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  • Understanding the Scentsy UK Compensation Plan

Understanding the Scentsy UK Compensation Plan

by Rebecca Joyce / Thursday, 21 March 2013 / Published in All things Scentsy

What Can I Earn As An Independent Scentsy Consultant?

How Do I Earn Promotion With Scentsy?

I often get asked by consultants within my Scentsy team,  as well as people thinking about joining Scentsy to explain how the commission works, or how much they can earn with Scentsy.  I, therefore, thought it would be good to put together an explanation of the Scentsy Compensation Plan.  Some compensation plans for other direct selling companies can be complicated, the Scentsy compensation plan is regularly described as clear and straight-forward to understand.  It can easily be found on the back of our catalogues and on the Scentsy website.scentsy-compensation-plan

Before I carry on, I think it would be best to explain some of the terminologies which you will come across whilst learn about the Scentsy Compensation Plan.

understanding scentsy terminology

Active – To be active you need to enter a minimum of 200 PRV for the month.

Rank – The qualification level at which the Consultant’s compensation will be determined from month to month. Must be earned each month.

PRV = Personal Retail Volume (The value of all commissionable products sold to a Consultant or to a Consultant’s customer).  A £7.25 bar equals 6 PRV.  A Scentsy bar will allways be 6 PRV no matter what country you are in.

PEG Rate = Scentsy is an international company so your commission will be multiplied by a Peg Rate to make the pay for all Scentsy consultants, regardless of country, be 100% equal.  The Peg Rate for the UK is 1.01

Title – The highest rank achieved by a Consultant to date or Director (Q) . A Consultant’s title only changes by advancement. Exception: the case of a change to Director (Q) status.

Group – A Consultant and everyone in their downline.

Team – A Consultant and their downline, excluding any Directors in their group and those Director’s downlines.

PWV – Personal Wholesale Volume.  75% of the point value of PRV

Going back to the compensation plan, I will now go through each section of the “Rewards” part of the chart detailing what it is, how to earn it and how your commission is calculated:-

COMMISSION FROM PERSONAL RETAIL VOLUME EXPLAINED

When you join Scentsy, you start as an Escential Consultant earning 20% commission on sales.  To promote to a Certified Consultant, the criteria you will need to meet is selling 1000 PRV.  This 1000 PRV is calculated over a lifetime which means you can choose to achieve it as quickly or slowly as you wish.  Scentsy is a marathon, not a race.  Once you reach the title of Certified consultant, you will from now on, regardless of your monthly rank, always earn 25% commission.

So if you were to achieve 500 PRV in one month, your earnings would be calculated as follows:-

For example:-

Escential Consultant
500 PRV x 20% (commission rate) = £100 x 1.01 (UK Peg Rate) = £101 payable commission.

Certified Consultant and above
500 PRV x 25% (commission rate) = £125 x 1.01 (UK Peg Rate) = £126.25 payable commission.

 

BONUS FROM PERSONAL WHOLESALE VOLUME EXPLAINED

To achieve this, your rank for the month needs to be Lead Consultant or above.  The qualification for the rank of Lead is 500 PRV, 1000 GWV and 1 active frontline (active is an entry of 200 PRV for that person).  

The bonus from the personal wholesale volume will vary between 2% and 9% depending on rank.

For Example, if you ranked Director with a PRV of 500, the calculations would be as follows:-
500 PRV x .75 (percentage PWV is calculated at) = 375 PWV
375 PWV x 9% = £33.75 x 1.01 (Peg Rate) = £34.09 PWV bonus

 

FRONTLINE ESCENTIAL OR CERTIFIED CONSULTANT TWV BONUS EXPLAINED
To achieve this, your rank for the month needs to be Lead Consultant or above (please see explanation of the criteria for this above).  This is a bonus, you will receive on all the Escential and Certified consultants in your frontline (those who you recruited personally).  

Again the bonus varies between 2% and 9% depending on rank.

For Example, if you ranked Star Consultant your bonus would be calculated at 4%.

6 Escential/Certified Consultants entering a TWV (Team Wholesale Volume) of 1200 x 4% (rank bonus) x 1.01 (UK Peg Rate) = £48.48 TWV bonus.

 

FRONTLINE LEAD CONSULTANT TWV BONUS EXPLAINED
To achieve this, your rank for the month needs to be Star Consultant or above (please see explanation of the criteria for this above).  This is a bonus, you will receive on all the Lead consultants in your frontline (those who you recruited personally).  

Again the bonus varies between 2% and 7% depending on rank.

For Example, if you ranked Star Consultant your bonus would be calculated at 2%.

1 Lead Consultant who has a TWV (Team Wholesale Volume) of 1000 x 2% (rank bonus) x 1.01 (UK Peg Rate) = £20.20TWV bonus

 

FRONTLINE STAR CONSULTANT TWV BONUS EXPLAINED
To achieve this, your rank for the month needs to be SuperStar Consultant or above (please see an explanation of the criteria for this above).  This is a bonus, you will receive on all the Star consultants in your frontline (those who you recruited personally).  

The bonus varies between 3% and 5% depending on rank.

For Example, if you ranked SuperStar Consultant your bonus would be calculated at 3%.

1 Star Consultant who has a TWV (Team Wholesale Volume) of 2500 x 3% (rank bonus) x 1.01 (UK Peg Rate) = £75.75 TWV bonus

 

FRONTLINE SUPERSTAR CONSULTANT TWV BONUS EXPLAINED
To achieve this, your rank for the month needs to be Director or above (please see an explanation of the criteria for this above).  This is a bonus, you will receive on all the SuperStar consultants in your frontline (those who you recruited personally).

The bonus is calculated at 2%.

1 SuperStar Consultant who has a TWV (Team Wholesale Volume) of 6000 x 2% (rank bonus) x 1.01 (UK Peg Rate) = £121.20 TWV bonus

 

FRONTLINE DIRECTOR (Q) TWV BONUS EXPLAINED
To achieve this, your rank for the month needs to be Director or above (please see an explanation of the criteria for this above).  This is a bonus, you will receive on all the Director (Q) in your frontline (those who you recruited personally).  

The bonus is calculated at 3%.

1 Director (Q) Consultant who has a TWV (Team Wholesale Volume) of 9,000 x 3% (rank bonus) x 1.01 (UK Peg Rate) = £272.70 TWV bonus.

 

1ST GENERATION DIRECTOR TWV BONUS EXPLAINED
To achieve this, your rank for the month needs to be Director or above (please see an explanation of the criteria for this above).  This is a bonus, you will receive on all the Directors in your frontline (those who you recruited personally).  

The bonus is calculated at 3%.

1 Director who has a TWV (Team Wholesale Volume) of 15,000 x 3% (rank bonus) x 1.01 (UK Peg Rate) = £454.50 TWV bonus. 

 

2ND GENERATION DIRECTOR TWV BONUS EXPLAINED
To achieve this, your rank for the month needs to be Star Director or above (please see an explanation of the criteria for this above).  This is a bonus, you will receive on all your 2nd Generation Directors (those your frontline recruited).  

The bonus is calculated at 4%.

1 2nd Generation Director who has a TWV (Team Wholesale Volume) of 12,000 x 4% (rank bonus) x 1.01 (UK Peg Rate) = £484.80 TWV bonus.

 

3RD GENERATION DIRECTOR TWV BONUS EXPLAINED
To achieve this, your rank for the month needs to be a SuperStar Director or above (please see an explanation of the criteria for this above).  This is a bonus, you will receive on all your 3rd Generation Directors (those your frontline recruited). 

The bonus is calculated at 5%.

1 3rd Generation Director  who has a TWV (Team Wholesale Volume) of 11,000 x 5% (rank bonus) x 1.01 (UK Peg Rate) = £555.50 TWV bonus.

 

What Can I Earn As A Director With Scentsy?

Bearing all of the above in mind, I will now give an example of what a Director could earn by hitting the minimum requirements of 500 PRV and 10,000 TWV.  Please note I am not making any claims about your earnings.

Personal PRV of 500 and  PWV 375
PRV 500 x 25% x 1.01 = £126.25            PWV 375 x 9% x 1.01 =  £34.09

Frontline Essential or Certified  TWV of 4,000
4,000 x 9% x 1.01 = £363.60

Frontline Lead Consultant TWV of 3,000
3,000 x 7% x 1.01 = £212.10

Frontline Star Consultant TWV of 2,000
2,000 x 5% x 1.01 = £101.00

Frontline SuperStar Consultant TWV 1,000
1,000 x 2% x 1.01= £20.20

Total:  £126.25 + £34.09 + £363.60 + £212.10 + £101 + £20.20 = £857.24 Commission   

 

If you achieve 2000+ PRV within a one month period, you will receive an additional 5% bonus, which means your commission, for that month only, will increase from 25% to 30% bonus.  

One thing worth noting that to earn the commission of your title, you will still need to meet those requirements each month to earn that commission.  For example, if you have the title of “SuperStar Consultant”, but have a quiet month (which does happen) and achieve the requirements of a Star Consultant for that month, then you will receive the commission of your rank for that month as Star.

I hope this has made the Scentsy Compensation Plan clearer to understand, if you do want any clarification of any aspect of it, you are more than welcome to email me becky@thecandleboutique.co.uk

How Do I Earn Promotion With Scentsy?

The second part of this blog will explain the “Responsibilities” section of the Scentsy Compensation plan.  This section will explain how to earn promotion through the Scentsy ranks.  When you join Scentsy, you start as an Escential Consultant.

As you will have seen above, to progress beyond Certified Consultant you will need to build a team.  Whilst team building is of course completely optional, it is a requirement to promote further.  If you do want to join Scentsy to earn a bit of extra cash and do not wish to build a team, as a Certified Consultant you still earn a great 25% commission on your sales.

How Do I Become a Scentsy Certified Consultant?

To become a Certified Consultant, you need to earn 1000 PRV.  This can be done as quickly or slowly as you like, there is no pressure at all and you can achieve this promotion when you are ready.  It is calculated over a lifetime.

How Do I Become a Scentsy Lead Consultant?

To become a Lead Consultant, you need to have a PRV of 500, a GWV (group wholesale volume) of 1000 and one active frontline consultant.

How Do I Become a Scentsy Star Consultant?

To become a Star Consultant, you need to have a PRV of 500, a GWV (group wholesale volume) of 2500 and two active frontline consultants.

How Do I Become a Scentsy SuperStar Consultant?

To become a SuperStar Consultant, you need to have a PRV of 500, a GWV (group wholesale volume) of 6000 and three active frontline consultants.

How Do I Become a Scentsy Director?

To become a Director, you need to have a PRV of 500, a GWV (group wholesale volume) of 10000, a TWV (team wholesale volume) of 2000 and three active frontline consultants.

How Do I Become a Scentsy Star Director?

To become a Star Director, you need to have a PRV of 500, a GWV (group wholesale volume) of 30000, a TWV (team wholesale volume) of 6000 and three active frontline consultants and 2 First Generation Directors.

How Do I Become a Scentsy SuperStar Director?

To become a SuperStar Director, you need to have a PRV of 500, a GWV (group wholesale volume) of 80000, a TWV (team wholesale volume) of 10000 and three active frontline consultants and 4 First Generation Directors.

promoting with scentsy

 

I do hope this has answered any questions you may have had regarding potential earnings with Scentsy, how to read the Scentsy Compensation Plan and also how to promote with Scentsy. If you would like to view the Scentsy Income Disclosure Statements, they can be found here.

As ever, please email becky@thecandleboutique.co.uk  If you are thinking of joining Scentsy and would like some information, please let me know and I will happily post an information pack to you.

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