Is Monat a Pyramid Scheme that we should be avoiding?
If that thought ever crossed your mind then you should stick around, because I will be exposing everything that you need to know about this MLM company.
The first thing that you need to realize is that there is a difference between a pyramid scheme and a multi level marketing company.
Before we continue, I would like to point out that I’m not a partner of Monat, so I won’t be trying to convert you into a team member of this program.
Instead, I’m here to show you if you can really make money online with this MLM program or not.
By the time you go through this review, you will know what’s inside, the compensation plans, and the likelihood of you being profitable with this business model if you’ve never made any significant amount of money online.
Let me reveal to you, everything that Monat will not disclose with you on their official website according to my own personal opinion.
Ready? Let’s get started…
Monat MLM Review Summary
Product Name: Monat
Product Type: Multi Level Marketing Platform
Product Owner: Luis Urdaneta
Product Price: $99 Starter Pack, Then $49.99 + Product Purchase Costs
Overall Score: 35/100
Summary: Monat is a multi level marketing company that is focused on selling, and distributing hair care, skin care, oils, and other products of that nature.
The company is focused on providing people with an opportunity to work from home and make money by selling these products to people, and recruiting others into the system, thus the MLM component.
Even though they have a physical product to sell and distribute, and you can earn a commission from each sale that you generate.
Monat is focused more on getting their team members to recruit more people into the system.
There’s a lot of things to consider when getting involved with similar MLM companies, such as how good are you at recruiting others?
If you’ve never done anything like this before, then it can be difficult to get ahead, because MOST people end up failing due to the fierce competition.
If hard selling is not your thing, then maybe you should reconsider getting involved with Monat and their products with more than questionable quality.
This is an MLM company that’s been through a bunch of lawsuits from unhappy customers, and multiple accusations of being a pyramid scheme.
The fact to the matter remains that the MAJORITY of people who get involved with Monat end up losing a lot more money than they make.
For that, and a few more reasons that I will go through in this review, I don’t recommend this MLM company to anyone.
What is Monat MLM?
Monat stands for “Modern Nature” which represents perfectly what they’re about, distributing beauty, and care products.
Their presence is 100% online, meaning that they don’t have any physical stores anywhere. This is not something new on the market, in fact, there is a good number of similar MLM’s out there such as Amway, rNetwork, and Bocannaco.
The business opportunity that Monat represents involves promoting these products and getting others to do the same.
When you invite more people into the system, they will join your “downline”, which means that you will automatically earn a percentage of what they make. In other words, the more people you recruit, the more money you could potentially make.
It’s way easier said than done because what Monat will not disclose with you is the fact that most people are very skeptical when approached by MLM recruiters, especially when they’re involved with companies that have a lot of controversy around them.
An example of that is the numerous complaints about Monats expensive yet poor quality products, that have resulted in lawsuits against the company.
Monat was founded back in 2014 and before that, it was part of their mother company called Alcora Corporation. Due to the nature of their business, this MLM company can oftentimes be labeled as a pyramid scheme.
Is Monat a Pyramid Scheme?
There are many MLM’s that are pyramid schemes in disguise, and often times it can be difficult to truly see the difference. That’s why there is a lot of mixed opinions about Monat, and many people wonder, is this a pyramid scheme?
The truth is that it’s not. Not in the traditional sense, because they have physical products that are being sold to people all over the world. Here’s the difference between a pyramid scheme and an MLM.
What is a Pyramid Scheme?
In a nutshell, it’s when people are being recruited in a network or organization with the promise of monetary rewards for recruiting others into that network WITHOUT giving them some kind of a product or service of value.
In other words, when people pay for becoming part of a group that promises to make you money for getting others into the group without providing any REAL value for your money is considered a pyramid scheme.
What is Multi Level Marketing?
Multi level marketing is when you have the option to increase your current earnings that you make promoting a company’s product or service by getting incentives for recruiting others into the company.
When you do that, they become part of your “downline” which can significantly increase your overall earnings by recruiting a lot of people.
Basically, the only difference between a pyramid scheme and multi level marketing is the fact that there is an existing product or service that is being sold, which is exactly what we can see with Monat and their beauty products.
Here’s what both of these have in common. The overall percentage of people who are profiting are way less than the ones who are losing money. This is how it looks like.
When you’re on top of the pyramid, you earn a percentage of the profits from everyone that’s under you, which is where the big money lies. Everyone that’s lower than that, has a high probability of losing more money than they earn.
When people from your “downline” recruit others, you will get a percentage of what they make as a commission for yourself.
The truth is that most if not all members of Monat are primarily focused on getting more people to join, rather than selling their products.
If they relied solely on earning commissions from Monat’s product line, their overall earning potential decreases significantly, which means that it makes no sense NOT to do it.
How Does Monat MLM Work?
Monat has a ranking system in place, that pays you more as you climb up the ladder.
In order to progress, and be able to earn bigger commissions on your sales, you have to achieve 200 sales in a set period of time.
In other words, the more you earn, the higher your earnings will bee and Monat will constantly reward you with monetary incentives as you climb up the ranks.
If you’ve never sold anything before, then you can imagine that achieved that many sales is going to be difficult, and until you do that, you won’t really be earning that much in the first place.
At the same time, your costs will add up over time, which will make you either give up because you’ve run out of money or keep going until/if you start seeing some returns on your investment.
Here’s what you should consider. Monat has been around for some time now, and there are already people at the top of the multi level marketing chain that are profiting out of everyone else.
If you decide to join, you will be making THEM more money than you make for yourself.
Is Monat a Scam?
No, Monat is not a scam, and it won’t lead to the disappointment of people IF they are fully aware of what they are getting themselves into.
In other words, this MLM company can be misleading, and their recruiters can be very convincing making you think that you will become part of something way better than what you will really be getting into.
It’s important not to fall for these promises, and hyped up claims, because this is how these people are making money, and some of them can go to extreme extents to land that sale.
Bottom line is that unless you’re really good at recruiting others into the program, you will find it very difficult to profit from Monat, especially when you consider the upfront costs that you have to invest in the first place.
Monat Compensation Plan
Here’s a breakdown of Monat’s compensation plan level structure.
Level 1 – Associate Market Mentor
This is the starting point, where you will be able to earn 4% commissions from each person that you refer.
This level of access does not unlock any additional earnings from your downline, meaning that you can profit only from the people that you personally recruit into the system.
Level 2 – Market Mentor
This level unlocks the opportunity to earn 4% of the overall earnings of each referral that you personally recruit plus 3% of the people that they recruit.
Level 3 – Managing Market Mentor
This level unlocks your earnings for up to the third “downline” which means that you can earn from the referrals of your referrals. Not only that but your earnings from the people that your referrals invite is increased to 4%
Level 4 – Associate Executive Director
This upgrade gives you 4% of the overall earnings from your referrals up to the 3rd generations, and 3% from the 4th.
Level 5 – Executive Director
This one gives you 4% of the overall earnings of your referrals, and their referrals up to the 4th generation.
Level 6 – Senior Executive Director
This level upgrade gives you the opportunity to earn 4% of the overall earnings from each of your referrals up to generation 5. To see the full compensation plan of Monat, Click Here.
How Much Does Monat Cost?
Monat comes with a bunch of different packages that you can purchase, and they all grant you different benefits. Let’s examine each pack to see what they’re all about.
Starter Product Pack -$99 (One Time)
With the starter product pack, you will get access to 35 different product samples, and a bunch of brochures, roadmaps, and guidebooks, that can help you in making money online with Monat.
There is also the annual fee that you need to think about which is priced at $49.99/Year.
Business Product Pack – $299 (One Time)
The business product pack comes with 11 products, like shampoos, oils, etcetera, and 50 sample products of various different things.
Apart from the one time fee of $299, you would also have to pay the starter pack fee of $99 + the annual price for keeping your membership active.
Success Product Pack – $399 (One Time)
With the success product pack, you will get 17 full-sized products, including 80 samples. The starer cost and annual cost apply here as well, so you should definitely consider them when making your decision.
Overachiever Product Pack – $649 (One Time)
The overachiever product pack consists of 30 full-sized products, that you can sell, distribute, and do whatever you like with them.
Alongside that, you will get a few flyers and brochures that can help you out. The yearly membership fee and the starter cost still apply here.
What Do I Like About Monat?
1. Monat Has Been Here For a Long Time. This is often a good sign, especially with MLM’s because many of them fail the test of time, and get shut down, and close their doors forever.
Even with the numerous lawsuits, and complaints against Monat, it’s still standing tall and doesn’t look like they’re going anywhere.
This can give you a feeling of sustainability, and it can remove the fear of losing all your money overnight due to the company shutting down.
2. There is Additional Support and Training. Monat makes sure to give adequate guidance on how to successfully set up their new business model, and what steps to take in order to kickstart everything.
In case there is anything unclear within the training or if you just need help with anything, you can contact their support team, and they will give you their attention until your problem is solved. This is part of the reason why Monat has been around for a while now.
3. Their Compensation Plan. It’s filled with different bonuses associated with each level of membership that you have.
Unlike many other similar MLM’s, with Monat, you can get some decent rewards if you’re a good performer, and know what you’re doing.
What I Don’t Like About Monat
1. Most People Will Not Make Money With Monat. The success rate of people that get involved with this or any other MLM out there is not that great, with most people failing, and losing more money than they’ve made.
2. The President Of Monat Has Questionable History. Luis Urdaneta is the founder of Monat, Rayner Urdaneta is the CEO, and Stuart A. MacMillan is the president of the company.
MacMillan was the previous CEO of a huge Ponzi scheme, TelexFree, and it ended shutting down in 2014, which was 6 months prior to his current position at Monat.
3. Low-Quality Products. Even though they claim that their product line consists of only natural ingredients, it doesn’t look like it’s true with all the complaints, and lawsuits against these products and the company.
Many users of these products have complained about getting unpleasant side effects, which is what caused the many lawsuits against Monat in the first place.
These series of events have shattered Monat’s reputation online, which is why many people will be reluctant to get involved with it.
4. Monat Has a Bad Reputation Now. Right now, Monat has a pretty solid reputation of being the distributor of low-quality skin care, and beauty products, which is why it can be that more difficult to get others involved with this in the first place.
No one want’s to promote useless products that do more harm than good, and even if that isn’t a problem, it can be way more difficult to get others on board.
Do I Recommend Monat?
Monat is NOT something that I can recommend to people simply because the earning potential is way too low for comfort, and there’s really no point in pushing a product or service that is known to do more harm for people than good.
The only instance where you can have a chance of making more money than you spent, is if you really know what you’re doing.
The training and support inside can help you out with that a bit but’s it’s definitely not enough to succeed on your own, without having good recruiting skills.
If you’re new to making money online and want a cost-effective, way of earning passive income promoting other people’s products or services, without having to invest large sums of money upfront, then I have something for you.
You should see how these people are banking profits using a simple, yet incredibly effective blueprint that so many neglect and lose out on that opportunity forever.