Monat Review – Legit Business or Huge Scam? Find Out Here…
Welcome to my Monat Review!
It looks like this company already has a ton of buzz!
So, what got my attention?
I was actually approached by a few people already about this company, maybe you were too!
I decided to investigate what it was all about, this way I would know what it really offers to their investors and what kind of income would be attainable with this MLM company…
I checked out Google trends, and this company has been pegged at 100 in November of 2017, and interests in this company have stayed pretty high since then…
In my blog post on Monat Global, I am going to walk you through the company history, the products offered and compensation plan!
This way you have the important details to make that all-important decision of where to invest your money!
Let’s get started!
Monat Review – The Company
The company started-up late in 2014 and runs its operations in the MLM niche of personal care.
Alcora Corporation owns the business and they are centred out of Florida in the US.
The company was founded in 2001 as L’EUDINE Global, originally started by the Alcora corporation.
L’EUDINE Global, was originally established in 2001 as a direct sales company specializing in beauty and wellness with offices in Maracaibo, Venezuela and Miami, Florida.
In 2008 we embarked on to another level of fruition in the United States, expanding into a broader conglomerate of brands and transitioning with a new corporate name, Alcora Corporation.
The name L’EUDINE now refers exclusively to the renowned brand of trusted beauty and wellness products, while a new direct sales division specializing on modern, natural formulas for the hair -MONAT- emerged in 2014.
Luis Urdaneta is the Chairman and Founder of the company, and Rayner Urdaneta is the current operating CEO (yeah, it’s his son).
From the company’s corporate biography Luis Urdaneta’s is:
a first-generation direct-sales entrepreneur (who) recognized the potential of social marketing when he was just 15 years old.
That’s when he started his first direct-sales business, which would ultimately lead to MONAT.
Stuart MacMillan serves as the company President.
MacMillan was the appointed interim CEO of another company called TelexFree.
Just something about the company’s history, there have been 2 separate lawsuits involving critics of the company.
First, in July of 2017, the company alleges the defendant Mags Kavanaugh, owner of California Beauty Studios:
made repeated, malicious, and false claims against MONAT, its products, and employees for her own personal and financial gain.
Further, the suit maintains that she deliberately misled customers about the safety of MONAT products for the sole purpose of diverting sales to her own business.
Second, the company filed a few weeks ago on the 26th day of January 2018.
The company alleges that the defendant Vickie Harrington is:
the principal behind an online, self-proclaimed anti-MONAT group.
MONAT alleges that Harrington made and repeated explicitly false statements about the ingredients and safety of MONAT’s products.
The suit also maintains that Harrington made these false statements in order to mislead and deceive consumers.
The two cases are currently pending a verdict from the courts.
Monat Reviews – The Products
The company advertises a wide range of products made for hair care.
The hair care products are sourced from “naturally-based, safe, pure and sustainable” ingredients, says the company.
The company’s Rejeveniqe Oil Intensive is their leading product:
MONAT’s invigorating proprietary blend of 11+ unique molecular ingredients, which includes vitamins, minerals, antioxidants, beta-carotene, omega-6 fatty acids, nutrients and amino acids, suitable for all skin and hair types.
These ingredients have been proven to mimic the body’s own natural oils to reduce hair thinning, prevent oxidative stress, and add volume and shine.
REJUVENIQE’s special properties energize and rehabilitate the scalp to visibly repair hair with instant and long-term Age Prevention benefits.
The retail value for a 30mL bottle of Rejuveniqe Oil Intensive is $99.
Rejuveniqe, a key ingredient found in other company products, is going to be sold as an individual product.
The other hair care categories that the company offers products for include:
- Hair Rejuvenation,
- Growth Boost and Management
- Children’s Hair Care
- Color Enhancement and
- Eyebrow Enhancement
So, I think you can guess why I can’t list all the products sold here individually, but the company does offer a full catalog with retail prices (which you can find on the company website).
Monat Compensation Plan
Monat Global combines retail and sponsorship commissions to compensation of residual unilevel team earnings.
There are more performance-based bonuses offered, which based on the rank of the company affiliates.
Monat Global Affiliate Ranks
In the company compensation plan, there are 5 affiliate ranks.
Here are the 5 ranks and their requirements needed:
- Marketing Partner – Generate 200 PV a month
- Managing Marketing Partner – Generate 300 PV a month, sponsor and maintain at least two Marketing Partner or higher ranked affiliates and have a total monthly downline volume of 1200 GV
- Associate Market Builder – Generate 400 PV a month, sponsor and maintain at least three Marketing Partner or higher ranked affiliates and have a total monthly downline volume of 2400 GV
- Market Builder – Generate 500 PV a month, sponsor and maintain at least four Marketing Partner or higher ranked affiliates (one must be a Managing Marketing Partner or higher) and have a total monthly downline volume of 4000 GV
- Managing Market Builder – Maintain 500 PV a month, maintain at least four Marketing Partner or higher ranked affiliates (two must be a Managing Marketing Partner or higher) and have a total monthly downline volume of 7000 GV
- Associate Market Mentor – Maintain 500 PV a month, maintain at least four Marketing Partner or higher ranked affiliates (one must be a Managing Marketing Partner and one a Managing Marketing Builder or higher) and maintain a total monthly downline volume of 7000 GV
- Market Mentor – Maintain 500 PV a month, maintain at least four Marketing Partner or higher ranked affiliates (two must be Managing Marketing Builder or higher) and maintain a total monthly downline volume of 7000 GV and 30,000 DV
- Managing Market Mentor – Maintain 500 PV a month, maintain at least four Marketing Partner or higher ranked affiliates (one must be a Managing Marketing Builder and one an Associate Market Mentor or higher) and maintain a total monthly downline volume of 7000 GV and 60,000 DV
- Associate Executive Director – Maintain 500 PV a month, sponsor and maintain at least five Marketing Partner or higher ranked affiliates (three must be Managing Marketing Builders (one recruited in the last 12 months) and one a Market Mentor or higher) and maintain a total monthly downline volume of 7000 GV and 120,000 DV
- Executive Director – Maintain 500 PV a month, sponsor and maintain at least six Marketing Partner or higher ranked affiliates (four must be Managing Marketing Builders (one recruited in the last 12 months) and one a Managing Market Mentor or higher) and maintain a total monthly downline volume of 7000 GV and 300,000 DV
- Senior Executive Director – Maintain 500 PV a month, sponsor and maintain at least eight Marketing Partner or higher ranked affiliates (six must be Managing Marketing Builders (one recruited in the last 12 months) and one an Associate Executive Director or higher) and maintain a total monthly downline volume of 7000 GV and 800,000 DV
PV (Personal Volume) is the sales volume achieved through sales to retail customers and the affiliate’s own product orders.
GV means “Group Volume” and DV means “Downline Volume.”
Usually when GV and DV are seen in MLM compensation plans, GV is the sales volume totalled from a set amount of unilevel team levels (maybe a generation in this example).
The Downline volume is usually the sales volume achieved by the entire unilevel team as a whole.
Regrettably, the company compensation plan does not actually give GV and DV a definition.
On products that are sold to retail customers, a commission of 30% is paid out to company affiliates
Retail commission rates can be increased up to 40%, when the following sales volume requirements are met:
- Generate 1000 PV a month = 33% retail commission rate
- Generate 2000 PV a month = 35% retail commission rate
- Generate 3500 PV a month = 40% retail commission rate
Those customer orders considered to be “Preferred” (which are retail customers on a monthly autoship), help affiliates earn a 15% flat rate in retail commissions.
When an affiliate sponsors a new affiliate who purchases a “product pack,” company affiliates will get a pay out in sponsorship commissions.
- Sponsor a Business Product Pack affiliate and earn a $100 commission
- Sponsor a Success Product Pack affiliate and earn a $120 commission
- Sponsor an Overachiever Product Pack affiliate and earn a $220 commission
The company uses a unilevel compensation model to pay out residual commissions to its affiliates.
The unilevel compensation model puts an affiliate at the top of a unilevel team, which then places any personally sponsored affiliate on level 1 right underneath the original affiliate.
When a level 1 affiliate sponsors new affiliates, they are then put onto level 2 of the original affiliate’s unilevel team.
When a level 2 affiliate sponsors new affiliates, they are then placed onto level 3, and levels continue to be created like this down as many levels as are needed.
Payable unilevel levels are capped at Level 4, where commissions that are paid out will be done so as a percentage of sales volume achieved among those 4 levels:
- Market Partners earn 7% on level 1 (personally sponsored affiliates)
- Managing Market Partners earn 10% on level 1 and 3% on level 2
- Associate Market Builders earn 12% on level 1 and 5% on level 2
- Market Builders earn 12% on level 1, 6% on level 2 and 3% on level 3
- Managing Market Builders earn 12% on level 1, 7% on level 2 5% on level 3 and 3% on level 4
Group Volume Bonus
Affiliates ranked as Managing Market Builder get an additional unilevel team volume payout called the Group Volume Bonus.
Sales volume achieved from level 5 of the unilevel team to Managing Market Builder found in each unilevel leg, get the Group Volume Bonus payout of 2%.
The Group Volume Bonus is paid out the full depth of the leg if a Managing Market Builder affiliate is not found in a unilevel leg,
The Group Volume Bonus gets replaced with a Generation Bonus when an affiliate reaches the rank of Associate Market Mentor.
A generation in the company compensation plan occurs when a Managing Market Builder or an affiliate ranked higher is present in the leg of the unilevel.
When present, the leg of that unilevel is capped off and acts as the first generation of that unilevel leg.
The second generation will then begin right where the first leg was capped off.
If another (2nd) affiliate ranked at Managing Market Builder is present deeper in the unlievel leg, the second generation of the leg is capped off and now a third generation will begin.
And if no other Managing Market Builder affiliates are present in the unilevel leg, the second generation will run for the entirety of that leg.
NOTE: Every generation found in a unilevel team leg will be calculated independently of other legs in the unilevel team.
Using the guidelines for the generation development in the company compensation plan, the company will pay affiliates the Generation Bonus when up to 5 generations are present in a leg in the unilevel team:
- Associate Market Mentors earn 4% on one generation
- Market Mentors earn 4% on the first generation and 3% on the second
- Managing Market Mentor affiliates earn 4% on the first and second generations and 3% on the third
- Associate Executive Directors earn 4% on the first to third generations and 3% on the fourth
- Executive Directors earn 4% on the first to fourth generations and 3% on the fifth
- Senior Executive Directors earn 4% on all five available generations
VIP Customer Acquisition Bonus
VIPs are what preferred customers are called by the company.
These VIPs pay a one-time fee of $19.99 and with the agreement of having 3 autoship orders placed with an added discount of 15%.
There is a “Smart Start” period (within the first 3 months), and every 4 VIPs they enroll during this period earns the affiliate a $60 VIP Customer Acquisition Bonus.
After the first 3 months, 4 qualified VIPs must be enrolled within 1 calendar month in order to be qualified.
Smart Start Bonuses
The company offers 2 Smart Start Bonuses to affiliates:
- $150 per four VIP customers and the sponsorship of one affiliate who enrolls with a Product Pack
- $500 when the above criteria is met three times ($500 awarded each time)
The Smart Start period is defined as the first 3 months the affiliate is with the company.
The bonuses mentioned above are only available during the affiliate’s Smart Start period with the company.
Smart Start Bonus Match
Every time a company affiliate qualifies for the $150 Smart Start Bonus, their sponsoring affiliate will also get a $75 Smart Start Bonus Match (the sponsoring affiliate must be ranked at the same position or higher than the affiliate who qualified for the Smart Start Bonus).
Another $25 will be paid to the first Managing Market Builder or affiliate ranked higher in the upline.
Rank Achievement Bonus
Affiliates that qualify at the Managing Market Partner or higher rank will get a one-time Rank Achievement Bonus:
- Managing Market Partner – $100
- Associate Market Builder – $100
- Market Builder – $150
- Managing Market Builder – $500
- Associate Market Mentor – $500
- Market Mentor – $1000
- Managing Market Mentor – $2500
- Associate Executive Director – $5000
- Executive Director – $10,000
- Senior Executive Director – $20,000
A 100% match is paid to the first upline Managing Market Builder or higher ranking affiliate, when a Managing Market Builder Rank Achievement Bonus is paid out.
NOTE: If that affiliate does not qualify for the commissions earned at the Managing Market Builder rank, then the 100% match must be forfeited by the affiliate.
Cost To Join Monat
The cost to join Monat Global as an affiliate is a $99 membership.
There is an option for new affiliates to be able to sign up with a Product Pack (which is optional, this includes an affiliate fee of $99):
- Business Product Pack – $299
- Success Product Pack – $399
- Overachiever Product Pack – $599
There is an assortment of Monat Global products that comes with each company Product Pack.
The company says buying a Starter Pack, which includes bundled products at a discount, will save an affiliate 45% off the retail price.
Verdict of Monat Global
Now that we’ve reached the end of my review, I can say that company seems to a legit product-based business.
A lot of people have hair and selling hair care products by MLM opportunity seems like it will make money as long as your product is something the people want and need, you just have to fill that niche and you’re in!
And honestly, a lot of people like to try that new age, new trend, or natural thing once for their hair…so the potential sales are there.
Since there is a real market out there, is this company also practical?
I did find that the company’s products are available on Amazon to buy, so it’s easy for consumers to find the product.
However, when the products are found there, they are offered at a slightly higher price than by retail, but it’s only by a few bucks, not huge mark up.
There are also plenty of reviews online, and the reviews vary.
Some were of random complaints about the shipping costs ($36.00 from Prime) and some abnormal reactions from consumers after using the products, somewhat typical.
I cannot really say anything about how reliable the products are and how real those claims are that people are making, but as a consumer you should always be wary of anything you buy having potential affects you didn’t see coming (you just never know about any product from any company).
Also, like any personal care product on the market, what works for you may not work the same way for someone else.
The company’s compensation plan is pretty straightforward, a little more explanation could help though.
The terms GV and DV could be better defined by the company.
Also, not a big fan of paid commissions when it comes with affiliate membership packages.
There also is a lack of retail sales required when it comes to commissions, however when it comes to VIPs, they have VIP Customer Acquisition and Smart Start bonuses, but after that no retail criteria is needed.
This could lead to affiliates self-qualifying for commissions to achieve a monthly PV amount needed…
Determining if this is happening is pretty easy though.
And as a prospective affiliate, you can just ask the team’s upline how they are meeting their PV quota monthly.
If they answer through their own purchase, then ask why it was not possible to make the same amount of PV in retail sales of the product (it’s important to ask before you sign up, because we’ve seen MLM companies without retail sales operate as pyramid scams).
All in all, while the company compensation plan seems solid enough, the management could be questionable, the products may have side effects, and there is potential for affiliates to achieve monthly PV criteria though self-purchase (retail)…
Since there are a few lawsuits pending, and this seems like one of those opportunities where you should try the product before you get into the business as a whole.
You might also want to wait and see the outcomes of the lawsuits, then continue on carefully if you’d like to.
I hope you enjoyed my Monat review and if you have any questions, please leave them in the comments below…
My #1 Recommendation
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Plus there is a refund guarantee, so there is no risk.
Test it out for yourself below…
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