MONAT is an MLM in the well-known hair product niche and is currently making its way into the UK. And this is one of the reasons so many distributors are trying to get to the top by building a large UK downline so they can make money.
It’s one of many making money online programs that’s centered around either selling the company’s products or recruiting other people to join the company as a distributor so they can sell products or buy the products at a discount.
The unfortunate side of this type of business model is that there are so many people who can join the program that you will be competing with.
Ultimately, with so much competition selling the same product, it makes it really difficult to become a “6 figure network marketer”.
If you want a successful business, you need to be in complete alignment. That means understanding your entrepreneur profile and the perfect business model for YOU! The first step? Take this quiz!
Now, we don’t want to sound all “doom and gloom” here…
Monat MLM does come with some very helpful information to make money online and land some massive commission checks…
But the MLM industry has been plagued with issues in the past that it unfortunately hasn’t been able to shake.
At the end of this review, we’ll go over some of the most frequently asked questions regarding Monat MLM and network marketing in general.
There are however some very important things you’ll want to take into consideration with this business opportunity – your potential earnings, their complaints, their BBB rating and the MLM industry.
You’ll probably find that you need some pretty good marketing skills to make a lot of money with this as your “own business”.
For now let’s hop into all things Monat!
Founder: Rayner Urdaneta
Date Founded: October 2014
Business HQ: Doral, Florida, United States
Phone Number: (888) 867-9987
Type of Business: Hair Product, Skin Care, Pet Hygiene
BBB Rating: N/A
BBB Accreditation: Not BBB accredited
Monat provides hair and skincare products that help people who are interested in making their hair cleaner and skin healthier. They have the ability for you to join their sales team as a distributor and sell more products to your friends and family.
The goal of Monat products is that you as the customer can establish a healthy hair and skincare routines with their products.
Yes, Monat technically does have a product of its own. The way they market there products is through the typical network marketing or MLM fashion.
They call their sales guys “independent business owners or Monat Market Partners” but at the end of the day again, that’s just a fancy name for sales guy.
It’s unlikely that they are a scam. The fact that they have partnered with so many prominent companies — and those companies have positive things to say about the relationship — indicates that they’re a legitimate company.
And it is entirely possible to build a profitable, successful MLM business, but there are better options.
Because unlike Monat , it actually provides real proof of real success from real people as recently as a few days ago.
But with that being said…
Monat joined the prestigious ranks of privately owned companies in 2014, reflecting its commitment to sustainable business practices as well as sustainable health and wellness.
Private companies are for-profit businesses who commit to greater accountability, as well as social and environmental responsibilities, in their business policies. They are expected to weigh the impact of their decisions on their neighborhoods, the environment, their workers, and other stakeholders.
All these credentials should silence the doubters about the company being a scam.
As to the question if this is a Monat pyramid scheme, No, it is not; It is actually an MLM business that sells hair and skincare products. They are a legitimate business with real owners and real products to offer.
Yes. Monat is a MLM (Multi-Level Marketing) company co-founded by Rayner Urdaneta and Stuart A. MacMillan in October 2014. The company sells hair loss and hair care products along with skincare products and essential oils. Sales reps make money from commissions and recruiting others to do the same.
One-time onboarding fee of $99.
They require you to buy their “Monat Starter Kit” which contains products and marketing tools to kickstart your sales.
There is also an annual fee of $49.
Any MLM needs you to be able to sell their products and recruit people into the company. Both of these systems are more difficult than they seem on the surface.
Selling pricey hair and skincare products is likely to be more difficult than selling other MLM products. For one thing, some people can find healthier products elsewhere that are more affordable.
Your target customers will mostly consist of people between the ages of 18-65. Children and teenagers are excluded, so the number of active consumers you will actually serve is drastically reduced.
Hair and skincare is also more of a saturated niche. Sure, some people would be interested in it, but many others would not. The majority of people who will want to have a hair and skincare routine do already, and those who don’t yet may find the price prohibitive.
All of these factors severely restrict the number of customers to whom you could sell to. As a result, the chances to make money are drastically reduced. How many of your social contacts, realistically, would actually consider switching to more expensive hair products?
Sure, you could get somewhere if you know the right people or are a good networker, but most people won’t.
Monat can be a sustainable way to make money. The unusual hair products could be a benefit, but it could also be a drawback.
After all, people want distributors to sell trendy products. Not age old, more expensive, hair and skincare products.
The downline is another thing.
Your revenue is very reliant on your downline, which is a problem for any MLM. This means that your earnings (and rank) will fluctuate depending on how well others do. That is, in most peoples opinion, one of the worst aspects of an MLM. It means that you will never have complete control of your income.
You are required to sell as a “distributor” for Monat. Your customers will have to give you money for the products, otherwise you will find yourself losing money.
You’re responsible for getting people to sign up for products on retainer from one of Monat’s product lines. From there, you manage the whole distribution operation. Since you get paid for sales and not hourly, your qualified leads must be, at the very least, interested in learning about their products seriously.
Therefore, working for Monat does not eliminate any of the legwork associated with traditional network marketing unfortunately. You will need space for product inventory to keep on hand, auto-ship, closing transactions, and payment processing.
Here are the ways you can earn money from the company:
When it comes to products, MLMs have a tendency to follow trends. When it comes to makeup or skincare, you’ll always find the same products from different companies. Monat, is just the same. It appears that this company isn’t attempting to break the mold by concentrating on hair and skincare, but instead following proven roadmap.
Monat distributors actually serve as a type of middleman. Customers are simply referred to the products which seem to be the right fit for them.
There’s nothing wrong with that concept, but it may limit your earning ability. After all, the more groups there are in a supply chain, the lower the profit margin for those in the lower rank.
At first sight, Monat’s income structure seems to be great. They divide commissions so that distributors receive 30% of the sale.
You’re also just only getting a cut of Monat’s profit. Monat is getting the bulk of the profit.
There’s another stumbling block. Only cases in which Monat market partners sell products to others do they get paid. Essentially if they have some clients but not enough to hit a certain volume for a bonus…they won’t get credit if they buy the products themselves to get there.
Sellers reap an average commission of about 30%, but very few people that work for multi level marketing companies like this make money. In fact, according to the FTC 99% of people only break even with an MLM venture. Most people lose money in the long run with MLM’s unfortunately.
With numbers like that, it’s not super confidence inspiring.
The first step of the team-building strategy is that Monat Global grants you a small % of revenue for each sales guy or gal you recruit from the sales they make. Even if the product is cheap you’ll still get a little cut. No where near the 30% you’d get if you sold the products yourself though.
Earning a small % of the direct recruits’ earnings is good, but keep in mind that this figure is still dependent on their earnings. It’s difficult to say what this looks like because sales are expected to vary greatly from one sale to the next.
The next step, referred to as “Leveraged Revenue Sharing,” is the next phase. This allows you to earn from up to six levels inside your marketing team. Though the brand does not use conventional terminology, they do follow a typical uni-level team structure.
The percentages are reasonable, but take a look at the far right column. To advance in the business, you’ll need to recruit a lot of people. Keep in mind that recruiting five new consultants will most likely be difficult, as selling expensive health and wellness products is quite challenging.
But as you can probably tell…
To make real money with this MLM you have to become a SELLOUT. You have to recruit others and then motivate them to recruit…a vicious cycle.
If you hate the idea of recruiting and earning small percentages… take this quiz to find a business model that fits you best!
No. Monat is not a Pyramid Scheme. It is a legitimate Network Marketing company that sells hair care products, skincare products and essential oils to end-line consumers. Although you can make money selling Monat products, the real money is made by recruiting and building a large sales team.
While there are plenty of not-nice things to say about Monat hair products the one thing we can say is that Monat is a legitimate company.
There are many people that associate this company with a pyramid scheme mostly because of the complaints that it’s been getting.
You cannot find MONAT products next to the many other beauty products that are being sold in stores. Monat products are strictly sold on their website and distributors. Monat is an MLM and recruiters basically become their market partners.
Market partners sell Monat products through various methods such as social media and various marketing channels. But more so they get people to become market partners so that they can build their downline and make more money.
Essentially if you want to get anywhere with Monat…you HAVE to be a recruiter.
Yeah…that might turn off a lot of people and you can certainly make money with Monat that way, BUT if you’re gonna put in the amount of grueling work to become a network marketer (which, trust me, isn’t easy), you might as well bring in some REAL money.
The best way to figure out how to do that? Find out which business model fits your personality and situation the best!
First, you should know that a pyramid scheme is illegal. This business model simply recruits people in as investors for a specific amount. Then you’ll recruit people for that amount and so on.
But here’s the thing. Nobody ever gets a product, and that is the part that makes it illegal.
No, Monat is not a scam. It is legitimate even though it has a low rating from the BBB. Their products have been approved by the FDA and Health Canada. Even though the products have been labeled as un-safe, these organizations consider them “safe for their intended cosmetic purpose.”
Some people ask “is Monat a pyramid scheme?”
The truth is that they are not one of those pyramid schemes you typically read about from FTC reports. They are in fact a multi level marketing company you can join as a market partner. However, they don’t seem to have that good of a public reputation according to reviews on the BBB.
It is worth noting that for some reason the “reviews” on the BBB is shut down. Here are some complaints that are found on the page. Names are not given, but these can be verified on Monat’s page on the BBB.
As you can see…it was hard to find positive feedback in these complaints/reviews. You’ll also find some that talk about hair loss, another controversy they’ve been involved in as of late.
There are currently 0 Customer reviews on Monat on the Better Business Bureau website. Out of the complaints, 577 complaints were closed in the last 3 years, and 194 complaints were closed in the last 12 months.
To wrap things up..
Where Monat falls short is in scalability.
There’s only so much time in a day and there are only so many people you can reach to sell by yourself.
MLM companies know this! Which is why they push so hard for you to recruit for your downline…you can’t get rich with it as a one man/woman show.
If it all sounds like something that fits you, then maybe Monat and the MLM business model are goods fits for you.
But why not be sure? Take this quiz to find out once and for all what works best for you.
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