Is Monat An MLM?

According to Investopedia, an MLM business model is one that “encourages existing members to promote and sell their offerings to other people and bring new recruits into the business. Distributors receive a percentage of their recruits' sales. New recruits become the distributor's network or downline, and in turn are encouraged to make sales to make money." So it's true that Montag is a direct selling company, which means Consultants sell Montag products directly to clients, not customers , who buy in a store or on a website, but it's not the only way consultants make money, to be really successful in selling for an MLM you need to recruit people to sell under you and get them to sell people under you to recruit them, etc. This is where the business model starts to look like a pyramid.

The reason this is not considered a pyramid scheme is because of this direct selling component; month really is Sale of an actual product. But the tricky part is that a whopping 75% of people who sell for MLMs never make a profit. Ever (via Fundera). This means that the vast majority of people who are persuaded to sell Monthly products never see such results thanks to promises of great financial success. In fact, they are more likely to lose money than make anything.

By: Is Monat An MLM?