Beware of Monat – Review

Last month, Monat said it was going to start up in Australia. So, sort of.

Between October 1 and October 30, Australian Monat affiliates can sign up to work for the company. Retail sales don’t start till November 1st.

The problem is that Monat is only keeping track of and paying for sales made after October 1. That’s the volume of affiliates who were recruited.

A reader told me about an Instagram story by The MLM Boss Babe from October 3.

In the short collection of clips, the MLM Boss Babe talks about a new Monat affiliate who racked up four times in her first hour of joining.

BehindMLM’s review of Monat says that Market Builder is in fourth place.

Market Builder needs 500 PV (which you have to buy yourself since retail isn’t an option), four 200 PV affiliates (which you also have to buy yourself since retail isn’t an option), and 4000 GV in total downline sales volume.

The MLM Boss Babe says that the affiliate has reached the fifth rank, Managing Market Builder, which raises the monthly sales volume requirement to 7000 GV.

Even if this affiliate had 10-15 planned recruits lined up, that’s still a lot of inventory loading to rank qualify.

Even so, it’s clear that this wasn’t done naturally in an hour. There must have been some planning.

The ads, which were taken from another Instagram account, don’t say that, of course.

On its own, this could be a violation of the FTC Act because it is misleading advertising.

The MLM Boss Babe says that when a third party called the affiliate in question to ask how she was doing, she got a defensive voicemail and was blocked. This seems to be because of the possible legal consequences.

When someone responds to your very public advertising of an MLM opportunity, it doesn’t look good.

I found out about the Asia Pacific Pool when I looked around. It was part of Monat’s launch in Australia.

The Asia Pacific Pool is made up of 1% of how much Monat sells in the Asia Pacific region.

This includes the number of affiliate purchases.

As per Alina Rekshta’s video;

[10:34] Every time Monat moves into a new country, the first people to join the company can earn up to three profit shares in the company.

[10:51] So, between October 1 and October 31, anyone who joins the company as a market partner with a product pack can earn up to two profit shares in the company.

[11:05] When the company began in the United States, the first founder’s shares were worth about $50 each.

Now, after six years, they’re worth more than $500 per share.

So, if one share is worth $10,000, two shares will be worth $20,000.

Every three months, or quarterly, the founder gets paid for his or her shares. It’s a nice bonus.

[12:02] So, to get those founder’s shares, you need to get to the rank of Market Manager within a year of signing up.

A Monat affiliate must reach the highest rank, Senior Executive Director, to get three founder’s shares from the Asia Pacific pool.

The 2020 Income Disclosure Statement for Monat says that only 0.01% of active affiliates are Senior Executive Directors.

In 2020, Senior Executive Directors made an average of $1.08 million per year.

Monat’s Asia Pacific Pool is not a problem in and of itself. Affiliates may be breaking the FTC Act if they get shares based on how many other affiliates they bring in.

If the only way for a Monat affiliate to move up in the ranks is to buy a product and recruit other affiliates who do the same, and if moving up in the ranks lets them unlock shares, which are then paid on the sales volume of mostly recruited affiliates, Alina Rekshta’s pitch sounds more like a Ponzi scheme.

It’s not Rekshta’s fault; that’s just how Monat set up their launch in Australia.

This brings us back to the general launch of Monat in Australia. Monat is building the base for a pyramid scheme by not selling anything for a month.

If the business starts out focusing only on hiring people, there’s not much chance that will change by November.

Even though retail volume requirements should be part of Monat’s qualification criteria for commissions in the current regulatory environment (ranks).

Anyway, the FTC and maybe the SEC in the U.S. should look into this.

If someone in Australia tells you about Monat, the first question you should ask your potential upline is:

How many retail customers do they have right now? And how much retail sales do they make each month compared to how much they spend on PV?
The answer to the first question should be a number that makes sense for their position.

If we use the “4x rank” example from Instagram, you need at least 260 PV in retail volume each month to meet the 500 PV per month requirement. 300 PV if you want to be careful.

For the second question, an answer that works is any retail PV amount that is less than what the affiliate spends each month.

Unfortunately, none of these work during the first month that Monat is available in Australia because retail isn’t possible.

You can’t start a retail-focused MLM opportunity by opening the doors to recruitment and paying for recruitment without making retail sales.

It’s how a pyramid scheme would be built in a new market.

On October 7, Monat said it was seven years old:

Their move to Australia is a clear case of “you should know better.” Or they don’t give a damn.

Change, March 2, 2022 – There seems to be a limit on how many Instagram stories you can have. When this limit is reached, links to stories that used to work stop working.

There used to be a link to The MLM Boss Babe’s Instagram story in this article. But, as of February 2022, the link no longer works.

So, I’ve taken down the link that used to work in the article.

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