The Monat compensation plan certainly looks generous. But we see another 20% in generation bonuses, which are included in the wholesale price members pay for Monat products. This raises Red Flag 5 - More than 5 levels in the payout plan

To qualify for any payments at all from Monat, you need to remain active. To do this you need to personally buy 200 PV worth of Monat products per month. This is an example of Red Flag 3 - Pay to Play

As we’ve seen Monat raises all 5 flags in Dr Jon Tayolor’s 5 Step MLM evaluation. According to his research, if any mlm raises more than 3 flags, then the chances of members making a profit are less than 1%







How Much are Monat Market Partners Earning

The last page of the Monat compensation plan shows their ‘Statement of Typical Participant Earnings’. Monat appear to have gone out of their way to give us a little information as possible.

They tell us that if you reach the rank of MMB with Monat, then you can expect annual earnings of between $22, and $1,188. Even at the top of that range, Managing Market Builders earn less than $100 per month.

Keep in mind that there is a difference between income and profit. If we were to include expenses, we expect we’d find that most Monat market partners are losing money.

Update

We have recently found a copy and written a separate Monat Income Disclosure review. As we expected only 1 in 909 Monat market partners earns a full time income.







Why is it Difficult to Make Money with Monat

In our opinion the problem is not unique to Monat, , it is with network marketing. MLM is a system which is designed to help the company make sales. It is not designed to offer franchises or create business owners. If you join any MLM, you are a customer not a business partner.

Monat might have one of the best compensation plans in the MLM industry, but that doesn’t mean you can turn a profit with them. Social selling, might sound like a fun new way to operate, but we see some major flaws.

A major problem with all MLMs, is the focus is on recruitment instead of selling. Most of the spending in MLMs, is by members. This means very little money is coming from customers. The result is that we think the only way to make money in Monat, is if people in your downline are losing money.

Another problem with their model of ‘social selling’. It’s true, Facebook and Instagram are a great way to reach a lot of people. Having said that, it also means a lot of other Monat partners are trying to reach the same people. If you hear about Monat from social media, then you can bet that a lot of your contacts are also hearing about it. If you become a market partner, you’ll be in competition with everyone else who is trying to promote Monat to your contacts.







Is Monat an Illegal Pyramid Scheme

Even though MLMs closely resemble pyramids, they are not illegal. The technicalities date back to a 1979 Amway ruling. To the best of our understanding, Amway managed to word their documentation in a way that bypassed the pyramid scheme laws. This opened the doors for other MLMs to do the same.

While the paperwork may make them legal, that doesn’t mean that Monat or any other MLM is ethical. If you join, you have to realize that the only way to make money is if people below you are losing money.

It’s also important to remember that the people above you earn commission when you spend money on MLM products. When they encourage you to keep spending, it could be that they want to keep earning!

We looked at the 2018 FTC Business Guidance for MLMs, which sets out how MLMs are allowed to promote their business opportunities. It turns out that Monat market partners are in breach of the FTC guidelines. When they pressure their downlines to purchase product, or if they make unsubstantiated promises about the earning potential of the opportunity.





Should You Join Monat

If you are still thinking about joining Monat, here is an independent video review which tells you all you need to know: