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Monat Review (MLM or Pyramid Scheme Scam?)

Monat has been known for their product that can help everyone that struggles with this specific type of problem – hair loss. We can’t escape hair loss as we age, can we? Take my pops as an example. He’s worried that he will go bald in a couple of years since he was born with thin hair, and it gets thinner and thinner. Most people don’t want to go bald as they grow older because hair sometimes is a big factor in someone’s appearance (not against bald people). So let’s dig deeper into this company.

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The father-son duo Luis and Ray Urdaneta have been in this industry since 2001 when they first established Alcora. Having experience and established connections, they then decided to make a subsidiary company namely Monat, which stands for Modern Nature, which was founded in 2014. From hair thickening/strengthening/repairing products, anti-dandruff, all the more is that it’s organic, no chemicals involved, all I can say is that they’ve found a breakthrough product that can save anyone with hair problems. But is it enough?

No it isn’t. If you ever heard of anti-aging cream for skincare, Monat also developed an anti-aging hair treatment. Isn’t that surprising? For me, it is mind boggling. Imagine, you will no longer think of your hair getting grayish or getting thin, but at what cost? Of course it will be expensive. What do you mean? A 30ml flask of the said product costs $105. What can you do to get a discount?

By signing to Monat as an Affiliate/Distributor, you will gain access to discounts and flash sales. Signing up will cost you a one time fee of $99 and an annual renewal fee of $20. This will also give you access to their monthly commissions. As we all know, buy at wholesale price, sell at retail price. You need to sell a required number of PV to be qualified for commissions of course. Not only will you get discounts, you can also earn when you sign up.

Next way to make money is for you to enroll four customers into the VIP program that costs a one time payment of $20. They must also agree to buy 3 months’ worth of product orders (which I think are pre-made bundles). There’s no limit to this set up. For every four customers enrolled under your recommendation, you will get $60. Easier said than done. 

Another way, just like in any MLM set up, is by getting commissions based on your new recruits. Getting commissions from the starter pack your recruit bought is nothing new in this line of work. Starter pack are as follows:

  • Business Product Pack – $299
  • Success Product Pack – $399
  •  Overachiever Product Pack – $599

Costly starter packs, if you ask me. But what can we do? That’s how they make money. It’s either stay away from them or join them.

Every MLM has their ranks, of course. Monat has this so-called Rank Achievement Bonus, where you can get a one-time payout on every rank you reach after finishing a certain amount of sales. It has 11 ranks with commissions ranging from $100 up to $20,000 for each rank success. Very appealing right? But having to reach that $20,000 seems like out of the question.

Many bad reviews have been attached to Monat products as I have read some of them. Some include hair loss, hair build-up and itchiness on the scalp (which sounds contradictory to what the product they are offering does). Was it the compatibility? Medical condition? Misuse? Paid trolls? We never know. But what I know is this has trampled Monat’s sales and marketing.

The same group of people who bashed Monat on social media and review platforms filed a lawsuit against them. Stating that they are doing false marketing, not claiming that the product may cause hair loss, just adding oil to the fire but what do you expect? Monat will stay silent? Monat used a reverse card, filing a lawsuit against these group of people stating that all their allegations are lies. In the end, the court eventually found in favor of Monat way back 2018.

With all allegations and lawsuits filed against them, Monat still stands strong nowadays. Doing events from here and there. I believe it is not a scam, but should you join them? Very much unlikely. A poll was conducted in 2018 among 1050 MLM distributors and it was found that most of them make 70 cents an hour and 20% of them did not make a sale. Maybe some of these 1050 MLM distributors are from Monat. We never know.

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