Is Monat A Pyramid Scheme? Let’s Look At The Facts. | Real Digital Success (2023)

You probably came to this page because you wonder if Monat is a pyramid scheme or a legit opportunity.

No need to worry you’re in the right place.

Over the last years, I’ve been busycreating reviewsabout all kinds of online products.

Some turned out to be fake other were legit ways to make money online but in the process I learnedhow to spot scams.

In this post, I’ll show you absolutely everything you need to know about Monat Global and after reading it you’ll know exactly if you should give it a chance.

Monat Review Overview

Name: Monat Global
Website: monatglobal.com
Founder: Ray and Luis Urdaneta
Product Type: Hair and Anti-Aging product MLM program
Price:$49+$99 + Product Packs (at least $199)
Rating: 3/10

Is Monat A Pyramid Scheme? Let’s Look At The Facts. | Real Digital Success (1)

Criteria for a good MLM opportunity:

  • A proven brand that’s been around for +5 years.
  • The company delivers quality products.
  • Product pricing is reasonable compared to the market.
  • There’s a legitimate focus on selling products.
  • Reasonable startup and maintenance costs.
  • A good compensation plan.

Summary:
Monat Global is an MLM company that sells Hair and anti-Aging products. The company was founded by Rayner Urdaneta and his son Luis Urdaneta in 2014.

Monat has been in a lot of lawsuits and controversies that have made the news. These lawsuits were the result of people having hair loss after trying out their products.

The structure they use for selling their products is similar to that of a pyramid scheme leading to a lot of accusations.

Read the rest of my post to find out if it's actually a pyramid scheme.


Similar to:Younique, It Works!
Rating: 3/10
Recommended: No

Check out my #1 recommendation

Quick Navigation

Monat Review Overview

What is Monat Global?

What is a MLM?

What is a Pyramid scheme?

How do pyramid schemes disguise themselves?

How to get started with Monat Global?

How much does it cost to join Monat Global?

Are Monat Global products legit?

Monat Compensation Plan

Earning Potential

What are people saying about Monat MLM?

Is Monat A Pyramid Scheme?

Final Thoughts + Alternative

What is Monat Global?

Monat Global is an MLM company founded by Rayner Urdaneta and his son Luis Urdaneta in 2014. According to its website, Monat Globals mission is:

“…to help people everywhere enjoy beautiful, healthy, fulfilling lives through our exceptional, naturally based products, a fun, and rewarding business opportunity, and a culture of family, service, and gratitude…”

They do this by selling hair and anti-aging products.

Monat has won multiple awards such as:

  • Direct Sellers Associations 2019 Industry innovation award
  • Direct Sellers Associations 2018 Making a difference award
  • Gold Stevie Awards Startup of the year

When you Google some of their achievements it looks really impressive but Monat Global also has another side to them.

An example of that, is the current president of Monat Global named Stuart A. MacMillan. He used to be the CEO of TelexFree a ponzi scheme disguised as a telephone service.

More than 1 million people were affected by the scheme.

Is Monat a chance at redemption or is it just another scam? After reading this post, youll know exactly what I think about Monat.

What is a MLM?

MLM (a.k.a network marketing or direct selling) stands for multi-level marketing.

According to Wikipedia, multi-level marketing is a marketing strategy for the sale of products or services where the revenue is derived from a non-salaried workforce.

As a part of this workforce, you sell the products from the company and you recruit people to do the same thing. This group of people you recruit will work under you and is referred to as your downline.

The bigger your downline is the more money you can earn passively (technically speaking) because you’re getting paid a percentage based on the performance of your downline.

This also means the people above you which are called your upline are making money based on your performance.

The act of recruiting turns an MLM company into a pyramid-shaped organization where the first people to join make the most and are on the top of the pyramid and those last to join are at the bottom.

Is Monat A Pyramid Scheme? Let’s Look At The Facts. | Real Digital Success (2)

Source: Wikipedia

MLMs have been around for a long time. There are Multi-level marketing companies active today that were founded in the 1950s. MLM has a lot in common with pyramid schemes which is why scammers often use MLM to disguise their pyramid scheme.

What is a Pyramid scheme?

A pyramid scheme is a type of scam where people are promised money for joining the scheme and recruiting other people. No selling of a product or service is involved whatsoever.

So you might be wondering where the money comes from?

The people that join are expected to pay a one-time fee and in exchange for that, they get a percentage of the fee of everyone they recruit after that.

The problem is from a mathematical standpoint it’s impossible for everyone to make money because you simply run out of people.

Take a look at this picture below showing how it’s impossible for everyone to earn money.

Is Monat A Pyramid Scheme? Let’s Look At The Facts. | Real Digital Success (3)

Source: Wikipedia

As you can see, in this pyramid model it’s required to recruit 6 people. You’ll notice from the 12th level and further, it’s not possible anymore for everyone to earn money.

The 2.2 Billion people on the 12th level need 13.1 billion recruits in total for them all to make money which is more people than there are currently on Earth.

How do pyramid schemes disguise themselves?

MLM and Pyramid schemes are very similar which makes it easy for scammers to disguise their schemes.

There are just a few things they have to do:

  • Add an unsaleable product and pretend the focus is on selling it.
  • Create a compensation plan that’s set up for failure.
  • Pretend to offer bonuses instead of directly paying people in the pyramid.
  • Subtlely push people towards recruiting.

By making the product unsaleable everyone will start recruiting which means the majority of the revenue comes from members joining and trying to stay active.

Pretty crazy right?

Now lets take a look at how Monat works so we can determine if its a pyramid scheme in disguise.

How to get started with Monat Global?

You can join Monat and become a member after signing up on their website. Monat will connect you with one of their independent salesmen and you’ll be placed in their downline.

You’ll receive training about the products and sales and will be required to purchase products that you will resell.

As soon as you’re able to order products you’re ready to start.

How much does it cost to join Monat Global?

Unfortunately, this isn’t one of these companies where you get a free trial to start things out. You’ll be investing money right from the start.

You start with paying a sign-up fee of $49 and $99 for the starters pack that you’ll receive.

Sounds like a lot for something you haven’t tried out don’t you think?

Well, there’s more.

The lowest rank in Monat requires you to also purchase 200pv monthly in products to stay an active member that is eligible for earning money.

PV is a value metric that they use for their products and how much 1pv is worth differs per MLM but in this MLM company, 1 PV is worth 1 dollar.

That means it’ll cost you 49+99+200= $348 to start.

So you’ll need to purchase 200 dollars worth of individual Monat products or buy one of the packs that I have listed here.

  • Starters kit, $99
  • Optimum Product Pack, $799
  • Overachiever Product Pack, $599
  • Success Product Pack, $349
  • Essentials Product Pack, $199

A lot of other countries even charge up to $400 just for joining. In the end, you’re paying to join just like in a pyramid scheme but that on its own isn’t enough to judge Monat.

Monat Products

Monat’s biggest focus aside from recruiting lies in selling their anti-aging line and hair products.

Their products are in the $99 — $27 range.

Their biggest products are from the rejuvenique product line which are anti-aging products that help with rejuvenating your skin and your hair.

It was kind of hard to find honest product reviews about this line because most on the internet are made by Market Partners that seem a bit too “enthusiastic” which shows bias.

Is Monat A Pyramid Scheme? Let’s Look At The Facts. | Real Digital Success (4)

Are Monat Global products legit?

When I started to look at some more stories about Monat products ran into this:

Monat Global complaints made the news
There are a lot of stories of people that have been using their products and had no complaints the first few months but had their hair falling out after those initial months.

Source: ABC actionews article

Better Business Bureau stories
Better Business Bureau doesn’t take reviews anymore because they don’t know which are real. Too many Market Partners place fake reviews to earn money.

If you go to there website you’ll see that they don’t showcase any of the previous reviews either.

Is Monat A Pyramid Scheme? Let’s Look At The Facts. | Real Digital Success (5)

FDA problem
I’ve seen multiple reviews bring up the notion that Monat Globals products aren’t FDA approved.

This is logical because the FDA website says the FDA isn’t in the business of approving cosmetic products.

However, the FDA do research the facilities their products are made in. In the past, the FDA has stated that some of the facilities were “unsanitary”.

This has caused a lot of problems in the past but seeing they’re still open for business I assume they’ve fixed those problems.

After doing my research about the products it’s hard to call their product line legit.

I wouldn’t be comfortable reselling products that I have doubts over.

Want to learn how to make money online? Check out my #1 Recommendation

Monat Compensation Plan

How much you can earn with Monat depends on your rank.

In total there are 11 ranks you can join as a monat member.

  • Marketpartner
  • Managing market partner
  • Associate market builder
  • Market builder
  • Managing market builder
  • Associate market mentor
  • Market mentor
  • Managing market mentor
  • ASSOCIATE EXECUTIVE DIRECTOR
  • EXECUTIVE DIRECTOR
  • SENIOR EXECUTIVE DIRECTOR

You start as what is called a Market Partner and rise through the ranks based on:

  • Personal Volume (PV)
    the sum of your personal purchased products as well as products purchased by your personal sponsored Retail and VIP Customers.
  • Active lines
    Any first level Market Partner and their entire downline, where at least one Market Partner in the line has at least 200PV.
  • Group Volume(GV)
    The personal volume from you and your downline, down to, but not including,
    the next Managing Market Builder or above (by Career Title). When a Market Partner in your group promotes to Managing Market Builder for the first time their GV will be included in your GV for that month’s qualification purposes only.
  • Downline Volume
    The sum of PV from you and your entire downline, regardless of their title.
    Also called organizational volume (OV).

The moment you don't fulfil the requirements for a specifc rank you lower in rank and earn less money.

Is Monat A Pyramid Scheme? Let’s Look At The Facts. | Real Digital Success (6)

Here's the compensation plan in it's entirety from February 2021.

As you can see the compensation plan is a lot more complex than it needs to be.

It gives me the feeling that they’re trying to make you do everything humanly possible so that the chances of you getting paid are as small as possible.

Earning Potential

I have talked about the compensation plan and how Monat pays their Market Partners but what does that mean for you? How much can you earn personally?

It’s impossible to look into the future to look at how much you’d earn but we can look at the past and learn from that.

Below is the latest income disclosure statement Monat has brought out.

Is Monat A Pyramid Scheme? Let’s Look At The Facts. | Real Digital Success (7)

According to this statement, the majority of the members(92%) are market partners and are making $161 a year (in revenue, not profit).

According to the U.S. Bureau of Labor Statistics, the average full-time income is considered around $48,516 per year. This is roughly $1000 per week.

It’s natural to have a small number of people that make it to the highest ranks in anything because it takes a lot of work but this is ridiculous.

Roughly 0,06% of Monat members are making a full-time income.

This tells you a lot about your chances of succeeding with this compensation plan.

What are people saying about Monat MLM?

I have seen a lot of videos of people that show proof of making money but its hard to know who to trust because people are trying to recruit people for their downline.

This is why I started to look at reviews of people that quit Monat and their experience with it.

Here’s an example that kind of summarizes what a lot of people are saying about Monat Global.

It's a video of an ex-member explaining her experiences with Monat Global and how much she earned durng her time as an member.

It is possible to make money with Monat Global but there are things you have to think about before joining.

  • You’ll start in a minus because of the costs for joining
  • Most of the people that make money already have a huge audience
  • Products are expensive and hard to sell
  • Monat its reputation makes it hard to recruit people
  • You can’t use their name when promoting the products on social media ( Very sketchy!)
  • You aren’t allowed to tell people about the hidden fees until they’re in the payment process (Again Very Sketchy!)

Want to learn how to make money online? Check out my #1 Recommendation

Is Monat A Pyramid Scheme?

No from a legal perspective, Monat can’t be called a pyramid scheme purely because they have products that they sell. That doesn’t mean they’re using loopholes to run a pyramid scheme and get away with it.

Earlier in this article, we talked about how pyramid schemes disguise themselves. Now let’s bring it all together here.

Is there a real focus on selling the products?
Monat offers products but they are very expensive and people seem to be complaining about the quality.

The locations and the way they were manufactured weren’t also reaching the standards of the FDA. I would think the environment that the products are built-in would be considered more important if there was an actual focus on selling the products.

Is the compensation plan designed for failure?
At first glance, just looking at the compensation plan it’s hard to judge that but the income disclaimer says enough. 0,06% makes a full-time income and the rest makes less than 1 dollar a day. If those percentages don’t scream Monat is designed to make you fail I don’t know what does.

Do they use bonuses to throw the authorities off and prevent legal actions?
This is incredibly hard to prove because legitimate MLMs also use bonuses.

Is Monat pushing you towards recruiting?
The prices of the products make them hard to sell(even at wholesale price) because there are alternatives on the market for half the price with better quality.

I can’t be 100% sure they tried to make an unsaleable product but nevertheless, it does makes the products hard to sell.

Conclusion
The lack of care about storing and manufacturing the product makes me think that selling products isn’t their main goal also the percentage of people at the bottom despite having such a long history is troubling.

I think Monat Global is a pyramid scheme.

Final Thoughts + Alternative

Monat Global in my opinion is nothing but bad news but before you start looking for another MLM let me share with you some statistics.

It has been proven that 74% of people that join MLM companies either lose money or don’t make money at all.

Here’s an infographic designed with statistics from the Aarp that show your chances of making money with MLM.

Is Monat A Pyramid Scheme? Let’s Look At The Facts. | Real Digital Success (8)

Is Multilevel Marketing for you? AARP Foundation launches a consumer education campaign to reveal the risks and rewards of multileval marketing.

Let’s say you’re part of the small percentage that has a large audience and might have a chance to make money with Monat Global, are you comfortable selling overpriced products that have shown to be of very low quality?

Seeing how Monat works, I can’t recommend anyone to join this program.

You can try it out but I think investing time in something that statistically sets you up to fail is just not worth it.

I do think they had the right idea when it comes to earning through commission because you don’t have to spend time and energy creating products or doing customer service.

My highest "Make Money Online" rated product also makes it possible to earn money through commissions but:

  • Involves no recruiting
  • Doesn’t require you to be 'active' to earn money
  • Gives you the option of choosing your niche and products
  • Has been proven to work for millions of people

Interested? click on the image below to find out more.

Is Monat A Pyramid Scheme? Let’s Look At The Facts. | Real Digital Success (9)


That’s all for today.

Do you have any experiences with Monat Global or other MLM companies I'd love to hear about them.

Also, If you have any questions or you just want to show some love don’t hesitate to leave a comment.

See you at my next post

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