Tuesday, November 20, 2018

Monat: Innovation and value gone very wrong [Review]

monat

Monat is like the “doterra” of hair products.

They “get it.” They understand that the only way a direct sales company has success is by the value created by their products.

In other words, would anybody buy these if there wasn’t an “opportunity” involved?

For 99% of MLMS, that answer is “no.”

Why would I know?

Well, I’ve studied the space for years and run two of the biggest network blogs in the world.

Monat is on my short list of companies that actually have a product that is innovative and provides market value…

If only they weren’t embroiled in a rash of heavy-hitting lawsuits. Keep reading to learn more.

FAQ

1. What does Monat sell? Monat focuses exclusively on hair care. Product lines include Hydration, Volume, Densify Duo, Stylized, Power Boost, Magnify, Monat Junior, Monat Black, Colour Enhance, Effortless Style, R3, Advanced Hydrating, and Restructuring.

2. What are Monat’s most popular products? The Smoothing Deep Conditioner works on all hair types to nourish, control frizz, and add brilliant shine. The Rejuveniqe Oil Intensive adds 13+ natural plant and essential oils, antioxidants, and nutrients to your scalp and hair for instantly healthier hair and shine.

3. How much does it cost to join Monat? You can join for $99 USD or $125 CAD, with an annual $19.95 renewal fee.

4. Is Monat a scam? No, they’re a legit business that’s been well-regarded in the industry. They’ve been awarded the 2018 Making a Difference Award and the 2017 Journey to Success Award by the DSA of Canada; the 2016 Gold Stevie Award, Silver Stevie Award, and Bronze Stevie Award from the American Business Awards; and the 2016 Silver Stevie Award and Bronze Stevie Award by the Stevie Awards for Women in Business. They’ve also been featured by NBC, ABC, and the Hallmark Channel.

5. What is Monat’s BBB rating? D

6. How long has Monat been in business? Since 2014

7. What is Monat’s revenue? $314 million

8. How many Monat distributors are there? 120,000

9. What lawsuits have been filed? In the first five months of 2018, Monat racked up nine lawsuits. The cases related to misleading marketing about the safety of their products, failure to warn consumers that the products may cause hair loss or damage, and several alleging they operate a pyramid scheme. (That one’s to be expected, right?) [1, 2, 3] Amid all this legal trouble, two women tried to shut down Monat from defending themselves with defamation lawsuits. In April 2018, a federal judge ruled in favor of Monat, giving them freedom to protect themselves from online attackers intent on defaming the company without evidence. [4]

10. Comparable companies: Arbonne, Pure Haven Essentials, Oriflame, Perfectly Posh

They’ve been an impressive company, but the sudden onslaught of lawsuits doesn’t look good.

The truth is, if they weather them, they’ll be stronger than ever, much like Amway and other MLM big names. So should join them?

Not necessarily. There are still better ways for ladies to make “side money” from home.

Business opportunity-wise, there are much better out there.


Click here for my #1 recommendation

(Doterra, Scentsy and Jeunesse are other product-first examples of MLMs that provide value…but the vast majority are overpriced and provide little value to the marketplace.)

Beauty is a crowded space in network marketing. Monat is more of the “up-and-coming” in this category, and definitely has the most “buzz.”

Overview

Monat does everything that most MLMs try to do but fail at miserably.

They are classy and forward-thinking. Their products are naturally based and backed by tons of research. Their home parties are actually sort of fun.

And they’re trendy AF:

Monat was launched just a couple years ago in 2014 by Luis and Rayner Urdaneta. They’re headquartered in Miami, Florida. Monat stands for Modern Nature.

Within just one year of launch, Monat was already pushing $25 million in annual revenue. They hit the ground running fast, and it’s really no wonder.

For starters, brother-son duo Luis and Rayner had already run one very successful direct sales company in the cosmetics niche: L’eudine. They’re a massive ($200+ million in annual revenue) MLM in Latin America that has recently started to expand into the United States.

What’s more, Monat is a subsidiary of parent company Alcora, also founded by Luis. So they already had some massive capital and experience to work with when they finally started up Monat.

By 2016, annual sales for Monat was already at $41 million. All this won them the 2016 Gold Stevie award for Startup of the Year.

How much does Monat cost? Monat has a $99 start-up fee that includes a kit filled with marketing materials and training information.

Products

monat-products

Monat sells naturally-based (vegan and cruelty-free) hair care products at a premium price, and it’s working well for them. Their products are scientifically tested and very popular among their loyal following.

One of the reasons Monat has done so well is that they’ve formulated products that combat specific hair care issues that many people suffer from such as hair loss, aging, dandruff, and thinning/breakage.

Some have reported an itchy scalp at the beginning, but this is part of the repair process. Something must have gone wrong in early 2018, though, because the sores didn’t go away, and some people experienced hair loss or hair damage.

You’ve got products like Head & Shoulders for dandruff, but they’re full of parabens and harmful chemicals. Monat isn’t supposed to have those type of products, so the rash of lawsuits over their harmful ingredients is surprising. We’ll see how whether they can come out on top.

In spite of the bad press, the concept of their hair products remains good.

You’ve heard of anti-aging creams and foundations (see the top cosmetic and skincare MLMs), but have you heard of anti-aging hair care products?

Probably not, because Monat is the first company to develop products that fight hair aging.

Yes, hair ages. According to a study done by the University Hospital of Zurich’s Department of Dermatology and Hair Clinic, aging causes weathering of the hair shaft and aging of the hair follicle. Aside from graying, this also causes your body to decrease its hair production greatly over time, and it causes hair loss.

The primary formula that Monat uses to combat these effects is their Rejuvinique oil, which can be found in most Monat products. It’s composed of a patented blend of 11 different oils that are designed to keep your hair follicles healthy and promote hair growth by restoring your hair’s essential oils and nutrients.

Monat products are made from high-quality botanicals and essential oils, and they don’t contain sulfates, silicone, parabens, harsh fragrances, and other fillers. Unlike most hair products, Monat’s aren’t a short-term fix that will damage your hair with harmful chemicals in the long run.

Their most popular product is their intense care shampoo:

Screen Shot 2018-01-31 at 5.54.33 PM

As well as their intense care conditioner:

Screen Shot 2018-01-31 at 5.53.41 PM

They aren’t cheap, at all. Don’t expect drugstore prices. However, if you compare them to high-end salon products, the pricing is about the same. Most products range from $30-$60. Their Magnify Treatment System, meant to increase volume, comes with a shampoo, conditioner, and mousse for $99.

Compensation Plan

Of course, if you enroll as a distributor, you get pretty generous discounts on these products.

There are 5 ways to earn with Monat:

  1. Sales Commissions
  2. Sponsor & Develop
  3. Builder Bonus
  4. Advancement Bonuses
  5. VIP Customers Sales

Sales commissions range all the way up to 40%, which is very generous.

It’s pretty much as high as it gets in MLM, with the exception of a select few that offer up to 50% commission. You do have to work pretty hard to reach that 40% commission rate though, as it requires you to sell a lot of product on a monthly basis.

Sponsor & Develop is the bread and butter of this plan. This is where you get rewarded for building up a large, successful downline, and it’s where you’ll make most of your money if you do well with Monat. Aside from a $100 fast start bonus and a $150 fast builder bonus, you can also earn up to 12% in unilevel bonuses, 4% in generational bonuses (up to 5 levels deep), and a 5% network bonus.

Builder Bonus is for folks who move up quickly to Silver or Platinum status and help their team members do the same. You can earn a $500 or a $1,000 bonus.

Advancement Bonuses are matching bonuses that you can earn on the achievements of your direct recruits. They range from $150 to $500.

VIP Customers Sales are customers that have signed up for the VIP program, which puts them on a recurring monthly autoship for their favorite products. You’ll earn a 15% commission on their monthly purchases without even lifting a finger.

Recap

Honestly, I think these guys have some great things coming in their future…

If they can weather the lawsuits they’ve been hit with, that is.

They’ve got an innovative product, a pretty decent compensation plan, and solid leadership.

Product-wise: excellent.

Opportunity-wise: great, considering they’re a multi-level marketing company.

I’ve been involved with network marketing for almost ten years so I know what to look for when you consider a new opportunity.

After reviewing 200+ business opportunities and systems out there, here is the one I would recommend:


Click here for my #1 recommendation

 



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