Is Monat Global a scam or not? There has been a lot of talk about this hair care MLM, with a lot of focus on the quality of their products. I wanted to take a look at it for myself, as well as check out their business opportunity to see if it’s worthwhile.
Read on to find out more about the Monat Global MLM scheme….
Company Name: Monat Global
Founders: Luis Urdaneta
Price To Join: $99 To Start
My Rating: 1.5/10
~ Monat Global Reviews ~
These days there seems to be nearly as many companies selling and distributing their products using the network marketing model as there are regular, traditional retailers. In the last few decades the amount of MLM schemes has multiplied no end.
MLM has always been popular with many people looking to get started in some sort of business. Even the old timers like Avon and Amway are still going today. I’m amazed just how many people jump on board with these schemes, either as customers, distributors or both.
The Monat Global MLM hair care company came onto my radar recently, partly due to some legal trouble over product quality, as well as people pushing the business aspect online. This got me interested in doing some research and writing a review on what I found out.
This website, Laptop Freedom Living, was created as a way to help us all find great opportunities to make money, especially online. For this reason I devote a lot of website space to writing product reviews. These reviews are of schemes that claim we can make money with, as well as training platforms that apparently show us how to make money. Reviews help us sort the bad from the good.
I love the internet in many ways, but it’s also home to a lot of scammers as well, people who are targeting others looking to make money. We all have to be wary of these dodgy characters when seeking out opportunities.
Congrats on finding my review and reading what it unveils. You’re smart enough to do your homework, and that’s wise. Chances are slim you’ll ever get scammed.
Let’s now see how Monat Global rates overall and whether it’s worth your time.
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What Is Monat Global About?
The word “MONAT” is a hybrid of the two words “MODERN NATURE”. This company is pretty recent as far as MLM schemes go, as it only started up in 2014 and was founded by a guy named Luis Urdaneta and his family.
It’s in the beauty niche – which is a very common network marketing niche – and has a strong focus on hair care products. Monat Global has chosen the multi level marketing method of distributing its product line.
Even though the company has been here a short time, it has experienced explosive growth, despite suffering a lot of complaints and criticisms along the journey.
The main pitch of Monat Global is that their products are made from all natural ingredients. That’s always a popular thing in the modern world, so hence the real name of the company being “Modern Nature”.
While it’s possible to make some money with the business side of MLM schemes like Monat Global, it’s really, really tough going. I much prefer the ease and simplicity of affiliate marketing. It’s quick to get started when you follow the Wealthy Affiliate training. You can even join for FREE!
Monat Global Products
As I said, the main focus with Monat is on hair care and products that detox your hair. However, they do have some other beauty type products in their range as well, in the form of cosmetics.
As this review is more focused on the business opportunity with Monat Global, I won’t go deep into the products here. I’ll just touch on what’s available. You can always go to their website for more detailed information on the product range.
REJUVENIQE™ Oil Intensive is really the company’s flagship product. It’s made up of 13 natural ingredients, which includes antioxidants, fatty acids, vitamins and minerals.
You can either purchase the products separately, or buy them in mini kits. The selection includes things like:
- Hair Repair
- And more…
The products are all quite expensive, which is typical of most MLM schemes, and I explain why in the next section.
Why Are MLM Products Always So Expensive?
There is a reason why most MLM companies charge so much for their products, but when you ask them why something is so expensive compared to other similar products, you’ll always receive a spiel about the products being way better in some way, hence the higher price tag.
That’s not the real reason though.
The real reason they’re so expensive is because of the way the compensation plans are structured in network marketing. Everyone builds downlines, and these lines are traced right back to the very top of the MLM food chain.
Because of this, when a sale is made down below, everyone along the line right up to the top has to be paid a small commission. Plus, the company still needs to make a profit.
The only way MLM companies can cover all these commissions and still make a profit is to charge sky high prices.
Of course, the distributors and the company can’t tell you that, because it just sounds like the customers are getting ripped off, and basically they are in a sense.
The Monat Global Compensation Plan
Let’s see how the Monat Global compensation plan works now, and determine if there’s any decent money to be made as a distributor.
As is the case in just about any network marketing comp deal, there are two main ways you make money as a distributor:
- Selling products directly to others
- Recruiting and building downlines (sales teams)
Commissions on sales are pretty generous, with Monat paying between 30 and 40 percent. Even when you buy stuff for yourself, you get products at up to a 40% discount off the retail price.
While selling products directly to those you know and others is fine, the real recipe for success in MLM comes with recruiting and moving up the company ranks. That’s the only way you’ll ever stand a chance of making good money in a MLM scheme. That’s how they’re designed to work.
There are a few bonuses up for grabs with Monat Global as well, and these include:
- Uni-Level Bonus
- VIP Customer Acquisition Bonus
- Smart Start Bonus
- Matching Smart Start Bonus
- Generation Bonus
- Rank Advancement Bonuses
As I said, the best way to make real money is by recruiting and advancing up that rank ladder as high as possible, as fast as possible. That’s where the money’s at.
Let’s look at the ranks you can aim for:
- Market Manager (Starting Rank)
- Managing Marketing Partner
- Associate Market Builder
- Market Builder
- Managing Market Builder
- Associate Market Mentor
- Market Mentor
- Managing Market Mentor
- Associate Executive Director
- Executive Director
- Senior Executive Director (Top Rank)
MLM compensation plans can be really tricky to explain. If you want, you can check out the official Monat Global compensation plan PDF here.
I’ve also embedded their explainer video below.
Monat Global Income Disclosure Statement
By law, all network marketing/MLM companies are supposed to include a recent Income Disclosure Statement PDF readily available for viewing on their website.
Unfortunately, I can’t seem to locate one for Monat Global.
I like to reference these to see what the average yearly earnings are for the majority of people who join their business.
I did find one snippet of information online, but I’m not sure for what year.
Anyway, that information declares that a typical participant in the Monat Global compensation plan earns between $22 and $1188 per year.
That’s before any expenses.
The MLM Business Opportunity
I’ve been involved in MLM schemes in the past and I don’t really like the way they operate, to be perfectly honest. I just don’t think their compensation plans and business structure are fair to the distributors.
The reason so many companies are adopting the network marketing style of distribution of products is because of all the advantages it gives them. In the process though, many benefits are stripped from the company’s workforce, and that’s its army of distributors.
Normal retailers pay wages and various other worker related expenses, plus numerous other overheads. The main workforce associated with MLM schemes essentially works for free, with no wages, not even a retainer. This workforce also pays all their own business related expenses.
The company pays for nothing and just promises commissions and bonuses down the track when sales are made. Distributors in MLM actually pay the company for the right to be their unpaid sales rep.
While the company rakes in the cash and saves bucket loads by not having to pay wages, the majority of the distributors earn a few crumbs for their efforts. It’s also the distributors that do most of the promotion and advertising, do all the buying and selling of products and, because of the need to recruit to get anywhere, it’s also the distributors that expand and grow the business.
This is a truly amazing deal for the MLM company. And why wouldn’t they go this route? It’s really smart business. Unfortunately the reverse is a really sour deal for the free workforce, who is out there pounding the pavement and diligently doing nearly all the hard labour.
All these network marketing schemes are way over-hyped as well, just to get people interested, motivated and excited. They’re masters of telling people what they want to hear.
Just go to one of their official events and you’ll be dazzled with big dollar figures, fast cars and opulent lifestyles. It’s like they’re selling a get rich quick scheme.
The reality is that less than 1% of all people involved in any MLM scheme gets to live that kind of life. The majority languish down near the bottom of the pay scale, and these companies want it that way, because that’s how they make the most money with the least amount of expenditure.
It’s also bullshit when they say you are getting your own business. No you’re not. The company owns and controls every single thing. You aren’t ever building an asset that you could sell one day. It just can’t happen in network marketing and never will.
MLM workers are simply unpaid sales reps at best, whether anyone wants to admit it or not.
Another thing I really don’t like is most of these companies force their distributors to buy a certain among of product every month to remain eligible to earn commissions and bonuses. Not only does this massive free workforce do all the work, but they are made the company’s main customer base as well.
This all seriously sucks from a distributor viewpoint. There are so many far better, fairer and more prosperous way to make a decent income. MLM has to be one of the worst deals there is.
Is Monat Global An Illegal Pyramid Scheme?
Basically network marketing and MLM companies work on a pyramid shaped compensation structure. For this reason they are often labelled as illegal pyramid schemes.
Now I don’t like MLM much, but I’ll always be fair and honest.
Most MLM companies are NOT illegal pyramid schemes. Often they get mislabelled because people don’t fully understand exactly what an illegal or naked pyramid system is.
Let me quickly explain.
To be a genuine pyramid scheme, your operation has to rely solely on recruitment and the investment of new money from that recruitment for the scheme to stay alive. Naked pyramid schemes don’t have products of any value, and current members and the head of the business only earn money when new investors join.
Monat Global has loads of genuine, over-priced products, so therefore it can’t be an illegal or naked pyramid scheme. The company doesn’t rely on recruitment alone.
Complaints, Negative Press and Legal Action!
2018 has been a year of complaints and legal action levelled against the Monat Global company. In February and March the company received a number of lawsuits for alleged fraud and deceptive sales tactics.
There are also multiple hundreds of complaints on the BBB site about the Monat company, its products and business opportunity.
Even the media has jumped on board with horror stories about people actually losing their hair when they use Monat’s very expensive, all natural hair care products. Other people complain of scalp burns.
Not everyone who has used the products has suffered an adverse reaction, but there are a lot of people out there claiming the products do a lot of harm.
If you do some research online you’ll come across all these complaints, plus scores of YouTube videos to demonstrate some of the horrid results.
I mentioned at the start of this review that it amazes me just how many people are keen to jump on board with MLM. I guess it’s because they’re looking for something to join where all the business setup has already been taken care of.
MLM is attractive to the masses who want some sort of business, but don’t want the hassle of establishing a business.
The downside is that you’re just basically an unpaid worker for the most part, and you never actually get to own your own business with network marketing. Not unless you start your own network marketing company.
What I Like
- It’s possible you could make some money with Monat Global
- The commissions on product sales are higher than most other MLM deals I’ve seen
- This is a global business opportunity
- Somehow the company has managed to win awards despite the lawsuits and complaints
What I Don’t Like and Red Flags
- The company has faced a number of class action lawsuits in 2018
- There are stacks of complaints about the company on the BBB website and many other places online
- The company has been constantly accused of fraudulent practices and dodgy sales tactics
- Their products are mega expensive
- People complain of losing hair and burnt scalps after using these hair care products
- The beauty niche is a very competitive and saturated one
- Nearly everyone who tries MLM fails to make a profit
- Some 95% of people will make less than $500 a year from network marketing, and that’s before expenses
- All of the benefits go in the company’s favour, not the distributors
- The only true way to get anywhere in MLM is through mass recruitment, so distributors need to master this to succeed
- If the products make peoples’ hair fall out, then it’s going to be a really tough sell
How Much Does Monat Global Cost To Join?
The initial joining fee to become a distributor for Monat Global is $99. After that, to remain active you’ll pay a further $19.95 per year.
To truly get underway you’ll also be required to purchase a Starter Kit, with the cheapest being $299, at the time of writing this review.
Is Monat Global a Scam Or Legit?
Well, do you call Monat Global a scam or not?
With all the complaints, negative press, legal action and class action lawsuits, you would be very inclined to just say the place is a scam.
However, I don’t believe it to be. It obviously has some major issues, but not a scam in my opinion.
Do I recommend buying their products?
No. They sound suspect as hell, plus the prices are way too high for what they are.
Do I recommend you get involved in the Monat Global business?
Again, no. They do offer some generous commissions, but how are you going to sell products and recruit people when the internet is flooded with complaints about these products and the company behind them?
While I don’t consider Monat Global a scam overall, it definitely sounds like one of the MLM opportunities to stay well away from. At least for the moment.
Give this one a miss.
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