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 its compensation plan. Lastly, followed by our personal analysis regarding whether the company is a pyramid scheme or not?
| Founder | Ray Urdaneta and Luis Urdaneta |
| When Started | October, 2014 |
| Head Office | Florida, United States |
| Opportunity Type | MLM |
| Products | Hair and Skin |
| Website | monatglobal.com |
| Joining Cost | $99 |
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What is Monat?
The founders of Monat are Ray Urdaneta and Luis Urdaneta in October 2014. Monat is a subsidiary of Alcora Corporation.
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.
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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 at 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 Monat products at 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 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.
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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.
| Ranks | Required PV | Active Lines | Required GV | Structure Requirement | Required DV |
| Market Partner (MP) | 200 | – | – | – | – |
| Managing Market Partner (MMP) | 300 | 2 | 1200 | – | – |
| Associate Market Builder (AMB) | 400 | 3 | 2400 | – | – |
| Market Builder (MB) | 500 | 4 | 4000 | 1 MMP | – |
| Market Market Builder (MMB) | 500 | 4 | 5000 | 2 MMP | – |
| Associate Market Mentor (AMM) | 500 | 4 | 5000 | 1 MMP, 2 MMB | – |
| Market Mentor (MM) | 500 | 4 | 7000 | 2 MMB | 30,000 |
| Managing Market Mentor (MMM) | 500 | 4 | 7000 | 1 MMB, 2 AMM | 60,000 |
| Associate Executive Director (AED) | 500 | 5 | 7000 | 3 MMB, 2 MM | 120,000 |
| Executive Director (ED) | 500 | 6 | 7000 | 4 MMB, 2 MMM | 300,000 |
| Senior Executive Director (SED) | 500 | 8 | 7000 | 6 MMB, 2 AED | 800,000 |
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Monat Compensation Plan
There are the following incomes in the Monat compensation plan.
- Retail Bonus
- Personal Sales Bonus
- VIP Acquisition Bonus
- Uni-level Bonus
- Group Volume Bonus
- Rank Advancement Bonus
- Rank Advancement Matching Bonus
- Motor Club Bonus
- Generation Bonus
- Smart Start Bonus
- Matching Smart Start Bonus
- Product Pack Bonus
- 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 PV | 3% |
| 2,000 – 3,499 PV | 5% |
| 3,500 PV or more | 10% |
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 Level | MP | MMP | AMB | MB | MMB | AMM | MM | MMM | AED | ED | SED |
| 1 | 7% | 10% | 12% | 12% | 12% | 12% | 12% | 12% | 12% | 12% | 12% |
| 2 | – | 3% | 5% | 6% | 7% | 7% | 7% | 7% | 7% | 7% | 7% |
| 3 | – | – | – | 3% | 5% | 5% | 5% | 5% | 5% | 5% | 5% |
| L4 | – | – | – | – | 3% | 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.
| Titles | MP | MMP | AMB | MB | MMB | AMM | MM | MMM | AED | ED | SED |
| 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+.
| Rank | Bonus |
| 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.
| Rank | Bonus |
| 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.
| Generations | AMM | MM | MMM | AED | ED | SED |
| Gen 1 | 4% | 4% | 4% | 4% | 4% | 4% |
| Gen 2 | – | 3% | 4% | 4% | 4% | 4% |
| Gen 3 | – | – | 3% | 4% | 4% | 4% |
| Gen 4 | – | – | – | 3% | 4% | 4% |
| Gen 5 | – | – | – | – | 3% | 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 Bonuses | Structured Requirement | Bonus |
| VIP Acquisition Bonus | 4 VIP Customers | $60 |
| Block Bonus | 4 VIP Customers, 1 MP | $150 |
| Monatborhood | 12 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.
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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 into 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 lawsuit 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 product consequences, Monat started suing critics for this.
Monat spokesperson Gene Grabowski gave an interesting statement about 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 on 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 not to 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 product sales. This is not a money circulation scheme and hence you need to learn MLM skills to succeed.
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 so far we have seen a very less success rate of MLM.
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.
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