Is Monat Global a scam? This is what I will be addressing in this review.
There’s a good chance you are wondering this because maybe you came across someone trying to get you to join the business, maybe you just feel that their hair care products are overpriced, or maybe you have heard about the string of class-action lawsuits that have been filed against them for misleading claims. Whatever the reason… It doesn’t really matter.
In this review I’ll be going over what exactly Monat Global it is, the business model they run, the compensation plan, whether or not they are a pyramid scheme, a major downside if you’re looking to join this business opportunity, and more.
Monat Global Review
Monat Global is what you call a direct sales MLM company. What this means is that they do not sell their products in retail stores like most companies do. Instead, they have a sales force of independent distributors, a.k.a. marketing partners, running around doing their marketing for them. Anyone can join in on this business opportunity and that is why there are so many people going around trying to get others to join.
The MLM, or multilevel marketing, part of it comes into play with their compensation plan, where distributors can actually recruit in distributors beneath them and earn money from their efforts. There are multiple levels in the compensation plan, hence the name multilevel marketing, and this often leads to people claiming it is a pyramid scheme. But is it really? This is something else I will address.
Monat Global is a haircare company and sells haircare products. These include things like shampoos, conditioners, their popular oil treatment called Rejuveniqe, a split end repair treatment called Rejuvabeads, and others.
Like most MLM companies out there, their products are overpriced and very expensive. Just to give you an example… If you want to buy a 1 fluid ounce tube of Rejuveniqe it is going to cost you $99. That is pretty darn high and there is a reason for that.
The reason that their products are overpriced is because of the business opportunity that they provide. Of course they want more “marketing partners” to join the business so they make the opportunity more lucrative by jacking up product prices so that sellers are able to earn larger commissions.
The Business Opportunity
If you decide to join Monat Global as a marketing partner you will be able to earn money in two basic ways: by selling products directly to other people (direct sales) and by recruiting in other marketing partners and earning from what they do.
You will start out earning 30% commissions on the retail sales that you make but will have the ability to earn up to 40% depending on how much you sell. Before VIP customers that you bring into the business you will earn 15% commissions.
In order to receive commissions from your downline, it a.k.a. the recruits beneath you, you will have to have at least 200 PV (personal volume) and will start out receiving just 7% commissions from level 1, which are the people that you directly recruited into the business.
If you are able to achieve a PV of 300 and have two active recruits beneath you with a total group volume (GV) of 1200 and then you will move up to the next rank of Managing Market Partner and will receive commissions from level 1 and level 2, as you can see below…
And it goes on from there… You sell more products, you recruit in where people, and you move up the ranks which unlock more of the compensation plan…
When you first recruit in a new marketing partner you will also receive a bonus based on the product pack that they purchase. The bonus you will be able to get will range from $100-$220 as follows…
- $100 bonus if your recruit purchases the $299 Business Product Pack
- $120 bonus if your recruit purchases the $399 Success Product Pack
- $220 bonus if your recruit purchases the $599 Overachiever Product Pack
As you saw above, moving up the ranks is very important. As you move up the ranks you unlock more of the compensation plan and this is very important if you are trying to earn as much as possible. In addition to unlocking the more of the compensation plan, you will also receive bonuses as you advance up the ranks, which are called “rank advancement bonuses”. The amounts you will receive per rank include…
- Managing Market Partner – $100
- Associate Market Partner – $100
- Market Builder – $150
- Managing Market Builder – $500
- Associate Market Mentor – $500
- Market Mentor – $1000
- Managing Market Mentor – $2500
- Associate Executive Director – $5,000
- Executive Director – $10,000
- Senior Executive Director – $20,000
If you are able to climb the ranks up to that of Associate Market Mentor, then you will unlock the new part of the compensation plan called generational bonuses. I’m not going to get into it into much detail, but these basically allow you to earn from teams within your downline. You will be able to earn down to five generations deep with these bonuses…
Often times I see that people are too quick when it comes to judging businesses like this. They see that people are getting paid to recruit others into the business and are quick to call it a pyramid scheme. But is this really a pyramid scheme?
The truth is that recruitment structured businesses like this are completely legal. There are a legitimate MLM businesses out there that operate completely within the law. What separates and illegal pyramid scheme from a legitimate MLM company is the amount of product sales that they make to the general public. If a company is selling products, but the majority of the products they are selling are going to independent business owners, then they very well might be a pyramid scheme.
That said, there is no proof that I have that would suggest Monat Global it is a pyramid scheme. They do seem to place a good deal of emphasis on retail sales within their compensation plan, which is nice to see. I have seen other MLM companies that have been operating for years with compensation plans that are much more pyramid scheme-like then this one.
So do I think it is a pyramid scheme? No I do not.
The Downside to This Type of Business?
What you often find with MLM businesses like this are distributors running around trying to recruit others in by making the business opportunity sound like the greatest thing that has ever existed. However, there is a big downside to this type of business.
Don’t get me wrong, there is a lot of potential to make a lot of money as a marketing partner here. They have many different ranks and lots of room to move up within the company.
The downside comes from their pyramid -like MLM compensation plan, which is a downside to any MLM business. These types of businesses have a pyramid -like structure where money flows from the bottom to the top. For example, you will earn commissions from those recruited in beneath you.
So think about that for a second… You are earning money from the recruits beneath you. So what is happening to them? Well… They are having money taking away from them that they could potentially be keeping if there wasn’t a MLM structure like this.
In MLM businesses the money is funneled up to the top from the bottom. And of course the overwhelming majority of people are going to be at the bottom, which means that is going to actually make it more difficult for the majority of people to make money, which is why MLM businesses have such high turnover rates.
Final Thoughts – Good Opportunity?
So is Monat a scam and if not is a good opportunity?
Well first off… I don’t consider this place a scam although I do think they could be more straightforward with their advertising and there is definitely no doubt that their products are overpriced. But still… That doesn’t really make them a scam in my book, although you might have a different definition for what a scam is.
That said, I definitely would not recommend this opportunity for everyone out there. It takes a certain type of person to really excel in MLM businesses like this. You have to be constantly recruiting in new distributors if you really want to climb up the ranks and reap the rewards. Now obviously not everyone is going to be good at recruiting others in. Personally, I am not any good at this and this is exactly why I avoid MLM’s.
So anyways, if you think you have what it takes to recruit people in left and right, and you like the products that Monat sells then go for it. But if you aren’t sure or don’t think you have what it takes, it’s probably best to avoid these types of opportunities as they can just drain your wallet.
Something else that may be of interest to you is how I make money online, which has nothing to do with MLM businesses. You can read about how I went from $0 to over $6000 a month working online. You will also see what I recommend for others looking to do the same.
I hope you found this review helpful and if you have any questions, comments, or concerns please leave them below and I’ll get back to you as soon as I can 🙂