Monday, August 11, 2014

Pink Zebra vs. Scentsy 2: The business model

So it's been over a year since I posted my very first direct sales related blog comparing two similar direct sales companies and their products. I couldn't be happier with my decision to join Pink Zebra and my success with the company! My team has grown to 40 on 5 levels, I've enjoyed two promotions, made tons of new friends and I wasn't even sure I wanted to sell the stuff! What was I thinking? But recently a facebook friend invited me to join her Scentsy launch party. I have tremendous respect for that company. They have a great product line. But I've proven that Pink Zebra is soooo much better so why would she invite me to her launch party? Am I not posting enough? Am I failing at informing my own facebook friends? (If you're friends with me on facebook, you know that this is not the case, I can't shut up about this stuff, it's just so exciting!!!) So what was it? I mean, I see the appeal. A bunch of your friends use these products and really like them so you should sign up to sell it and make a few bucks, right? Wrong. You should show them this awesome "new" product that's taking over the market and give them something new and fun to be excited over and instead of selling them a few $5 bars from time to time, you can upgrade all of their warmers instead, therefore increasing your commission check. But I'm getting ahead of myself. I recently took a look at their compensation plan. In case you're in the process of deciding which of these companies to join, let me break down a few pros and cons and try to be as unbiased as possible.
# of consultants 
Scentsy: Approx 120,000 current consultants in the US alone. This does not include the many former consultants and those in other countries
Pink Zebra: Approx 15,000 consultants ever. This includes active and inactive consultants because you're never "terminated" for not making a sales quota.
Scentsy is definitely more saturated. It's likely that the person you're chatting with is a consultant, used to be a consultant, has a close friend or family member that is a consultant, or once had a party...or two.... for someone else.
Location
Scentsy: worldwide including  Canada, Europe, Mexico and Australia
Pink Zebra: US only. Expanding international in 2016
If you're outside of the US and looking for something to join today, Scentsy it is!
Length of time in business:
Scentsy: 11 years
Pink Zebra: Less than 3 years
Being around a long time you become a household name and you build brand recognition. But being a newer company YOU get to introduce people to your company. Plus, it's much easier to build your team. Where are those people that joined Scentsy in their first 3 years? At the top. Where can you be in 7 or 8 years if you join Pink Zebra in it's first 3 years? __ ___ ___ :)
Requirements to be considered Active
Scentsy: $150 in a single month every 3 months.
Pink Zebra: $150 cumulative in a 6 month period.
Compensation plan 
Scentsy: 20% for your first $1000 then 25% and additional bonuses when you promote into leadership.
Pink Zebra: 25% on your sales. If you reach $900 in a single month you receive 5% bonus If you sell $2000 in a single month you get another 5% bonus for a total of 35% of your sales plus additional bonuses when you promote to leadership.
Consultant discount
Scentsy: None. You must order at full price and wait for a check.
Pink Zebra: 25%. You may choose to keep your commission up front or wait for a monthly check
Method of Payment:
Scentsy: Paid to your Scentsy Credit Card
Pink Zebra: Keep your commission up front in cash, elect for direct deposit, or sent it to e-wallet.
New consultant Incentives:
Scentsy:
1: length of time: 70 days
requirement: $1250 in sales OR 3 active recruits
reward: $50 product credit, pin and certificate
2: length of time: 70 days
requirement: $2500 in sales or $1250 in sales AND 3 active recruits
reward: $125 product credit, pin and certificate
3:  length of time: 70 days
requirement: $5,000 in sales and 6 active recruits
reward: $200 product credit, pin, recognition in newsletter and at convention
Pink Zebra:
1: length of time: 30 days
requirement: $500 in sales
reward: $75 product credit
2: length of time: 30-60 days
requirement: $1000 in sales
reward: $125 in product credit
3:  length of time: 60-90 days
requirement: $1000 in sales
reward: $150 in product credit
4: length of time: 90 days
requirement: 1 qualified recruit
reward: $75 in product credit
5: length of time: 90 days
requirement: 2nd qualified recruit
reward: $75 in product credit
6:  length of time: 90 days
requirement: 3rd qualified recruit
reward: $75 in product credit
Total you can earn if you meet all 6: $575 in product credit
Additional Incentives:
Scentsy: (I'm sure the Scentsy consultants will provide this information for me to update. I know they do charm bracelets for promoting and an annual trip incentive but I don't know of all the details)
Pink Zebra:
Annual trip incentive (lesser prizes of an ipad or dell tablet for small point totals)
Annual awards for top performers in several categories
Random free product incentives
Executive Managers and up get to attend our annual family reunion for FREE. Executive Directors and up get an upgraded suite and pamperings as well :)
Jewelry: Managers receive Silver Necklace and charm. Executive Managers receive bracelet and charm. Directors receive custom fitted cowboy boots and a VIP trip to home office in Houston, dinner with founders, tiara, and other fabulous pamperings. Executive Directors receive exclusive trip, and a diamond bracelet. Presidential Directors receive (this level has not been achieved yet! It's a surprise!)
Career Plan: (This is where the big money can be made in this business)
Scentsy:


Pink Zebra:

The differences:
These plans are very different. Pink Zebra starts out at 10% (7% for every personal sponsor plus 3 % level one) for every person a consultant sponsors while Scentsy starts out at 2%. Pink Zebra also does not have an initial team volume requirement at the lower levels while Scentsy does. However Scentsy offers a 2% bonus on personal sales volume to consultants while PZ does not. Also, Scentsy will decrease your paycheck as your level one promotes. Their commission structure is based on your rank and the rank of the frontline consultant. Pink Zebra's commission structure stays the same as rank increases but opens up additional levels of pay deeper into your downline as you promote.
The bottom line:
If you are a new consultant and start building your team, Pink Zebra will reward you better with 10% of your recruit's sales with no minimum team volume ($400 PSV). Scentsy will only be paying you 2% on sales of that very same recruit and you have to hit $1000 team volume ( and $500 PSV). Scentsy rewards you for personal sales at the higher leadership levels, but at that point in leadership you should be more concerned about team training than personal sales, no?
So if you want a higher pay on your sales on day one, a higher pay on everyone you personally bring into the company, a ground floor opportunity with the potential to make it to the top, go with Pink Zebra.
If you would rather a bonus on your personal sales as you promote and are ok with a percentage cut as your team members promote, and are willing to work in a highly saturated market Scentsy might be a better choice.

Ultimately, the choice is yours and your house is going to smell AMAZING. As always, if you've decide to join Pink Zebra, my team is hiring! www.sprinkleaddicts.com plus, I'm on facebook so look me up if you have questions that need answering. www.facebook.com/sandiessprinkles I'm always available for my team! I'd love to help you reach those goals, whatever they may be!!!


3 comments:

  1. Your website is terribly informative and your articles are wonderful.this page

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  2. I recently joined Scentsy not too long ago but where you talk about starting out incentives is wrong it's not that is sales and the recurits its that in sales or the recurits. I am not trying to be mean but you did say about Scentsy Consultants informing you about things so I am informing you that some of the information posted is wrong. I will not say one company is better than the other because both have its perks and as independent consultants for any company you are legally not allowed to talk bad about other companies at least in my state.

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  3. Hi there! Thanks for your feedback! I'm happy to make any adjustments if you could email me (sgagnon83@gmail.com) exactly what was incorrect and your documentation from your back office with the correct information. I did have a scentsy consultant review all my info before posting but this article is kind of old so things may have changed! I support all of my direct sales friends and would never "talk bad" about another company. I strive to keep this as updated and accurate as possible! I wish you much success in your business!

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