Is Monat a Pyramid Scheme or Legit Business Opportunity?

is monat global a pyramid scheme

Monat Global is a Multi-Level Marketing company established in 2014. Their business is to provide consumers with hair care products to stimulate growth. Network Marketing companies usually get a bad rap for their methods of recruiting and paying distributors while not offering a quality product.

While there is an opportunity to earn a decent income as a member, it depends on your marketing skills since what is taught by most MLM companies is outdated and not the best method for a distributor’s success. I was a member of World Ventures which is a quality travel MLM company, but I was not provided the best strategies for recruiting and selling which is why many people fail within Multi-Level Marketing Opportunities.

To give you the best strategy to take, this review will provide full details of Monat Global along with a method for marketing and promoting their products.

Monat Global Review

Based in Miami, FL, Monat Global (Modern Nature) has 120,000 distributors worldwide. The hair care products offered by Monat includes Hydration, Volume, Densify Duo, Stylized, Power Boost, Magnify, Monat Junior, Monat Black, Colour Enhance, Effortless Style, R3, Advanced Hydrating, and Restructuring.

Monat Global is the first company in the direct selling channel dedicated to anti-aging hair care. While skincare companies were focusing on consumers need for anti-aging products for combating the harmful effects of UV rays and other environmental factors, no one was producing those same needs in the hair space. Upon launch Monat stood alone in the direct sales channel as the only company to focus exclusively on anti-aging hair products

Founder

Luis Urdaneta and his son, Ray, founded the direct selling company, Monat in 2014. Before establishing the company Luis was a distributor for a legacy direct sales company in Venezuela.

His passion for direct selling and its potential motivated Luis to partner with his oldest son, Rayner, or “Ray,” to apply their experience and knowledge of direct sales to market beauty and wellness products. In 2001, the Urdaneta family launched L’eudine Global in Latin America which became a multi-million dollar company.

Following the success of L’eudine, Ray felt confident he could establish something new in the world’s largest direct selling arena—the United States.

History of Growth

Within just one year of launch, Monat Global was already pushing $25 million in annual revenue.

By 2016, annual sales for Monat was already at $41 million.

MONAT ended 2016 with 12,000 Market Partners and closed 2017 with over 150,000.

For fiscal year 2017, MONAT recorded $314 million in sales, an increase of 667 percent from $41 million in 2016. This marked its first appearance on the Global 100 list for direct selling companies, ranking No. 52 globally.

In 2018 there was a blemish to the progress they were experiencing.

In early 2018, Monat started racking up lawsuits for misleading claims regarding the product and business practices. Later that year, a federal judge would rule in favor of Monat to protect themselves from individuals trying to defame the company without evidence. Although this is a legit business, not all lawsuits have been ruled in their favor as they have numerous complaints from consumers claiming hair loss and are accredited a D rating from the BBB.

In researching more about what went wrong with the products, the following was quoted regarding the company on wikipedia.

In March 2019, a federal report filed by the FDA after inspecting Monat’s Florida manufacturing facility found that multiple products were “prepared, packed, or held under unsanitary conditions whereby (they) may have become contaminated with filth”

In October 2019, a ruling by the U.S. district court in Miami, Florida allowed a consumer class action lawsuit against Monat to proceed. The judge in the case ruled that Monat’s products had been defectively designed using contaminated chemicals and that the company had failed to inspect their ingredients for contamination.

Besides this blemish, the hair care products offered by Monat are actually of good quality.

Membership

There is a one time fee of $99 and$ 49.99 a year for maintaining membership. You will then have access to the following startup kits at a wholesale price to enable you to make a profit. There are 4 options to choose from the products you want to promote.

1. The starter pack provides 35 different sample products priced at $99. Upon becoming a member you will also receive startup road maps, product brochures, and workbooks to guide you.

2. The Business Product Pack Priced at $299, the business pack provides 11 full-sized products (shampoo, oils, and conditioners) along with 50 assorted product samples. The retail price for these items is $499 which gives distributors a 40% discount.

3. The Success Product Pack– Priced at $399, the success pack provides 17 full-sized products ranging from shampoo, conditioner, hair masks, and other styling products along with 80 assorted sample products. The retail price for these items is $745 which gives distributors a 46% discount.

4. The Overachiever Product Pack– Priced at $649, the overachiever pack provides 30 full-sized products with different types of shampoo, conditioners, and styling products along with 100 assorted sample products and a product brochure. 

The retail price for these items is $1,299 which gives distributors a %50 discount.

Compensation From Recruitment

Like many MLM companies, the Monat Compensation plan for recruiting members in your downline is hard to explain. For a comprehensive breakdown of their compensation plan, Click Here.

Companies like Herbalife offers discounts on their products for becoming a member, but it does not provide members with the same amount in profit just from selling the products.

I would not recommend joining Multi Level Marketing Companies, but if selling Monat’s skincare products can yield such profits then this would not be a bad business opportunity.

It is not good to join Multi Level Marketing companies because most companies pay distributors primarily off of the number of members recruited in their downline. An income disclosure statement from Monat includes the following.

“The primary source of income from a typical participant in the compensation plan of Monat Global Canada ULC is from compensation on personal and downline sales of products and/or services. A typical participant in the plan is defined as a participant who actively engages in the activities necessary to realize the benefit of this plan. A typical participant in the plan earns between Cdn $22 and $1,188 annualized.”

So according to the compensation plan you can expect to make less than $2,000 annually.

The Best Way to Sell their Products

Multi level marketing companies usually teach distributors to promote products to friends and families by throwing home parties.

Such methods are outdated and will not get you far unless you have a huge network of friends with like-minded ideas. To promote products in general, nowadays you need some level of experience with online marketing.

Promoting products online is a great way to avoid being that pushy MLM rep trying to promote products to everyone you know.

If you are truly interested in becoming a successful marketer, Click Here for a guide to starting an online business and promoting products.

To go about the process of recruiting, it is best to promote to people that have used the product and have had a good experience with using it.

Sell online by offering people an option for restoring and promoting healthy hair growth, set up an email for them to sign up, and follow up with clients after two weeks by sending more emails to either sell more products or present the business opportunity.

Conclusion

In its short history, Luis and Ray has created a company that has experienced explosive growth. In 2017, Monat recently earned not only its first spot on Direct Selling News’ Global 100 list, but the esteemed Bravo Growth Award as well, for achieving the largest percentage of growth in sales of any company on the list that year.

A list of accolades include the following.

  • 2016 Goldie Stevie, Silver Stevie, and Bronze Stevie Awards from the American Business Awards Award
  • 2016 Silver Stevie Award and Bronze Stevie Award by the Stevie Awards for Women in Business
  • 2017 Journey to Success Award by the DSA of Canada
  • 2018 Making a Difference Awards by the DSA of Canada

The company has also been featured on NBC, ABC, and the Hallmark Channel.

If the company can weather the storm from lawsuits that may incur while doing business then this company has the potential to be another Multi-Level Marketing powerhouse like Amway or Herbalife.

While their products maybe a bit expensive, something to contemplate before joining such business is the competition for the products to sell. As explained, there are not to many companies prioritizing in anti-aging hair products like Monat.

Although they offer quality hair care products that do not have a highly competitive market, I would not recommend a business opportunity in which your success is tied into how your downline performs. If you rather work on starting a business in which your success depends on your own efforts, hard work, and dedication…Click on this link to learn how to sell products online and have a real chance to become a successful marketer.

I hope the review provided clarity on Monat Global and if you have ever been a member or have used any of their products feel free to leave a comment in the section below.

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