Are you interested in investing in precious metals? Do you worry about how to protect your assets in today's uncertain economy? 7k Metals claims to have the solution.
This multi-level marketing company allows people to purchase and sell their precious metals products. But are they everything that they claim they are?
After researching the business model and reading about the experiences of past clients, we've come to the conclusion that there are better companies. The big problem with this one is that it falls into all the trappings of pyramid schemes. Though the company makes no secret of what it is, it also isn't any better than the multi-level marketers of the past.
But let's take a look at exactly what services and products they offer. If you do decide to invest, what is the best way to make money through 7k metals?
Precious Metals Offerings
7k Metals is a multi-level marketing company that has been selling precious metals since 2016. In addition to selling standard products like gold coins, they also sell accessories like jewelry.
According to the company, the overall goal is to help people achieve financial independence by securing their investments. If you become a member, you also get to "be your own boss" as you sell memberships and products. This is a pretty typical setup for an MLM.
High purity coins, rare collectible options, and jewelry are the main categories offered. 7k Metals claims that they can sell you products at the lowest prices on the market, because they don't deal with middlemen. Instead, they work directly with mints at the source.
Dealer Direct is a benefit offered exclusively to members. With this benefit, you get access to discounts that you can't find in other marketplaces. That goes especially for people who buy in bulk. 7k Metals tries to encourage those who want to sell precious metals to use them as a dealer.
When you become a member, the company gives you access to the Buyer's Certification Program. This program teaches you about different financial advantages to precious metals investments. It also helps you determine what kinds of investments are best for your circumstances and future financial goals.
Keep in mind that you have to pay anywhere from 500 to 1,000 dollars to become a member. This "free program" isn't worth that much money; you can find eBooks that teach you about gold investment for much cheaper. Some dealers even offer educational resources about investing for free.
There are two different memberships: regular and premium. Premium memberships cost twice as much and have access to all of the market benefits from the company.
Members are encouraged to sell more memberships and precious metals products. The amount that you receive in compensation will vary depending on the "rung" of the company you're on. The more you sell, the hire your compensation will get. But most people don't ever sell enough to make back the cost of their membership.
When you become a member, you have to purchase a travel savings card. This costs just as much as the membership. So the member price you're quoted is only half of what you can expect to pay to begin with. Several people have noted that this setup confused them, and customer service was unhelpful when they asked about the extra transaction.
What Is a Pyramid Scheme?
A pyramid scheme is a business model in which people need to pay to sell the company's products. Traditional pyramid schemes sell referrals to rope more members in. The more referrals you sell, the higher you climb, until you're making back the money you lost. But most people aren't able to climb the rungs.
By their nature, pyramid schemes are built for some people to fail. The point is that you need to ensnare a lot of others if you want to make any returns yourself. This is not a sustainable business model, and for this reason, the concept is banned in many international markets outside the US.
7k Metals is not the most predatory pyramid scheme on the market. It is possible to make money by selling their product, even if you don't refer anyone else. But their prices are not low enough for this to be a viable method of income. If you only want to sell precious metals, you can work with a more trusted broker.
You shouldn't expect to make a solid income by selling precious metals through this company. Be aware that if you get invested, the only way you can make a steady income is if you refer new members. We can't recommend this company to anyone who wants to start their own small business.
Who Makes Money with 7k Metals
Most people who join an MLM lose money. The company generates profits not through the products they sell, but through the membership fees that people pay.
There are no statements from the company about how much people make or how much income the company has. This indicates that the returns aren't significant enough to brag about. They reel you in with the promise of a lucrative financial future, but they don't give you the tools to deliver.
Precious metals aren't easy to sell. The industry is competitive, and most people are just looking for the lowest price. In addition, 7k Metals is far from the only MLM in the precious metals industry. It doesn't perform well enough to separate itself from the rest of the crowd.
If you're passionate about referring people, and you have the go-getter attitude to keep everyone motivated, you might make money. You'll earn commissions for the referrals that your referees make as well. But if you're not interested in micromanaging your own little group, you probably shouldn't bother.
In addition, if you have the sales skills necessary to sell memberships, you can probably get a job with a significantly more certain income. And it won't be doing morally underhanded things.
Drawbacks of the Company
We've established why the multi-level marketing setup should give you pause. It doesn't have enough room for you to make money selling products alone, so you have to use the referral program. There's no guarantee that you'll make an income, and you're more likely to lose money than make it.
There are other aspects of the company that are definite drawbacks as well. Let's take a look at some of the potential issues you'll run into.
If you're going to get involved with an MLM, one of the first things you need to know is the subscription cost. You have to pay a certain amount to join. How do you know you'll make enough back to turn a profit?
This particular company has a steep barrier for entry. You'll pay 500 dollars total for the basic membership. If you want access to the entire market, you have to pay 1,000 dollars for a premium membership. This also includes the cost of a travel card.
And here's the real kicker: Those costs are on a yearly basis, not a one-time deal. So you have to make back at least 500 dollars every year before the investment is worth it.
If you want to access the market, you have to become a member. There are plenty of precious metals dealers that will sell you products independently without a membership fee.
What makes the exclusivity even worse is that the marketplace is usually sold out of the well-priced items.
That's right. If you see that precious metals are being sold for less than market value, they'll almost always be sold out. And the collectible coins tend to be set at enormous prices because of their potential to "grow in value."
The most successful MLMs are ones that work within the cosmetics, fitness, and health industries. Health and beauty are always in high demand.
But there just isn't the same market for precious metals. Most people don't see the point of investing, and even if they did, they don't have enough money to do so.
That means you're pitching your wares to a limited clientele. If you can't find anyone interested in buying gold and silver, how are you going to make any money? It's not a good niche for an inexperienced person.
Good Aspects of the Company
It is a good idea to secure some of your assets in precious metals. These aren't vulnerable to inflation the same way that dollar savings are. They also give you a security net during times of economic instability. And considering how unstable the economy has been for decades, many people appreciate this reassurance.
7k Metals has a wide selection of different products. You can purchase coins and jewelry in materials like gold, silver, bronze, and copper. The marketplace is easy to navigate.
The wide product selection is what attracts some people to the company in the first place. You get to choose exactly what kind of precious metals dealer you want to be.
But there are plenty of other dealers that have similar pricing and a similarly wide selection. And there's no requirement to pay 500 dollars to become part of the club. In fact, the employees at these dealerships will offer services above and beyond the basic transaction.
7k Metals claims to be based in financial independence. But you're more likely to lose the money you have. The only employees who really win are the ones closest to the top, especially the founders. It is a company modeled on greed and bloodthirsty competition, instead of being modeled on good customer service.
7k Metals is one of the most popular precious metals MLMs on the market. When you become a member, you get access to the referral program and a marketplace with discounted offers. Supposedly, you can sell precious metals to earn your own income at home.
But the only real way to make an income is by referring other people. Most people who are referred will lose their money. You have to be comfortable throwing people to the sharks and staying on top of them to make any returns. Even then, you have to do a lot of work before you'll come close to making your money back.
Because of this, we can't recommend the company. Instead, it's a better idea to invest with a non-MLM precious metals dealer. Many companies exist to help you with precious metals investing, and you don't have to pay for the privilege. You can even access different educational materials online.
7k Metals won't give you anything that you can't find somewhere else. And when you find it somewhere else, it won't break the bank like this company will.