Is Monat A Pyramid Scheme? Legit Stress-Free Opportunity Or NOT?!

Welcome to My Monat Review!

When it comes to niches, health and wellness is a top choice. It includes nutritional supplements and beverages, weight-loss programs and food, and even skincare.

It’s no wonder though because moisturizers and the like are essentials to maintain good and healthy skin. Even men are raving about skincare products and perhaps, this is just one of the many reasons why brands are taking advantage of the hype and selling these.

One of which is Monat or Monat Global, Florida-based multi-level marketing (MLM) company that is known for promoting skincare and hair care. It’s been in the industry for quite some time now but before you sign up as a distributor or even as a consumer, be sure to read the entire review first.

This way, you can not only avoid scams; you’ll also know if it’s worth your money and time or not. This includes Monat products review, how the program works, lawsuits and complaints, and a lot more.

P.S.

I’m not an affiliate of Monat business so rest assured that I won’t pitch the program instead, I will provide as much details as I can to help you make the right decision.

Monat Global is an MLM company that promotes skin care and hair care essentials. 

It was founded by Luis Urdaneta in 2014 under a company called Alcora Corporation, however, after they produced their own hair essentials, they’ve become an independent brand. 

The term Monat is short for “Mother Nature” as the company claims to produce hair care products that are “absolutely safe” and “all-natural”. This helped them reach instant popularity but due to the controversies they’ve been involved with, their fame almost declined.

Monat is similar to Elepreneurs, LimeLife, and Jordan Essentials.

Before we go along, I’d like to clear something about MLM. 

This business model has left a negative impression on many people, including me. I’ve had a few terrible experiences, especially with aggressive distributors and their bold claims. 

However, the business model itself is not as bad as it is and surprisingly, it’s legit.

Many people mistake it for a pyramid scheme but the truth is, these two are different things.

As mentioned, MLM, networking, or network marketing is a legit business model. They have tangible products to consume and make money from. They also provide additional commission for recruiting people; however, they don’t directly compensate members for referrals.

Instead, they give bonuses or incentives for the sales that their downline makes.

Pyramid schemes, on the other hand, are downright illegal. It’s dangerous to be involved in such business. Many people have already lost their money here and have even received a lawsuit. 

It has no tangible products or even digital services to make money from and the only way to earn commissions here is through recruitment. As a member, you will invest in the program, invite people and expect them to do the same.

The money they invested into the platform will be used to pay you. Considering this and the hassle of recruitment, it’s not stable and is bound to close anytime.

Basically, Monat Global produced products that would solve hair loss problems, and this includes:

Shampoo Conditioner Hair Spray Hair Repair Treatment

The brand’s most popular product is called Rejuviniqe Oil Intensive -- a $99-worth “multitasking elixir” that can be used on the hair and skin. 

According to the brand, this product has over 13 all-natural ingredients that provide intense hydration to the scalp. It can also be used on the face as a moisturizer to remove wrinkles and fine lines.

Monat Global also promotes skincare essentials, such as facial cleansers, skin essence, and moisturizers. They also have products for pets, like cleansers and deodorizing sprays.

Monat is a typical MLM program that offers two ways to make money -- selling their hair and skincare products and inviting people to join the platform.

As a distributor/consultant, you can buy their products at a discounted rate and you can sell them based on the suggested retail price. The difference between the two prices -- discounted rate and SRP -- is your profit.

Meanwhile, you can get bonuses if you expand your team and encourage them to make more sales. As mentioned above, you don’t earn by just inviting new people rather, by meeting quotas or certain milestones.

Here’s a glimpse of their compensation plan:

• Sales Commissions
• Sponsor And Develop
• Builder Bonus
• Advancement Bonus
• VIP Customer Sales

To learn more about Monat Global’s Compensation Plan, you can click this link.

Lawsuits After Lawsuits

In February 2018 alone, 4 lawsuits were filed against Monat Global and another one came in March of the same year. You can read the files below to learn more.

• Lawsuit #1
• Lawsuit #2
• Lawsuit #3

Low-Income Potential

Monat Income Disclosure Statement from 2019 suggests that the average annual earnings of their Market Partner (basic level) are around $119. That’s around $9 per month; barely enough to be considered as a side income.

It won’t be a surprise though because their main source of cash, their products, have tons of complaints to be patronized. 

If you’re lucky to rank higher, let’s say the Market Builder level, the average annual earnings for this is $6,463 or $538 per month. Still, this is barely enough, especially if you’re not living alone.

Remember, you have to recruit people, too, and purchase their products so you can increase your rank. Before you get there, you have to spend a lot of money and invite people so clearly, it’s just a waste of time.

Because of the many complaints and controversies, it’s been with, many people assumed that Monat is a pyramid scheme. However, it’s a legit MLM opportunity that has tangible products, such as skin care and personal care essentials.

The problem, however, is the complaints that can’t easily be ignored. For one, the damages or hair loss caused by Monat's shampoo is alarming enough. Consumers say that it causes itching and balding, too.

Perhaps, the only advantage here is that they are selling tangible products, which doesn’t make them a pyramid scheme. Also, while there’s recruitment involved, members are not directly compensated for this rather, they receive bonuses from the sales of their team.

It is not a Ponzi scheme, too since they don’t promise a guaranteed huge return of investment. 

Monat may have expensive products but when it comes to their membership, they offer cheaper rates compared to other programs.

Here are the four types of memberships that Monat Global provides:

• Starter Product Pack 

This includes 35 sample products, product brochures, road maps, and workbooks. 

There’s a one-time payment for this pack, which costs $99 and this is good for those who either want to test the opportunity without spending a lot of those who are on a budget.

• Business Product Pack 

This includes 11 regular-sized products, such as their conditioners and shampoo. It also comes with 50 various products that are valued at $499.

This package costs $299 but other than this, you also have to pay $99 for the start-up fee. This will let you earn 40% commissions on sales.

• Success Product Pack 

This includes 17 regular-sized products, such as shampoo and conditioners. It also comes with a product brochure and 80 various products. 

All the items included are valued at $745 however, it only costs $399 as a package. This lets members earn 46% for the sales commission and like the Business Product Pack, you need to pay $99 to start, too.

• Overachiever Product Pack

This includes 30 regular-sized products, such as hair masks, shampoo, conditioners, and their other hair care essentials. It also comes with a hundred various products and a product brochure.

All the items included are valued at $1,299 however, it only costs $649 as a package. Just the previous packages, you need to pay $99 to start, too.

Other than the business packages, you have to pay $49.99 for the annual fee.

PROS

Recognitions And Awards

Monat Global has been a successful platform in the first years of its operation, and this is one of the reasons why it has become an independent company. In fact, they’ve received various awards, such as:

• 2016 Stevie Awards for Women in Business
• 2016 American Business Award
• 2017 Direct Sellers Association of Canada

Good Compensation Plan

When it comes to compensating its people, Monat Global is generous. But then again, you have to deal with selling overpriced products, controversies, and the risk of losing relationships because of inviting them to join the platform.

Good Training And Support

Like other MLM products, Monat Global provides training to its members. This encourages them to make more sales, updates them about the latest products, and become better at inviting new people.

Monat Global provides support through training materials and personal coaching and assistance, especially to new members. 

CONS

Low Income Potential

With all the controversies that this company is facing, selling the product is quite challenging, let alone inviting new people. That being said, your earning potential is low. Aside from that, a study conducted suggests that only 1% of MLM participants earn money.

Only Those Who Are On Top Earns Money

Monat Global is not a scam, however, there’s no guarantee that you would make money from it unless you’re at the top of the “pyramid”. Meaning, if you’re the upline, there’s a chance for you to get your investment back or earn a little more.

If you’re at the bottom, there’s a chance for you to make money if you can recruit your own downline, however, the one who recruited you will get commissions, too.

Alarming Complaints

Monat Global has faced not just minor controversies, but serious ones. It’s too alarming that it even reached the televisions. If you’re someone like me, this is more than enough to tell me that I should stay away from their program and products. 

Other than the complaints that their products can cause itching, balding, and other adverse side effects, some consumers also complained about not receiving any refunds or their accounts not being canceled.

Here’s a screenshot for reference:

Monat’s Starter Kit includes training kits that members can use to improve their knowledge on the brand and their products. They also offer resources, such as training videos online to help their distributors with marketing and product knowledge.

Monat Global is not a scam -- and that’s a good thing. If you’re into MLM, you can consider this program as one of your options, especially if you’re a fan of skincare and/or hair care essentials. 

However, you have to know how to market their products effectively despite all the complaints. On top of this, you should know how to persuade people to join the platform otherwise, you won’t qualify for bonuses and incentives.

But then again, there are too many red flags so I can’t recommend this platform at all.

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Thank you for reading my Monat Global review and if you have any questions or comments, please feel free to share it down below.