Is Monat A Pyramid Scheme? 5 Things You Need To Know

Hey all, welcome to my review of Monat. It’s a beauty company with a model structure of an MLM. Since they are operating as an MLM company, you gotta wonder is Monat a pyramid scheme?”.

Well, in today’s post I’m going to go through how Monat really works and give you my own personal review – from someone who’s not by any means associated with them, whether or not you can actually make money with them.

Yes, you will be getting my unbiased, 3rd party review here.

I like giving reviews like this because I have previously done MLM before for a year. And there are things that I wish I’d known earlier if someone were to tell me.

So I would like to give back to the community and point out a few things that a 3rd party can detect.

But before I start my review, I must congratulate you for taking the courage of reading online reviews first before jumping into anything that you’re not really sure of.

Because this is THE way to avoid getting into money traps and scams.

If you’re here to find whether Monat is a legit company to make money from, well let’s get on to it.

Is Monat a pyramid scheme? Here’s the truth..

Monat Summary

Product: Monat or Modern Nature
Founder: Luis Urdaneta & Family
Product Type: Hair Care Products
Price: $99 USD upfront + $49.99 renewal fees
Rating: 40/100
Recommended: No
Summary: Monat is a beauty company that is known for its natural ingredients. They operate under the structure of multi-level marketing and has since garnered thousands of distributors.

Even though they are known for their natural beauty products, they have been gotten a few lawsuits in the past few years for product contamination as well as their products’ efficacies.

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What Is Monat?

Monat – which stands for “Modern Nature” is a company in the beauty industry that’s focusing on vegan, natural, and clean products. They use word of mouth of MLM structure to bring their products to the market and a way to promote.

They were founded by Luis Urdaneta and his family in late 2014.

You can watch their official video below:

To be honest, I have mixed feelings when I watched the video because in one part, I love watching success stories on how some people can keep on persevering to achieve success…

But on another part, I feel like there’s something that’s more important missing.

How did they come up with the product ideas?

If you’ve read my other MLM reviews, I’ve given some toasts to their products. Even though I don’t necessarily recommend joining them.

If you have a good intention of coming up with a product that works and you know that it can give a lot more value to people and have MLM structure for just as a way to promote the products, I’m still okay.

But I still couldn’t find this watching their videos.

They are only talking about the family values, but NOT the product creation.

Probably the reason why there were multiple lawsuits being filed against them. But we’ll talk about that in more detail below.

They are famous for their hair care products, such as Rejuveniqe Oil Intensive and Rejuvabeads by Monat. Now, they have expanded their product range to skincare too.

monat products - Is Monat A Pyramid Scheme? 5 Things You Need To Know

On top of expanding their product range, their business has also expanded to Canada, the United Kingdom, and parts of Europe! They said they want to be able to help more people 😊

One reason why MLM companies usually expand to other countries very fast is that they will need new people to join by creating the “pioneer” team in each new country to create networks.

That’s why they expanded to another country on their 2nd year. Many companies won’t take that route early in the early stage of the business.

VIP Program

Like many other MLM companies, Monat also has a VIP program where normal users can join to have a product subscription with them.

Now, if you’ve read my other reviews of MLM companies, you’ve seen how MLM subscription programs can be a little predatory, whereby it’s very hard for you to stop the subscription and cancel your order.

They will usually charge a fee if you were to cancel a subscription. I don’t think I’ve ever had to pay a business to cancel my membership before and I don’t want to start now.

For Monat’s VIP program, you will get perks like free shipping (above $84), birthday treats, discounts, etc.

In order for you to enroll in the program;

  • An enrolment fee of $19.99
  • Buy products of more than $84
  • Commit for 3 Flexship orders
monat vip - Is Monat A Pyramid Scheme? 5 Things You Need To Know

As you can see, if you cancel your membership early, you will have to pay a fee.

For this, I would really recommend to test out the products first and see whether it gives you any improvements before committing to this program.

Also, just make sure the agent that you’re buying products from are honest and won’t register you to anything that you don’t want to get.

See below review on this:

monat vip testimonial 2 - Is Monat A Pyramid Scheme? 5 Things You Need To Know

Is Monat A Legit Company?

Despite the many lawsuits that have been filed against them, Monat IS a legit company, selling legit products.

Like many brands and companies in the beauty industry, one product cannot suit everyone.

Some will have good experience and while some won’t.

That being said, you do need to know that at least 18 people have filed a lawsuit on their hair care products. So it’s not exactly a one-time thing.

monat lawsuit - Is Monat A Pyramid Scheme? 5 Things You Need To Know

In March 2018, FDA also sent inspectors to Monat’s manufacturing plant and found the following:

monat lawsuit 2 1 - Is Monat A Pyramid Scheme? 5 Things You Need To Know

Now, it doesn’t mean everyone who’s used their products are experiencing the same thing. Many, despite the lawsuits, some users still love Monat’s products.

You can see some positive reviews below:

monat positive review - Is Monat A Pyramid Scheme? 5 Things You Need To Know

As I said, you can try their products FIRST and see whether you like it or not.

ONLY when you 100% love the products, you can contemplate whether or not to join Monat as a way to make money.

It’s very important to love the products that you are selling. Because it’s one thing to recruit people to join you make money, but it’s another thing if the product is a complete trash.

If you have tried Monat’s products and you like it, and now contemplating whether or not to try and make money with Monat, let’s go to the next section where I cover whether or not Monat is a pyramid scheme.

Is Monat A Pyramid Scheme?

Before I start, let’s just take a look at what pyramid scheme really is. You can watch the video below:

One way you can easily detect a pyramid scheme is when they are totally focusing on recruiting people instead of promoting their products.

If a company knows that their product is trash, they wouldn’t spend so much time teaching the distributors or agents on the benefits of the products.

Instead, they will teach more on how to get more people to join the company. This is when you really need to stay away.

Now going back to the question “is Monat a pyramid scheme”, I can say that it is NOT a pyramid scheme.

They make money from the sales of their products AND from the fees of new distributors.

But they have real products to be promoted to the consumers and in the first 3 years, they have sold more than 20 million products – that’s a LOT for new companies.

How To Make Money With Monat?

This is something that you need to pay attention to when you decide to become an agent with Monat.

Just like any other MLM companies, they can change this plan pretty often and you will always want to get updated if you were to join. But this is the latest compensation plan as of writing.

And, compensation plan of MLM companies CAN get very tedious. Even after reviewing a lot of other MLM companies out there, I can still get a “WOW” moment learning how creative they can be in giving compensation to their agents.

Anyway, without further ado, let’s get to how you can make money with Monat.

I usually will give you bullet points on how you can make money with MLM companies. But because their plan IS TOO tedious. I think it’s better to show you the exact map that you’ll be getting from Monat.

You can check out the USA Compensation Plan below.

P/s: I’m not endorsing the video below, take it as an education purposes.

Overview of the compensation plan below + glossary:

monat compensation plan - Is Monat A Pyramid Scheme? 5 Things You Need To Know
monat compensation plan 2 - Is Monat A Pyramid Scheme? 5 Things You Need To Know

What I Like About Monat

1. Fast Growing Company

Knowing that they have been able to sell more than 20 million products in the first 3 years is amazing. Not a lot of business can actually do this.

This also might be because the family (the father) has been doing this network marketing before and became very successful, so they knew how to further grow the company fast.

It’s also good to note that their products are basically everyday products like shampoos, hair oil, etc that normal consumers will want to use.

It’s not very targeted like weight loss products, so I believe that the potential customer pool is bigger.

Good to note that even though it’s great for them to grow very fast, they also have the risk to go down fast.

I just believe that slow, consistent growth is far better than fast growth. You want to make your business IS sustainable – so it’s very important to make sure whatever that you’re investing in will pay off in the future, 10 to 20 years from now.

NOT 1 year from now.

2. No Inventory For You To Stock Up

One thing about Monat is that they will hold the inventory so you won’t need to constantly stock up the products in your house.

You can still buy the kits for you to try yourself or you want to host a “Tupperware” party for your friends and family.

But when your customers want to make an order, Monat will process and ship the products out themselves. So it’s one thing you don’t really need to worry about.

3. Award-Winning

It’s good to note that they have won multiple awards for their fast-growing companies.

No matter how much I don’t like MLM companies and structure, when a company managed to win prestigious awards, I will recognize it.

monat awards - Is Monat A Pyramid Scheme? 5 Things You Need To Know

4.Personally, I Like Natural Products but…

I personally love natural, vegan and clean products.

I’m trying to be more mindful on what I put on my body and what I buy for myself and if I were to be introduced to Monat as a potential user, I would probably give it a try.

BUT because of the lawsuits and claims saying that they aggravate hair-loss (which is something that I am battling with as I grow older), I will think twice before buying.

Plus.. their products are not cheap.

This will bring us to the next section.

What I DON’T Like About Monat

1. Expensive Products

Can I just ask why MLM products have to be so damn expensive?!

If you’ve read my MLM reviews, you will realize many if not all have very expensive products. I just don’t get it.

This includes Monat. $100 for a hair oil is ridiculous.

As a consumer, I will think more than twice before purchasing because it’s not something that I can impulse buy on.

Secondly, if you’re an agent, think about how you will want to penetrate the market with the very high-priced products.

Look at your friends and family – your close connections. Are they someone who will buy a $100 worth of hair oil? I can tell you now that my friends and family won’t.

And that just tells me how hard it is going to be to be able to promote and sell the products.

2. Lack of Customer Support

This is also not new for MLM companies.

If you’re trying to cancel (which you can, as they have 30 day money back guarantee), it’s going to take some time to just process this.

You can read this review below:

monat vip testimonial 3 - Is Monat A Pyramid Scheme? 5 Things You Need To Know


Now, there have been multiple lawsuits made against them and you can see it below. These are just SOME of the lawsuits being filed against them in 2018 by the way.

Many MLM companies have actually been inspected and checked by the FDA and FTC to make sure they are legit and conducting real business.

But when there are multiple lawsuits made against them, you really got to ask yourself whether the company is doing the best they can to come up with the best products for the consumers.

This also brings us to the next point.

4. Bad Reputation in Media

When the company already has a bad reputation on media, it’s going to be harder for you to promote the company and products to people.

Even though media can be misleading, it’s still very powerful to alter someone’s opinion.

5. Never Ending Hard Work, Not For Passive Income

I have seen some success stories with Monat. BUT one thing that I really need to highlight here is how they all have to work on this business, starting from the minute they wake up till they go to sleep.

You need to be consistent and basically treat this as a full-time job if you want to really be successful.

But if you’re thinking of doing this part-time, I can tell you that you’re not going to see much success or results from this.

There are a lot you need to do DAILY such as;

  • Posting on social media
  • Team meeting
  • Checking on your downline everyday
  • Updating websites
  • Taking photos of your products

When you need to put a lot of hours everyday, you will know that this is not for passive income.

Passive income is something that I seek. A business that can still run if I were to take a step back for a year.

Ask yourself – can you still make this sustainable if you were to step back say for a month? Who’s going to lead your downline? Who’s going to lead the team meeting?

At least to me, right now, I couldn’t see it as something sustainable enough for me to get myself into.

Should You Go With Monat

I personally wouldn’t go with Monat, even though I LOVE vegan products company.

Given their reputation, it’s going to be very hard for me to go through and promote their products. If their products are cheaper and more affordable for people to buy + NO lawsuits, it will be amazing.

But $100 for a hair oil – I’m sorry but I have to pass.

And just like any other MLM companies, not many people will actually make money out of this business.

On average in 2018, each Market Partner only make $773.93 annually.

I honestly don’t think that with the energy you need to put in everyday, your time and money is worth it for you to get into this.

I prefer to work 3 hours a day build something on the side, that I can do even with a 9-5 job and see consistent growth every month. And in one year, I can see the passive income coming in and it will be sustainable enough for me to take a step back.

A Better Way To Make Money

If you want to promote the product that you LOVE and get users to come to you instead, you will want to learn how to do so with affiliate marketing.

It’s a MUCH better way to do than MLM.

This is what I’m doing to earn money online and it’s sustainable.

I DON’T need to recruit people.

And I started as a side hustle, working 2-3 hours everyday after my 9-5 job.

I get to do it as a side hustle today and still make money years later, without having to make time to always train my downline to also make money.

If you want to learn how to make money and create an online business the organic, truthful, no BS way, where people and money come to you instead, get my FREE Training here.

It’s 7 days training, no credit card details required, I will take you through step-by-step on how to get started and you will have private access to me and other super affiliate marketers out there.

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