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Monat MLM Review (2024 Update): Is Monat A Pyramid Scheme?

By: JosiahSep 27, 2023Network Marketing
Monat MLM Review ([year] Update): Is Monat A Pyramid Scheme?

MONAT Global Corp is an MLM (multi-level marketing) company that sells hair products for hair loss, hair damage and scalp irritation along with many other beauty products. They offer you the opportunity to become a "Monat Market Partner" to make some money selling their haircare and skincare products.

DISCLAIMER:

This Monat review has been thoroughly researched with information and testimonials that are available to anyone in the public. Any conclusions drawn by myself are opinions.

PROS
  • Some people swear by it
  • Possible to make some money
CONS
  • You have to recruit people to make money
  • Numerous lawsuits about the quality of products
  • Poorly made product and extremely high priced

Why Listen To Us

My name is Josiah, and this is my Dad, Joel.why listen us

Together, we make up the team here at Scamrisk.

If you’ll let me bother you for two minutes, I’d like to quickly explain why I’m even here writing this review.

In early 2020, I had just graduated from college & had no real career prospects.

I knew I was destined for something more, but I had no clue how I was going to make it happen.

I had this sinking feeling in my gut all the time… like the “big man upstairs” had accidentally given me the version of life where I’d be mediocre forever, instead of the one where I was, ya know – happy & fulfilled.

Anyway…

I had fiddled around with some different online businesses in college:

Some random MLMs, a bit of affiliate marketing, a (failed) dropshipping store or two, all the usual suspects.

Even my dad had been involved in MLMs back in the day… selling knives & other random nonsense people (probably) didn’t need.

All I really wanted was to find something that was going to actually work for me.

Maybe those things had worked for others, but for me it all turned up a fat “0” in the bank account department.

So I searched! And searched… and searched… and searched…

And eventually, I somehow stumbled upon a program that promised to help me build an income online (read about it here if you’re curious).

I didn’t really want to be “rich”.

The thought of making a reliable $5K per month & not having to worry about clocking in to a 9-to-5 ever again was all I needed.

Sure, there were people in the program doing high-6 and low-7 figures per year… but that wasn’t what I was out for.

I just wanted to provide freedom for myself, and if I was lucky, take my family along for the ride.

Fast forward a few days and a few phone calls & I was enrolled!

Here’s the first “money making website” I put up:

why listen us gif

I built that site in 2020, and it still makes me $1,500 per month. It’s a basic 5 page website I built based on a template the program provides.

The best part to me? My dad and I get to do it all together!

So between the:

  1. Ease of reaching $5-$10K per month in income online

  2. Straightforward-ness of the system to do it

  3. Fact that I get to do it w/ my family

Is why I recommend local lead generation as my #1 business model for making money online.

Sure, it takes some work and dedication – but anyone that tells you that there’s a business out there that requires no work is selling you a lemon.

I’m not saying you need to sign up for the same program I did, but I would definitely recommend giving the business model a peek!

Chances are you heard about Monat because someone - a friend or family member - introduced you to the company. Maybe you attended an online workshop or webinar, or maybe an in-person information session.

Your head’s probably spinning. This might be the first time you’ve heard about a real way to make money outside of a typical job.

So first off, congratulations!

You’ve just entered a whole new world...the world of making money on your own terms.

However, you came in through the wrong door.

Because Monat is - plain and simple - an MLM. Throw whatever fancy name you want on it...multi-level marketing (MLM), network marketing (NWM), direct sales, or anything else, it’s the same concept:

You pay some money upfront for the “opportunity” to sell products.

The products are typically low-quality but with high price tags (because fancy labels and stuff).

You’re told that the key to building your own successful business is selling these products to friends and family, and getting them on a subscription (so you get “monthly recurring revenue”).

Unfortunately, like most people who get taken in by these types of schemes, you’ll quickly discover that the well runs dry faster than you imagined.

After all, they make it sound really simple. “Just get 5 people you know onto this magic widget, and things will just grow from there.”

And in your head, you think “How hard can it be? I know plenty of people, 5 will be easy.”

But then you do it, and you realize people look at you like you’ve joined a cult. You’ve become “that person”, who joined an MLM, and is now trying to sell questionable products or services to everyone they meet.

It puts a strain on your relationships, and you end up stuck between two worlds.

But it’s not your fault. These companies spend millions of dollars each year figuring out exactly how to brainwash and recruit people. And that’s why we’re here.

To help you find a better way before it’s too late.

So, what if there was a way you could build a passive income stream that’s actually passive?

An income stream that doesn’t require:

  • Inventory
  • Selling to friends and family
  • Selling to strangers
  • Recruiting people
  • Dealing with questionable products that weigh on your conscience

An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000)?

An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day chasing, selling, or managing anything?

If that sounds like something you’d be interested in, check out Digital Leasing. 

TESTIMONIAL - Still Getting Paid

This is nothing like MLM, and that’s probably a good thing.

However, if you’d still like to know more about Monat, keep reading.

What Is Monat MLM?

What Is Monat MLM

Monat provides hair and skincare products that help people who are interested in making their hair cleaner and skin healthier. They offer the ability for you to join their sales team as a “distributor” selling products to your friends and family.

The goal of Monat products is that you as the customer can establish healthy hair and skincare routines with their products, according to their website.

Basically, they are another cosmetics MLM, and share many similar aspects to the others I’m sure you’ve ran into at this point.

But are they any different? 

Who Owns Monat?

Monat Global Market Partners

Monat was co-founded by the father-son duo of Luis and Rayner Urdaneta.

Luis, the father, was the pioneer of the family. He launched an MLM organization that did well in Latin America, and decided it would be a good idea to get his son in on the family business.

Luis and Rayner have turned Monat into a worldwide brand that has seen measurable success within the MLM world.

What's Inside Monat?

Is Monat A Network Marketing Company

Monat claims to offer quality products for all sorts of cosmetics needs.

They call their sales representatives “independent business owners or Monat Market Partners” but at the end of the day again, that’s just a fancy name for sales rep.

You can make money selling their products, but really you will be incentivized to make most of your income from recruiting family and friends.

Can You Generate Reliable Income With Monat?

Monat Rank Advancement Bonus

Monat could be a sustainable way to make money. The unique hair products could be a benefit, but it could also be a drawback.

After all, people want distributors to sell trendy products. Not age old, more expensive, hair and skincare products.

The downline is another thing.

Your revenue is very reliant on your downline, which is a problem for any MLM. This means that your earnings (and rank) will fluctuate depending on how well others do. That is, in most peoples opinion, one of the worst aspects of an MLM. It means that you will never have complete control of your income.

The Monat Compensation Plan

The Monat Compensation Plan

You are required to sell as a “distributor” for Monat. Your customers will have to give you money for the products, otherwise you will find yourself losing money.

You’re responsible for getting people to sign up for products on retainer from one of Monat's product lines. From there, you manage the whole distribution operation. Since you get paid for sales and not hourly, your qualified leads must be, at the very least, interested in learning about their products seriously.

Therefore, working for Monat does not eliminate any of the legwork associated with traditional network marketing unfortunately. You will need space for product inventory to keep on hand, auto-ship, closing transactions, and payment processing.

Here are the ways you can earn money from the company:

Make Money From Sales

Monat Make Money From Sales

When it comes to products, MLMs have a tendency to follow trends. When it comes to makeup or skincare, you’ll always find the same products from different companies. 

Monat seems to be just the same. It appears that this company isn't attempting to break the mold by concentrating on innovative hair and skincare, but instead following the proven roadmap.

Monat distributors actually serve as a type of middleman. Customers are simply referred to the products which seem to be the right fit for them.

There’s nothing wrong with that concept, but it may limit your earning ability. After all, the more groups there are in a supply chain, the lower the profit margin for those in the lower rank.

At first sight, Monat’s income structure seems to be great. They divide commissions so that distributors receive 30% of the sale.

You’re also only getting a cut of Monat’s profit. Monat is getting the bulk of the profit.

Monat market partners only get paid when they sell products to others. In other words - if they have some clients but not enough to hit a certain volume for a bonus…they won’t get credit if they buy the products themselves to get there.

Sellers reap an average commission of about 30%, but very few people that work for multi level marketing companies like this make money. In fact, studies show that 99% lose money when they join an MLM unfortunately.

Make Money Building A Team

The first step of the team-building strategy is that Monat Global grants you a small % of revenue for each sales guy or gal you recruit from the sales they make. Even if the product is cheap you’ll still get a little cut. No where near the 30% you’d get if you sold the products yourself though.

Earning a small % of the direct recruits’ earnings is good, but keep in mind that this figure is still dependent on their earnings. It’s difficult to say what this looks like because sales are expected to vary greatly from one sale to the next.

The next step, referred to as “Leveraged Revenue Sharing,” is the next phase. This allows you to earn from up to six levels inside your marketing team. Though the brand does not use conventional terminology, they do follow a typical uni-level team structure.

The percentages are reasonable, but take a look at the far right column. To advance in the business, you’ll need to recruit a lot of people. Keep in mind that recruiting five new consultants will most likely be difficult, as many folks have caught onto the issues with MLMs by now.

Is Monat A Pyramid Scheme?

is monat a pyramid scheme

No. Monat is not a Pyramid Scheme, as the technical definition means they don't have any actual products to sell.

Monat is keen to point out they are a Network Marketing company that sells hair care products, skincare products and essential oils to end-line consumers. Although you can make money selling Monat products, the real money is made by recruiting and building a large sales team.

Market partners sell Monat products through various methods such as social media and various marketing channels. But more so they get people to become market partners so that they can build their downline and make more money.

Essentially if you want to get anywhere with Monat...you HAVE to be a recruiter.

Concerns

There are currently 6 Customer reviews on Monat on the Better Business Bureau website. Out of the complaints, 577 complaints were closed in the last 3 years, and 194 complaints were closed in the last 12 months.

Their products have also been accused of causing hair loss, which is obviously not ideal.

What Does The Internet Have To Say? Monat Pyramid Scheme?

What Does The Internet Have To Say

Let's hear the voice of the people:

"I ordered a product from this company at least two years ago. I did not want to continue with the company and did not order anything else. Today, I have a charge on my Discover bill for $91.69. I definitely did NOT order anything, nor have I ordered anything since that initial purchase.
I have had NO contact with the company since then. I want my money refunded and my credit card information taken out of their system. I am contacting Discover to also dispute the charge."

Not good. Let's read one more.

"I attended a house party about 2-3 years ago and purchased Monat Product from the woman to help support her event. I was NEVER informed that she was keeping my credit card information and signing me up for a program that required the consumer to purchase more product over a period of time.
The woman created an account AND password **** my information - when I noticed I was getting emails every month saying it was time to approve the upcoming order, she told me not to worry - to ignore the emails and she would cancel the orders. Apparently, she had signed me up to commit to purchasing (I NEVER agreed to that). I was just sent products that I NEVER ordered and my credit card was charged without my permission.
Now the company wants me to send back the product & PAY for shipping in order to get a refund. Why should i have to PAY to send back product that i NEVER ordered & NEVER GAVE PERMISSION to have my credit card charged. I already tried working with the saleswoman and the company"

Is There A Monat Scam?

Scam or Legit

No, there isn't technically a Monat scam.

It is legitimate even though it has negative reviews.

Their products have been approved by the FDA and Health Canada. Even though the products have been labeled as un-safe, these organizations consider them "safe for their intended cosmetic purpose."

But it's not easy...

There’s a ton of work to be done upfront, no real guarantee of success, and - most importantly - the actual commissions are pretty small.

Now, there’s nothing wrong with front-loading the work and making the money later.

But if you’re grinding it out for 3 months and then your reward is a $50 commission, it’s not really worth it.

What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month?

And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?

And what if you could double it next week?

Well, that’s the power of Digital Leasing 

And, unlike an MLM, you can legitimately do this from anywhere. It’s a true lifestyle business.

Your laptop and an internet connection is all you need.

Some of the most successful students in this program run their entire 6-figure businesses from:

  • A camper in the middle of the woods
  • A beach chair on the water in Mexico
  • A small villa in Greece

TESTIMONIAL - Saying Goodbye To Our Jobs

They’re able to travel around, living their lives first, and focusing on their income second.

Because even if they stop working for an extended period of time, the money keeps coming in.

So adventure, memories, and experience are the top priority.

And they never have to worry about how to pay for the next trip, or consider asking for time off.

If this sounds more like the type of life you want to lead, just click here to find out more about Digital Leasing.

How Much Does Monat Cost?

monat how much does it cost

Monat's products cost anywhere from $30 to hundreds of dollars, depending which retail product you're after.

If you'd like to join as a distributor, just be aware that they will push you to buy your products before selling them - so you'll be trying to climb out of a hole to start, at the least.

Another unfortunate reported trend is that Monat has been known to randomly charge money to people's credit cards without authorization...

...be wary about giving your financial information to this company.

Monat's Refund Policy

monat refund policy

While Monat advertises a decent refund policy for their retail customers, it seems that it is not always honored in reality.

Unfortunately, this is all too common in the MLM world.

Are There Alternatives To Monat?

alternatives

Yes, there are plenty of MLM companies to choose from if you want to pursue this business model.  Here are just a few:

What Is Our #1 Recommendation For Making Money Online In 2024?

Digital Leasing

The ScamRisk team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.

While there may be no “perfect business”, the research IS conclusive:

Digital Leasing is the #1 online business model for those just starting out.

Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Leasing is for you.

Why?

1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Leasing business.

And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.

Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.

This is only possible if you have an income stream that’s not tied to your time.

TESTIMONIAL - JUMP ALL IN

2) You Own & Control EVERYTHING: With MLMs and Network Marketing, you don’t really own anything. You have no control over the quality of products. You don’t even own your “team”.

Look at the fine print for most of the agreements folks sign when they join one of these companies. At any point, the company can change your commission structure, reduce your profit margins, or kick you out entirely.

With Digital Leasing, you own the assets, which means you have all the power and all the control.

TESTIMONIAL - Feeling Blessed

3) Little To No Startup Costs: It’s possible to get into Digital Leasing with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket...even before you do any work.

Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.

TESTIMONIAL - Scott Lead Gen

4) No Inventory: Alright, so most MLMs don’t make you buy the products and fill your garage with them anymore (unlike the good ol’ days), but you’re still in a physical products business.

And physical products always have physical limitations. Even if you don’t have to manage the inventory, you still have to deal with supply chain shortages that cause major delays.

Imagine finally landing your first customer, and then losing them after one sale because they had to wait 6 weeks to get their order.

With Digital Leasing, a 100% online business, you never even have to think about that risk.

TESTIMONIAL - Done Deal

5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).

Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.

Because you have more knowledge, more experience, more results, and more momentum.

If you wanted to double your income with an MLM, you’d have to double your customers OR double the average order size of your existing customers. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.

TESTIMONIAL - Lance Lead Gen

6) Make Money Helping Real People: This part is what makes it all worth it. In an MLM, your “upline” might convince you that what you’re selling improves people’s lives, but deep down, you likely know that’s not true.

Most of the time, you’re either selling a dream or a poor-quality, overpriced product with a fancy label.

And that makes it pretty hard to sleep at night.

But with Digital Leasing, you’re actually helping people by solving your clients’ biggest problem:

Small, local businesses need more customers, and with Digital Leasing, you are unleashing a flood of happy, paying customers for these businesses.

You make money by helping them make money.

Not a big, faceless corporation either...a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.

Once you see how Digital Leasing makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.

BOSS OF MY FUTURE

Now, the choice is yours. You could continue browsing, looking at opportunities like Monat which could one day make you money.

You could continue researching, never making a decision.

OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Leasing.

A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.

All while genuinely helping real people who are grateful and happy to pay for it.

If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Leasing.

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