Is Monat a Pyramid Scheme? The Monat Business Opportunity Explained
If you’re reading this article then chances are you’ve been approached by a Monat Market Partner who has offered you an incredible ‘business opportunity.’
They’ve probably told you that you can make money just by recommending products you love to your friends and family, and introducing others to the ‘lifestyle.’
You’re probably considering it. I mean, who wouldn’t want to own their own business, work from anywhere in the world and never have to worry about money?
However, you also have your doubts. You’ve heard people throwing around phrases like ‘pyramid schemes’ and ’scams’ and you’re concerned.
Is Monat a pyramid scheme? Well, let’s see.
Is Monat a Pyramid Scheme? A Deep Dive Into the Monat Business Opportunity
I was approached myself, about 12 months ago, by a young women who insisted that I’d make a great Monat Market Partner. Despite not knowing anything about Monat, or about MLM companies in general (multi-level marketing schemes), something seemed a little off about the whole thing.
How could this person be so sure that I’d make a great Monat rep when she didn’t know me?
Why did she want me to spend over $300 to be on her team?
Why did she continue to message me after I’d politely declined?
Something just didn’t sit right with me, and so I never got involved.
For a while, Monat never entered my mind again.
Until, that is, I kept seeing distributors of Monat and other MLM companies such as Arbonne popping up all over my newsfeed, and decided that I wanted to know more about these companies and how they really operate.
I soon realised that, contrary to empowering women and providing them with ‘financial freedom,’ Monat and other MLM schemes are actually leaving thousands of women in debt.
Did these women simply ’not work their biz’ hard enough, or were they just sucked into a business that is designed to make them fail?
To put it bluntly, is Monat a pyramid scheme or a legitimate business opportunity?
Let’s take a look.
What is an MLM company?
MLM stands for multi-level marketing, and MLM companies are also known as network marketing or direct sales companies.
MLM schemes have been around for years, and popular MLMs include Amway, Avon, It Works!, Herbalife and even Tupperware!
You do not receive a salary in an MLM, but instead earn money from selling products to people you know and recruiting others into the company. When you recruit a new person and that person begins earning money, you will earn commission from the sales and recruits generated from THAT person.
This continues down in multiple levels (hence multi-level).
The people underneath you in an MLM are known as your ‘downline,’ and you are their ‘upline.’
Imagine a triangular structure. If the person at the very top of the triangle recruits 10 people, and each of those 10 people recruit another 10 people, and each one of those people recruit another 10 people, you will be making commissions from EVERYBODY in the triangle because they are all in your direct downline.
All you had to do was recruit 10 people and you make money from 1100.
Of course, you can always make money from selling shampoo or makeup in addition to recruiting, but most people in MLM companies prefer to recruit others because they stand to make a lifelong passive income from that person, rather than selling a bottle of shampoo for a one-off amount.
Is this making sense so far?
As there is a lot of money trickling up to the top of the structure, the person at the top is making a lot of money, while the people at the bottom make the least amount of money.
The ultimate aim of somebody in an MLM scheme therefore, is to have as many people in their ‘downline’ as possible, enabling them to make large amounts of passive income for little work.
At first, this may seem no different to a typical corporation in which the CEO makes the most money.
It is true that many business are triangle-shaped. However, the difference between a regular business and an MLM is that in a regular business, the people below the CEO are guaranteed benefits and salaries and do not depend on infinitely recruiting new members to the company.
This is in stark contrast to the people in an MLM, where 99% of participants actually lose money.
Source – r/antiMLM
What is a pyramid scheme?
Pyramid schemes are very similar to MLMs in the way that they are structured, but the main difference is that MLM companies also sell a product as well as paying people to recruit others into the business.
A pyramid scheme will take an initial investment from each member and promise to pay them for enrolling others into the scheme. You are never buying a product; you are buying into an ‘opportunity’ to get rich.
However, as members of the scheme increase, recruiting quickly becomes impossible and so most members are unable to profit from the scheme or even make their initial investment back.
The Wikipedia diagram below illustrates just how unsustainable this business model is – after just a few levels of recruitment, the scheme would have recruited everybody on the planet and there would simply be no-one left to recruit!
Because of the impossibility for most people to make money in a pyramid scheme, pyramid schemes are illegal. MLMs are not illegal because you can earn an income from selling products and not just recruiting.
However, just because pyramid schemes are illegal, doesn’t mean that some MLM companies are not still operating as pyramid schemes in disguise. Although a business may be carefully crafted to appear like a totally legit multi-level marketing company, it could still be exploiting loopholes in order to skirt around the law.
In order to assess whether or not a company is a pyramid scheme in disguise, we must look at whether the focus is on selling products vs. recruitment, how much money a company costs to join, how much you can actually expect to make in the company, and whether or not the company is exploiting legal loopholes in order to function as a pyramid scheme.
Got all that?
Okay, so let’s continue.
What is Monat?
Before we dive into whether or not Monat is operating as a pyramid scheme, let’s start by establishing what exactly Monat is.
MONAT Global is a huge multi-level marketing company that sells haircare and skincare products. These products include shampoos, conditioners, serums and more. They claim that all of their products are ’naturally based, safe, pure and sustainable.’
Monat (whose name stands for ‘Modern Nature’) do not have brick and mortar stores selling their products. Instead, the products are sold online through their ‘Market Partners’ who advertise on social media, using the products themselves and making videos talking about how the products have benefited them.
In addition to making commission from selling products, the Market Partners make money by recruiting others into the company. Every person they recruit becomes part of their ‘downline,’ and so the more people they recruit, the more money they make. Monat is a very typical MLM company in the way that it is structured.
So, who is behind Monat? Well, Monat was founded in 2014 by Luis Urdaneta. Rayner Urdaneta is the CEO and Stuart A. MacMillan is President of Monat.
IMG: r/antimlm
A fun fact about MacMillan is that he was the former CEO of the TelexFree 3 billion dollar Ponzi Scheme and helped the company cover their tracks with their ‘bankruptcy exit-strategy.’ They didn’t get away with their bankruptcy claim and were shut down in April 2014, 6 months before MacMillan was appointed President of Monat.
If you don’t know what a Ponzi scheme is then it’s basically a pyramid scheme but 100 times worse. Wikipedia classifies Ponzi schemes as ’a form of fraud.’
It’s definitely interesting that Monat would want somebody like MacMillan leading their company, but I’ll let you draw your own conclusions about that…
Is Monat a Pyramid Scheme or a Legit Business Opportunity? A Deep Dive into Monat Global
Monat Market Partners (the job title given to entry-level distributors) often find themselves having to defend themselves against the accusation that Monat is a pyramid scheme.
Now, it would be easy for me to sit here and say that look – if you are constantly having to defend your company against claims that it is a pyramid scheme, it’s probably a pyramid scheme.
However, you probably want something with a little more weight than that, and so I’m going to do a deep dive into Monat and follow the money to see whether Monat is operating as a pyramid scheme or not. To do this, I’m going to attempt to answer the following questions:
How much money can you make with Monat? (Are most people unable to profit?)
How much does Monat cost to join? (Do you have to ‘pay to play?’)
How do you make money with Monat? (Is there a focus on recruitment?)
Does Monat use loopholes that allow it to function as a pyramid scheme? (Is it skirting around the law?)
Is Monat a pyramid scheme in disguise? (If the answer is YES to the above questions, it may well be operating as a pyramid scheme)
How much money can you make with Monat?
If you follow any Monat representatives on social media, you’ll often see them flaunting their lavish lifestyle, bragging about how the ability to ‘work from their phone’ and ‘be their own boss’ allows them to travel, and the Monat website itself says that their ‘unrivaled business model’ enhances the ‘financial well-being of one million families around the globe each year.’
Bold claim.
I wanted to see just how much money you can really make with Monat, and so I had a look at their income disclosure statements.
Below is a copy of Monat’s income disclosure statement from 2018.
Before we begin analysing the table, it is important to note that 47% of Monat Market Partners were considered inactive and so were not eligible to receive any commission at all.
In other words, half of Monat Market Partners earned absolutely no income from Monat.
The Monat Market Partners that did earn money account for 94.03% of everybody earning money in Monat.
Their average earnings for 2018 were $183.
In fact, when we look at the chart, we see that the first 7 ranks (Market Partner to Market Mentor) all earn less than $40,000.
This means that 99.89% of Monat reps earn less than you could in a full time job. In other words, only 1 in every 909 people make a real living from Monat.
You should also know that these numbers do not represent profit as they do not take into account money that somebody has spent on ‘building their business.’
You can read a more detailed breakdown of the Monat income disclosure statement here.
SO, are most people unable to make a profit with Monat?
YES. This means that Monat has met one of the criteria for being a pyramid scheme.
How much does Monat cost to join?
As I mentioned above, the money earnt by Monat Market Partners is not all profit.
Monat Market Partners have to pay for registration fees, a starter kit, product samples and the actual Monat products themselves.
The sign-up fee for Monat is $49 and you must renew this annually. You must also purchase the ‘Starter Kit,’ which is $99 and includes the following:
- 5 ‘Meet Monat’ brochures
- 5 VIP Monat brochures
- 5 Product Magazines with price lists
- 1 SMART Start Workbook
- 1 pack of Skin Routine Tester Strips
- 1 jelly bag
- Skincare product cards
- Assorted samples
Taxes and shipping costs are extra, but I was unable to find out how much this would be without entering in my NI number.
If you want to buy Monat products to get you started, then you have the option to purchase different packages which include the Starter Kit and some discounted products (meaning you don’t need to purchase the Starter Kit on its own).
The cheapest pack is called the ‘Essentials Pack.’ It costs $199 and includes the Starter Kit, plus 5 hair products (shampoo, conditioner etc.).
The most expensive pack is the ‘Optimum Pack’ which costs $799 and includes the Starter Kit and 35 products. This is the best ‘value,’ as the retail price of all of this would be $1873, but don’t forget that you are still spending almost $800 on shampoo and paying an average of $22 per product.
While it isn’t mandatory to buy these kits, you should bear in mind that when you work for Monat, you are a sales person, and it is very difficult to sell products without actually using the products.
This brings me to my next question…
How much does it cost to run a Monat business?
We’ve established that the costs of signing up to Monat can be pretty high, but unfortunately, it doesn’t stop there.
MLMs manage to avoid being identified as pyramid schemes because they sell products.
HOWEVER.
Who is buying the products? Is it the general public, or is it the distributors themselves?
In Monat, every distributor must generate 200 PV per month in order to ‘remain active’ and earn any commission from their downline. 200 PV literally translates to $200, and you can generate this by buying $200 worth of Monat products, selling products (a small percentage of the product price will count towards your PV), or recruiting others. Every person you sign up to your downline adds to your PV, and a portion of their sales will also contribute to it.
In other words, you pay to play.
Even if you were really lucky and managed to generate 200 PV with sales and recruitment alone, you would still have to fork out for Monat products at some stage.
The idea of any ‘social marketing’ job (the term Monat uses) is to use your influence to sell products. You should boast about how amazing the products are, how they have changed your life and how you would be lost without them. You should make videos and take photos of you using the products, and the before/after results of them.
Celebrities get paid millions to endorse products all the time because if we see someone we know and trust recommending something, we are more likely to buy it.
The catch is that influencers, brand ambassadors etc. actually GET PAID to do all of this AND THEY ARE NOT PAYING FOR THE PRODUCT. With Monat, you have to buy the products yourself, and they aren’t cheap.
A Monat detangler costs $32, conditioner is $49 and a hair mask will set you back $65.
The skincare products are even more expensive, with moisturiser retailing at $68, eye cream going for $75 and an ‘illuminating serum’ to make you look ‘refreshed’ is a whopping $95.
Oh, and if you’ve got a pet dog then you can treat him to some dog deodorant for $22.
Monat Market Partners would argue that they get a discount on the products and so they aren’t actually paying the retail price, but when the markup is so high, are they really getting a discount or are they still paying over the odds?
The reason that Market Partners must pay so much to begin and run their Monat business lies with the sunk cost fallacy. This means that the more money you sink into something, the longer you are likely to stick with it in order to make it worth your while.
This roughly translates to: ‘I can’t quit now – I’ve spent so much time and money building my business!’
And this is how they get you. The more money you invest in Monat, the longer you stick around, investing more time and money and so on.
It’s an endless cycle.
Earnings vs. investment
Monat’s compensation plan doesn’t detail how exactly you get your PV to 200 each month. I had to do some digging just to find out that PV = USD, and nowhere on Monat’s compensation plan or income disclosure statement do they tell you how many PV points you will get if you sell a bottle of shampoo to someone.
Because of this, it is impossible to work out exactly how much you have to invest in your Monat ‘business’ each year, but I did some quick maths based on the information we do know.
Sign-up fee of $49 + starter pack $99 = $150
If you buy ONE bottle of the cheapest Monat shampoo and ONE bottle of the cheapest Monat conditioner annually, with your 30% Market Partner discount, you need to add $24.50 (shampoo) + $32.90 (conditioner).
So $150 + $25.50 + $32.90 = $208.40
So then, at a bare minimum (and most people use more than one bottle of shampoo and conditioner each year), NOT INCLUDING PV, you have to spend at least $208.40 on Monat in one year.
Again, this number is far far less than the amount you will ACTUALLY be spending as Monat sales reps always show off the vast amount of products that they have bought.
If you buy the cheapest Monat package when you are signing up (the $199 Essentials Package), you will be spending $199 + $49 = $248 in your first year AT A MINIMUM.
Again, I challenge you to find a Monat rep who is only buying 2 Monat products in 12 months. You won’t.
Now at first, $248 doesn’t seem like a lot of money, and if you were earning good money with Monat then you’d be able to make it back in no time, but don’t forget that 94% of Monat reps earned $183 in 2018.
This means that when you take into account how much money they SPENT on Monat, they actually LOST money.
If you knew that there was a 94% chance of you losing money in a business, why the hell would you join?!
SO, do you have to pay to work for Monat?
YES. This means that Monat has met another criteria of being a pyramid scheme.
How do you make money with Monat?
The main thing that sets pyramid schemes apart from ‘legitimate MLMs’ (I don’t believe that any MLM is a legitimate business), is the product.
This dates back to the 1979 case of Amway vs the FTC. After 4 years in court, Amway was found to be operating a legal business rather than a pyramid scheme. This ruling came down to technicalities in some of the wording in Amway’s paperwork, which has come to be known as the 70/30 rule.
The 70/30 rule means that 70% of a company’s profits must be made through retail sales of a product selling rather than recruitment. If the scale is tipped then the company could be accused of being a pyramid scheme.
This means that as the company’s focus is not purely recruitment, they can flirt with the idea of being a pyramid scheme without ending up in any legal trouble.
Now, with Monat we do see somewhat of a focus on the products.
IMG: r/antimlm
Many Monat Market Partners post before and after photos of their hair after using Monat products, and the products are prominently featured on the website, along with lengthy descriptions of just how great they are.
It doesn’t feel as though Monat is totally about recruiting people into the ‘opportunity.’
That said, for every Monat rep showcasing her luscious locks on Instagram, there is another one bragging about how ‘running her own business’ has changed her life, how she loves being able to work by the pool or stay at home with her kids, and how she has made her best friends through Monat.
This shows that while Monat reps do promote the products, they are also promoting the Monat ‘opportunity,’ and lifestyle, and if you think for one minute that this is accidental, you are very much mistaken.
By showing how happy they are with their ‘businesses,’ they are piquing the interests of others and encouraging them to reach out and ask about just what this amazing ‘work from home opportunity’ is.
Monat reps get huge bonuses and promotions from recruiting other people to join their downline, and the more people they recruit, the more passive income they stand to make. If you can get a one-time commission from someone buying a shampoo or a lifetime of commission from another person’s sales (and recruits), it’s a no-brainer.
Why would you even bother selling products when selling the ‘business opportunity’ is so much more lucrative?
SO, is there a focus on recruitment?
YES. While you CAN make some money selling products, the real money to be made in Monat is by recruiting others and forming a large downline.
This means that Monat has met another criteria of being a pyramid scheme.
Does Monat use loopholes that allow it to function as a pyramid scheme?
MLMs have to make the majority of their profits based on retail sales to the general public. Monat does not release any of its data as to how much of its profits are derived from retail sales to the public, and so we cannot say definitively how they square up on the 70/30 scale as far as retail sales are concerned.
However, something that I’ve noticed with Monat is that they give their customers huge discounts if they buy their products as a Market Partner rather than as a Retail Customer. In fact, many Monat reps actually claim that the reason why so many Monat consultants don’t make any money is because most people only sign up for the discount.
Now, if a company’s own staff members are the ones buying the products, then that company can still be classed as a pyramid scheme. However, Monat gets around this by pointing out that its Market Partners do not work FOR Monat – they are independent contractors.
I don’t know about you but this certainly sounds like a loophole to me…
A second loophole that Monat exploits is that MLMs have to show that they do not have a ‘recruitment focus.’
If Monat were directly paying distributors to recruit then we would probably see that they definitely have a recruitment focus. What they do instead is give their reps ‘bonuses’ and promotions. Hmm…
There are probably more intricate loopholes that Monat is exploiting in order to avoid being classed as a pyramid scheme but you see what I am trying to say. Just because something cannot technically and legally be defined as a pyramid scheme doesn’t mean that it isn’t operating in exactly the same way as a pyramid scheme does in practice.
Is Monat a pyramid scheme? Final thoughts
I think it’s pretty clear what my feelings are regarding this question.
Do I think that Monat meets the legal definition of a pyramid scheme and could be closed down by the FTC?
No, I don’t.
Do I think that Monat is functioning as a pyramid scheme by manipulating legal loopholes?
Yes, yes, and YES again for the people in the back.
Do I think that eventually the law will catch up to companies that are using these loopholes?
Yes, I do. I firmly believe that the FTC and other relevant authorities are catching onto companies like Monat and their tricks quickly. I believe that Monat’s days are numbered, and that if you are a Monat Market Partner then I would advise you to get out now.
Lastly, and perhaps the only question we need to be asking ourselves – is Monat ethical?
Monat may be operating under the law right now, but that doesn’t mean that it is an ethical business model. After all, if you knew that 94% of people would lose money with Monat , would you still feel comfortable recruiting them into the business?
My guess is that no. You wouldn’t.
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Hahahaha aww, thank YOU for reading! Hope it was useful 🙂
You mentioned Amway a few times do you feel the same about them? I sat thru both tonight!
Yes Amway are awful hahah.
I read through your article thoroughly I am a Monat rep and I am not here to bash your post whatsoever but I would love to help clarify a few things that appear to be been interpreted incorrectly. What exactly do I mean? To start with as an MP who started for a discount I’d like to add that I am often inactive meaning my PV didn’t cross 200 BUT I am still paid every Friday for any products I sold the week prior. The commission they refer to for being active is the monthly bonuses made of my sales and my downlines sales. I won’t receive a bonus check on the 15th but I do still get paid for every single item I sold. The initial investment was misunderstood. There is no $49 sign up fee added to your product pack. The only people required to pay that are people who chose to partner without buying the initial product packs. However for those VIP who want to jump into partnership will get $19.99 off their investment as a refund for their VIP membership costs NC they chose to partner with us they are no longer required to meet the VIP terms and they will be refunded their VIP costs. Some people may choose to partner through a flash sale therefore they don’t want the product pack they just prefer to pay the initial startup cost minus their VIP refund $20 and then for ex add a Grab Bag sale where they choose the specific products for their needs and may recv a more tailored solution for their personal needs and because of the grab bag discount they often get more then they would through the product pack. Sometimes our flash sales will allow you to start your business for less then the product pack initially and they can add a product pack within the 1st 29 days. This allows them to start Monat for even less while recv more of what they need vs don’t want whatsoever. That was really all I wanted to share with you today. I’d like to add that I actually e joked reading this. It was a very in depth detail of the company without bias and for the most part pretty accurate. I always find myself reading these articles because I like to see how others interpret the business model and their opinions of Monat in general when it’s given without bias and truthfully
There are so many false statements in this post 🤢
The IDS isn’t false though is it?
Im smacked reading this and I feel like im reading a mystery novel. I legit got so invested. I can never look at monat on instagram stories the same. Very well written. Great job!
Hahaha, thank you so much!
wow!
All of this information is completely misleading as well as most being FALES!
This is a ridiculous uneducated account of what “Jezebel” THINKS she knows about Monat. Its actually disgusting and sounds like you are just bitter. Why dont you give me an email and I can educate little Heidi who so clearly sleeps half the day.
Pyramid schemes are illegal
you cannot out rank the people who enrolled you as you so wrongly projected with your pyramid graph.
Yes you CAN take it all the way to the top. The top earner in the company joined 3 years ago so you tell me how that works being a 6 year old company.
Your Prices are all WAY OFF. you clearly have NOT done your research before writing this “blog”.
I would never trust anything you were to write about in the future because of how OFF this crap is.
So TRUE! WAYYYY OFF! I love how ppl rely on web search to blog about what they think they know about the company and how the numbers are listed. She legit pulled numbers from 2018 lol it’s 2020 where is the updated information? Bc I’ve made way more then what you disclosed and I started in June. I’m just going to leave this here. I’ve grown so much thanks to Monat. I have access to FREE MENTORS and training(mind you I learn nothing about Monat and all about how to handle life). I have gained friends and family. I am able to travel and have more time with my kids. So if you think a full time job can give you that for free too let me know!
Are you an actual bot?
Loollll she sounds like it, right?
Love, the income disclosure statements from 2020 haven’t been released yet because the year hasn’t ended.
And you may have made money, but how much money have you SPENT? Are you making revenue or actual profit?
I have to put my input and also say that this article had agreeable parts and made sense at some
points so it wasn’t a complete false article, but also had a lot of statements that are misleading. Unless you are in the business and see for yourself how things work, you won’t know. So seeing all the comments from those that haven’t experienced or haven’t done any of the work saying this is so correct and useful, are 100 percent believers on what someone says rather than first hand experience it. Pretty hypocritical for the one who wrote the article that claims market partners do the same to make others believe to be part of the business, but really the article is not telling the whole truth as well. I will give a few real truths here. There is no commitment. There is a 30 day money back guarantee for those who do not fall in love with the product and additional 90 day return with a certain % money back offer incase they change their mind after 30 days. The work you decide to put in the business will determine your income and it’s not just all sit back and watch the money roll in. You work behind the scenes with your team, personal development, teaching skills to one another not just training how to recruit. We actually train one another on the products, ingredients, on how to self care, body mind and/ or spiritually. We are never misleading on the sign ups and we are very adamant about letting clients know the process and fees and what they will expect. Jezebels experience with one market Partner trying to get her in the business is not how All market partners do it. That’s actually bad training. The ones at the top don’t use that method. One thing that is said that I do agree with is that not everyone is cut out for this type of business so they do not make what others make. It’s takes effort and hard work not just post pretty pictures on social media. The right team and trainings will get you far because of the self development you gain from this experience. If you sign up to be a market partner you have to pick the right person/team you feel will actually help you get to the top. And I will say if you join this company with the only intention to get rich, you will fail. Not saying it’s all incorrect but there are a lot of incorrect info in this article so I would advise to actually do the research on the products themselves, on the message, what the business actually has done for many others and what you believe it can do for you and ask yourself if you are capable of putting in the work rather than focus on money because that’s when you will get a genuine answer and it will be your opinion and decision and not because someone told you it’s right or wrong.
I don’t disagree completely with what you have said. I think you have some very valid points. However, when you say that the business has done great things for ‘so many others,’ the statistics simply don’t back you up. 99.6% of people in MLMs lose money. Monat’s stats are marginally better than some other MLMs, but you still have well over a 90% chance of not making any money in the company, so while it is definitely POSSIBLE to become successful as an MP, the odds are not in your favour.
Thank you for your comment though, I am always up for debating both sides as long as both parties are civil and respectful 🙂
Finally some truth to this. Very sad to see a uneducated negative revue on an opportunity that truly has changed so many lives! Safe to say this is a fixed mindset review.
It is an ‘I saw the income disclosure’ review!
Your article is certainly informative and enlightening, and I will be the first to admit my skepticism about Monat and their structure. However I can only comment from my personal experience, and my partner has been working within the company for around 6 months now. Covid undoubtedly created a good opportunity to focus on online work and she has now begun to earn a respectable amount of money – by no means enough to quit her day job, but a good start for a side hustle. I will say that I find the income number misleading (I know these aren’t your numbers so I don’t blame you at all for this) insofar as many people seem to quit the business early on, skewing the income statistics dramatically.
I share your disdain for pyramid schemes and I thought of monat in the same way for a while, but my partner seems to be carving out a path to success and it’s my duty to support her, so I have to implore you to give monat a chance. They certainly seem to be benefitting many people in my life. Thanks again for a great article but I’d encourage readers to take it with a pinch of salt
Why do so many people quit? 20% of startup businesses fail within the first 2 years but yet 50% of people in MLMs drop out after only a year. Why is that? Could it be that the business model is flawed and people don’t want to continue with it?
Sis. Stop arguing with them. It seems those who are for Monat are the being the meanest here. Why are they being so defensive?? They sound like Trumo supporters when you say one bad thing about him lmbo.
This was well written and very interesting POV.
Thanks and keep writing!
Sis. Stop arguing with them. It seems those who are for Monat are the ones being the meanest here. Why are they being so defensive?? They sound like Trump supporters when you say one bad thing about him lmbo.
This was well written and very interesting POV.
Thanks and keep writing!
Haha yes they do!
Thanks so much 🙂
You should really check out the FTC before taking advice from a blog.
Y’all know who jezebel is? Literally the most awful, evil woman on earth. Why would you name your blog that.
I wrote a comprehensive piece about who Jezebel was and why the blog is named after her, in the ‘About’ section. You should check it out love 😉 And I have sourced the FTC repeatedly. The FTC strongly advises against joining MLMs and acknowledges that you stand little chance of ever making money in one.
Nice try though!
Ppl quit because they don’t know how to be their own boss. They r use to being slaves for other companies and making other people rich. They quit because they simple give up, they quit because they didn’t have what it takes, they where not ready for the opportunity Or it just wasn’t for them. It was a well thought out article BUT have you tried the products? Have you done the business? I have learned that ppl who talk about stuff they never tried are just being negative. You saw a chance to lead ppl to a negative path, try the products try the business than form an opinion, their are a lot of worst choices ppl can make in life than a bottle of shampoo.
Next time you blog keep it real.
Lol
She laughs at readers comments who don’t wholeheartly agree with her work instead of digging deeper to get the real truth out. The intention and her character are clear. Laughing as a response is rude. Might as well not responded at all.
I only laugh at the comments that are so out of touch with reality and so ridiculous that I cannot properly respond to them. Tina clearly had not read or understood the article, and her comment barely made sense. It was so so brainwashed.
This is wrong In so many levels .
I actually signed up as a market partner for monat 2 weeks ago, I bought a starting package of 199 usd which gave me 8 big size hair products plus a bunch of samples .
If you divide 199 in 8 that is $24.87 usd per product which is not a crazy price for an organic hair product .
The first week I found 4 vip customer who wanted to purchase some products , for each of those sales I made 15% comisión plus a bonus of $60 usd .
I also got one person to register as a market partner and that gave me a bonus of $50 usd which means that in the first week I made $290 usd , that was enough to cover the $199 usd that I spent on my initial package which wasn’t really an expense but an investment because I got 8 hair products anyways .
So I don’t understand how come you say that a market partner needs to invest a bunch of money and only gets less than 200 usd per year as profit .
While I am happy that you have not lost any money, I can’t support the fact that you recruited people into this scheme when they stand a 99% chance of losing money. Those are the stats. I am not making this up. 99% of people who join MLMs lose money. I strongly suggest that you don’t just take my word for it and do some independent research.
The typical earnings I referenced are from Monat’s own income disclosure statements. Look at them – that isn’t data that I have twisted or made up – it’s right there, on Monat’s very own income disclosure statement.
My final point is that you are PAYING to advertise their products by buying the products themselves. As a blogger, I sometimes get sent freebies from clothing brands etc. I post pictures of myself in the clothes on social media to advertise the brand. Would I do this work for free, or if I had to buy the clothes? No, because I value myself and my work and so should you. I would never advertise a product that I had to pay for because that’s paying to work.
And also 25 bucks for shampoo is INSANE. I don’t know where you’ve been buying your other shampoos from but that isn’t a good price!
You do realize people join as market partners and what not because they solely like the discount they receive. They can choose to sell the products if they like but they don’t need to. The reason all of these people continue to purchase these products they sell is because they actually like the products. Why would anyone want to continue buying and trying to sell products they didn’t like. Also it’s a sales job based off of commission. So if you don’t sell products, why would you expect an income? And most of these people do this as a side hustle, which why would you not do on the side of you like the products. And without using the products you wouldn’t know that these expensive products equal the same amount you would already spend because they last a lot longer. But of course, not knowing that I too would think that was incredibly too much money.
Thank you for your comments. It is refreshing to see somebody that disagrees with me do so in a respectful manner.
I don’t think that Monat is a ‘scam’ per se, but I DO believe that it is impossible to make real money without recruiting people, and that when you really dig deep, it functions as a pyramid scheme, but one that happens to sell shampoo.
Ahh firstly she said “how come”. Yikes!
Hahaha
That’s where you people have it all wrong! I mean you ppl who ruin the vision for those who may love getting something more meaning full then money. Which you can get just about anywhere if you work under someone. I’ve gained mentors for FREE! I have learned so much and my life has changed completely. All while making an income and it’s been 5 months for me. I’ve been working for a corporation for 10 years and never felt as fulfilled as I do in these 5 months. Fyi
This girl is RIDICULOUS ! All her info is false and she trys to speak with such authority like she actually believes what shes saying and sticking to it LOL.
Monat also has the highest comp plan. There is NO risk in joining. Maybe she should try it before she slanders it.
There is no way in HELL that anyone thousands of girls have lost thousands of dollars! LOLLOLOLOL
This Blog should be reported for slander and False info.
I will tell you why they keep buying – because they involuntarily sign you up to some recurring purchase plan that is impossible to cancel! One of my IG friends was selling Monat and to be supportive I bought one shampoo and conditioner (agree – the prices are ridiculous! But in the name of female empowerment right?). Come two months later my card is charged and a new delivery arrives – that I did not authorize. I ask my Monat friend what is going on and she says she will cancel my subscription and that she was sorry and was unsure of what had happened. This happened to me 5 times – 5! I emailed monat directly and called them – it was never cancelled until my cc expired finally. I was on the verge of cancelling the card. So NO women are no flocking to buy – its a scam even as a customer. @Jezebel thank you for writing this article – women need to know! There are other ways to empower yourself – dont be taken advantage of!
Thanks so much, and thank you for sharing your experience!
While I’m sorry your consultant did this to you please know that not every MP operates the business this way. She should have disclosed to you that ther was a min purchase requirement for VIP $84 and that you would also have to buy 2 more shipments of $84 before you can cancel. Secondly she could have canceled your VIP membership for you in the 1st 29 days at no cost. But she would LOSE HER BONUS by doing so. However you would be refunded your $19.99 you keep the products and end of story.I feel like your MP utterly failed you for her own personal benefit meaning that is not a true friendship whatsoever. Bc at the end of the day she works for you! You are paying her to provide you a service. She could’ve done her job and postponed those shipments indefinitely but it means more work on her end. But isn’t that the job she tool as your rep. I have a mound of friends who joined like you did. They liked the products but didn’t really care for more shipments for a long while. I personally reset that flexship BEFORE they get charged. And I have done so every other month for 2 years wo any issue to them. However again that would’ve lowered your friends bottom line her quotas and her paycheck. It seems to me your friend cared more about her numbers then she did about you in general. Again not everyone representing Monat operates like this. I’m so sorry ypu had this experience bc its unacceptable. Have a blessed day TGIF
People love the products so much that they would shell out $195 a year just to get a discount on $22 shampoo bottles? That doesn’t make any sense. That’s like paying a $60 subscription fee to Costco just so you can have a $1.50 hot dog and drink.
Omg, YES
Hmmm now why would someone be so upset by this? Could it be because you are apart of the “business” I think so lol. I have independently fact checked a few of the claims and they hold up. For you unfortunately the author never once claimed that it was a pyramid scheme however it is very borderline and regardless of the legality the ethics behind a business falling under this category is extremely frowned upon. I learned this when I was completing my bachelors of business administration degree majoring in marketing so I’d say I know a thing or two on the subject. Cheers!
thank you 🙂
It is crazy to me that the data you supplied here just shows you make no money. It’s probably a good side gig. But after tax, how much do you make hourly from what you put in? Just curious, not seeing any hard data here. The article did supply hard data, which you have actually help confirm.
I honestly hated your article. Like you’re a woman, who should want to encourage other women. But you’re not simply because you think all girls who are joined with MLM companies are stupid and shouldn’t do it. Do I care about what you say? Yes Because none of what you said is true. Women join because they have a specific why when joining. Why do you have to dog on so many businesses? To feel good about yourself? You’re honestly pathetic.
Hello, None of your f-ing business,
I DO want to encourage other women, not to get into pyramid schemes where they stand a 99% chance of losing money (not my data – do the research and you’ll see it all backs me up). I don’t want women to get sucked into bogus schemes like this where they will end up losing money, working for free and alienating their friends and family.
I don’t think they’re stupid at all – I think that they are being sold a dream and don’t have the facts. This is why I wanted to put a comprehensive analysis out there about Monat, so that perhaps anybody thinking of joining can see the FACTS about how much a typical market partner earns and decide for themselves whether they want to sign up.
That is why I ‘dog’ on MLM ‘businesses.’
Oh, and calling me pathetic when you won’t even use your real name honey? Now THAT’S pathetic 😉
Thank you for this article! I’ve found myself on your blog a handful of times. I think that it is our job, as women, to protect our fellow women out there. To look out for each other. It doesn’t mean you’re dumb (one of my friends just joined Monat- which led me to this article just out of curiosity). Honestly, the first thing that came to mind was in reading the CEO names— all MEN. So no, this isn’t a company that was founded by women, for women. The co-founder, CEO, president on and on are all men having women sell their product. That’s a non-argument if you ask me (or if you don’t) 🙂
Yes, SO true about all the men! Haha.
Glad you keep coming back to my blog 😉 hehe. Thanks for commenting!
LOL @noneofyourf*ckingbusiness if you have to pay money to become a “business owner” of someone else’s product and then have to recruit your own friends and family to help you make your money back that’s a straight SCAM. The author is pointing that out and trying to help out these women who are being exploited and just trying to educate people in general. If you don’t agree with the facts or statistics, that’s your opinion. Why don’t you encourage other women like the author trying to expose the facts surrounding this exploitative MLM company?
Thank you!
Thank you for this!! You are encouraging other women to not fall into a made up world on social media! Everyone can make up a lavish life on a free app like Instagram if you are trying to make money off them. Our generation is just focused on getting rich quick & keeping them informed about pyramid schemes will hopefully encourage young women to not fall into the trap. Also I work for a nationwide mortgage company, I have to sometimes audit delinquent loans & some of these are from those people posting their monthly vacations and yachts on Instagram. 🙄
Thank you so much for this comment!! I really hope that I can help inform people so that they don’t fall into this trap. Oh gosh, I bet you do! It’s crazy how much people will fake things on social media.
To become a “business owner” you’re buying a package of products for yourself to use. And it’s not necessary to recruit people. It’s simply a sales job. While I believe most MLMs are scams. I do not believe Monat is, simply because they are not promising weight loss, some magical smoothie or tea, or something you won’t ever use. It’s just hair products, which is something you already buy?
Thank you for this! Monat is a complete scam and I lost hundreds when I signed up for it. I have a large social media following and got NO ONE to sign up once they heard the hundreds of dollars they had to spend upfront. Now everyone and their mother is trying to sell monat. Good luck. Only a few really make it and all I see is them on zoom the entire day trying to recruit people.
So sorry to hear that you lost money from Monat 🙁 glad you got out!!
This is exactly what I was saying monat market partners don’t get money based on the person it’s actually the certain percentage of commission of the sale. The market partner that starts, buys a package simply to use for themselves so they can show whether the products they are going to be selling are working. They don’t lie!! If the products don’t work for the individual they can have a refund they have a 30 day money back guarantee. Each pack comes with a certain percentage commission and it’s the same when a regular customer whether it’s retail or vip purchases their items market partners get a certain percentage. So I don’t believe Monat is a pyramid scheme:)
Can you please do the same analysis to Herbalife?
Absolutely, it’s on my list 😉
Thank you Dani for your article! you are right, undoubtedly MLM is very wrong and should be made illegal just like many other thing in life. Though it looks like “if you have to explain then there is no need to explain”. Can you really help people who lack any critical thinking and are OK in buying and selling liquid sop in a shiny plastic container paying 10 times a price of a similar overt the counter product?
You’re very right – it astounds me that people can have all the facts and know the odds of making money are almost nothing, yet still choose this kind of job. It’s crazy! Thanks for your comment!
I joined monat a while back and only had to purchase a starter pack (no annual fee please get your facts straight) only by posting a few posts I made my initial investment back in 4 days. Also your not just dishing out money to work for them you actually get Amazing products in return for your money so how is this losing money??? Spend money and get products in return that’s how life works in general. Now the numbers you used are based and calculated including the inactive partners which gives you completely inaccurate results. I’m at market partner level I have not recruited anyone yet and make an average of 150-300 a week just selling great hair and skin care products. The ones that joined and didn’t even make their initial investment back most probably did not even try. MLM companies can be very lucrative and the only way you will “lose money” is if youre lazy and do not even try. I have a marketing degree I have studied all different types of marketing including pyramid schemes and MLM companies. I appreciate that you try to inform people but I don’t think you are knowledgeable enough to do so when it comes to that subject. Maybe you should stick to travelling 😘
“no annual fee please get your facts straight”
There is an annual fee which you will have to pay when you have been part of Monat for 12 months.
“The ones that joined and didn’t even make their initial investment back most probably did not even try. MLM companies can be very lucrative and the only way you will “lose money” is if you’re lazy and do not even try. ”
Then why do only 40% of actual small business owners fail in the first year but 99% of people in MLMs lose money? Do MLMs just attract lazy people?
“Also your not just dishing out money to work for them you actually get Amazing products in return for your money so how is this losing money???”
But you have to promote the products that you are paying for. This is doing somebody’s advertising for free. When I promote products on social media, brands either pay ME of gift me the products. I don’t pay for them.
Unfortunately I think it is you that needs to learn more about these businesses, not me, as nothing that you have said holds weight.
Of course MLMs attract lazy people because they think it’s easy. It’s a sales job based solely off commission. So if your not seeing immediate results you give up. That doesn’t mean overall people are unsuccessful in the business.
People who sell the products buy the products not because they need to but because they genuinely like them. Why would anyone want to scam their own family and friends on products they used and hated.
Not everyone is like you and gets that opportunity to be paid for advertising free products. But when you post on social media about places you like to eat or clothes you bought recently, you’re providing advertisement for a restaurant or a retail store. Why is it different when some girl who isn’t Instagram famous wants to tell people about products she likes to use? She can continue to treat herself to nice products and if she sells some great, if not she just continues to use the products she likes anyways.
I’m not saying this in a mean way but any time you are wearing a product that has a brand name or logo on it, it is promoting that brand. Whether or not you purchased it.
What is your point here? Just hearsay? Honestly, do you have the data to prove you made money? Or do you not track it, and just kind of live off another’s income? If you are going to beat hard data, you need to prove it with data. Not begging people to believe you. Nice try, maybe you did poorly in school lol.
Please all your facts are wrong. Who would make money by not doing anything?? Really you are writing stuff without knowing. I’m making money my down line can go above me if I don’t sell anything. It’s not like oh yeah I will recruit and sit back. You need to stop writing about stuff you don’t know. It’s not a pirámide. I’m helping all my down line friends to get more and we are thriving and making more money and changing our life’s and others helping them love their hair. Sorry but you are totally wrong 😘
Unfortunately the numbers don’t back up what you say 🙂
There’s a lot of gray area I see on both sides. I believe MLMs take work, but these are cruelty free products, and traveling is bad for the environment 🤷♀️ Everything has a give and take. Also can’t rely on numbers, COVID ones aren’t accurate either.
Are you comparing the ethics of travel blogging to multi-level marketing? For me, they are not comparable. When it comes to the statistics, you can rely on the statistics with MLMs because they are the income disclosure statements that the companies themselves release…
Thank you so much for this. I had a meeting with them today, and things seemed off. They were vague when I asked questions about why the products were different. My friend is a stylist so I’m familiar with what makes them different. The person who contacted me has more coarse hair and I realized in her before photos her hair was natural. Then in the after photo her hair was longer, but it wasn’t because of the products. It was because she did a twist out on her hair. A twist out is basically when you twist it..let it dry..then take it out. Voila, beautiful curls!
Then before they elaborated on how the business works they tried to push me to buy the package. I told them I’d need time to think about it, and the demeanor of the mentor changed. She wasn’t rude, but her body language was saying she was ready to end the call. It bothered me so much after the call I started thinking a lot and did some research. Again, thank you soooo damn much. I can say no with full confidence. I have my own maid service (Maid to clean Atlanta, on Facebook and Instagram) and entertained this because I’ve lost clients due to Covid. I rather keep investing in advertising for myself. I’m an independent mother who needs all her coins! lol
Thank you for helping me keep them!!
So glad my post helped you see the truth about them!!
Thank you so much for writing this article!!! Great comprehensive breakdown of MLMs, a close friend of mine recently got into Monat and its so upsetting to see someone regurgitate all these lies they’ve been fed. I think these companies are deplorable and defiantly prey on vulnerable women. Its time for the FTC to shut them down once and for all!!!
Someone I used to be friends with is in the trap as well 🙁 it’s so sad! I hope the FTC shuts them all down sooooon!
Thank you for this article. I followed a young lady on Instagram a couple weeks ago and we hit it off like she’s a really cool person and she had beautiful hair. So I decided to try her products out, which work pretty well I’ll add and smell delicious. Anywho, her and her “team” have zoom meetings once a week and they discuss mental health, self care, show and tells and game nights with one another. So she invited me to 2 of the meetings. Super cool, amazing people, good vibes and a lot of laughs. I get a text later “ My team really loves you and we were wondering if you’d like to be a part of our team/family” etc etc. immediately I’m like is this a pyramid scheme and she Assured me it’s not, but it’s “network marketing”. I am skeptical about it for sure and this article kind of solidified my concerns. I’m supposed to have a meeting with her and her “boss” over the phone about it.
Yep, ‘network marketing’ is what they say these days because people are catching onto the words ‘multi level marketing.’ I’m sure that they are nice people and have fun together but for me, the numbers on the income disclosure statements speak for themselves – it’s just toxic positivity, with everyone just pretending they’re doing great when in actual fact, they’re probably really struggling.
Toxic positivity is such a good way to put it..it’s sad seeing these young women getting roped in by the fake lifestyle they promote then further tricked into the pyramid by being offered the ‘opportunity’ to zoom call with the higher ups in the company that are not only trained to manipulate & flex their social media but Monat gives them all these perks to make them look & feel the part so that they have that ‘dream lifestyle’ & once they’re at that level they’re so blinded by the scam because they have the money + toxic positive reinforcement that they will praise the company saying how it changed their lives because they are in the 1% they don’t feel bad about scamming new recruits because they are ‘proof that anyone can work hard & live that lifestyle’ ..the ig posts from these girls are so cringe & preconceived by the companies marketing/scamming department.
So true!! They seem to genuinely not think that they’re scamming people, even though they know full well they aren’t making money (although judging from these comments, many of them probably think that they are making money because they don’t factor in money SPENT, lol). Thanks for your comment!
Notice how everyone commenting who are
against the article, are Monat partners or reps.
They are already triggered and brain washed ready to defend the company. This article isn’t for them.
It is however, very helpful for future recruitments. I know very well how a pyramid scheme works because I was involved in one myself. People in my down line got fucked. I did profit money because I was a top earner, but it didn’t make me feel good. And that’s when I really started researching pyramid schemes and MLM companies.
I do have a couple friends that are Monat reps, and they do actually promote the product more than recruitment on their social media, BUT they hold little Monat presentation parties with wine and food and I’m sure that is where the recruitment part happens. But I’ve never been approached to get into selling Monat myself. I wouldn’t do it because I’d rather just genuinely recommend a variety of beauty products that I’ve used myself, without worrying about making money off of it.
“They are already triggered and brain washed ready to defend the company. This article isn’t for them. It is however, very helpful for future recruitments.” <<-- THIS.It's interesting to hear your perspective as somebody who has experience in a scheme but saw the light! Glad you got out of it 🙂And yes, I'm sure the parties are where the recruitment happens!
pyramid scheme? Maybe. But hands down the best products I’ve ever used. No more expensive than any salons that tries to shovel that shit. And no I do not sell nor do I ever have intentions of doing so
If you enjoy the products then I’m glad for you. They are definitely way more expensive than salon products which are what hairdressers actually use and recommend (I’ve never heard of a hairdresser recommending Monat), but if you like the products then that’s fine! I am glad to hear from somebody that enjoys the products who isn’t a distributor.
(I’ve never heard of a hairdresser recommending Monat). Do you actually know a lot of hairdressers? I personally know a hairstylist and a Monat Market Partner that religiously uses the products herself and on her clients who love the products.
Just because you know of one hairdresser that likes Monat doesn’t mean that it is standard practice for salon professionals to use Monat products on their clients’ hair – any hair product that has SEVERAL lawsuits against it for causing hair loss shouldn’t be used in salons IMO.
Pyramid scheme? Maybe but products are amazing hands down the best ive used……no more expensive then the shit they peddle in salons……and I do NOT sell it…nor will I ever…..
Hi! I appreciate you posted this article. Some people I know work for MONAT. They have hit some ranks in the company. I do care about people’s futures, including mine. What’s the worst that could happen to any person working from MONAT in regards to legal terms? What about those who are VIPs that actually buy from MONAT?
I couldn’t comment from a legal standpoint. I think that if people in MLMs begin making false claims about product benefits (health claims for example), or post their earnings then they can end up in hot water. I think Monat would be the one to come under fire rather than the reps though.
This I agree with (my longer comment is still awaiting moderation hopefully you allow it through since we’re all having open and honest discussions here right?)
No Market Partner or any person in ANY MLM should be making any claims about health or wellness guarantees or even monetary claims. So for instance when Beachbody reps post about how much they made for the week, that is against the FTC compliance claims. You cannot make any person think you are GUARANTEED an amount of money because it is all dependent on what work you put in and nowadays people are all looking for shortcuts and think they can find them in an mlm. Not the case. It’s just like any commission based job. Put in the work and you’ll reap the rewards. Also in terms of recruiting please tell me a SINGLE Job that doesn’t recruit. I literally work as an account manager and my job is “recruiting” new business for the staffing agency and then we “recruit” people that need jobs to fill those positions. Bank of America “recruits” top talent from other banks to come and work for them and even gives them bonuses. Same with Amazon, hotels, restaurants, retail stores, etc. EVERY SINGLE COMPANY recruits people to work for them through posting ads on their website on LinkedIn, everywhere. BUT you will never get to the top with those companies.
Sidebar sorry I squirreled for a moment. But back to the topic. Yes, you are not allowed to make any income claims or claims about health benefits. So for instance no one that sells oils should be saying this “cured” xyz. you can say this oil helped ME with this but you cannot make claims for other people. Also since reps of MLMs are technically their own business and can run however they want (with guidance from corporate on compliance) they would be the ones in trouble and then ultimately the company itself too. There was an issue of this at the beginning of covid where companies like Young Living, Beachbody, and some other health supplement companies were saying we can help you stay healthy and avoid covid and that is against compliance.
AS to VIPS that buy from Monat, why would that be an issue? If people are buying and using and loving their products what relevance does that have? If people looked into their drugstore shampoos as much as mlm’s you’d be SHOCKED. Also NO beauty product in the US has to be regulated or even cleared by the FDA, Monat goes a step further though and ensures every product used is in compliance with FDA standards…
Johnson & Johnson has been sued and LOST because it’s baby powder caused extreme skin issues and uterine cancer in women who used it as children but because they’re a “household” name and backed by the lobbying groups no one says anything about them. https://www.nytimes.com/2020/06/23/health/baby-powder-cancer.html (she won more than 2 BILLION dollars from them….Just because network marketing isn’t “the norm” doesn’t mean that it’s a “scam” because you are afraid to do it….
Again, feel free to message me ANY questions at any time. I can handle the heat and would love to talk to anyone. Insta: @misskatesims
So as a rep for Monat I really truly don’t agree with you but respect your opinion because everyone is entitled to their right to have one.
As a Market Partner (MP) you receive 15% commission off of VIP sales plus a $15 bonus for signing up a new VIP customer who receives a plethora of perks for being a VIP. They pay a one-time LIFETIME fee of $19.99 for this bonus and never have to renew. They never have to purchase something “every month” and they can push out their flex shipments as often as they like without any penalties. If there is an MP telling customers differently than that is a shame. When people buy retail you receive 30% commission but the customer then pays shipping although they still have access to the extra discounts (just not an automatic 15% off always).
When you sign up a new MP, depending on the product pack they initially start with (ranging from $199-$799) you get a bonus based on that but you DO NOT receive any commission off of that initial sale. MP’s receive commissions off of their downline only to level 4 (NOT all the way down 500,000 people deep. You ALSO once you reach a certain level pay part of YOUR commission DOWN to your people. Every month you start over and have to rerank so that the playing field is level. The MOST you ever have to personally sell or purchase yourself is $500 PV (though purchasing for yourself is NOT REQUIRED but I mean I’m actually obsessed with the products so I purchase on occasion but definitely not every month).
I absolutely do not agree with your statement “a small percentage of the product price will count towards your PV” This is completely inaccurate because the entire amount of the purchase price for a customer counts towards your PV (personal volume). So if your customer’s total was $183 then your PV for that sale is $183. The company gives back $0.50 on the dollar for every dollar in revenue so essentially 50% of the profits the company makes goes back to the market partners. On top of that, that is the most generous compensation plan out of ANY network marketing company in the world. There’s a reason we have millions of customers and have become a BILLION dollar company in just over 5 years of being in existence. The only other companies to do that are Amazon and a handful of others. Starbucks took 20 years to net a BILLION in profit. Our products have been able to go from the US to the UK without having to change a single ingredient (UK bans over 1300 chemicals for use in beauty products and the US only bans 11 that are known to cause birth defects, cancer, and a variety of other conditions but because of the lobbyists here they will never be banned because they generate too much money for them).
As to pricing. Our products are extremely comparable to other vegan and all-natural products on the market. One 8oz bottle has 120 washes so depending on how often you wash one bottle will last you 3-6 months because it is extremely concentrated and a little goes a long way. A $30 bottle (retail) equates on the short side to $10/month – the SAME as your precious Dove or Head & Shoulders full of toxic ingredients…don’t believe me? Download the Think Dirty app and check out your drugstore products. I personally would never back a company whose products I didn’t believe in and didn’t work for me! My hair has changed so much and become thicker, healthier, and shinier than I could ever believe. Our products are even backed by the National Hair Loss Association AND a TON of celebrities have started coming on board and NO we do not pay ANYONE to market our products like other companies because we simply do not have to. Our skincare has won multiple GLOBAL beauty awards in the last couple of years and it really works!
OBVIOUSLY not every product will work for everyone and unfortunately there are many MPs out there who do not know enough about the products and don’t do the work and don’t recommend the right products for people. If you have a MP who is not giving you a PERSONALIZED hair or skin quiz before recommending a product for you, DO NOT BUY FROM THEM. Everything is so specifically tailored to your hair and scalp needs that something that works for your best friend might be awful for your hair. Also not everything works for everyone I mean jeez, some people are allergic to avocados, or shellfish, or coconut, or a variety of other things…imagine if we said OH NO ALL THOSE ARE BAD AND MUST BE AWFUL even though we love them, just because someone else had a bad reaction to them….that is SILLY.
Also, back to pyramid scheme….I think your diagram was very misleading because yes in corporate America money flows down BUT can the lowest level person in corporate America EVER really expect to climb to the top and become CEO? NO there’s only ONE person allowed that role and the distribution of wealth is EXTREMELY UNEVEN. In Monat, I could outrank the person that brought me in depending on my level of work. I have numerous sidelines that hit higher ranks in the company and OUTEARN the people that brought them in. ALSO there’s NO caps on how much you can make. The number one income earner in our company only started 2 years ago! So please tell me how that’s a pyramid? The legal definition of a pyramid scheme is “a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.” You are BUYING INTO AN IDEA with no product to show for it and recruiting others on a “promise” of something. That is not what this is in the slightest.
IN A PYRAMID SCHEME
1. You have to hold inventory and re-sell (not here, you get your own website and run your business how you choose – Just like you’d never recommend a pizza to your friend without having tried it yourself how do you expect to sell products you don’t use or know nothing about)
2. You have to “buy in” to the company with nothing in return (no products, etc) (again, not here your products are for your OWN use and NOT to resell)
3. You have fines, fees, quota (Monat has ZERO quotas to meet, you don’t sell you still get the discount and you just don’t make any money just like any commission based sales job)
4. Your growth is limited by the person who brought you in (lol any corporate job). So if my upline decided to quit or DIDN’T grow, neither could I. (Monat I can outrank ANYONE above me and outearn anyone above me as well…I have a friend who’s upline QUIT and doesn’t work the business anymore. Based on this logic she shouldn’t still be able to earn any money but she’s thriving and making more than doubly my annual salary at my corporate job)
I also saw the comments about “parties” I personally and no one on my team has ever held a party to garner business like our mom’s used to do with Tupperware or marykay or those other companies (which by the way all REQUIRED you to hold inventory of your product and sell that product).
I feel truly sorry for any of you that have had a bad experience with a Market Partner from Monat. That is not what this company is about. The very heart of the company is gratitude and our team especially NEVER randomly goes up to someone and says “hey I haven’t talked to you in 10 years I just started a business want to join? or Want to buy some products?” NO that is AWFUL and not GENUINE and no one should ever do that. However, the culture of this company is one I have never experienced coming from being a female in the military where women are competitive and backbiting.
This company has seriously helped my mental health and faith in women and the support and encouragement are hands down the best I have ever experienced. No one fights with each other or tears each other down. There is a mindset of abundance and never lack and we all encourage each other DAILY to be better as people and business owners. We have weekly training calls on everything from mindset, mental health, personal development, to social media training (I.e. how to make content or reels, etc), to business tips and tricks that actually help me in my corporate account management job too! I hate that this company gets a bad rep because of the poor decisions of others but just like any job you get out of it what you put into it. So unfortunately a lot of people see this as a “get rich quick” scheme which it is not and when they don’t get immediate results they throw in the towel and say they got “scammed.”
In reality those of us that push through and don’t quit when the going gets tough and people constantly say “no” are the 1% who stick with it and succeed. If it takes you five years in a company like this to make a million dollars a year BOO FREAKING HOO. Most people won’t make a million dollars in 10 years COMBINED at their corporate job hoping for a $1 raise per hour or $2000/year raise. We are conditioned as a society to believe that that is NORMAL and then to turn on people looking for alternative ways to make money! Just because it didn’t work for you or you were in a team that didn’t have your best interests at heart or you didn’t take the time to put in the effort or work to make it happen for yourself doesn’t mean it’s a scam. I’m sorry that someone hurt you but imagine how much more good you could do by putting all this energy (and great writing) into something else instead of using it to discourage people from doing something they want to do? That’s just my two cents and I would LOVE to chat offline with anyone about any questions they have. @misskatesims is my instagram and I’m super down to answer any questions.
Also….the whole I need a billion followers to be successful at this business is malarky. When I started I had just under 500 followers and most of them now are girls that I’ve become friends with through this company. If I never made another dime in the company and all I had to take from it are the products and the community I have become a part of I would be content. That’s really what it’s all about. Take the time to learn and be open and follow the steps your upline shows and you’ll be successful. If you choose to join and never do anything with it, you’re never going to make money. The reason those “average income earnings” are so low is because like you said 47% of people that join do nothing with it. A lot of people become MPs just for the discount so of course they aren’t making any money and their zero’s add up. If you took that from JUST my larger team I think you would be shocked at the numbers. But I also understand that most people are extremely content with their lives and want nothing more or better for themselves and just want to tear people down for doing things they themselves are just too scared on the inside to ever do. That’s on them. I enjoyed this convo. 🙂 Have an amazing Labor Day and if anyone wants to chat I’m open. Last day to buy a conditioner and get your shampoo for $12 (so expensive I know hehe).
-Kate
Hi Kate! I was just in an interview for Monat and I am skeptical about if I’m actually going to earn more money than my current job. I am especially skeptical about spending hundreds of dollars just to start in the company. Is there any information/advice you could give me about the company and if the pay out is worth the work you have to put in? Mind you, I am a full-time college student who is trying to move out of her house, into an apartment, and wants to pay for college without being in years and years of student loan debts.
PLEASE do not quit your job or join Monat if you need to genuinely earn money. 99.6% of people lose money in these companies, and if you look at the income disclosure statements I included, your chances of making any money in Monat are slim to none.
I politely disagree with the blanket statements about MLM’s being pyramid schemes.
I don’t know how Monat’s compensation plan works nor do I know the product line so I can’t speak to them but I will say I have inquired about several different MLM compensation plans over the years and not all are painted with the same brush
I strongly feel all corporations are based on a similar business model. The CEO makes a bigger income than the frontline worker. No difference. Food for thought 💭 Do you think the Walmart Cashier who is earning a minimum wage income isn’t spending her income at Walmart? She has to buy her groceries and daily products right? So she’s probably using her employee discount to do this. So if you look at the dollar per dollar she spends in the store vs her income maybe she too is taking a “loss”.
I can assure you that she will not have an income if she doesn’t show up to work! She also will not be making the same income working part time hours as someone working full time hours or overtime.
“You either work hard to create your dream or you will work hard to create someone else’s”
I wanted to comment as I think it is wrong you are so angry towards Monat.
I joined only a few weeks ago after following the business for the past few years. I stalked many Monat reps and made my own mind up with regards to joining. No one asked me, I made the decision myself.
I am not stupid, I am aware I paid for a starter pack – this gave me products to use and when I find products I love I share them.
Had I been required to pay a fee to sign up without any products I would have been reluctant.
The products are great and as I am a “sales person” this is me doing my job.
How many people work for companies to sell their products and gets a monthly salary? It is the same thing with Monat apart from you don’t get a guaranteed salary, you get commission. As you KNOW you are only paid when you SELL then you MUST sell! Who doesn’t get that? “This is a job!”
There is no hidden agenda here. If you don’t sell then you don’t make money. But also you don’t LOSE money – you don’t have to buy any more products and you don’t pay monthly fees.
If you love the products then you will naturally want to recommend them.
How many times have you used another companies products and shared them on social media? or even walking with your iphone or starbucks cup is advertising that company. You are doing free advertising and getting nothing in return!
How many people work for companies that they don’t even like? They do the job they hate, selling their products or being fake to their customers , even influencers get paid to recommend a product even if they don’t like it!
How many people sell products they don’t believe in? These are the true people who are ripping people off – maybe this is the people you should shame instead?
To address your comments on signing people up to the business. I don’t ask to recruit, people ask me how they can join! They see the how much I enjoy the business and the community of positive people.
If they join and I make commission from their sales then happy days! That is what you call an added bonus – this commission doesn’t pay from their income so where is the harm???
The rich are not stealing from the poor here. This is a multi million pound company that reward all that join.
If you can sell and promote products you love then you will get paid.
If you don’t love the products then don’t sell them, Don’t sign up! I would 100% not be promoting something I didn’t love and wasn’t passionate about.
So I’m smart, I get paid to use products and I also get great skin and hair!
Hi… I kind of impulsively jumped into this and joined… now how do I leave……. all the way…
Oh no 🙁 I would just try not to be bothered what your upline says/scared of judgement from your peers. And I hope you didn’t invest too much money already 🙁
My niece sells Monat. I bought the products and started getting headaches and nausea every day didn’t know why, even went to my dr. For bloodwork to ck my meds. Wasn’t that. I was baffled. I was browsing on Facebook and came across Monat products. I looked at the sight and found side effects. Headaches and nausea were 2 there were a lot more. Told my niece and of course says no one else has complained about this. It only takes one person to get side effects and you should let people know. I decided to tell her it’s not for me. She said you have to try it for a few months. Still trying to sell me on them. I’m not going to to use somethingthat’s making me sick. I just told her I’m not using them anymore. So she said she has to contact customer service. I hope I get my money back. I spent close to 500.00 on products. I went to my hairstylist and asked her about Monat. She said DON’T use them. Do you have any suggestions if I don’t get my money back??
00
Hi! I’m sorry you’re wanting to resign after this article.. If you’re truly wanting out of the business, log into your Back Office scroll down and on the lower right hand side there’s a link to help with resigning from them.
Lol don’t make this sound like a cult- return your products and get your money back (you are still within your 30-day window for a money back guarantee) and cancel your account. It’s not hard.
Thank you so much for the information. I can’t believe the people who comment about you not being knowledgeable. I have yet to see another post on this topic with this much detail and information. I struggle to see this as passive income. If you are actively posting and marketing the product and actively seeking recruits, then it is not passive income by its true definition. There are so many resources for actual passive income or side hustles that yield far more income. I’m beginning to believe as I had suspected earlier than there is a “trendy” and “popular” element to Monat, and this would explain the incredibly defensive comments.
Oh my gosh, thank you so much!!! The one thing that really grinds my gears is when people say I didn’t do my research on this topic – if there is one thing I’m proud of about this article, it’s how much work I put into it haha. And I totally agree about it not being passive income!
This reminds me of when I started selling Cutco knives in college to make some extra money in between classes. I had to buy the starter pack for like $150. You do get commissions on the sales you make but you have to pressure each customer to give you the phone numbers of their friends to try to sell knives to them. It’s awkward and uncomfortable and if I wasn’t a 20 year old starving student I don’t think I could’ve done it. I only lasted a couple months. So they pretty much make most of their money off of new recruits purchasing the starter pack.
But I gotta say, Cutco knives are the best. I still have mine (15 years later) and they come with a lifetime free sharpening.
So those things can be true: Monat is a great product *and* they’re operating like a pyramid scheme.
Hi who wants to buy & sell snake oil? Lol
I joined Mary Kay some years back and it’s same old set up.
Yes there are lucky people who make money in these type of businesses but from my personal experience it’s only a very small percentage that make any real money. Oh then they talk about you can earn a free car. Another joke those cars are not free if your team doesn’t buy enough product to meet your monthly quota to pay for car you have to find your way to make car payment on free car. My Mary Kay leader kept saying her free car ya ok Pinky the car ain’t free. You will spend money to try to make money everything in these businesses cost money even the huge business meetings you pay to go. I lost about $1,000 trying to sell Mary Kay. My daughter just joined Monat she is going to have to learn the hard way I tried to tell her not to bother getting involved but….good luck to all who have joined…for those who have already tried any of these businesses I pray you didn’t suffer to much of a money loss & your able to detox from all their brainwashing bs.
oh no, I’m sorry that you lost so much money and even more sorry that your daughter has been sucked in! hopefully she will see the light sooner rather than later! (i do advise trying to show her some antimlm videos on youtube, they are super informative but more entertaining than a long-winded article like this!)
Thank you for this! I am a “Market Partner” simply because I was convinced to sign up that way when I wanted to buy some products (and was pushed that “there is an additional discount and no annual fee/no obligation to sell!” As you pointed out – YES there is an annual fee. I DO like some of their products, but am SO turned off by their “Flash Sales” that they offer at least once a week. “Buy this $80 xyz and get this other $80 for FREE!” What does that tell me as a consumer? That their products are so overpriced that they can afford to do these sales where you feel like you have to stock up while the sale is happening… instead of just offering all of the products at a fair price to begin with! It’s SUCH a turn off.
omg exactly, whenever I see huge huge sales like that in ANY business, I’m like – okay, if you’re still making a profit with 80% off the product, how much is the product REALLY worth?
What makes me laugh a little is that you could have already made a profit with Monat in the time it took you to write this article. You may have done a lot of research, but a majority of it is wrong. You never have to buy more products, there is zero reason you would need to get 200 pv in a month if you didn’t want to. But also $200 pv isn’t getting lucky that’s two sales and even if you tried just a tiny bit, anyone can do that. The people that fail to make money give up and quit before they put in the work. Which in a regular corporate job they would be fired for. Is it a get rich quick thing? No way, it’s hard work, but when you don’t give up you the reward on the other end is a million times worth it. You can surpass your upline in rank and earnings at any time and there is room for everyone at the top. While I do appreciate your motives in trying to help people, it makes me sad that you could be robbing people the opportunity of a lifetime if they listen to someone who just does not truly get it.
Haha maybe I could but I make lots of money from this particular article (more in a month than the average Monat MP makes in a year) so I’m not too fussed 😉
‘There is zero reason you would have to get 200 pv in a month if you didn’t want to’ – but if you didn’t then you wouldn’t qualify for any commission so why wouldn’t you want to?
I do appreciate you pointing out that it is hard work as so many market Monat as something you can do in ‘pockets of time’ and an easy side hustle, when it is absolutely hard work.
And I don’t think that ANY MLM can ever be considered the opportunity of a lifetime – sure, for the 0.4% of people who are making money, it’s great, but a business model where 99.6% of people fail can’t truly be cited as a legitimate opportunity, surely?
Hi!
I appreciate websites like these. I don’t necessarily agree with everything, but it is important to do research on businesses before getting involved with them. I’m not part of Monat, but I’ve been reached out to a couple of times. I wan’t aware how MLMs were structured nor the impotence of recruitment until I joined IM Academy. Like Monat, they offered me an “opportunity” and how I can reach financial freedom as long as I put in the work. The two sources of income was the recruitment aspect and using the product, which is a learning platform of learning how to trade. At the beginning I was excited to do both because I personally knew some of my uplines and I saw how successful they were getting through recruiting.
It wasn’t until I went to some events where I thought were going to be focused on trading, but it was all about recruitment. It was crazy to me to see how much they valued “offering the opportunity to people”. I started to feel uncomfortable because they wanted people to bring in other people into the academy without knowing how to use the product themselves. In scenarios like that, I would not be comfortable bringing people on my team because it doesn’t sit well with my morals.
On the contrary, I know people who are amazing traders and learned how to sell the product to other people. I do think people can become successful through MLMs because I’ve seen it happen. Business is going to be business and people are going to want to talk. Once someone starts making their dreams come true that’s when people are going to want to start questioning what they do. That’s just hate in my opinion.
I’m not part of Monat but I like doing research on businesses lie this just to get different perspectives.I see the fees customers have to pay to be a part of the team as investments, because that’s how it is. You put in some money at the beginning and the more you work on it the better the outcome and vice versa. You can’t pay for a gym membership and expect to get abs by watching workout videos on YouTube. People still have to put in the wok to get the outcome.
Overall, I liked how you made your points and analyzed Monat from afar. There is no hate or anything, I just think people should do their own research and maybe experiment it before jumping to conclusions. There is no harm in investing in companies if you have the chance because fearing money will get you no money.
Much love tho, no place for negativity <3
Thank you <3
Hi Dani,
Just wanted to drop in and say I really enjoyed reading your article and all the salty, unnecessarily aggressive comments from all these Monet reps LOL. Keep up the good work!!
Hahahah thanks so much!!
Your article was captivating. I came across this when I was trying to do my own research. What I’m mainly looking for is the detail on their “bonuses”. The reps claim that their bonuses include paid vacations to the Dominican, or a paid for Cadillac SUV when they reach a certain rank. I want to know the logistics around that, do they keep the car, do they get to drive it for a week? Maybe a follow up to this article in the future?
Keep writing boldly.
No they absolutely do not get free cars. They get car payments AS LONG AS THEY KEEP RANK, so if their ranking drops one month, they have a car in their name that they have to pay for, and if they leave the company they are stuck paying for that car. I will definitely be writing about this in the future!
Hi I was wondering about the mo money because of the fees just to transfer your money what if you kept your money on the prepaid mo money card is there a fee for that?? I need to know this
YOOOOOO reading some of the comments defending Monat HAHAHA Thank you for writing this article- i was approached recently and had very much considered it before actually doing research behind the company. something just didnt sit right with me and had pyramid scheme in the back of my head the whole time! trying to convince myself it was a legit opportunity and if i wanted to work hard at it that i could make BANK. It was so enticing to look at all the “marketing partners” and their luxe life on instagram. Basically- you saved me $$$, time, and energy
so glad I managed to save you from Monat hahaha. thanks for the comment!
Big Beauty has always taking advantage of independent contractors. As a salon owner who sell beauty products for a living, I can tell you all
Beauty products rely on independent contractor to promote and sell there product. Then turn around and sell the products cheaper to our customers. Threw department stores and on line. Breaking there own diversion contracts we have with them.
Hey, I read this because I was curious just to see how angry and how these MPs attack everyone if you don’t agree with Monat. I was a monat MP I made 400$ in the matter of 6 months, no one wanted to buy them it was so expensive to a lot of people and the zoom calls were all about how people were losing their jobs and it’s the perfect time to pitch them this opportunity. I thought to myself what a joke these people can’t afford food and you want them to sell? One time they also told me to tell people to sell their own clothes or belongs to be apart of this opportunity. WHAT?! If you don’t agree with what their doing they go against you or just write you off. If this isn’t about money why do you become so biter if someone is questioning it because they’re skeptical? Oh because it is a scam in a way lol. Also, I did everything right. I did videos, zoom calls, content, and talked about the products. I spent over $1000 and made $400 back. Also most of the girls on my team who hit a major rank have been stuck there for almost a year or lost that rank. Honestly if you don’t have followers or aren’t an influencer already you will not make so much money. I see the girls who are making money and they have very liked supporters already or are close to women who are influencers and these people who sign up with them do it because they want to be apart of the influencers team their friend is connected closely too. It is all about who is on your team! I got kicked out of the chat when I didn’t hit my 200 PV goal one month. Sooo you tell me if I’m selling still why did I get kicked out? I wasn’t making my uplines money fast. They do get you with the sales but I’ve never spent just $70 or $80 with the sales I have spend like $120 after shipping and taxes come in. It’s a rip off. If I buy 1 or 2 products just to restock it cost about $90. The sales are worse yea I might get 2 extra products for $80 and I see where they trick you but with those shipping and tax I basically bought those products lol.
Let’s talk about the car… I know someone who works for Cadillac and has sold the cars to the girls or guys they have to either lease or buy the car and you have to make sure you stay at that rank to keep your car paid for by the company if not you will be paying your car out of pocket! You sign a contract at Cadillac basically saying if monat doesn’t pay for it you will and if not they will repo your car.
The free trips aren’t so “free” either. The girls get their flights paid for but they have to pay for their room if they aren’t a certain rank also you have to pay for everything when you get there. My friend made it to SED and told me all of this. I know im going to get attacked because that’s what all anti Monat girls get when we don’t agree but I’m stating the facts. The article is accurate but made update the disclaimer. I did not make a lot of money off this company. I tried, I put my all and only made less than what I would make with my paychecks. Also, the girls are the top make so much money they don’t have to work so hard because they have about 100k downlines.
oh wow, it sounds so horrible, i’m sorry you had a bad experience!
thanks so much for commenting!
Wow! I was surprised that so many MONAT users came at you, it really is a brain wash. As a business major there are some major red flags that are super obvious in this company, doesn’t have to be a pyramid scheme to be a questionable living source.
1) Ceo was part of a previous ponzi scheme (that literally should be the only reason by this point)
2) Unless you are buying stock to be apart of a company, there’s no reason to “purchase” your employment into a MONAT
3) Since there is no requirement to be apart of MONAT, it wouldn’t really make sense that people who haven’t gone to cosmetology school or are chemistry majors have a lot to say about selling a shampoo, if you don’t even understand the ingredients behind it.
4) TAXES. Do they even have income tax? Do they register for employment? If so where are the benefits? (I don’t mean trips or a car, like health insurance)
5) The MONAT reps talk about friendships a lot, we are talking business, not a sorority recruitment
6) We’ve all see the CUTCO scheme, same thing, different product
7) You are constantly fighting to keep your position in the company, not a very solid living, they are making money from pushing you into a corner with “fake benefits”
8) There’s no supply and demand, the only people who want MONAT products, are the MONAT people themselves
SO SO TRUE
I’m not for or against the business but I use the products and they’re actually quite good. My hair has shown significant improvements in volume, texture, shine and overall softness.
I’m just here to say that I think you interpreted the graph wrong. I found the original source here https://www.reddit.com/r/antiMLM/comments/ftg3j7/2018_monat_income_disclosure_clearer_version/?utm_source=share&utm_medium=ios_app&utm_name=iossmf which shows that 47% of Market Partners are inactive (this is included within the 94% of Market Partners). Of the entire company, 94% are Market Partners, and on average, since 47% of them make zero $ (from being inactive), they skew the average income by a lot. The actual income is likely significantly different than you interpreted.
Have you seen the lawsuits of people loosing hair because of this products? 😮
omg Hi! I’m a freshman at college and recently applied to be a market partner and got it within minutes and was asked to schedule an interview and I KNEW SOMETHING WAS OFF.
Thank you again!
I really appreciate this
omg so glad you realised before you spent money!
This is AWESOME!!! I have been getting so many DMs, not interested in this company at all but was so curious to read something that backed up my thoughts/theories!!!
Thanks so much!!
Came across this article when a friend I hadn’t talked to in a while started talking about it. As she started explaining it to me I straight up told her it sounded like an MLM. She insisted it wasn’t and I found your article. I suppose you’re right, that it isn’t a real pyramid scheme (which is what they tell new recruits so they don’t run and tell others) but it’s still pretty bad. She thinks because she’s not in debt and could win vacations or a Cadillac that it’s legit.
Do you have advice on what I could do to help her? What I could say? Do you know who I could report this company to or do we just have to wait for the FTC to take notice?
Ugh, but she probably WILL end up in debt if she continues with Monat (and actually tracking how much she is SPENDING on the business rather than only taking into account the sales she makes). I would show her the study that shows that 99.6% of people in MLMs lose money, and also explain that the free car ISN’T a free car – if she loses her rank for that month (or quits the business etc.) she will be stuck with a car in HER NAME that she has to make expensive payments on.
I recommend you showing her some anti-MLM YouTube videos. My faves are Cruel World Happy Mind, Savannah Marie, Kyla James, Deanna Mims and Monica Hayworth.
So many have no clue that shampoos that grow your hair fast (obviously with no sulfates, no parabens or DEA) are a thing. Persons now may achieve longer hair and have more possibilities. Surely worth considering.
When you’re looking into hair loss, hair damage, preventing skin disorders, fast hair growth, hair and scalp health generally, similar principles become relevant.
In most cases, you want to avoid hair products and treatments that use chemicals like parabens, DEA and sulfates.
What’s good for your hair is good for your skin also.
Obviously the content above is spot on for various reasons. It stays away from the accustomed traps and errors too many fall into- using horrible alternatives. Keep up the great content!
Love this article! I’m reading in 2021 after a friend of mine just signed up for MONAT to be a marketing whateverthefuk. I am also in sales (pharma sales…. legit sales…) and had never heard of Monat. I wanted to help her out by buying shampoo or something (and no, I did not have any “hAiR gOaLs”), when she told me I would need to purchase like 8 different products. Instantly I was weary, so I did some googling (can’t believe she didn’t do any googling herself before joining this cult), and I am floored by how she could be so…. stupid.
Do you have any recommendations on how to tell a friend to get out now? Have her see the light before she either loses all her hair using these products, or loses all her money?
“can’t believe she didn’t do any googling herself before joining this cult” ugh, THIS.
My only tips would be to show her the income disclosure statements that PROVE that almost 100% of people lose money. If she comes back at you saying that this is only because they don’t try, tell her that no other business/business model has failure rates as high as MLM. I think about 40% of legit start-ups fail within the first 3 years. This is compared to 99.6% (on average) across MLM companies.
A little late to the party, but thank you for this article! A girl I went to high school with is now a Monat rep. She has thousands of followers on Instagram, has travelled EVERYWHERE in the world (well over 23 countries and all over the United States) and has stayed in some of the most lavish places. She is always flashing her expensive outfits, vacations, jewelry, and of course her beautiful hair all thanks to Monat (definitely not fake hair extensions… lol). She bombards Instagram with so much Monat advertising and recruiting, that people easily overlook that she is from an extremely wealthy family, partly owns a local smoothie truck business, and works a part-time job. She *is* very successful (and hardworking, she’s also a full-time student, I am more than willing to give her credit where credit is due!) but she gives most of the **financial** credit to Monat and her ability to travel by “being able to work from your phone!” And this gets people roped in to something they have a 99% chance of failing at under false pretenses. As someone from her hometown and knows many of her friends, I know that she is making good money off of many other things and falsely claiming that most Monat reps make 5k-18k a month. It is honestly really sad, because she is clearly at the top of the pyramid (and was already wealthy and had the funds to invest into Monat to begin with). Basically what I’m getting at is, these successful Monat reps are at the top of the pyramid and probably have multiple other sources of income that he’ll fund their lavish lifestyles. Do I believe she is a bad person? No. Not at all. I think she’s just very oblivious to her privilege and luck.
Amen to all of this, couldn’t agree more!
I just want to know where your resources are. Because while a couple of things you said are true. Most of what you said is false information or you are not giving complete information. If you can prove that these accusations are true with resources then it might be believable. But I don’t think you did complete research. Maybe you should have talked to a market partner as a resource? I just know that most of this is false. I would fact check before you say that something is true. Otherwise, it’s just an opinion. Which is completely okay. Everyone is entitled to their own opinion. Just don’t say things are true unless you know the facts. Which I can’t find any of your resources so I’m guessing that you don’t know any of this for sure. I enjoy your blog. But for sure make sure you are not leaving out information and you are not suggesting that something is a fact without having the proof.
Hi, please could you point me to something that I didn’t verify. I would be happy to provide you with more information 🙂
This Bullshit. And because You were too lazy to learn more and make more doesn’t mean it would not work for anyone else or its a pyramid Scheme.
what pyramid scheme mlm company file taxes ? did you even know in Monat we get 1099’s.
but haters will always want to bash another one business and try to look, i joined Monat in November and im amking more than i ever made in my career. I have a Bachelors Degree in Business and Chemical engineering. i am looking to retired 7 month in the company. Thanks for the Fake ass info and stop ruining it for others smh..
“i joined Monat in November and im amking more than i ever made in my career.”
Aaaaaand I’m calling bullshit. Although with grammar like yours I’d be surprised if you’d ever been hired by somebody, so perhaps you are telling the truth.
P.S. I am aware that people in MLMs pay taxes. Doesn’t make it an ethical business model.
I can’t believe this garbage. MONAT is a highly reputable company with several opportunities. I hope people are smart enough to read through the comments and see that there are real Monat Market Partners they should be talking to and not wannabees who have absolutely no investigative journalism accreditation or experience.
The reality is, you don’t need any qualifications to judge Direct Sales Companies, even ones that are so far off being a pyramid scheme. ANYONE can build their own webpage and call it truth.
To all the ignorant and uneducated people who have no clue what Direct Sales is. First off this is how you can tell if it is an illegal pyramid scheme . . .
You do not receive a physical product. You join, you get your kit and all your customers get something in the mail. That’s it. So let’s say you’ve seen those Ads to make money by sending out emails. You pay $25 to join and send emails, you get others to join, pay $25 and send emails. There is absolutely no value flowing down the chain, the value is always flowing upward. Someone is always paying the $$ to someone higher in the pyramid chain.
Direct sales companies are fully accredited and licenced by the country to sell products.
Not only is Monat reputable, but all the products are backed by independent 3rd party clinical studies – some very reputable universities. Also there are highly educated professionals who sit on the company’s Boards.
If you’re too lazy to follow well proven selling and recruiting processes, then Direct Sales is not for you. I will leave some advice if you are interested (or not) in becoming your own boss.
1. Follow all the training to a T. You do not deviate. These methods are tried and true. Think of old, reputable DS companies like Cutco, Amway, Mary Kay, Tupperware, JR Watkins and Avon (who’ve been around for decades)
2. The only difference between brick and mortar companies and Direct Sales, is the fact that all the money you spend at the stores makes some CEO rich and someone is paying a lot of overhead.
3. When you buy from DS, you directly support a home-based business in your community.
4. Monat actually has a 100% money-back product guarantee (less S&H.)
5. Monat is the #1 anti-aging haircare line in the world. You won’t find products with the quality natural ingredients like Monat’s which all are backed up by science and clinical studies.
6. There are no harmful chemicals in Monat.
7. The owners of Monat actually started a very successful skin care line in South America before bringing Monat to the USA/Canada.
8. There is no other Direct Sales/Multi-Level Marketing company in existence that matches the earning POTENTIAL like MONAT and you are treated with dignity and respect.
9. Notice I said “potential”? You are the soul Captain of your money earning ship.
10. Follow-up, Follow-up, Follow-up !!!!
11. Direct Sales companies have produced more FEMALE MILLIONAIRES then any type of business model in the world.
12. Anyone who disses Monat does so because they didn’t have the gumption to build their own successful company.
13. I can tell you 100% that millions of Direct Sellers are earning way more than the individual trying to get rich off publishing erroneous, wrong and deceitful information about a subject they know nothing about.
14. Be a leader, not a follower. Do your own research, Check with the BBB and DSA.
15. Finally, imagine owning your own business where you are 100% responsible for it’s failure or success. No middle people taking their greedy shares of your hard work!
This was the best article I’ve read in a long time! Seriously so interesting and so relevant as so many young people are getting sucked into these “opportunities.” Thanks so much for all the research and time you put into this – truly enjoyed it!
Thank you so much!!
The only way someone could make me sign up is for them to post their tax returns or their profit loss statement for their “business”
1000000%
So I won’t name any names, but I will say that I know one of the people involved at the top of Monat and let’s just say she is one SHADY character. Someone close to me is married to her ex-husband and I have never seen a nastier woman play so dirty in court. I know that has nothing to do directly with the business, but it’s just a testament to who she is as a person. She basically kidnapped the kids, moved away to another state, blocked all communication between the father and the kids, provided no phone number or address to where they were living, and never adhered to any court mandated visits/holiday time between the dad and the kids. I know the father of the kids very, very well and he is a hardworking man, doesn’t do drugs or has any issues with law, loves his kids, etc etc so there was no real reason to do this to him besides being a conniving, vindictive c… The child support imposed on him was an astronomical amount for 2 kids (seriously – not normal!) and he had to take on a second job because all of his wages were garnished from the other job. MEANWHILE, this woman was getting big fat paychecks from Monat. She now has a million dollar home and lives a lavish lifestyle. This was not the first time this woman has been involved in shady “businesses.” She was involved with Amway and with another business (I forgot the name!) but it went under and had tons of lawsuits.
A couple of years ago, the court finally decided to review the child support case against her husband and they said that they would have to look at her tax returns for the last several years or she could accept a one time settlement payment and the child support would be dropped for the remainder of the time until their youngest turned 18. She was PETRIFIED at her tax statements being investigated, so she accepted the payout and dropped the child support. Mind you – she was collecting child support for years even though one day the son decided to search for his father and go live with him instead.
So yeah. This is the woman who is at among the top of the food chain at Monat.
And therefore – anything this woman touches I believe reeks in fraud.
100%, I don’t believe that it’s possible to be at the top of these companies without being a morally corrupt character. Once you’re that high up, you KNOW what you’re doing.
Nice article! The main thing I take away from the defensive comments is that Monat is definitely a pyramid scheme but even worse, with a cult-like “culture.” That’s scary 😬
So very true! Haha.
“Pyramid schemes are very similar to MLMs in the way that they are structured, but the main difference is that MLM companies also sell a product as well as paying people to recruit others into the business.”
Please stop spreading this myth. You seem to have some understanding that MLMs who focus more on recruitment or sell most of their products to “garage qualified” participants are indeed pyramid schemes. Yet you keep repeating this very false distinction.
Many MLMs with products are pyramid schemes and have been sued or prosecuted as such. There is no “loophole” in the law. Unless the focus of your MLM is sales to genuine end users, you’re breaking the law.
We just don’t have the resources to prosecute all of the offenders. I clerked at one of the agencies that regulates MLMs during law school, and we had so many much more egregious scams to tackle. I was on a team that successfully prosecuted a very blatant business opportunity scam targeting low income minorities. I wish we could go after all of them, but do not mistake the fact that a MLM is in operation for the notion that it is in compliance with the law.
Ah, the product sentence is just me explaining the concept badly, I will edit the phrasing of that.
When I say that some MLMs exploit loopholes, for example not paying people directly to recruit, but paying them ‘team builder bonuses’ and so on, what I mean is that they muddy the waters so much that to the naked eye, they seem like they are operating completely legally and so they slip under the radar, despite operating exactly like a pyramid scheme. It isn’t about the fact that what they are doing is legal, it’s about the fact that it APPEARS legal because of how intentionally complicated they’ve made it, and the FTC just hasn’t caught up yet, because of the resource issue you mentioned.
I 100% understand that the main problem is that there just aren’t the resources for this, and this is why I believe that when more MLMs are investigated, they WILL be classified as pyramid schemes and they WILL be shut down.
Thanks a lot Jezebel for this research.
I am writing you from Barcelona, Spain, after my colleague told me some of her friends were joining Monat. We did some research from the office and all info points to the same direction. Sadly still in XXI Century still we get people falling into fraud cause they wanna make a living without truly work.
I am sad about the poision spilt on you by some Monat workers/community managers/blinded market partners and i think any journalist/blogger deserves that much negative incomes specially while presenting information and redact the new in such a logical way.
Just wanna finish saying that this has nothing to do with empowering women, that’s just another “politicly correct” tool Monat is using to defend themselves against the accusations.
Greetings from the Mediterranean.
Jose Luis B.
Thank you so much! I agree, it isn’t about empowering women at all, that’s just a buzz word that people within the company have fallen for and it’s unfortunate.
I’m actually living in Valencia right now so we are not too far away!
Thank you so much for your comment, and I hope that your colleagues friends learn how exploitative this company is before they lose too much time/money!
Monat actually is an affiliate program now. Just an FYI, this article is now outdated.
Someone doesn’t know the difference between affiliate marketing and MLM 😉
How come no comments in 2023?