The state of the Mo-nation: MLM Monat in turmoil in the US
29th April 2024
Despite the ribbing I get from Craig on the podcast about telling listeners to “Watch this space!”, Skeptics know that I can at least be relied upon to share any interesting updates that come my way about past articles. And boy, do I have an update for you all!
I’ve written about the hair care MLM Monat in 2022, and you can access those earlier pieces here and here. In brief, Monat is an international and controversial haircare MLM that has been operating in NZ since 2022. Monat has long been beset by unscientific claims, allegations/lawsuits that its products cause hair loss. and a roster of reps/consultants/market partner influencers who shouldn’t be allowed anywhere near social media. To its credit, Monat has weathered at least two exodi, with a top sales team (WFABB) taking their downline to the Crypto MLM iGenius in 2021, and another team moving to the health product MLM QSciences in the same year.
There are many reasons why consultants MLM hop. Occasionally, the corporate office of an MLM will choose to swing a ban hammer or two in the name of compliance with the Federal Trade Commission. This leads to the inevitable emotional vlog from the maligned consultant about how they don’t recognise the values of their original MLM any more, and concludes with the reveal that they are taking their downline to another MLM. On rare occasions, an individual can hit the ceiling of the compensation plan and see a cap on their earnings - another reason to jump ship for greener pastures.
But, more frequently, people move when a new MLM appears from the depths of the scam swamp. Its compensation plan doesn’t necessarily need to be much better than someone’s existing MLM, but if you are a consultant struggling to keep afloat at your current MLM, getting in on the ground floor with a new one can be profitable if you have a decent downline who will transfer with you. There tend to be financial bonuses for a consultant when they and their downline hit ranks rapidly and purchase the ubiquitous starter packs. For those on the outside of the MLM, social media posts about a consultant’s meteoric rise give the wrong impression that the consultant is a good and capable seller, when the reality is that their downline is just being onboarded and buying products for their own business.
Now, in 2024, it is time for the consultants who were loyal to Monat since the 2021 troubles to face the chopping block. Many of them are coming out swinging, and customers are coming out of the woodwork with their real thoughts about the quality of the products.
And yes, customers are mentioning that Monat products made their hair fall out.
Now, we can be suspicious about whether the customers are actual customers, but the impact is the same either way.
There was a small influx of videos about this exodus/termination of popular consultants on anti-MLM YouTube from April 16th-23rd. Many queried if this was the true and final end of Monat.
Then, on April 24th 2024, a lawsuit was filed by the former President of Monat, Stuart MacMillan, against the company, its CEO and Chairmen. MacMillan claims to have been owed millions in a profit-sharing agreement, and accuses Monat and the Urdanetas of deliberately diluting and draining the MLM’s profits to limit or prevent profit-sharing with MacMillan. MacMillan further claims that upon his resignation from Monat, the Urdanetas demanded that he have no contact with nearly 3000 Monat employees, including his family and friends, in order to receive payments. The Urdanetas allegedly further tried to interfere in MacMillan’s non-Monat enterprise called Lighthouse Collective Event. This was a one-day event dedicated to how religious business persons can blend their faith and family, and be successful in business. While MacMillan invited the Urdanetas to attend, they declined the invitation and allegedly proceeded to threaten multiple vendors by withdrawing future contracts to serve Monat events.
One commentator suggested that MacMillan’s departure, and the no-contact conditions the Urdanetas had in place, may have contributed to some unrest within the Market Partner ranks and led to some of the departures. MacMillan was the spiritual heart of Monat, and would host ministry calls and prayer meetings with top Monat leaders.
This isn’t MacMillan’s first rodeo in the American court. Before becoming president of Monat in 2014, he was briefly appointed interim CEO of the TelexFREE ponzi scheme. TelexFree had applied for bankruptcy, and MacMillan was allegedly hired as clean frontman while the former CEOs tried to escape responsibility. TelexFREE was not successful in its application, and the company was transferred to the US Department of Justice. MacMillan then sought payment of over $100,000 for presiding over a dead business, which was opposed, and he refused to surrender the nearly $180,000 retainer he was paid to act in place of TelexFREE’s original CEOs.
So, don’t cry for MacMillan just yet.
Does this mean anything for the New Zealand market? That would depend on whether MacMillan and the Urdanetas make it to court, the size of a potential out-of-court settlement, or if the Urdanetas make some move to avoid liability that results in the overhaul of Monat. At present, Monat’s NZ social media presence is hardly making waves, and the company still relies more on reusing Australian reps in their NZ advertising. When they do, it is still jarring to see something that may be a haka performed at an MLM rally.
What next for the former Monat market partners? Have any of them seen the light and forsaken the false god of MLM?
No. And they aren’t following their mates to iGenius and QSciences either, as both MLMs are struggling in their own right.
The MLM of choice this time around is Oliveda/The Olive Tree People; an MLM so ridiculous that it deserves its own little article, which is included below.