Monat Review: Hair & Skin Products MLM Scam?

Monat Global Review

In this post, we are going to cover the honest review of Monat Global MLM company, which markets a wide range of hair products.

The company claims that they discover beautiful lives, inside and out, that’s why also named its company on that basis FAMILY LOVE COMMUNITY GRATITUDE CULTURE.

Here we will go through about Monat, its products, and compensation plan. Lastly, followed by our personal analysis regarding the company being a pyramid scheme or not?

About Monat Global

The founders of Monat are Ray Urdaneta and Luis Urdaneta in October 2014. Monat is a subsidiary of Alcora Corporation.

Monat-founders

The company is headquartered in Florida, United States.

According to Similar web stats, the majority of the traffic to www.monatglobal.com is from the United States (75.55%) and Canada (12.36%).       

According to Monat’s income disclosure statement, 92.26% of members earn $161 annually.

Many complaints were filed against Monat Global for their product quality, the customers reported hair loss and rashes after using their hair treatment products.

Company Profile

Company NameMonat
FoundersRay Urdaneta and Luis Urdaneta
When StartedOctober 2014
Head OfficeFlorida, United States
Websitewww.monatglobal.com
ProductsHair and Skin 

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Monat Joining Process

There are three options to be with Monat Global.

  • Customer: One can purchase Monat products as a customer at retail price.
  • VIP Customer: Pay an enrollment fee of $19.9 and get the Monat products 15% less than the retail price. VIP Customers also get referral rewards on their downline MP.
  • Market Partner (MP): Monat named its distributors Market Partner (MP), one can get the Monat products 30% less than the retail price.

MP joining package costs a minimum of $99 while the maximum plan costs $649.

Monat Products

Monat provides different categories of products such as:

  • Haircare: Damage repair hair creme, shampoo, hair treatment, conditioner, in-shower masque.
  • Skincare: Cleanser, refined scrub, face charcoal mask, revitalizing essence, serum, lotion, eye cream, moisturizer, face wash, face scrub.
  • Wellness: Vegan protein, collagen protein, digestive supplement, sleep drops, immune supplement.
  • Pet Products: Cleansing dog wash, deodorizing spray.
monat-products

Monat claims that they use only safe and effective ingredients which are clinically tested and formulated for your safety.

According to trustpilot.com, Monat has very bad customer reviews on its service and product quality, while many filed complaints on BBB for product side effects.

Monat has 30 days return policy on its product.

Read: LifeVantage Review

Monat Distributor Ranks

Monat has different ranks with different criteria for distributors to achieve.

  • PV (Personal Volume): PV is the fixed points on each product, which are generated with every purchase and sold. PV is used to calculate different incomes.
  • GV (Group Volume): GV is PV from personally recruited distributors.
  • DV (Downline Volume): DV is the sum of PV from your downline purchases.
  • Active Lines: Personally enrolled MP and their downline combined called Active Lines.
  • Structure Requirement: Number and different ranked MPs requirement in the downline.
RanksRequired PVActive LinesRequired GVStructure RequirementRequired DV
Market Partner (MP)200
Managing Market Partner (MMP)30021200
Associate Market Builder (AMB)40032400
Market Builder (MB)500440001 MMP
Market Market Builder (MMB)500450002 MMP
Associate Market Mentor (AMM)500450001 MMP,
2 MMB
Market Mentor (MM)500470002 MMB30,000
Managing Market Mentor (MMM)500470001 MMB,
2 AMM
60,000
Associate Executive Director (AED)500570003 MMB,
2 MM
120,000
Executive Director (ED)500670004 MMB,
2 MMM
300,000
Senior Executive Director (SED)500870006 MMB,
2 AED
800,000

Read: APLGO Review

Monat Compensation Plan

There are the following incomes in the Monat compensation plan.

  1. Retail Bonus
  2. Personal Sales Bonus
  3. VIP Acquisition Bonus
  4. Uni-level Bonus
  5. Group Volume Bonus
  6. Rank Advancement Bonus
  7. Rank Advancement Matching Bonus
  8. Motor Club Bonus
  9. Generation Bonus
  10. Smart Start Bonus
  11. Matching Smart Start Bonus
  12. Product Pack Bonus
  13. Emerging Founders Pool

1. Retail Bonus

The difference between the wholesale price and retail price is the retail bonus. Monat gives commission up to 30% from retail customers and 15% from VIP customers to their MP.

2. Personal Sales Bonus

Personal Sales Bonus gives a certain percentage of bonus when the distributor sells a required amount of PV in a calendar month. This commission is calculated as a fixed percent on total PV sales made.

Sales Amount (PV)Total Sales Commission (%)
1,000 – 1,999 PV3%
2,000 – 3,499 PV5%
3,500 PV or more10%

3. VIP Acquisition Bonus

It is a monthly paid bonus that gives you a bonus of $60 when you enroll 4 new VIP customers in a calendar month.

4. Uni-level Bonus

Uni-level bonus is offered on up to 4 levels deep downline. A fixed percentage on PV of different downline levels is rewarded under this income.

Uni-level bonus percent vary according to downline level and own rank.

Downline LevelMPMMPAMBMBMMBAMMMMMMMAEDEDSED
17%10%12%12%12%12%12%12%12%12%12%
23%5%6%7%7%7%7%7%7%7%
33%5%5%5%5%5%5%5%
L43%3%3%3%3%3%3%

For Instance, if a distributor is on an Associate Market Builder (AMB) rank, then the distributor will get 12% and 5% on the PV of level 1 and level 2 downline respectively.

5. Group Volume Bonus

Group volume bonus is offered to MMB or higher title distributors, they can earn a 2% commission on the sum of their personal and downline’s total product sales.

6. Rank Advancement Bonus

This bonus is paid as per rank achieved. Once you reach the rank of MMP, you become eligible for the Rank Advancement Bonus. With the increase in rank bonuses also increase.

TitlesMPMMPAMB MBMMBAMMMMMMMAEDEDSED
Bonuses$100$100$150$500$500$1,000$2,500$5,000$10,000$20,000

7. Rank Advancement Matching Bonus

This bonus is paid to MMP to MMB rank between $100 to $500. Whenever downline distributor upgrades their rank, as per the new rank a fixed amount is rewarded. But for this, self rank should be MMB+.

RankBonus
MMP$100
AMB$100
MB$150
MMB$500

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8. Motor Club Bonus

Motor Club bonus is provided to MM or higher rank distributor for 3 consecutive months. This income is based on one’s own rank.

RankBonus
MM$500
MMM$500
AED$750
ED$750
SED$1,000

9. Generation Bonus

Generation bonus is a fixed percentage on the PV of downline generations till 5 levels. The percentage is based on self rank and level of generation.

This Bonus is paid to AMM or higher rank distributors.

GenerationsAMMMMMMMAEDEDSED
Gen 14%4%4%4%4%4%
Gen 23%4%4%4%4%
Gen 33%4%4%4%
Gen 43%4%4%
Gen 53%4%

For Instance, if a member is on the MMM title then he will get a 3% as a generation bonus on the total PV of the 3rd level deep downline.

10. Smart Start Bonus

The distributor receives up to $500 when they fulfill certain requirements such as.

Smart Start BonusesStructured RequirementBonus
VIP Acquisition Bonus4 VIP Customers$60
Block Bonus4 VIP Customers, 1 MP$150
Monatborhood12 VIP Customers, 3 MP$500

11. Matching Smart Start Bonus

In Matching Smart Start Bonus, MP receives a bonus of $75 when a personally enrolled distributor earns Block Bonus.

12. Product Pack Bonus

MP gets this bonus when the new distributor enrolled with the following product pack.

Purchased Product Pack Bonus
Essential Pack $199 (200 PV)$50
Business Pack $299 (200 PV)$100
Success Pack $399 (300 PV)$120
Overachiever Pack $649 (450 PV)$230

13. Emerging Founders Pool

Emerging Founders Pool is a quarterly paid bonus. Distributors have to maintain Market Mentor (MM) rank to achieve this bonus.

Monat shares 1% out of their total revenue to qualified distributors, if their US and Canada markets revenue crosses $75 million in a particular quarter.

Read: Modere Review

To Be Conclude

Here we end with the Monat Global compensation structure. Other than this, we have many facts to know about Monal Global.

History

Monat is not the first direct selling company by Alcora Corporation.

L’EUDINE another subsidiary of Alcora Corporation was founded as a direct selling company in 2001. L’eudine got popularized for its cosmetic & wellness products and then dropped the MLM model.

Alcora Corporation took re-entry to the MLM industry by building Monat in 2014.

President of Monat, Stuart A MacMillan has remained CEO of TelexFree started in 2012, a convicted pyramid scheme scam by SEC. Interestingly MacMillan joins this scam as chief when TelexFree was about to break and his involvement in the scam not found.

Lawsuits Game

A lawsuits game has been played by Monat Global. Class action lawsuits against Monat started appearing in 2015. Till 2018, it become a combined large class-action lawsuit against Monat.

2018 filings, Monat said they faced 1000 order cancellations and blamed critics for it. Instead of focusing on products consequences, Monat started suing critics for this.

Monat spokesperson Gene Grabowski gave an interesting statement for it.

Everyone is entitled to their opinion. By the way, there is not a constitutional right to complain about a company.

A company has a right to respond any way it wants to.

Consumer forums like BBB (Better Business Bureau), Trustpilot.com, and social media platforms are filled with complaints of serious side effects of Monat products.

FTC allows consumers to “share their honest opinion about a business’ products, services or conduct in any forum, including social media.

Therefore Monat can’t challenge the opinion of consumers shared after the experience they had.

Products Side Effects

Hundreds of complaints have been filed against Monat products as their use causes balding, sores and itching in the scalp. But Monat representatives deny facts by saying, hair goes under detoxification and hair loss is normal.

Following complaints, FDA sent an inspection team to Monat’s Florida manufacturing unit. Inspection finds, Manufacturing facility at unsanitary conditions.

In 2019, concerning FDA inspection reports and lawsuits, the judge ruled that Monat products contained harsh chemicals that were made in the contaminated facilities.

Court warns Monat and its representatives to not make misleading and false claims such as:

  • Monat products are “detoxing” the scalp and hair
  • Monat products are “clinically proven to increase hair growth and decrease hair loss”,
  • Monat is certified by any entity including the FDA
  • Monat the products are “scientifically proven”

Is Monat Global a Scam?

Monat Global is a product-based direct selling company that is a legal business.

It provides commissions to its representative on personal and downline products sales. This is not a money circulation scheme.

Should I Join Monat Global?

Monat Global has an ugly reputation for past incidents, especially in the USA. Monat hair products are on the expensive side and may cause severe side effects people faced in past. Even now Monat’s vision is to provide natural products.

MLM has a bad stature and a very less success rate.

Monat USA 2020 income disclosure states that less than 1% of Monat distributors earn on average $15,564 annually.

92.26% Monat distributors earn just $161 on average annually. To earn a decent income from Monat, you will need to be among the top 1% of Monat Distributors.

The same scenario is in most MLM companies and it takes around 2 to 3 years to get stable earnings.

Hope this post is enough for you to make a wise decision. We will suggest to make research from your side and then making a decision.

Read: Young Living Review

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