New home-based businesses pop up almost every day. One that you may have heard about recently is a company known as Monat. But Is MONAT a Pyramid Scheme? In this MONAT MLM Review, we’re going to be looking at what products the company has to offer, how their business is structured and determining if it’s truly a great home business opportunity, or one that should be passed over.
What is Monat?
Based out of Doral, FL, Monat is a company that sells hair care products through a direct sales MLM business model. The company was originally founded by the Urdaneta family in 2014 and has since expanded its’ sales force and operations to cover the US, Canada and the EU.
While the company had quite a bit of good publicity in its’ first years of operation, recent news coverage has been a little bit more questionable to say the least. To understand exactly what this business opportunity entails and why it’s been in the news so much lately, let’s first look at what products Monat is selling inside of their MLM opportunity.
Are Monat’s Products Worth Their Price?
To successfully run any business, especially one that is selling a physical product of some type, it’s important that the goods and services offered by the business are exceptional. That just makes sense. After all, if your company is not selling quality products, it’s going to be hard to convince potential customers to make a purchase, right? Well, unfortunately the recent media coverage of Monat is certainly not going to be making products fly off the shelves.
Since February of this year, Monat has had five class-action lawsuits filed against the company. Some consumers have complained that the products offered by Monat result in hair loss, burning and itching scalp and severe allergic reactions. The company has also received 552 complaints at the Better Business Bureau for issues with their products or their MLM business opportunity in the last 12 months.
Another issue that has recently appeared in news media about the company is that several of their Market Partner’s (this is what Monat calls their MLM sales agents) made claims that products were FDA approved. Just for clarification, the FDA does not certify any cosmetic products whatsoever.
All in all, the numerous amount of complaints against the products offered by Monet raises a red flag if you’re considering starting a business working with the company, in my opinion.
The Monat MLM Opportunity
Now that you have a little bit of an understanding about the products that Monat has to offer, let’s look at the business opportunity being offered by the company. Like many other MLM companies out there, you’re supposed to only be able to purchase Monat products exclusively from their Market Partners. Unfortunately, this isn’t the case with this company.
A quick Google search reveals that the products that are supposed to be exclusively sold by market partners are easily available to purchase online. Even worse, on sites like Amazon and eBay, Monat products are selling for lower prices than what is available to market partners who are receiving the products as a subscription.
If you decide to join Monat as a Market Partner, this could potentially be a very large barrier to entry when it comes to getting others to sign up under you.
How Much Does It Cost to Join Monat?
There are several tiers available that you could sign up for as a Market Partner at Monat.
Basically, joining the company at a higher membership level allows you to receive more products every month that you could use yourself or give to potential customers as demonstration products. The membership starts out at $99 and goes all the way up to $649. It is very important to note that most of these memberships are renewed every month and new products are shipped to you automatically.
Also, several of the complaints at the Better Business Bureau were because of Market Partners being unaware that they were signing up for future product shipments during their initial membership sign-up. Many of these complaints also stated that it was taking as long as three months to receive any kind of refund after requesting it.
It’s very important when you’re signing up for any kind of new business venture that you understand exactly how much money it’s going to take for you to run your business. Unexpected expenses can really cripple your business, especially when you’re in your startup phase.
Can You Make Money with Monat?
Despite the amount of negative publicity that Monat has had in recent months, there are a lot of people who have claimed to be earning a significant income. Just like most MLM opportunities, if you’re able to get in on the ground floor, it’s much easier to make money with the program. Perhaps the one thing that the Monat business opportunity has working for it is the fact that it’s still relatively new.
This means that it is significantly easier to sign people up under you if you would choose to take advantage of the opportunity.
Pros of Monat
- Relatively Young MLM Company
It’s much easier to sign people up for MLM opportunities while the company is still young, and most people who find success with MLM companies do so while the company is still in earlier years.
- Rapidly Expanding
In 3 years, Monat has expanded to cover the US, Canada and the EU. This shows significant demand for the business opportunity or products.
Cons of Monat
- Multiple Class Action Lawsuits
Since February 2018, Monat has had 5 class action suits filed against them for supposed damages caused by their hair care products.
- Numerous Complaints from Customers
There are a lot of complaints on sites like the Better Business Bureau and YouTube from people using Monat products.
- Complaints from Market Partners
Just like the complaints coming from people who use their products, there are numerous complaints from people who claim to have been Market Partners. Many of these complaints are that when they decided this business opportunity is not for them, they struggle to reach support to cancel their memberships.
- Long Refund Periods
Another primary complaint from customers and Market Partners alike is that it often takes months to get refunds from Monat.
Is Monat a Pyramid Scheme?
Monat does have numerous market partners who claim that they’re making a very successful income with the company. For that reason, I don’t believe that Monat is a Pyramid Scheme or scam. Just like any other MLM company, it can often be very challenging to earn money as most of your income depends on the success of those who sign up underneath you. This means that you are typically serving in more of a managerial role than that of a more traditional business owner.
Taking into consideration the amount of negative publicity that Monat has been receiving in recent months as well as the number of complaints from customers and Market Partners alike, I think that there are better business opportunities in the beauty sector out there. While I don’t believe that Monat is a scam, until the negative publicity and business complaints are resolved, I think it would be challenging for you to be able to succeed with this business.
Also, as I’ve stated in other MLM company reviews, when it comes to running a successful business structured as an MLM, too much of your success depends on how those you recruit perform rather than how well you perform. The success or failure of your business should fall into your hands rather than the hands of others.
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