Is Monat a Scam Pyramid Scheme? Truth Exposed!

Are you looking for a Monat MLM review? Is Monat a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.

There is a good chance that you heard about Monat MLM through someone – a friend or family member.

Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through Monat MLM.

I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like Monat MLM.

To help you make a more informed decision, I have thoroughly researched the Monat MLM so I can tell you more about it.

As a disclaimer, I’m not affiliated with Monat MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.

At the end of this review, I’ll also tell you the best alternative to Monat MLM that has enabled me to make a full-time passive income online.

Monat MLM Review – Key Takeaways

  • Name: Monat MLM
  • Pros: MLM opportunity to make money
  • Cons: Monat MLM has a bad reputation; poor product quality; low success rate
  • Overall Rating: 1/5
  • Who is Monat MLM For: Monat MLM is supposed for marketers to make money. But you are unlikely to make a penny because of the MLM nature and you may end up losing a lot of money.
  • The Best Alternative: An All-in-One Platform to Make Passive Income Online

In this Monat MLM review, I’m going to cover the following:

What is Monat MLM?

Monat, a Doral, FL-based hair care company, sells its products through a network marketing business model. The Urdaneta family founded the company in 2014, and it has since expanded its sales force and operations to cover the United States, Canada, and the European Union.

Monat Global Corp is a Multi Level Marketing (MLM) company that sells hair products to treat hair loss, hair damage, and scalp irritation, as well as other beauty products.

You can sell the company’s products or recruit others to become market partners for the company’s products.

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What Products Does Monat Offer?

Monat provides hair and skin care products to people who want to improve the health of their hair and skin.

They invite you to join their sales team in order to sell more products to your friends and family.

Monat claims that their products will help you maintain a healthy hair and skincare routine.

Do Monat’s Products Deserve Their Price Tag?

When running a business, especially one that sells physical goods, it is critical that the goods and services provided by the company are exceptional.

This should go without saying. It will be difficult to persuade potential customers to buy from you if you do not have high-quality products, right?

Since February, five class action lawsuits have been filed against Monat. Monat has been accused by some customers of causing hair loss, itchy and burning scalps, and severe allergic reactions. 

In the last year, the Better Business Bureau received 552 complaints about the company’s products and MLM business opportunity.

Overall, I believe the numerous complaints about Monet products should give you pause if you’re thinking about starting a business with them.

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What is MLM?

Before we get into Monat MLM, I’d like to explain what MLM is and how it differs from traditional business models.

Multilevel marketing companies are also known as direct sales companies or network marketing companies.

An MLM company does not pay you a salary.

You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.

There are several levels to this (hence multi-level).

Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).

You can earn $1100 by recruiting 10 people.

Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.

People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.

The ultimate goal of someone who works for a company like Monat MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.

Is Monat A Pyramid Scheme?

A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.

A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.

Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.

The directors of the organization receive a portion of these payments (those at the top of the pyramid).

The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.

Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.

Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.

The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.

Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.

People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.

Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.

Is Monat, then, a pyramid scheme?

No. Monat does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.

They don’t have to make money solely through recruitment.

Watch the short video below to learn more:

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What is the Monat MLM’s Compensation Plan?

You must sell the product as a “distributor” for Monat. You are in charge of signing up people on a retainer basis for one of Monat’s product lines.

Following that, you will be in charge of the entire distribution process. Because you are paid based on sales rather than an hourly rate, your qualified leads must be at least interested in their products.

The disadvantage of working for Monat is that none of the legwork associated with traditional network marketing is eliminated.

Product inventory must be stored, shipping must be automated, transactions must be closed, and payments must be processed.

Here are some of the ways you can profit from the company:

You Can Make Money Through Sales

When it comes to products, MLM companies tend to follow trends. When it comes to makeup or skincare, it’s always the same products from different companies. The same is true for Monat.

Instead of breaking the mold, this company appears to be following a successful roadmap by focusing on hair and skincare.

Monat distributors are essentially middlemen. Customers are simply directed to products that appear to be the best fit for them.

Finally, the more groups there are in a supply chain, the lower the profit margin for those at the bottom.

At first glance, Monat’s income structure appears to be impressive. It distributes 30% of its profits to its distributors.

However, you will only receive a portion of Monat’s profits. Monat receives the majority of the profit.

There’s one more hurdle to clear. Monat market partners are only compensated when they sell products to others. In other words, if they have a few clients but not enough to qualify for a bonus, they will not receive credit if they buy their own products to meet the requirement.

The average commission for these types of multi-level marketing companies is 30%, but very few people make money by working for them.

According to the FTC, 99 percent of MLM entrepreneurs only make a profit. Sadly, many people lose money in MLMs.

You Can Make Money By Building A Team

Monat Global gives you a small percentage of the revenue generated by each salesperson you recruit as part of their team-building strategy.

You’ll make some money no matter how cheap the product is. Even if you sold the products yourself, you wouldn’t get anywhere near 30%.

You can earn a small percentage of direct recruits’ earnings, but keep in mind that this is still based on their earnings.

The sales are expected to vary greatly from sale to sale, making it difficult to describe the situation.

The “Leveraged Revenue Sharing” phase follows. During this stage, your marketing team can earn rewards from up to six levels higher. Despite the absence of conventional terminology, the brand adheres to a standard team structure.

Although the percentages appear to be reasonable, if you want to advance in the business, you will need a large number of employees. You should be aware that due to the difficulty of selling expensive health and wellness products, recruiting five new consultants may be difficult.

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17 Reasons Why I Don’t Recommend Monat MLM

1. The Good Reviews are Written by Monat MLM’s Affiliates

You probably have found some other reviews of Monat MLM and all of them are saying good words.

But all of them are actually paid to write, meaning they will receive a commission if you join Monat MLM via their links. Therefore, their words are often biased and not trustworthy.

Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.

By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!

Therefore, I recommend reading the reviews of those written by the non-affiliates of Monat MLM.

2. Very Few People Can Make Money With Monat

Success is difficult to achieve with an MLM company like Monat.

You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.

The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.

They will not be paid if they do not meet the quota.

As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.

3. Losses From Monat MLM Are Reframed As Investments

Monat MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom. 

But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.

4. Monat MLM is a Cult

Why do people continue to work for Monat if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.

Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.

MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.

Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.

Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.

MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.

5. You May Need to Purchase Monat Products Yourself

If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.

I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like Monat. That’s why in the long term, you are going to lose a lot of money, not to mention making money.

6. Monat Products are Overpriced

As with other MLMs, Monat offers overpriced products. There are many other brands that offer similar products but at lower prices.

Therefore, you may find it difficult to sell Monat products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.

7. Monat’s MLM Business Model Has a Bad Reputation

Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.

MLM like Monat is fundamentally flawed. The distribution of commissions is skewed toward the top.

The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.

As a result, many people do not consider Monat to be a legitimate business opportunity.

8. Exaggerated Claims Of Income

Monat, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting Monat.

Monat’s low retention rate can also be discouraging, as less than 41% of its distributors are active.

According to Monat’s payouts to distributors, over 99 percent of Monat distributors never make a profit.

9. Monat Is Like A Pyramid Scheme In Disguise

If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.

Every system that requires you to recruit people in order to make money eventually looks like this.

Monat is not a pyramid scheme in the traditional sense because you can earn money by selling their products.

However, in order to make a living, you will need to hire others in reality.

10. Recruiting is Required to Succeed

I don’t recommend MLMs to people for this reason. MLMs like Monat put a lot of effort into recruiting. Eight out of ten ways to earn money with Monat require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.

My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this Monat review.

11. Monat Faces Lawsuits Involving Multiple Class Actions

Since February 2018, the company has been the subject of five class action lawsuits for alleged damages caused by its hair care products.

Customers have repeatedly expressed their dissatisfaction. On websites such as the Better Business Bureau and YouTube, there are numerous complaints about Monat products.

There are a lot of problems, and they have the most of any hair product I’ve seen so far. The worst thing you can do is use a product that is supposed to help but actually worsens your hair problems.

12. Monat Receives Market partners’ Complaints

The number of complaints received from people claiming to be Market Partners is roughly equal to the number of complaints received from those who use their products.

Many of these complaints center on how difficult it is to contact support in order to cancel their memberships after deciding that this business opportunity is not for them.

13. Refund Periods Are Too Long

According to Monat MLM reviews, getting a refund if you are dissatisfied with the products can be difficult.

Former Market Partners have complained that they were denied refunds when they requested them. Refunds for those who are eligible are sometimes delayed by several months.

14. Monat Products Have Many Bad Reviews

Monat claims to have the most effective products, but their products have received a lot of criticism.

People have reported losing hair, which has resulted in baldness, experiencing scalp irritation, and even suffering injuries. Customers aren’t the only ones who are dissatisfied; distributors are as well.

No matter what business market you’re in, the quality of your product is important if you want a customer to buy it. Monat’s products have received numerous negative reviews regarding their quality, which is critical to the company’s success.

After reading the reviews, you may be wondering how this is not considered a scam and why the FTC has not shut them down.

15. Monat Products are Not FDA-Approved

They do not have FDA-approved products, as do the majority of MLM companies. Many organic products are not approved by the FDA. MONAT Global, on the other hand, appears to be following FDA regulations.

Because there are numerous issues here, this should be a concern for buyers, Monat partners, and distributors. This type of opportunity has the potential for growth.

MONAT users have reported feeling itchy and having sores on their scalp the first time they used it.

It is rumored that Monat is attempting to delete and conceal comments about hair loss and scalp irritation caused by their hair care products.

Instead of attempting to block and conceal these reviews about their products, they should warn their customers about the risks of significant hair loss and scalp irritation.

When their MONAT Global representative was informed of the issues, he responded that it was all part of the detox process.

But the sores obviously worsened, and their hair began to fall out.

The company never decided to stop marketing the hair care treatments. Instead, they simply allowed people to use them as they saw fit.

16. Cancellation Of Monat Membership Is Difficult

Market Partners frequently find it difficult to cancel their memberships after deciding to stop selling Monat.

You may be charged recurring fees and receive unwanted auto-ship deliveries.

17. Monat Has a Structure Of Pay-To-Play

Keeping up with Monat can be costly because the company requires 200 PV orders per month from its Market Partners.

Making that monthly order eats into their profits. Even if there are no sales to earn commissions on, the Market Partner must place a personal order to remain active.

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How Much Does It Cost To Join Monat MLM?

You have the option of signing up for multiple tiers as a Market Partner.

When you join the company at a higher membership level, you can receive more products each month that you can use for yourself or as demonstration products with potential customers.

The membership starts at $99 and can go up to $649. The majority of these memberships will automatically renew each month and deliver new products to you.

Furthermore, several of the complaints filed with the Better Business Bureau were the result of Market Partners not realizing they were signing up for future shipments when they first joined.

Some of the complaints also stated that it could take up to three months to receive a refund after requesting one.

Is Monat MLM a Scam?

I cannot say Monat MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary. 

Can you make money selling Monat products? We already know that a majority of Monat reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from Monat is by recruiting aggressively.

Also, Monat blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider Monat MLM a scam.

My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.

I will tell more about my #1 recommended platform at the end of this review.

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Final Verdict: Monat MLM Review

Here comes the conclusion of my Monat MLM review. Overall, I don’t recommend joining Monat MLM to make money.

You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your Monat commission.

The worst part is that you practically have to ask your family and friends to join your Monat business opportunity. It’s not fun.

Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.

The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.

People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave. 

Why not consider starting your own online business if you want to earn money and have a flexible schedule? 

Thus, you can choose what you want to promote rather than having someone tell you what you must promote.

Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.

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The Best Alternative of Monat MLM To Make Passive Income Online

If you’re beginning your online business journey, you deserve a programme much better than Monat MLM.

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If you like the platform, you can then upgrade to the premium membership to get access to everything on the platform. There are no upsells afterwards.

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A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while applying what is taught inside Wealthy Affiliate.

Monat MLM Review

Compared with Authority Hacker, Wealthy Affiliate has a much longer history, which has been established for 15 years and there are many success stories in the past decade. Actually, Wealthy Affiliate has more than a million members so far, so you can see how popular this platform is.

To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

Where to Join Wealthy Affiliate?

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