Is Monat A Scam? A Hair Care Company Pyramid Scheme?

Hey!

Are you looking to make money with Monat and wondering if it's a scam or pyramid scheme? 

If so, this post should clear up everything for you. You'll find company information, price to join, compensation plan, pros, cons and more.

By the time you're done reading you'll be an expert on Monat.

Let's get into it!

Monat Summary

Product: MONAT Global

Price to join: $99 for the starting pack + $49.99/year (product costs not included)

Rating: 30/100

Do I recommend? No!

Summary: MONAT Global used to be under its parent company Alcora Corporation back in 2014. They started to become an independent company when they developed hair products that clicked with the public. 

Despite the company's fast growth, they have been facing a lot of controversies because of the products they sell. The company has multiple lawsuits from their clients because of the adverse effects of the products even though MONAT Global claimed that they were all-natural.

Monat Global is probably the one company you should stay away from, not unless you want all your hair to fall out of your head and lose your money.

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What Is Monat Global?

MONAT Global is a hair care company that was founded in October 2014 by Luis Urdaneta together with his family.

MONAT is actually short for "Modern Nature" which was the primary approach of the company in selling products.

Originally, MONAT Global was a part of their mother company Alcora Corporation that focused on beauty and wellness products.

The company claims that all their products are made as a solution to common problems like hair loss. The "all-natural" and "absolutely safe" claims that they have put up are all just too good to be true.

MLM's never run out of controversies or lawsuits. Monat Global has been involved in a lot of controversies regarding the unwanted effects (hair loss and scalp irritation) that their products bring.

Multiple complaints and lawsuits have been piling up on them lately. Click here to read the actual class action lawsuit document.

Is Monat Global A PYRAMID SCHEME?

Nowadays when people hear MLM's they automatically associate it with pyramid schemes. But this is not necessarily true.

Although there are MLM's that turn out to be pyramid schemes, the main factor that you can find in both of these business models is recruitment is necessary for income.

MONAT Global is not an outright pyramid scheme since you can sell products straight to customers. 

It is similar to pyramid schemes because both use the same income-generating method of downline recruitment.

Let me explain how both MONAT Global and pyramid schemes work - take a look at the picture below:

Naturally, when you are at the top of the pyramid, you earn more than the ones under you. This is because you get a percentage of every sale they make as a commission.

The more people you recruit as your downline, the more money you get when they start making sales. Even when your downlines recruit people under them, you will still get commissions from their sales.

That is the similarity of MONAT Global and pyramid schemes. The amount of money you make is also dependent on the number of people you recruit into your circle.

Again, in MONAT Global, you can choose to sell the products on your own rather than recruiting people to help you make the sales.

In order to gain money faster, you will have to rely on the recruitment of people since it makes the most money. It will most likely take you years before you make stable income if you just rely on yourself to make sales.

Success Is Rare At Monat Global

Although MONAT Global is known to have a generous compensation plan, the money you make from the sales is still not enough to be considered a stable income.

It's basically the same with all MLM's. The ones on the top tier can earn up to $20,000 per month while those under them earn way less or lose their money.

People at the bottom of the pyramid will always have it tough. They do most of the work and yet, they get paid less for it.

If you are interested in seeing MONAT Global's income disclosure statement that shows how much people of different tiers earn, click here.

So, to explain who earns the most and the least at MONAT Global, take a look at the table below:

At MONAT Global, each member is required to sell at least 200 products in order to gain a 7% commission. The more sales you make, the more money you get from commissions. 

MONAT Global also gives bonuses for when you reach a higher level in the pyramid. So there are requirements you need to obtain before you can level up and it's different for each level.

But here's the catch: the more products you need to buy every month, the more expensive it will be.

With MONAT Global's bad reputation, you will definitely find it hard to sell all of the products you have acquired and you will most likely just end up losing money.

There's certainly better ways to earn more money.

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How Much To Join Monat Global?

Compared to the traditional brick-and-mortar business, MLM's are definitely easier and cheaper to start up. You don't need to have capital and a venue, just enough money to pay for the membership and the required amount of products every month.

There are several options that MONAT Global offer their customers in terms of startup price and perks. These are the four choices available for you:

Starter Product Pack

The starter pack is composed of 35 different sample products and is priced at $99. Along with the products, they also provide startup road maps, product brochures and workbooks to guide you.

The $99 fee is a one-time fee and you don't necessarily have to pay for more since the starter pack can be a stand-alone plan. 

This is perfect for people who are on a budget.

You also need to pay for an annual fee of $49.99 to keep your membership at MONAT Global active.

Business Product Pack

The business product pack is composed of 11 full-sized products (shampoo, oils, and conditioners) and 50 assorted product samples that is priced at $299. 

If bought at a retail price, these products would cost you $499. This allows you to make 40% on sales.

Apart from the $299, you would still need to pay for the start-up fee of $99 and the annual fee of $49.99.

Success Product Pack

The success product pack is composed of 17 full-sized products ranging from shampoo, conditioner, hair masks, and other styling products.

Along with these products are 80 assorted sample products and a product brochure. 

This product pack is priced at $399 which is relatively cheaper than its retail price of $745. This gives you 46% of savings.

Apart from the $399, you would still need to pay for the start-up fee of $99 and the annual fee of $49.99.

Overachiever Product Pack

The overachiever product pack is composed of 30 full-sized products with different types of shampoo, conditioners, and styling products. This comes with 100 assorted sample products and a product brochure. 

Compared to the other product packs, this package is very expensive and is priced at $649. But this is still relatively cheaper than its retail price of $1299.

Apart from the $649, you would still need to pay for the start-up fee of $99 and the annual fee of $49.99.

To read MONAT Global's complete product packages and the type of products that come with each package, click here.

What Is Monat Global's Compensation Plan?

A common thing about MLM's is they have really complicated compensation plans. You can stare at those charts and tables all day and still not understand anything at all.

If you want to see the full compensation plan for MONAT Global, you can read it here.

Below is a video that will explain to you everything you need to know about MONAT Global's compensation plan:

So, there are several ways to earn money at MONAT Global:

1. Fast Start Bonus - bonuses you get during your starting period.

2. VIP Customer Sales - 15% sales commission from selling products to VIP members.

3. Retail Customer Sales - 30% sales commission on products sold at retail price.

4. Referral Bonus - $20 per referred friend that enrolls as a VIP member

5. Level Advancement Bonus - bonus you get once you reach a higher level in the pyramid.

6. Builder Bonus - $150-$1300 that you get every month.

There are still a lot more ways to earn money at MONAT Global. But due to the recent pile of complaints and lawsuits, you will find it harder to sell this products and earn the above mentioned money.

With all the circulating bad reviews on MONAT Global, people will not be easily swayed by just good advertisements anymore. The more complaints that appear online, the harder it will be to ever make a sale.

As previously mentioned, there are requirements to attain each level in the MONAT Global market. These include product volume, active lines and group volume.

Depending on your marketing status, your commission may increase or stay as it is. Like all MLM's, you will need to recruit more people under you to earn more.

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What Products Does Monat Global Offer?

The main focus at MONAT Global is their all-natural hair care products. They offer a wide array of products ranging from shampoos and conditioners to hair serums and styling products.

The product prices usually range from $22 to $99, if you buy the products separately and not by collection.

Here are some of MONAT Global's best-selling products:

Their main product is the Rejuviniqe Oil Intensive which is priced at $99. For a 30-mL bottle, $99 would be very expensive if you're comparing it to the regular drugstore hair serums.

Apparently, the oil intensive product was supposed to nourish and energize the scalp to promote smoother and shinier hair, or so the management claims.

Their second best-selling product is the Renew Shampoo which is priced at $35 per bottle. Considering the quality of the shampoo, it is pretty expensive. 

MONAT Global offers a lot more of these hair products but the list would be too long for all of it to be mentioned here. To see the full list of products and their respective prices, click here.

What I Like About Monat?

1) Generous Compensation Pla​​​​n: MLM's often times have really tricky compensation plans. You usually have a hard time figuring out what the charts mean. But MONAT Global's compensation plan is relatively straightforward. 

They provide all the information you need in a way that it is easy to understand. Their compensation plan is complete with commission systems, residual incomes and bonuses.

2) Successful Company Launch: Back when MONAT Global was just starting, their success grew at a fast pace. Before MONAT Global, Luis Urdaneta and his family initially launched "Leudine" a beauty-based company that sold cosmetics. This company became a success.

They then launched MONAT Global, which made an annual revenue that was off-the-charts in just a year after its launch.

MONAT Global was a very successful company before the complaints started to pile up about their products.

3) Training Programs And Support Are Provided: MONAT Global do not leave their members clueless in starting up their own marketing organizations. They actually provide some training materials and guides to help their members find their way.

Compared to other MLM businesses, MONAT Global is actually very supportive of their members and are ready to give them a helping hand to ease their confusion.

What I Don't Like About Monat?

1) Poorly-Made Products: Although MONAT Global claims their products are "all-natural" and "safe to use", complaints of their customers say otherwise. Instead of promoting hair growth, their products caused hair loss instead.

The products might not have been tested properly or observed enough to know the side effects.

2) A Lot of Customer Complaints: Customer complaints started piling up when the side effects of the hair products kicked in. A lot of customers began to complain about having bumps on their scalp, and gradual hair loss.

Some even complained about developing bald spots and scalp irritation. The growing pile of complaints started to cause the downfall of MONAT Global as more and more customers pulled out their investments from the company.

3) Multiple Lawsuits Due To Product Side Effects: Class Action Lawsuits were filed against MONAT Global by the FDA.

These lawsuits have been filed to protect future clients from suffering the same side effects as those who have already used their products.

Is Monat A Scam?

I don't think that MONAT Global is a scam - but keeping in mind the controversies they are currently facing, I don't think that it is a good investment for you.

A scam at the very least happens when you invest money in a company and they rip you off by stealing the money you have invested. 

In MONAT Global, you pay a certain amount for the membership and buy a specific amount of products to sell to customers. Your sales will entitle you to be paid a commission. Sales will happen faster if you decide to recruit people under you.

In conclusion, earning money through MONAT Global will not be easy to pull off. The money you make for selling their products probably won't be as much as the money you spend every month just to buy their products for you to sell to other people.

You might end up losing money faster than gaining.

HERE'S A BETTER WAY TO MAKE MONEY

Hopefully by now I've talked you out of joining Monat Global - there's basically a zero percent chance you make any real money.

If you are looking for a legitimate way of making money online and from home you should check out Wealthy Affiliate.

Wealthy Affiliate is where I learned how to make money online and they give you all the training and tools you need to succeed.

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Alexis
 

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