Rayner Urdaneta: MLM Facade ‘MONAT’ & its Craftsman Exposed (Update 2024)
Rayner Urdaneta is the CEO of Monat, a global multi-level marketing (MLM) company that offers hair care products such as shampoo, conditioner, and oils. However, Monat has been the subject of 11 lawsuits since 2014.
Despite the controversy, many people have claimed that the company is a pyramid scheme. CEO Rayner Urdaneta ensures that Monat products are free of parabens, sulfates, and animal-derived ingredients.
Monat produces most of its sales through individual reps who offer the goods directly to consumers rather than through a retail store. While popular, some customers have reported hair loss, breakage, skin irritation, and scalp peeling after using its shampoos and conditioners.
MLM marketing is an approach to marketing via networking. However, the dubious firms play it awfully and scam investors. There is no end result to be sold in Ponzi firms, the entire lot of associates merely keep selling the membership of the firm. This brings us to the conclusion that the revenue generated is nothing, but the membership fee looted by the navies.
Why Rayner Urdaneta’s MLM Company Monat is in Controversy?
Since 2014, Monat has been the subject of 11 lawsuits, over 300 FDA reports, over 450 BBB reports, and FDA and Florida Attorney General investigations.
Consumer complaints and resulting investigations concern a variety of issues, including:
- The negative consequences of Monat products on customers
- Ingredient misrepresentations Uncertainty regarding return policies
- Product performance claims that are false or misleading
- Failure to get appropriate authorization before commencing Electronic Fund Transfers
- The employees claim that CEO Rayner Urdaneta behaved inappropriately
Despite the numerous concerns, Monat’s business model has proven effective. Inc. named the company to its list of the top 5,000 fastest-growing businesses in America.
BBB Complaints about Monat
Better Business Bureau (BBB) has not accredited Monat. BBB has received 458 complaints in the last three years, including 92 in the last year, including:
- 55% complained about “Problems with a Product or Service.”
- 17% are concerned with “Guarantee/Warranty.”
- 18% of the time is spent on “Advertising & Sales.”
Recent complaints mostly include assertions of unauthorized charges made by clients who enrolled in the VIP program without being aware of the negative impact of Rayner Urdaneta’s Monat goods on consumers’ health. These accusations centered on its business model or its resemblance to a pyramid scam.
How Monat Market Partners Make Money
At the most basic level, market partners profit by selling at least 200 Personal Volumes (PV) monthly. This is the only criterion for earning money at this level.
You will then receive the following:
- 30% on sales from retail customers
- 15% on sales from VIP customers
- 7% off sales to the market partners underneath you
Furthermore, selling more things allows you to earn more money:
- Earn 3% on sales of 1,000 to 1,999 PV.
- Earn 5% on sales of 2,000 to 3,499 PV.
- Earn 10% if you sell 3,500 PV or more.
You can also get a $60 incentive if you sign up for four new VIP clients monthly. You may also be eligible for further bonuses.
FDA Investigation into Monat
According to a 2018 KTNV news story, the FDA sent inspectors to the Rayner Urdaneta-owned Monat manufacturing site after receiving more than 300 consumer claims of adverse responses to their products, including hair loss and allergic reactions.
Their investigation discovered “cosmetics being prepared, packed, or held under insanitary conditions, whereby it may have been contaminated with filth.”
What Do People Say About Rayner Urdaneta’s Owned Company, Monat?
- A former Monat Global employee stated that the company is a pyramid scheme. He described the atmosphere as “cult-like.” The people who work there are far more concerned with image than with having satisfied clients, and not all wonderful things claimed about the organization are real.
- Another employee claims CEO Rayner Urdaneta and his senior would yell at him and treat him badly at work. After they exploited him and tried to make him feel worthless, the company refused to allow him to switch teams. He said, “This is a terrible company to work for with terrible values.”
- A customer stated that if possible, she would give a -1. She bought three items from her friend, who was selling the items two years ago. The products did not affect her, and she is now continuously receiving emails about new orders and attempting to be charged for stuff she did not order.
She claimed that the customer service is terrible and they don’t care about their customers’ difficulties. She was very disappointed because CEO Rayner Urdaneta spoke about Monat’s excellence, yet all they gave her was a disappointment.
- A consumer voiced serious doubts regarding Monat’s credibility. He said that their team is running a pyramid scheme. One of their associates sought to reach him as a salesperson. They had been embroiled in several disputes.
- A consumer ordered a few things from Monat to help his family. Despite his attempts to cancel the orders, this became a terrible absurdity that cost him hundreds of dollars. He claimed he deleted his billing information, but they still processed and sent it. He attempted to cancel online, but nothing worked. He urged me not to order anything from this company.
About CEO Rayner Urdaneta?
Rayner Urdaneta currently holds two positions: Co-Founder and EVP at Alcora Corporation and CEO & Co-Founder of Monat. He holds a degree in International Business and has done numerous interviews to develop a trustworthy personality.
In an interview, he talked to Wayne about why direct selling was a natural fit for him and the “stress test” he developed to determine whether things should be brought to market. He also discusses what it takes to develop a successful brand, the necessity of focusing on one thing, and his expansion strategy.
Ray uses manipulation to build a strong and impactful personality. He mentioned that he followed his parents’ example of combining strong family values with the sincere belief that anyone can achieve their dreams through hard work and determination.
Conclusion
Rayner Urdanta, CEO of Monat, a beauty brand that sells haircare and skincare products that it develops. He claims that its products are free from parabens, sulfates, and animal-derived ingredients.
On the other hand, Monat has been the subject of 11 lawsuits since 2014, as well as over 300 FDA reports, 450 BBB reports, and FDA and Florida Attorney General investigations. After reviewing the consumer complaints and the company’s false claims, it is obvious that Rayner Urdanta and his company Monat are both fraudulent.
