Monat could mostly be defined as a beauty company. They offer a relatively small selection of skincare products, as their main focus is hair products.
Most of the time, beauty companies focus on skincare and cosmetics. Many will offer some hair products too, but the selection tends to be limited. Monat flips the script by offering an extensive collection of hair products.
They also talk about science on their website, highlighting the idea that their formulations are better than competing brands. The claim isn’t unusual, of course, but Monat does present their ideas well at least.
There are some definite advantages to Monat’s product selection. For one thing, beauty products are popular. People tend to turn to them over and over again. They’re consumable too. This can mean that customers come back regularly to buy new items.
Monat does have some unusual items too. They’re not the only company to focus so strongly on hair care, but it’s hardly the most common approach.
Still, these aspects don’t guarantee success with Monat. The company does still follows a multi-level marketing structure, which creates complexities for income.
You would also be trying to make sales in a very competitive industry. People can buy similar hair products locally, such as from a hair salon. Some items can even be found in places like Walmart. Do Monat’s products have what it takes to truly stand out?
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Two Ways To Make Money With Monat
While Monat has some unusual products, their income approaches should look familiar. Distributors can earn by promoting the products and through team building.
Let’s take a look at the two areas and what they mean for overall income.
The products from Monat fall into three general categories, hair, skin, and pet.
The skincare side of Monat is small. The company focuses on skincare routines, which include a combination of different products. The sets aren’t cheap, such as the four-piece Be Gentle Routine, which comes to $278 (at retail price).
Still, this type of pricing isn’t unusual for the industry. Many customers do pay this much regularly for skincare. The trick would be promoting to the right audience. For example, people who buy one container of skincare for $30 are unlikely to be interested in what Monat has to offer.
The haircare side of Monat is much more extensive and goes far beyond just shampoo and conditioner. Some of their many items include a texturizing mist, sculpting taffy and moisture masque.
There are even some products specifically targeted at men, such as beard oil, styling clay, and a combination of aftershave and moisturizer.
While the product selection is perfect for sales, the pricing isn’t as appealing. For example, the shampoo products tend to cost between $32 and $38 for an 8 fl. oz bottle, while conditioner costs somewhere from $42 to $47 for a 6 fl. oz tube.
I know that these products are meant to be very high quality, but still, that’s a lot to pay for shampoo and conditioner. A similar pattern is true for most of the other products from Monat.
VIP prices are lower for all products (a 15% discount on the retail price), which could help a little. However, the discount for VIPs isn’t entirely a good thing. Distributors earn lower commissions from sales to VIP customers.
Monat does also have a small selection of pet products. Well, they have two items. One is their Gentle Cleansing Dog Wash (for $32), while the other is their Freshen Up Deodorizing Spray (for $22).
Beyond product selection, Monat has some other interesting advantages. One is that the company avoids a variety of ingredients that it calls toxic. These include parabens, plastic microbeads, and mineral oil.
At the same time, Monat includes various ingredients that may be beneficial, such as amino acid complex, bamboo stem extract, and murumuru seed butter.
It’s hard to know what this balance of ingredients means in practice but, if nothing else, the overall focus creates a great sales angle.
The products are vegan and cruelty-free as well. Monat has the Leaping Bunny certification to support this claim, which means that products are not tested on animals at any stage of development. Monat even avoids honey and beeswax as ingredients.
Selling Products From Monat
While the products from Monat are fairly unusual and appealing, they would only sell well to the right audience. You would need customers who are able and willing to pay the prices that Monat asks on a regular basis.
If you have the right audience, the next step is sales. Monat distributors earn 30% commission from sales to regular customers and 15% commission from sales to VIP customers.
There is a bonus of $60 for every four new VIPs that you recruit. If you do so outside of your initial SMART Start period (which is your enrollment month + the following two months) then all four enrollments need to be within the same month.
That bonus is the only real incentive for enrolling VIP members and it’s not a very good one. The bonus certainly doesn’t make up for the drop in commission rate from 30% to 15%.
VIP customers get a 15% discount on all of their orders, along with free shipping for Flexship orders of $84 or more. There are other bonuses too, including free products and promotions.
To be a VIP member, customers need to have two Flexship orders, pay a $19.99 enrollment fee, and make an initial enrollment order. Flexship is Monat’s version of autoship. This means that customers are getting the same products on a regular basis.
The VIP requirements are significant, so many customers may not want to commit to the program. The customers who are most likely to join are those who love the products from Monat and purchase them regularly – in other words, your best customers.
This style really sucks. Monat’s system means that you could go from a 30% commission to a 15% commission for some of your most reliable customers. That’s a big drop and 15% is a low commission rate for an MLM.
Thankfully, the commission rate can be increased by making sales. Getting 1,000 in sales volume in a month will give you a 3% bonus. 2,000 in sales provides a 5% bonus instead, while 3,500 in sales gives a 10% bonus.
This brings the maximum commission for regular customers up to 40% and the maximum up to 25% for VIP members. Even then, the gap between regular and VIP customers is not appealing.
Team building with Monat allows you to earn residual commissions from the sales of your team members. The company follows a unilevel plan, which starts out like this:
With a plan like this, Level 1 refers to the people that you recruit directly. Level 2 is their recruits, while Level 3 is the recruits of your Level 2 members and so on.
The percentages here are very good for the industry, especially as distributors can make 7% from their direct recruits from the very first rank. It’s easy to see how the percentages could add up if you had a large enough team that made regular sales.
Of course, getting a team like that takes more effort and skill.
MLM members often find that recruitment is much more difficult than it sounds. You’re trying to get someone to invest time and money into a business. Many potential recruits won’t have the resources to spare. Others may be wary, as they’ve almost certainly heard recruitment pitches from other MLMs in the past.
If you do get recruits, what then?
Getting new team members isn’t enough. These team members need to be good at making sales and recruiting people themselves.
The importance of team member success can be seen from the compensation plan. You need to get to the second rank (Managing Market Partner) to earn from your Level 2 members and the fourth rank (Market Builder) to earn from your Level 4 members.
The second rank requires two active lines, which means you need at least two active recruits in your downline. You also need to be making 300 product volume in personal sales and 1,200 product volume across your entire team.
For that matter, you need 200 product volume in sales to earn from your team at all.
Monat doesn’t provide details about the ratio between volume and sales price. But, the requirements will probably be at least $300 in personal sales and $1,200 in team sales.
This is just the second rank. The requirements increase from there. The requirements get even more complex for the second half of the ranks, which can be seen below.
The overall style means that the highest income potential involves having a team with many different levels. This team needs to be successful at making sales too – every single month.
How achievable is this in practice? You’re likely to find that some of the members of your team compete against you or other members for sales. Some members might drop out over time too, especially if they’re not earning well.
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