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Everything You Need To Know About the Monat Pyramid Scheme Scam

by Olufisayo
Published: Last Updated on
Monat Pyramid Scheme Scam

Becoming a successful marketing business entrepreneur entails knowing all things network marketing. This includes the all-too-notorious pyramid scheme scams that have been going around in the multi-level marketing space.

If you’re new to this, however, you may have or may not have heard of the Monat hair product company that created a huge fuss in the MLM world—and not the good kind.

One thing’s for sure though, the Monat Pyramid Scheme Scam is definitely as real as it could get. To know more about this infamous company and why it was compared to as a pyramid scheme, join me as I discuss them in this article. Is Monat a Pyramid Scheme?

What is Monat?

Monat Global is a multi-level marketing company that focuses on selling hair products. It was founded in 2014 with headquarters located in Miami, Florida.

Their product line consists of shampoo, conditioner, hair rejuvenating vitamins or supplements, and scalp rejuvenation oil that claimed to be naturally based and promises to deliver nourishment to the hair. Being a relatively new hair company, Monat has managed to expand to other countries like Canada and the European Union.

Their fast growth can be accredited to the positive publicity it had in the starting years. However, their celebratory years were put to a halt when the company made it to the frontline of being a notorious pyramid scheme scam.

READ: Stories of Hair Loss Substantiate Monat Pyramid Scheme Scam

The truth behind the products of Monat

Contrary to the product claims of Monat, their hair products have been the center of bad talks among many customers and distributors. Hair loss, baldness, scalp irritation, and scalp injury are amongst the negative effects of using their products according to multiple customers.

Just like other MLM companies, the products of Monat didn’t go through the FDA. This fact alone should be a red flag to distributors who are considering joining the network.

While some people may not see eye to eye with the regulations of the country, it’s always a must for a haircare company to have its products tested by government agencies if they want to create a legitimate brand reputation.

Despite the good reviews of their products, the bad experiences of the customers seem to be the only thing that people now see when they hear or see anything associated with Monat.

What’s even worse is that all comments about hair loss or scalp irritation on the products are deleted by the Monat company, despicably hiding their faults. They even claimed that hair loss is just a temporary part of the ‘detox’ period prior to users experiencing the full benefits of Monat hair products.

The company not only blocked and concealed any degrading comments—honest comments—about their products, but they also failed to warn their consumers that their hair products can and do cause significant hair loss and/or scalp irritation.

READ: Marketing Structure for the Monat Affiliate Business

Why is Monat referred to as a pyramid scheme?

Monat hair products have become so controversial that many people now associate this company with a pyramid scheme.

Compared to many beauty products that are sold in big box stores and salons, Monat uses an MLM scheme wherein they actively recruit people to become their so-called “market partners”, or in other words, distributors.

These market partners are then tasked to not just sell Monat products but also to market them via social media and various marketing channels. In line with this, the company has a sales platform that its market partners can use where consumers can place their orders.

As a result, when a market partner is able to recruit other market partners, the ‘original’ partners will have a share in the profits earned by their recruits. When you think of it that way, Monat, is without a doubt, one of those infamous pyramid schemes.

Even BBB.org has to bear the brunt of the Monat Pyramid Scheme scam

BBB (Better Business Bureau) known as the topmost rating site even have to face the onslaught of this networking nightmare. The non-profit organization has received around 600 complaints against Monat including Advertising/Sales Issues, Billing/Collection Issues, Delivery Issues, Guarantee/Warranty Issues, and Problems with Product/Service.

The most number of complaints are attributed directly to the products themselves, which, anyone could clearly deduce, that, indeed, there is something terrible and harmful in their products.

READ: Are Monat Products Safe For Users? Health Experts Weigh In

Final verdict

So, Is Monat a Pyramid Scheme?

Monat functions, like most multi-level marketing companies, offer multiple ways for you to earn money based on your own volume and the product volume that your downline sells.

Most consumers don’t mind paying a high amount for a product so long as it does what it claims—or at least it won’t do anything that may traumatize them.

MLM companies like Monat would’ve been a good network to generate extra income, if not for the fact that they’re facing lots of complaints and lawsuits, thus, it’s better for you to stay away from them.

If you want to know more about how to distinguish a pyramid scheme or any networking scam, for that matter, you can check out websites online that provide business review articles such as this one, networkmarketingnow.com.

Like other similar sites, they offer unbiased reviews on businesses and schemes to help you avoid falling into any network marketing scams.

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13 comments

Stories Of Hair Loss Substantiate Monat Pyramid Scheme Scam January 4, 2020 - 10:16 PM

[…] The problem, however, is that many of these MLM businesses come with lots of customer dissatisfaction, including the infamous Monat pyramid scheme scam. […]

MLM January 10, 2020 - 5:51 PM

There are 13 Class Action Lawsuits against this company!

Rose January 14, 2020 - 4:16 AM

monat is now in Hawaii and being from here not much people know what’s going on in the outside world, nor do they know what claims have been made against them, THIS NEEDS TO BE BROUGHT TO LIGHT

Alex April 19, 2020 - 11:02 PM

I don’t have anything to do with monat but as far as I know cosmetics do not have to be approved by the FDA.

Nadia June 29, 2020 - 9:28 AM

My opinion is that it’s a good product. My partner and I really like the way it makes our hair feel. We ordered from a friend who was going through a tough time to support her. She has never tried to recruit us. It is annoying that I have to order four times to fulfill the requirements of what I signed up for (which was the lowest level with a discount). However, I can postpone those orders as many times as I want and my friend does remind me when my orders are coming up as well as an email from Monat. I just log in to the website and postpone the “flexship” order, which does have to meet a price requirement (again, annoying and scam-y, but it is the amount I would spend on hair care regardless). We currently have one more order to commit to and due to loss of income due to COVID-19, I have been postponing for months with no issue (even though we are nearly out of product. Is it a scam and MLM? I believe if you are selling it – absolutely. However, they do have a good product. The first sample we tried irritated my partner’s scalp, but he’s sensitive to peppermint. We tried other samples without any issues. My partner says the conditioner is the best he’s ever had. I wouldn’t sell it if my life was dependent on it. However, I am pleased with the products.

Joan Wehde July 11, 2020 - 1:43 PM

I have found when u use the product the first few times it’s great, after that not what I saw after use when purchased… not happy!

Nikoletta July 30, 2020 - 11:48 AM

Network marketing/MLM is a real thing, people! And it doesn’t mean it qualifies as a pyramid scheme just because it is MLM. When there is a product that it’s based on and backed up by it it is completely legal and sustainable. It’s a win-win for the company and for the customers/sales reps too. Research it! Many companies work in this system successfully, (eg. Avon, Amway, Mary Kay).

Steve September 26, 2020 - 11:49 PM

Nikoletta, you are a 100% right. I’m a business owner that chooses to educate people about the industry and then I coach them.
Being ethical and building a solid Team for long term success requires integrity.

Steve September 24, 2020 - 12:51 AM

Pyramid schemes are illegal in the U.S., so Monat can not be a pyramid scheme. Read the legal definition of what a pyramid scheme is and you’ll know the facts. Those were scams where you “invested” money without receiving any products, with only a promise to make more money. Monat is helping people and is not predatory!

Chelsea April 28, 2021 - 10:53 PM

WOW so if something is illegal it cant exist???

There have been many MLM companies that have been shut down for being pyramid schemes.

Judith March 21, 2021 - 10:25 PM

I think the product it is just a mean they find to justify it is not a Pyramid scheam. But why you have to find other people to join to get money back? Why selling the product is not enough? I asked how much do I make if sell the product, they were not able to explain. They say, we are here to help each other, that is their sentence to get people in! Be aware, just a warn.

Keely April 17, 2021 - 8:19 AM

When you sign up as a MP with Monat you choose how you want to work this business. You don’t have to sell a thing if you don’t want to, but if you’re using it as a business then there’s many ways you can make money. There’s no income cap and because of compliance, we can’t tell you how much you’ll make because that’s solely up to you and how you choose to run your business as well with how hard you work.

Sucker Borneveryminute March 28, 2021 - 4:21 AM

These rip off scams have been around for decades. Only the product and names change. If you have time and money to throw away, this will really appeal to you.

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