I’m sure you have all heard about pyramid schemes at some point in your life. It is such a prevalent part of modern business and there have been so many people who have fallen victim to it.
So what is a pyramid scheme for those of you who don’t know? It is basically a form of money-making where a business approaches you with the possibility of earning money through the marketing and investment of their products. However, you will not earn commissions through the sale of the product but rather the amount of “investors” that you bring into the business. In other words, you hire more people like you who will then do the same to another bunch of people. This form of business is illegal because there is no way where a business can keep hiring ‘investors’ forever and so over time this scheme will fall apart.
So is Monat MLM a scheme such as this or is it an opportunity for you to get in early and make some profit out of? This will be answered in the article below and I will share with you the problems that I saw about this company and why you should avoid them.
Also, if you were looking into this program because you were trying to make some money online, then I am here to help you out with that as well. After going through everything about the MLM scheme, I will give you my recommendation on how you can achieve this dream. If you’re not interested in the pyramid scheme part of it then please scroll down to the end where I have talked about the best, legit way to make money online.
What is the Monat MLM business model?
The company called Monat Global is a Multi-level Marketing company (or MLM) that revolves mainly around selling their hair products to other people in order to make commissions, or you can hire people by yourself who will in turn do the same thing. To join this program you will need to pay a certain fee so that you can become a “market partner” for Monat Global.
Because you are able to make commissions through both the selling of the product and through hiring people, it is called an MLM scheme. On the outside, it seems like a legit company that is promoting both affiliate marketing and the MLM together in order to help you earn commissions. However, because of the fact that you are paying to join their program, it makes it seem like the company is more interested in the fees that you are bringing in and so treats you more like a customer to the business.
Also, having looked into their financial statements, I was able to determine that the average ‘partner’ earns somewhere between $60 to $900 in a whole year. Divide that up and you’re looking at a grand total of between $4 to $75 per month. Now you might say that this is alright because you are still starting out and it will get better over time, however, you should note that there are other costs involved such as the costs of their products (which can go over $99 every month) plus whatever other marketing costs go into the sale of these products.
If you do the math, can you tell me if this opportunity seems likely to bring you a lot of money, even over time? No. Truth be told, the whole thing is designed to bring as much money into the business while portraying it as a good opportunity for you to earn money yourself.
What is this company?
Like I mentioned earlier, you can earn commissions through Monat Global using the following strategies:
- Commissions through sales – This is typical to an affiliate marketing strategy where you market their products to other people and every time they make a sale, you will get a commission. However, the difference here is that unlike the other affiliate platforms out there, you need to purchase their products with your own money first before you can market the products. Most affiliates tend to just give you the link to market the product, but here you need to pay upfront.
- Commissions through agents – Here is where their supposed ‘secret sauce’ lies. You can earn commissions when you hire a new recruit into the program. When they do the first strategy and make a sale, you will also be given a small percentage of that sale. So the more people that you hire, the more streams of commissions you will be receiving every month. And this is what attracts people to the scheme as, on the outside, it looks like an easy way to start making some money online. However, there are so many reasons why this doesn’t work well to make money and I will talk about it more below.
How is the MLM scheme run?
Let’s break down the two strategies above:
Commissions through sales
As mentioned before, this works in the same way that affiliate marketing does. However, you have a lot of restrictions when promoting their products. As an affiliate marketer, you will usually select a niche and then sell multiple different types of products that are similar but would work for different audiences. But with Monat, they will not allow you to promote any other product and you are only allowed to sell their products.
Also, you are not given full control and freedom of this process. Usually, when you create a website/landing page, you will have full access because it is your site. However, Monat will create the website and give it to you, meaning that you don’t own it but they do. With this comes the risk that they can take control of the website whenever they want and you will stand to lose all the work that you put into the business over a small thing. Therefore, it seems overly risk to spend that much money and time to set it up, only for it to be taken away due to some reason later on.
As you will learn, there are better ways to circumvent this and the best method is to follow my most recommended venture as it will help you to learn all of this and help you set up everything that you need, while also letting you keep full control of your business. This platform is called Wealthy Affiliate and I will talk about this in more detail below.
Commissions through agents
Here is the real money-maker for Monat Global which also doubles as their selling point to getting new ‘investors’ into their scheme. You will pay to join the program, then go about and promote the program to others that you know or online, who will then also join the program, pay the fee and then go on to recruit more people as well.
The business states that you will be able to get commissions from every sale that the agent you hired makes as well as commissions that their hires make, calling them the second level and third level respectively. On the surface, this looks very attractive as the more people that you hire, the higher the chance of making more money in the long-term without having to do much more work.
However, not everything will go the same way that it looks like at the beginning. There are a lot of problems with this method that are detailed below.
So why is it hard to make money using this program?
Joining this program might sound interesting, but here are my top two reasons as to why I think it isn’t a good idea:
- The type of business usually only works well for early investors and those that start promoting at the beginning. It is quite difficult to find more investors and to keep hiring more every month. It is even more difficult to find people who will actually be able to bring in sales every month. As more and more people start joining the program, it becomes much harder to do this as the markets get saturated and a lot of people will already be wary of the program.
- Here’s one thing they don’t mention outright, you and everyone on the program need to meet a monthly purchase limit in order to be able to receive your commissions! Therefore, you need to buy that set amount of products every month even if you don’t make the same amount of sales. If you don’t achieve that target every month, then you will receive nothing. This makes the program so much riskier as you will have to keep paying every month even if you don’t get your commissions.
Think about it, you are now not only responsible for your own sales, but your referrals as well. If they don’t also perform, then you are all at a loss even if you did your part and met the target!
Here’s the thing about this kind of business, it is only the first movers that are able to profit out of this program, most others who join will only contribute to giving the company more money and in the end will only lose out themselves. That is why this is made illegal.
Is this program a scam?
Okay, after hearing all of the above, you may think that this program is a pyramid scheme. In reality, it is not and that is due to one major difference which is the sale of their products. In a pyramid scheme you only have the part where someone pays to join the program and there is no selling of products involved. Therefore, this is not technically a pyramid scheme.
What’s the difference between an MLM and a Pyramid Scheme?
As mentioned before, Monat is an MLM. And the main difference here is the fact that products are sold on the program as well. That is what makes it an MLM and that is the top distinguisher between the two.
Is this the same as network marketing?
In a way you could say that the business model that Monat is using is similar to network marketing. In order to bring in good commissions, you need to be a good networker as you need to bring in more and more new recruits to benefit from the MLM process. Therefore, you will be spending more time networking with other people, so you could say that this is quite similar to network marketing.
How much money can you make with this scheme?
You can find their payment plan on the Monat official website, but before you check it out you should know that it is highly confusing and doesn’t give you a clear picture. In other words, it seems like they are making it unnecessarily difficult to understand it as they want to make it look as attractive as possible.
So the problem lies with how much money you can actually make. Like I mentioned before, in order to even start making any money you have to pay upfront for the products that you are going to sell (already sounds like a bad idea) and then if you don’t meet the sales quota you will not be able to receive your commissions.
Also, to take advantage of the MLM process, you need to be very proactive in how many recruits you bring. You will need to create multiple levels of recruits while also making sure that they are performing well in order to gain some benefit out of this.
Is selling products enough to make a profit?
Truthfully, I would say that your chances of making a good profit are quite low. Even the site’s own financial statements show that their average investors don’t make much every year. Making even $75/month, which is on the higher side of their average figures, is not enough to make a profit with all the other expenses added in.
For all the effort that you have to put into the marketing of the product, this seems like pennies on the dollar and you would fare so much better working a part time job.
What are the other costs involved when selling products?
Well this will depend on how you approach selling them. You can go in both an online and offline path or both.
If you go online only, then you will have paid ad costs, website maintenance, voip costs and more.
If it’s only offline, then there will be local advertising costs, transportation costs, phone bills, and more.
When you take all this into account, you can see that even adding one of these costs into the mix will result in a big loss for you.
Who can sign up for this program?
This program is fully available only for those who come from Canada and the US. If you’re from another country, you may get your application rejected by them. Here is the breakdown of the rest of the process:
You will initially need to pay a $20 fee for them to create a website and give to you. This website will not be owned by you but by Monat itself.
Then you will need to buy one of their ‘starter kits’ which starts from $99, which will bring your total investment to $109 already before you even start to work on bringing in sales.
Finally, there is a threshold of 200 units that you need to reach every month in order to qualify for your commission. This according to them let’s them consider you as an ‘active partner’ in the Monat community.
Think about it, you are already at a massive disadvantage right from the beginning, with the business gaining at your expense.
What’s there to like about this program?
When you look at it, this program is also similar to how an affiliate marketing business works – bringing in commissions by making sales for the business. However, you really can’t classify this as an affiliate business because it has a few elements that are different such as:
- You don’t need to purchase the product first before promoting as an affiliate marketer
- You can promote other products on your site when you’re an affiliate marketer
- You don’t get training or the chance to learn new things because you’re bogged down in one niche and product unlike an affiliate.
- Your website is your own when you are an affiliate marketer.
If you think that being an affiliate marketer sounds better, then you can skip the rest of this and scroll down below to the last section where I explain more about how you can start this business right away.
What’s not to like about this program?
You don’t have your own website
I know I have mentioned this multiple times before, but that is because of how frustrating it is that you are not given your own website for this. This is so risky for you as an affiliate marketer as you can lose everything in a matter of minutes.
Monat will create the website for you under their domain name – Example: www.toby.monatglobal.com.
This shows you that you will never get full access to this website and the way the website link is displayed, has the potential to turn away some customers too as they might not trust it.
The promotion of only their products
As an affiliate, being bogged down with being able to promote only a few products can really limit your potential for making this a viable business for yourself. You need to be able to learn new markets and adapt to them in order to be a success affiliate marketer.
To learn about doing it the right way and the necessary steps you need to take, read through until the end where I will talk about this in more detail.
The need to hire other people all the time
As I mentioned to you earlier, this type of business model works only for the early movers. And the problem with that now is that Monat Global has been operating for quite a long time now. Due to this, there are already so many investors involved in the business and it makes it so much harder for you to recruit new people as they may have already been informed or approached by some other investor to the company.
Paying for your own supply
Don’t you think that any business or job that asks for a payment to join or to do business with them seems kind of shady? In the real world, this kind of thing is usually shunned because people have fallen prey to internet sharks advertising a job, asking for payment and then disappearing. That’s why looking into a service that asks for an upfront payment is usually never a good idea.
Monat Global’s financials
As you may recall, $75 a month (which is the highest average number!) is what is being paid to their current investors. Think of the difference there, $99 to get their starter kit and you make only $75 from it. There is already a loss of $24, not taking into account ANY of the other costs involved. This is definitely not a profit making solution for you.
Problems with the product itself
There have been multiple complaints lodged against Monat’s products with people stating they are getting health complications such as losing hair and balding because they used their products. There are also a lot of bad reviews that you can see online about these products.
Usually, if a product has even a few bad reviews, you will find that promoting these products to people will result in a much lower conversion rate.
So who would benefit from this scheme?
In truth, the only one who would stand to benefit from all of this would be Monat Global. They have created the whole structure in such a way that they will be gaining profits through all the sales, even if they weren’t brought in by the investors.
Right off the bat I would say that I don’t recommend joining this program to anybody. There are too many bad factors to take into account and after reading all of the above you can understand that there is no future there, the earning potential is very low, the way they operate is not entirely legal and their products have a bad reputation that is only going to get worse over time.
And no, I am not saying that Monat is a scam or a pyramid scheme. There are certain elements to it, but Monat has kept itself just out of that water without having to deal with all the bureaucracy. Honestly though, the whole thing is quite a gray area and so I would never recommend anyone to work for this company.
In today’s day and age, there are a ton of gurus selling scams promising you to make millions of dollars overnight without putting in any work and a lot of them are for making money online.
I have tried and reviewed a lot of these garbage programs on my website and in saying that I must admit there are still some programs which are actually worth it and are quite good.
Out of all the legit programs that I have personally seen, one of the best ones I always recommend to almost anyone starting out is Wealthy Affiliate. This is one of the best places to start as a beginner.
It is one of the most comprehensive training out there teaching you almost everything you need to get started making money online. Not only do they teach you everything, but they also provide you with almost all the tools you need. It’s like an all in one platform.
One thing I love about this is that there is really no limit to how much income you can earn and it’s quite simple, requires no experience to get started so anyone can do it.
Guys, I have tried many different legit business models including dropshipping, social media marketing, drop servicing and more!
And to be fair, I have actually lost a lot of money trying out guru courses, training, webinars and things just not working/making any money.
Trust me, while those other businesses are legit and do work, they are a lot more cash-intensive and harder than affiliate marketing.
This here is NOT to brag but, to show you a small chunk of what I make online with affiliate marketing just to show you proof that I have done it.
Quite a few wealthy affiliate members actually earn over 5-figures per month! (That’s crazy, I am not there yet.)
Keep in mind that this is NOT a get rich quick scheme, you will NOT make money by just clicking a button.
This does require work like everything in life worth getting but, it’s worth it because eventually, you can not only work from the comfort of your home earning a full-time income but, start making passive income from this business.
If your looking to get started in a proper legitimate long term business you should definitely look into joining wealthy affiliate. It’s FREE to get started!
Read my comprehensive review on Wealthy Affiliate to basically see if it’s something you want to join or not.
And if you have any questions or concerns, feel free to let me know, I will be more than happy to help you out!