Is Monat A Pyramid Scheme? Everything You Need To Know

Unless you’ve been living under a rock, there’s a good chance you’ve come across Monat on social media. So the natural question is: is Monat a pyramid scheme?

I’ll answer that very question in this post. For good measure, I’ve combed through tons of Monat reviews to understand its business model. 

It is now one of the fastest-growing direct sales organizations in the world. As a result, it appears that everyone is signing up to be a market partner and flaunting their “Monat shine.”

It nearly makes you feel as if you’re missing out and should join the crowd. But if you’re one of the skeptics, I don’t blame you.

Is it really that sketchy to join Monat? In this Monat Review, I’ll look at this unique business opportunity in full. By the end, I’ll give my honest verdict if you should become a Monat market partner or save your money instead. Let’s get started. 

is monat a pyramid scheme

What is Monat Anyway? 

Luis and Rayner Urdaneta created Monat in 2014 as a privately held corporation. The business began by selling hair care products, which quickly acquired traction on social media. 

This is because Monat’s sales model is multi-level marketing. It’s mainly reliant on market partners promoting the brand on numerous social media platforms.

Monat expanded into skincare and wellness after finding great success with their haircare products.

Hundreds of complaints about hair and scalp damages have been filed with the FDA and the BBB (Better Business Bureau). Moreover, the company has been slammed with a slew of lawsuits. 

A significant one is a consumer class action, following an FDA inspection of the company’s Florida production facility. Unfortunately, it revealed that many goods were produced, packed, or held in unsanitary settings.

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What Are The Monat Products? 

Monat sells a variety of hair, face, and body products, as well as supplements.

Monat’s hair care line is by far their most extensive, with a variety of “systems” to choose from, including:

  • Hydration System 
  • Advanced Hydrating Haircare Solution
  • Magnify System 
  • Volume System 
  • Junior Line 
  • Effortless Style System 
  • Super Nourish 
  • Classic Confidence System 
  • Monat Studio One 

Prices vary, but a bottle of shampoo costs around $35, and a bottle of conditioner appears to cost around $47.

When compared to something like Dove Daily Moisture shampoo, it may appear to be a bit pricey. It costs around $5 a bottle, and customers seem to enjoy it. 

However, I’m not a trichologist, and neither are the vast majority of Monat market partners. That’s why I’ve looked into several Monat reviews for this post. 

The Problem With Monat – Is Monat A Pyramid Scheme?

is monat a pyramid scheme - The Problem With Monat

Hundreds of consumer complaints and multiple lawsuits have been filed against Monat, which may be seen on the BBB website. Hair breakage, balding, itching, and hair loss appear to be the most common complaints.

Many Reddit users have inquired as to whether Monat’s hair loss is permanent.

However, several people claim on Twitter that their hair became thicker and longer after they stopped using Monat.

Of course, businesses receive complaints regarding their products and services regularly. But Monat currently has 792 complaints on the Better Business Bureau and 10 class actions.

Monat’s Compensation Plans 

Although some people are skeptical of multi-level marketing rewards, many people are nevertheless interested in it.

You might assume that compensation plans are almost always perplexing and intricate, and Monat’s compensation plan is no exception.

Monat allows you to generate money in two ways: selling things and recruiting people to join the business.

Of course, as with almost all multi-level marketing organizations, recruiting team members is far more profitable. That’s why current Monat market partners are frequently aggressively pitching the company.

How Much You Can Earn By Joining Monat? 

Monat’s market partners get a 30% commission on each product they sell. If they sell to a “VIP,” they get a 15% commission. This makes sense considering that VIPs get a 15% discount on their purchases.

You must pay a $19.99 registration fee, have two flex ship orders, and an enrollment order to become a VIP. To put it another way, you should be really into some Monat lines and believe in their products. 

Market partners receive a $60 bonus for signing up four VIPs in a calendar month. It’s designed to compensate for the 15% decrease in commission.

Market partners, like many multi-level marketing organizations, can increase their commission rate by selling more products. 

To earn a 10% incentive and a 25% commission on your VIPs, you’ll need to hustle a lot. You’ll need to make 3500 PV every month, to be exact.

If one PV equals one dollar, you’d need to sell $3500 in merchandise per month. That’s a lot of convincing you to have to do to become VIPs to make $875 per month.

Furthermore, it would help if you had at least 200PV every month to remain active as a market partner. So if you want to sell Monat, you must either buy or sell at least 200 PV per month. Plus, you have to pay $99 to sign up. 

Ranking Up By Recruiting People To Monat 

Ranking Up By Recruiting People To Monat

It’s more profitable to recruit individuals to join Monat as a market partner than sell the products. This is the case with the bulk of multi-level marketing organizations.

The Monat recruitment pay details, like those of most MLMs, are unclear. 

Monat has 11 different ranks to climb through, each with its bonus scheme.

There are six different forms of bonuses:

  1. Uni-level 
  2. Group Volume 
  3. Rank Advancement 
  4. Rank Advancement Matching 
  5. Motor Club 
  6. Generation 

There are several levels or generations within two of these bonuses, the “uni-level bonus” and the “generation bonus.”

While the pay structure is perplexing, it’s clear that the more individuals you attract, the more money you’ll make. The question is: are you comfortable approaching friends, family members, coworkers, acquaintances, and complete strangers to recruiting them?

Are you willing to risk losing friendships and severing ties? Do you have the power of persuasion? If so, then Monat would be worth considering. 

Does Monat Give Its Members Cadillacs? 

There’s a mythical Cadillac that Monat’s Instagram “influencers” like to flaunt. So is it true that Monat provides you with a Cadillac?

Nope, Monat does not “present” you with a Cadillac. Monat features a motor club program that is similar to those offered by many multi-level marketing firms.

In essence, once you reach a particular company position – in Monat’s instance, “Market Mentor” – you are eligible to receive payment toward the purchase or leasing of a white Cadillac. 

You will get a one-time $1500USD payment in addition to the monthly payment for your down payment.

Monthly payments depend on your rank. Here’s what you can expect to receive: 

  • Market Mentor and Managing Market Mentor: $500
  • Associate Executive Director and Executive Director: $750
  • Senior Executive Director: $1,000 

There are a few things to keep in mind about Monat’s “Motor Club Rewards” program.

First and foremost, it is ultimately your responsibility to make your auto payments, not Monat’s.

Maintaining the rank of Market Mentor is required to continue getting payouts.

If you fall below the status of Market Mentor, you are offered two months of “grace” per calendar year. During this grace period, Monat will continue to pay you.

It is important to note, however, that these two months cannot be consecutive. As you can see, it’s not really that realistic unless you’re a superstar seller. 

What happens if you miss Market Mentor for the second month in a row? It implies you’re responsible for your automobile payment and won’t receive any compensation from Monat.

The next point to keep in mind is that Monat does not cover all of the costs associated with the vehicle. You’re on your own when it comes to registration, insurance, and gas. In general, the more expensive a car is, the more it will cost to operate.

So Is Monat A Pyramid Scheme? 

Monat shares numerous features with pyramid schemes. However, it is classified as “multi-level marketing.” It’s technically a legal business practice because it involves the selling of physical items.

But don’t get the terms “not a pyramid scam” and “profitable business opportunity” mixed up.

How Much Money Can You Make With Monat? 

How Much Money Can You Make With Monat? 

Since we’re on the subject of money, I’ll give you some hard figures. The great majority of people who sign up for multi-level marketing companies make no money.

The reality that 99% lose money is much more frightening.

If you have an extensive network, you might be able to make money with Monat. I would advise you, though, to consider whether you would be okay generating income from people who are statistically likely to lose money. 

Monat Reviews

So how good are Monat products in the first place? If you’re considering being a Monat seller, you might as well know what people generally think about their products. 

I’ve found many reviews, much like Debra Lee Kay’s, a prominent fashion blogger. Here’s how her experience went: 

She despised Monat the first time she used it. She promptly gave it up after only one use. Fortunately, a friend of hers had begun using it months before and was able to encourage her despite her reservations.

Debra considers herself a haircare expert not only because she’s an avid product tester. She actually enjoys researching haircare.

According to her experience, her first wash with Monat was shocking. Her hair felt awful. The catch is waiting for it to dry. Once her hair dried, it instantly looked styled. This was incredible, considering that she didn’t use styling products at all. 

So she decided to give it a fighting chance. She continued to use the Monat products over the next few months. 

She then started to see subtle changes that crushed her skepticism. Her hairline seemed fuller, and her hair felt thicker. 

People who get positive results with Monat report increased strength and resilience with their hair. Some swear that it promoted hair regrowth. Most say it contributes to hair shine. 

These positive results come with the exclusive use of Monat products. Customers like Debra didn’t use it with any other products. 

Now, there are three reasons why someone might not like Monat products. First, they don’t realize that it’s a process. You might think that it’s making your hair worse in the beginning. 

Many people claim that some unfortunate folks go through a detox and have to wait it out. Apparently, it takes patience. 

Second, Monat claims to be scientific, and it’s all about trial and error. It’s a different experience for everybody, and you have to try the product yourself. 

Lastly, the cost may look scary at first. Monat products cost just as much as luxury haircare products like Oribe. 

If Monat ends up working for you, you’re much less likely to spend on other products for care and styling. 

Let’s say you decide to give Monat a try. Debra suggests adding up your expenses and weighing them against your usual hair products. You’ll probably end up spending more or less the same amount because you’d be eliminating extra steps. 

The trick is not to quit even if you do not see any improvements. It’s a gradual process, and you might see significantly positive results if you’re consistent with its use. 

You might want to try one line to address one of your hair issues and see how you fare. If you end up liking the products, then you might be encouraged to sell them to others. 

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Final Thoughts 

It’s easy to see why people want to join a multi-level marketing organization like Monat. The temptation is even stronger when you see pictures of flashy new automobiles and fancy handbags all over social media.

Monat, however, is no different than other multi-level marketing organizations such as Pomifera or Modere.

Predatory business methods promote a fantasy that is outright unreachable for the vast majority of people. If you don’t achieve, you’ll often be informed that you weren’t truly devoted. 

That being said, it couldn’t hurt to try a Monat product if you can afford it. If you’re one of the lucky few who end up loving it, then there’s no harm in being a seller.

Honestly, I’d only suggest this to people who have an extensive network or those who can sell water to fish.

Disclosure:  this article might contain links to the resources discussed.
Some of the links are affiliate links, meaning that I will make a small commission if you purchase a product or service by using the link. You get the same price whether you use our special link or not, and sometimes I’m able to get you an even better deal through my relationships!  More info in my privacy policy.

Brooks Conkle

Brooks Conkle

Brooks is an Entrepreneur, Sponge, Father, Husband, & Follower of the Golden Rule. He has over 15 years of experience as an entrepreneur after graduating with a BSBA in Finance from Auburn University. He’s addicted to growing new business ideas and any food that includes chocolate and peanut butter. Brooks is a firm believer in creating multiple streams of income and creates content here on BrooksConkle.com to help other hustlers in the areas of marketing, online business, personal finance, and real estate. 

Brooks Conkle

About Me

With 15 years of experience as an entrepreneur, I help hustlers build multiple income streams so that they can control their financial future and create a flexible lifestyle.
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Disclosure:  these articles contain links to the resources discussed.
Some of the links are affiliate links from Amazon and other companies, meaning that I will make a small commission if you purchase a product or service by using the link. You get the same price whether you use our special link or not, and sometimes I’m able to get you an even better deal through my relationships!  More info in my privacy policy.

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