Is Monat a Pyramid Scheme? Or a Legitimate Income Opportunity?
If you're relatively active on social media, there's a good chance that you received a message from an old friend trying to sell Monat products. But is Monat a pyramid scheme? Don't most people who join MLM companies lose money?
Is Monat any different than the many other skin care & cosmetic MLM companies out there? Read this detailed Monat review to discover the shocking truth about Monat, and their opportunity.
Monat Quick Review:
$199 Min for Starter Pack
Multi-Level Marketing Scheme
Skincare, Hair, and Cosmetics
Is Monat a Pyramid Scheme?
Technically, Monat is not a pyramid scheme, it's a multi-level marketing (MLM) company which is very similar to a pyramid scheme. MLM companies are different from pyramid schemes because they offer actual products and a couple of other ways to earn income, besides adding more people beneath you.
The truth is, when it comes to MLMs, very few people make money selling the products for commission, the real bonuses are in the recruits. So it's a fine line, and while MLMs are not technically illegal (pyramid schemes are) your chances of success are very - very - slim.
We'll talk a bit more about Monat's income disclosure statement later on. You can read more about why promoting a MLM is a bad business idea here. Personally, I feel like all MLMs (including Monat) are pyramid schemes.
What is Monat Global?
Monat Global was founded in 2014 and it's an MLM company with a wide variety of "naturally-based" hair and skincare products. Their best selling products are in the hair category; shampoos, conditioners, treatment, and more. They even have a product line for pets; deodorizers and dog washes.
The reviews for these products vary with some people saying they're overpriced scams, while others really enjoy using them. While I can't personally comment on the quality of Monat's products, there was a recent scandal involving Monat, women were claiming Monat products made their hair fall out.
Hair Loss Concerns:
It was reported on national news too! It's not only hair loss, but also other symptoms, such as itchy and dry scalps, hair volume loss, and all kinds of hair damage. My suggestion? You're free to try out Monat products, but based on the negative reviews out there, I wouldn't recommend it.
News segment on Monat product concerns:
There's no doubting that Monat's products have a very bad reputation. So if you can't promote the products, that only leaves the team-building structure of the compensation plan, which we'll get into now.
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Monat's Compensation Plan SIMPLIFIED:
As you probably know, these kind of companies like to make very confusing compensation plans. I did my best to simplify Monat's compensation plan below. To start, the first thing you need to know is Monat representatives are called Market Partners, it's the first title you earn.
Becoming a Market Partner:
In order to become a Market Partner, you have to buy a Starter Kit, which costs $99 USD for the entry-level kit. There's also an annual fee of $49.99 which goes toward admin fees. The problem is this kit doesn't add PV (Personal Volume) to your account, and you need a min of 200 PV to participate in the compensation plan.
Here are the other kits:
- Starter Kit - $99
- Essentials Pack - $199 (purchasing this product unlocks the compensation plan)
- Success Pack - $349
- Overachiever Pack - $599
- Optimum - $799
Screenshot of Monat's Starter Kit contents:
These kits include a variety of marketing material, brochures, workbooks, product cards, and samples. You'll be able to join the compensation plan with a purchase of anything above Starter Kit. What you really need is the Essentials Pack, which costs $199. (It's confusing and I only noticed later on).
Advancing in Rank:
The idea is to continue climbing the ladder, to take advantage of all the new bonuses and opportunities. In total, there are 12 titles or "ranks" with various requirements. The easiest way to move up the ranks is by building Active Lines and selling products to earn Volume.
You can take a look at their compensation plan here. But I boiled it down below...
If your familiar with the MLM structure, then you can probably already guess what type of bonuses Monat offers.
The most popular bonuses:
- Retail Bonus (30% on Sales)
- Personal Sales Bonus (Earn a percent of total Volume sold)
- VIP Acquisition (earn on enrolling new VIP customers)
- VIP Block Bonus (Four VIP Customers)
- VIP MONATborhood (Four Blocks)
- Uni-level Bonus
- Group Volume
- And others.
From the looks of it, there aren't any minimum sales requirements, but you do need to have at least two active lines. What that means is you need to have people who are actively promoting Monat under you.
How Much Can You Earn with Monat?
Details about how much you can earn with Monat are sparse. It's very unclear how much you can make with the plan, and they don't have a public income disclosure statement. And the reason there's not much information about the potential income is below.
The closest thing they have to an income disclosure statement is a small fineprint in a brochure the says, "A Typical Participant in the Plan earns between CDN $22 and $1,188 annually."
That's annual income, not monthly. Whatever the actual income is, I'll wager it's very low! To repeat what I said earlier, it has been proven than 99% of people fail to make any money with multi-level marketing companies, and Monat is not the exception.
No Public Income Disclosure Statement:
I found an old image from 2018 that shows Monat's income disclosure statement for that year. It showed that 94.04% of of Active Members are Marketer Partners and have an average annual gross earning of $183. The highest earnings in that category was $20,106 while the lowest was $0. In short, members aren't making much money at all.
Here's an interesting quote from the Monat Policies & Procedures document...
...a Market Partner, when presenting or discussing the MONAT opportunity or Compensation Plan to a prospective Market Partner, may not make income projections, income claims, or disclose his or her MONAT income (including the showing of their MONAT Payment Card records, Back office records, bank statements, or tax records).
The highlighted part is what caught my attention. What kind of company says their employees can't share their income? I know income is a taboo subject in some countries, but it's actually illegal for an employer to tell you that you can't share your salary with people.
All that to say, after hours of research, I couldn't find any solid proof of people making money with Monat. The reports, reviews, and comments, all point towards Monat Market Partners actually losing income. It looks like Monat is a pyramid scheme.
Other similar MLMS:
And many others, the industry has one of the most MLMs than any other. Moving on...
Is Making Money Online Hopeless?
The truth is that you can make good money online, if you follow a solid strategy that has been proven to work. And there are a lot of proven strategies to see success.
The method I recommend is building a website, writing SEO-optimized articles for traffic, and then using those articles to promote affiliate offers. It sounds very simple, but if you have never done it before, there's a lot to learn.
I was in your situation before too, and I was very cautious of online training programs. I decided to give it one last shot, followed the training to the letter, I slowly built this website.Today it brings in a consistent income!
But you have to make the decision to start, and then stick with it. Follow through and do the work. Imagine what your website will be like 5 years from now if you start building it today!
To summarize, I don't recommend MLM opportunities like Monat because they are too similar to pyramid schemes. The chances of making even a livable income is ridiculously low, and the compensation plans are overly complex. What do you think about Monat? Leave a comment below!