Monat Scam: Pyramid Scheme or MLM? [Review]

If you’re looking to make some extra cash online, you may have heard about Monat. But with so many scams out there, it’s natural to wonder if Monat is legitimate or just another pyramid scheme.

Chances are, you first heard about Monat from a friend or family member who is already involved in the program. And if you’re like most people, you’re probably eager to explore any potential income-generating opportunity.

As an online entrepreneur, I’ve spent years reviewing hundreds of similar programs like Monat. And now, I’m here to share my findings with you.

Before we dive in, I want to make it clear that I have no affiliation with Monat. I’m not being paid to write this review, so you can trust that everything you read here is honest and unbiased.

So, without further ado, let’s take a closer look at Monat and see if it’s worth your time and effort. And at the end of this review, I’ll even share the best alternative to Monat that has helped me make a full-time passive income online.

What is Monat?

Monat is a hair care company that specializes in treating hair loss, hair damage, and scalp irritation, as well as providing other beauty products. The company operates on a network marketing business model, which means you can either sell Monat’s products directly or recruit others to become market partners and earn commissions.

Founded by the Urdaneta family in 2014, Monat Global Corp is based in Doral, FL. Since its inception, the company has grown its sales force and operations to cover the United States, Canada, and the European Union.

If you’re interested in trying out Monat’s products, you can purchase them directly from a market partner or sign up to become one yourself. As a market partner, you’ll have the opportunity to earn commissions on your sales and the sales of the people you recruit to sell Monat’s products.

Overall, Monat offers a unique approach to hair care through its network marketing business model. Whether you’re looking to try out new hair products or start a business selling them, Monat may be worth exploring further.

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What Products Does Monat Offer?

Monat offers a wide range of products that can help you achieve healthier hair and skin.

But wait, there’s more! Monat also invites you to join their sales team so you can help others discover these amazing products. You can sell them to your friends and family and earn some extra cash on the side.

Monat boasts of its products’ ability to help you maintain a healthy hair and skincare routine. Whether you’re looking for a new shampoo and conditioner or want to try out some new skin care products, Monat has got you covered.

So what are you waiting for? Check out Monat’s product line today and see how you can benefit from using them and selling them to others!

Monat Products: Are They Worth the Hype?

When you’re in business, it’s essential to provide exceptional goods and services, particularly when you’re selling physical products. After all, it’s challenging to convince potential customers to buy from you if you don’t offer high-quality items.

However, Monat, a company that sells hair and skincare products, has been hit with five class action lawsuits since February. Some customers have accused Monat 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.

Given these complaints, it’s reasonable to question whether Monat products are worth their price tag. If you’re considering starting a business with them, these concerns should give you pause. It’s essential to thoroughly research a company and its products before making any investment, and Monat is no exception.

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Is Monat an MLM?

Yes, Monat is an MLM. If you’re not familiar with MLMs, they are direct sales companies where you make money by recruiting others to join your business rather than selling products.

Unlike traditional business models, MLMs don’t pay you a salary. Instead, you earn commissions on the sales and recruits brought in by the people in your downline. And the more people you recruit, the more money you can potentially make.

For example, if you recruit ten people and each of them recruit ten more, and so on, you’ll receive commissions from everyone in your downline. And in Monat, you can earn up to $1100 by recruiting just 10 people.

While MLMs like Monat may offer a range of products, most people focus on recruiting others because they can earn a lifetime passive income from their downline. And the people at the top of the triangle make the most money, while those at the bottom make the least.

You may also want to read our article on the top MLM companies.

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Is Monat A Pyramid Scheme?

No, Monat is not a pyramid scheme. Unlike pyramid schemes, which rely on recruiting new members to make money, Monat allows its members to earn income through the sale of their products.

Pyramid schemes are unsustainable and often fraudulent, with members losing money as the number of recruits increases. In a pyramid scheme, members must pay a fee to an organization, which then rewards them with a portion of the funds raised from each additional member they recruit. The directors of the organization receive a portion of these payments, while the majority of participants at the bottom of the pyramid lose money.

In contrast, Monat allows members to make money through the sale of their hair care products. While recruiting new members is a possibility, it is not the primary way to earn income. Monat’s products are of high quality and have a good reputation, making them a valuable item to sell.

In summary, Monat is not a pyramid scheme. The company’s business model is based on the sale of quality hair care products, rather than the recruitment of new members. While recruiting new members is possible, it is not the main source of income for members.

You may read our article on the difference between MLM and pyramid schemes here.

Watch the short video below to learn more:

Monat’s Compensation Plan

Monat is a multi-level marketing company that focuses on hair and skincare products. As a distributor, you will be responsible for selling their products and signing up people for retainer plans. However, unlike traditional jobs that pay an hourly rate, you will be paid based on the sales you make.

Making Money Through Sales

To make money with Monat, you need to have interested customers who purchase their products. As a distributor, your job is to direct customers to the products that best suit their needs. However, keep in mind that as a middleman, you will only receive a portion of Monat’s profits, as the company receives the majority.

Making Money by Building a Team

Another way to make money with Monat is by building a team. You can earn a small percentage of revenue generated by each salesperson you recruit. The brand adheres to a standard team structure and follows a “Leveraged Revenue Sharing” phase where your marketing team can earn rewards from up to six levels higher.

While the compensation plan may seem impressive at first glance, it is important to note that advancing in the business requires a large number of employees. Additionally, it can be difficult to sell expensive health and wellness products, making it challenging to recruit new consultants.

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How Much Does It Cost To Join Monat?

Monat offers different membership tiers for individuals who want to become a Market Partner. Depending on the level of membership you choose, you can receive more products each month that you can use for yourself or show to potential customers.

The membership fee starts at $99 and can go up to $649. It’s important to note that most of these memberships will automatically renew each month and deliver new products to you, so make sure you understand the terms before signing up.

It’s also worth mentioning that some customers have complained to the Better Business Bureau about not realizing they were signing up for future shipments when they first joined. So, if you decide to become a Market Partner, be sure to read the fine print and understand the terms of your membership.

Additionally, some complaints noted that refunds can take up to three months to process after requesting one. Keep this in mind if you decide to purchase products or become a Market Partner.

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Reasons Why I Don’t Recommend Joining Monat MLM

If you’re considering joining Monat MLM, you might want to read this first. Here are some reasons why joining Monat may not be the best decision for you.

Biased Reviews

The good reviews of Monat that you may find online are often written by the company’s affiliates. As such, they are biased and not entirely trustworthy. It’s better to read reviews written by non-affiliates to get a more objective opinion.

Difficult to Make Money

Making money with Monat is not easy. MLMs have sales quotas that require members to keep selling products to remain eligible for commissions. Most members lose money before even recruiting one person into the company.

Reframing Losses as Investments

Monat uplines often reframe financial losses as investments to keep reps in the MLM scheme, but these “investments” are unlikely to yield any return.

Cult-like Company Culture

MLMs like Monat have a cult-like company culture that discourages critical thinking and encourages isolation from those who question involvement. Leaving an MLM may result in being labeled as a failure or bad influence.

Overpriced Products

Monat’s products are overpriced compared to similar products from other brands. This may make it difficult to sell them, as prospects can find similar products elsewhere at a much lower price.

Exaggerated Income Claims

Monat, like any other MLM company, makes exaggerated income claims that are often not achievable by most people who join.

Recruiting is Required to Succeed

Recruiting is required to succeed in Monat, and most of the ways to earn money with Monat require recruiting. This may not be appealing to everyone.

Monat Faces Lawsuits Involving Multiple Class Actions

Since February 2018, Monat has faced multiple class action lawsuits alleging damages caused by their hair care products. Customers have expressed dissatisfaction, with many complaining about hair loss and scalp irritation.

Refund Periods Are Too Long

Former Market Partners have reported being denied refunds, and refunds for eligible customers can take several months.

Monat Products Have Many Bad Reviews

Monat’s products have received numerous negative reviews, with customers reporting hair loss and scalp irritation. Distributors are also dissatisfied with the quality of the products.

Monat Products are Not FDA-Approved

Monat does not have FDA-approved products, which should be a concern for buyers, partners, and distributors.

Cancellation Of Monat Membership Is Difficult

Market Partners find it difficult to cancel their memberships and may face recurring fees and unwanted auto-ship deliveries.

Monat Has a Structure Of Pay-To-Play

Market Partners must make a personal order of 200 PV per month, which can eat into their profits, even if there are no sales to earn commissions on.

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Is Monat a Scam?

Monat is not legally considered a scam. According to the Oxford Living Dictionary, a scam is defined as “a dishonest scheme; a fraud.” However, it’s important to note that while Monat may not be a scam, it’s also not a guaranteed way to make money.

Many Monat representatives have not earned any money, and those who have made money put in a lot of effort. They often do so by aggressively recruiting new members. In addition, Monat has been known to make disingenuous and irresponsible marketing claims to attract new recruits.

While Monat may not be a scam, some people do consider it to be one because of these factors. However, if you’re looking for a platform that has helped beginners earn four figures a month within a year, I highly recommend checking out my #1 recommended platform.

At the end of this review, I’ll share more details about this platform and why it could be the perfect fit for you.

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Final Verdict

It’s time to wrap up my Monat review and give you my honest opinion. After much consideration, I wouldn’t recommend joining Monat to make money. It’s tough to start, and you’ll have to go through the trouble of trying to recruit people to add to your commission. Even worse, you might feel forced to ask your family and friends to join, and that’s not exactly enjoyable.

The pressure to succeed is always present, and your upline will keep reminding you to buy more Business Support Material, which can be challenging when you’re struggling to find people to join your downline. Unfortunately, the numbers confirm that most people lose money or break even when they join an MLM-type business. According to a case study on the FTC’s website, 99% of people who join MLMs lose money.

That being said, I understand the desire to make money and have a flexible schedule, which is why I suggest starting your own online business instead. You can choose what you want to promote, rather than someone telling you what you have to promote. In the next section, I’ll explain how you can build a legit online business to make passive income that’s both sustainable and profitable.

Starting an online business has been a game-changer for me, and I’ve been able to make a full-time income in just one year. Unlike MLM models, it’s 100% legitimate and sustainable. So, if you’re looking for an alternative to MLMs, keep reading to find out how to build a legit online business that can help you achieve financial freedom.

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Is There a Better Way to Make Money Online?

If you’re starting your online business journey, you’re probably wondering which platform to use. Let me tell you, Monat is not the way to go. Instead, I want to introduce you to my top pick: Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform that can help you build your affiliate marketing business from scratch. It provides you with top-notch web hosting services, keyword research tools, community support, comprehensive training, writing tools, and other software to help you create your online business step-by-step.

The best part? You can register for a free account with Wealthy Affiliate and start your affiliate marketing journey without spending a dime. If you like the platform, you can upgrade to the premium membership to access everything Wealthy Affiliate has to offer. And there are no upsells afterwards.

You may read our article about the difference between MLM and affiliate marketing.

Now, you might be wondering how much money you can make with Wealthy Affiliate. Well, let me tell you about a 21-year-old student who earned $7,395 in just one week using what he learned in Wealthy Affiliate. That’s over $1,000 a day!

You can read our full review of Wealthy Affiliate here.

Wealthy Affiliate Testimonial

Wealthy Affiliate has been around for 15 years and has more than a million members. So, it’s safe to say that it’s a popular and established platform. Plus, there are plenty of inspiring success stories from Wealthy Affiliate members.

If you’re interested in joining Wealthy Affiliate, it’s easy to get started. The pricing scheme is straightforward: there’s a free membership and a premium membership for $49 per month or $395 per year.

As a starter member, you can enjoy instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, and access to the keyword tool. And you won’t have to pay a penny for all these benefits.

So, I highly recommend that you register for a free account and check out Wealthy Affiliate for yourself. You’ve got nothing to lose and a lot to gain.

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