and is no longer detectable. Another possibility is that you are not smelling it because you are not close enough to the wax. Finally, some people are unable to smell certain scents.
How do you dispose of wax melts?
You can dispose of wax melts by pouring them down the drain with hot water. Make sure you check your local regulations to see any restrictions on this type of disposal.
Can I leave my Scentsy on all the time?
Yes, you can leave your Scentsy on all the time. However, we recommend turning it off when you're not home to save energy.
Image source: thecandleboutique.co.uk
