New home-based business opportunities seem to pop up almost every single day, and most of them promise to help you earn a considerable income from the comfort of your home. However, with such a wide selection to choose from, it can be very hard to distinguish the genuine opportunities from the scams. If you have ever ventured Multi-Level Marketing or more specifically into the cosmetic hair care business, you might have come across Monat, one such opportunity that promises an online income. Is Monat a Scam? Read on to find out if it worth your consideration.
WHAT IS MONAT?
Monat is a multi-level marketing (MLM) company that is based in Miami, Florida which was founded by Urdaneta family back in 2014. Monat stands for “Modern Nature”, presenting itself as a hair and beauty company that sells a variety of products to customers. Monat is part of Alcora Corporation, a company that focuses on wellness and beauty products. According to the company, the products that they sell are meant to provide a solution to common issues such as hair loss. The products are touted to be all-natural and completely safe for use.
WHAT PRODUCTS ARE OFFERED BY MONAT?
Monat specializes in naturally-based hair care products that are sold at a premium price. Their products are scientifically tested, with some of the most popular being:
Rejuveniqe Oil Intensive
This is a product that is meant to rejuvenate the scalp and the hair by providing anti-aging benefits, nourishment, and sheen. It can also be applied as a facial moisturizer and on areas prone to dryness such as elbows, nails, heels, and knees. The main ingredient in Rejuveniqe is Abyssinian oil, with other ingredients including beta-carotene, omega-3 fatty acids, and beta-carotene. It does not contain silicone. It retails at $99.00
Restructuring Haircare Collection
This is an assemblage of products that are meant to reverse hair damage. The package consists of:
- Restructuring pre-wash conditioner
This pre-shampoo conditioner protects hair strands from friction and consequent damage that can occur during washing. This is priced at $49.
- Restructuring shampoo
This is a mild and creamy corrective cleanser that is sulfate-free which aims to rehydrate, rebuild, and fortify tresses. This retails at $39.
- Hair transformation masque
This product strengthens and softens brittle and over-processed hair. This costs $65
- Inner force restructuring serum
This dual treatment serum is meant to reconstruct and restore hair to a healthier, pre-damaged state. This is sold at $75.
Monat Pet Gentle Cleansing Dog Wash & Freshen Up Deodorizing Spray
These are two products that are sold as a collective and retail at $49. The sulfate-free mild cleanser removes grime, dirt, and oil, while at the same time softening your dog’s coat hair. The deodorizing spray gets rid of lingering odors and kills the odor-causing agents and leaves fur smelling fresh.
Advanced Hydration Hair Collection
This is a collection of products that are designated to hydrate the hair with a mix of ingredients that elevate the health of the strands. The products included are:
- Advanced hydrating shampoo (retails at $38)
- Advanced hydrating conditioner (priced at $49)
- Double action hydrating serum (priced at $75)
- Heavenly hydrating masque (retails at $60)
These are products that are aimed at limp hair that need a boost in terms of strength, density, and manageability. The volume system comprises of the following products:
- Volumizing revitalize conditioner (priced at $47)
- Volumizing revive shampoo (retails at $35)
- Reshape root lifter (retails at $33)
These are just a few of the products you will come across on the company’s expansive catalog. According to their site, all their products are free of sulfates, parabens, silicone, harsh fragrances, and other potentially harsh fillers.
THE COST OF BECOMING A PART OF THE MONAT BUSINESS OPPORTUNITY
The current costs to join are as follows:
Starter Product Pack
When you first join the company, you will receive the Monat starter pack which is made up of startup road maps, workbooks for guidance, and product brochures in addition to a standalone starter kit that includes 35 sample products. This is priced at a one-time fee of $99. You are also required to pay an annual fee of $49.99 to renew your membership.
Business Product Pack
The business pack comprises of an assortment of 11 full-sized products (oils, conditioners, and shampoo) and 50 assorted samples for a price of $299. If you bought the products at retail price, you would have to part with $499, so you get to make 40% in savings. In addition to the $299, you will still have to pay the start-up fee of $99 as well as the $49.99 annual fee.
Success Product Pack
The success product pack is made up of 17 full-sized products that range from hair masks, conditioner, shampoo, and other styling products. You will also receive an assortment of 80 sample products as well as a product brochure. This pack will set you back $399 which is relatively less expensive as compared to the retail price of $745. There is also the $99 start-up fee and $49.99 annual fee to take into consideration.
Overachiever Product Pack
This package comprises of 30 full-sized products, including different types of conditioners, shampoo, and styling products. You also get a product brochure and 100 assorted sample products. The overachiever pack is priced at a steep $649 that is still cheaper than the retail price of $1299. There is also the start-up fee of $99 and an annual fee of $49.99 that you will have to factor into your budget.
MONAT COMPENSATION PLAN
Like with other MLMs, Monat has a compensation plan that is presented in a complex way, which makes it harder to understand how you will be making money. Here is a summary of the basic information you can expect to find.
The Ranking System
In MLM businesses, where you rank will determine how much you get to earn – the higher you rank, the higher your income potential. Here are some rank requirements for Monat:
- Marketing partner
To qualify to receive downline commissions, you must have 200 PV (personal volume) per month.
- Managing market partner
For this rank, you are required to have 300 PV per month. You also need to recruit and maintain a minimum of marketing partners and have a total monthly downline of 1200 group volume (GV)
- Associate market builder
To advance to this rank, you need to have 400 PV per month, recruit and maintain a minimum of 3 marketing partners and also have a total monthly downline of 2400 GV.
- Market builder
This rank requires that you have 500 PV per month, recruit and maintain a minimum of 4 active marketing partners, and have a monthly downline of 4000 GV.
- Managing market builder
The managing market builder rank requires that you have 500 PV per month, maintain 4 marketing partners that you recruited, and have a monthly downline of 7000 GV.
Retail Sales Commission
You can earn anywhere from 30-40% in retail commission. The higher your sales volume, the higher the rate of your commission. If you have customers that are on auto-ship, you will automatically receive a 15% commission for these sales.
You also get to earn residual income from the downlines that you come up with. Monat limits it to 4 levels down, and the percentage you earn will depend on your rank. However, you have the option to supplement your income from the sales volume in your downline. Here are some examples:
- Marketing partners – 7% commission for personally recruited affiliates on level 1
- Managing market partners – 10% commission for the first level and 3% for the second one.
- Associate market builders – 12% for the first level and 55 for the second one.
You are provided with the opportunity to earn bonuses that include:
- Product pack bonus
You may also be eligible to earn a commission when you sponsor a customer that purchases a product pack. The bonuses are broken down as follows:
- Business pack – $100 commission
- Success pack – $120 commission
- Overachiever pack – $220 commission
- VIP customer acquisition bonus
You get to earn a bonus of $60 for every new VIP member that you recruit. All four have to be enrolled in the same month.
- Smart start bonuses
Every time you recruit four new VIPs and a market partner with a product pack, you get to earn a $150 block bonus. You are only eligible for this bonus for the first three months of your enrollment.
- Smart start bonus match
Get an upline matching bonus of $75 every time that someone you sponsor completes a block as long as you have achieved a rank higher than the market partner that is receiving the block bonus.
- Rank advancement bonus
Bonuses for a higher rank achievement range from $100 to $20,000, starting at the managing market partner rank.
You become eligible for group volume commission as well as generation bonuses if you attain at least the level 2 rank or higher.
- Training and guidelines are provided
Many MLMs tend to expect you to find your way when it comes to marketing their products. Monat provides you with workbooks that help give you information on the products, and other training materials that are meant to help you find your way in terms of marketing.
- The compensation plan is relatively easy to understand
If you have ever had the chance to go through the compensation plan of an MLM company, then you have an idea of how long and confusing they can be. The Monat compensation plan is complex, but it is relatively straightforward and you can decipher some useful information as it is broken down into commission systems, bonuses, and residual incomes.
- The company experienced a lot of success in its early days
Before the launch of Monat, the Urdaneta family were already running a considerably successful direct sales company within the beauty and cosmetics niche known as L’eudine. Within a year of being launched, Monat managed to surpass all expectation in terms of annual revenue. The company was very successful before the complaints regarding their products began to pile up.
- The products are overpriced and of possibly poor quality
The products that are sold on Monat are expensive. For example, the Rejuveniqe oil comes in a 30ml bottle yet it is priced at a whopping $99. While you might argue that high-quality products have value, this is not the case with products from this company as there have been a lot of concerns raised about their quality. Customers have pointed out that some of the hair care products from Monat have caused significant hair loss issues instead of promoting hair growth.
- Lack of a reliable support system
The support system provided on Monat is very unreliable. There have been a lot of complaints that customers are not provided with the option to cancel their auto-ship. Some customers have also not been able to reach the company, which in turn makes it hard to request and receive a refund on a purchase.
- Constant customer complaints
According to BBB, there have been over 978 complaints brought against Monat, which goes to show that there is a significant problem with the company’s products, customer service, and system.
- A variety of lawsuits have been brought against the company
There have been several lawsuits and allegations that have been filed against Monat by the FDA. This is very serious as it means that a considerable number of customers have suffered similar side effects from using products from the company to the point that it prompted action from an agency that is concerned with protecting the public health.
- There are no income disclosure statements published by Monat
Monat has not made the effort to publish official income disclosure statements. This may not be a big issue for some, but the lack of transparency in this crucial area is a bit worrying. It would have been nice to be able to see the income figures of their marketing partners to determine what they make in commissions.
Monat may be a genuine company, but taking into consideration all the controversies involving lawsuits, multiple complaints from customers regarding the quality of the products, and a lack of income disclosure, you may want to refrain from investing in the company. Furthermore, since Monat is an MLM company, there is very little earning potential as you have to keep recruiting people into the business to make the most out of it. In the end, only those at the highest levels will make the most money. For these reasons, I would not recommend investing in this product.
WHAT IS BETTER THAN MONAT?
If you are looking at making a long term income from the comfort of your home, affiliate marketing is one of the most effective ways to reach that goal. Contrary to MLM’s like Monat where you have to harass your friends and family to buy products they don’t need, affiliate marketing is the complete opposite. You can generate income by simply recommending products to people that are looking for advice. You don’t have to sell anything, maintain an inventory or deal with customer service issues. You don’t have to ship or store any goods.
Affiliate marketing is not a get-rich-quick scheme. It requires work and dedication just like any other business. But once you get it off the ground, the income possibilities are unbelievable. If you want to enjoy financial freedom, and are ready to put in a bit of work, I can help you with the training you will need to get started:
I hope found this post helpful. Leave me a note below with comments or Q’s!
To Your Success!