7K Metals: Network Marketing Company?
Another of those make-money-online schemes revolves around the sale of a saturated group membership that allegedly earns you money by selling their “special” product.
It is promoted by nearly every high-level course member who is compensated solely for the efforts of their downlines. Yes, you read that correctly…
It’s similar to a pyramid scheme but is NOT a pyramid scheme LEGALLY.
It is supposed to teach you how to become a “Multi-Level Marketer,” but the majority of members are unable to earn money by promoting other people’s products.
That is the truth…
You will not become wealthy from a $6 commission.
If you want a successful business, you need a system that takes advantage of your existing skill set… so instead of starting from scratch, you’re just a few steps from the finish line! Want to find the perfect business model for your unique talents? Take this quiz.
And, while we must be truthful in this review…
7K Metals does contain some helpful information on earning money online and earning some hefty commission checks…
But, network marketing as a business model has a number of distinct disadvantages and is rapidly becoming saturated for the average person.
Finally, some of the FAQs about 7k Metals and cheap MLMs, in general, will be addressed.
For the time being, let’s dive into all things 7K Metals!
What Is 7K Metals About?
7k Metals was founded by a group of Idaho-based network marketing entrepreneurs in 2016. They use the MLM business model to offer membership packages to individuals interested in precious metals such as silver and gold coins, bullion, and bars
Having said that…
The company’s mission is to significantly improve people’s circumstances seeking to improve their lives throughout the world. 7K Metals is committed to providing individuals with the tools necessary to build wealth and achieve financial independence through gold, silver, and other precious metals.
The men who got the ball rolling are as follows:
We’ll discuss these gentlemen in greater detail later…
They strive to continue providing their members with the most affordable precious metals possible by charging only the cost of these metals. 7K obtains these precious metals, such as gold bars and silver, at the lowest possible prices from the world’s leading distribution outlets.
Is 7K Metals A Scam Or Is It Legit?
To be clear, I do not own the 7k Metal membership. The information I’ve provided is what I discovered online. Thus, technically, 7k Metals is a legitimate network marketing company, as you receive something in exchange for your initial fee.
Additionally, I haven’t come across anyone complaining online about being duped by shoddy products, which leads me to believe it’s genuine. And as for the business itself, it is led by a strong team, so you can assume they are here to stay.
Although something is unsettling about how the products are distributed, it is only available to enrolled members. I would have preferred to see them sell memberships directly to individuals rather than through MLM business models.
Additionally, this is an opportunity for you to earn commissions by recruiting new members into the company for them to purchase these precious metals at a ‘discounted rate.’ And, because I’m not a fan of MLM business models and am unfamiliar with their products, I personally would not recommend 7k Metals.
However, with that said…
You could give 7k Metals a try if you’ve worked with an MLM company in the past (see our list of the best MLM companies) and are familiar with the world of precious metals. But, before you dive in, you should do some research on the price of the metals offered by this company on a global scale.
If the price is right, becoming an associate with 7k Metals may be well worth your time… because if you’re into precious metals, this is right up your alley.
With that said, I hope you found this 7k Metals review insightful and informative and that you gained some valuable insight into the company.
But, what is the point of learning all of this if you are not making money with precious metals?
So, here are more in-depth details…
7K Metals MLM Business Opportunity
How Does 7K Metals Compensation Plan Work?
7k Metals is structured around a so-called “binary” compensation plan. This works in the following way: you earn money by recruiting new members. Thus, consider this compensation plan as an upside-down “V” with you at the apex. Members who join will be on your right or left.
7k Metals utilizes a point system to track how much you’ve sold:
- They either recruit new members to cover the annual fee of $250 or pay it themselves (100 points)
- The associate makes coin purchases through automatic delivery (25 points)
- You earn money when you purchase coins from the affiliates with whom you have partnered.
- 7k Metals only compensates you for the smallest amount of sales you generate.
- There are two commission structures based on your team’s sales.
- If they have 1,000 pts, you earn $1,000 per week.
- If both your right and left sides have 500 points, you earn $500 per week.
- The following week, anything between 500 and 1,000 is reset.
Therefore, you have one week to earn over 1,000 points, or you must start over.
Yes, it is explicitly stated in their compensation plan.
Naturally, you must meet specific criteria to receive a payout from 7k Metals:
- Each month, you must earn at least 25 points.
- At least two new members with a total of 25 points in a month
- Finally, a 5% matching bonus for anyone you refer.
If you hate the idea of recruiting and earning small percentages… take this quiz to find a business model that fits you best!
Is 7K Metals A Pyramid Scheme?
You are not permitted to sell retail through 7k Metals. It would be ideal to convince customers who are not affiliated with you to purchase precious metals. However, this is not how it works… You can’t make any purchases if you are not a member.
Thus, it appears as though the product is not their primary objective.
To earn money with 7k Metals, you must recruit new members. This is where I place my “pyramid scheme” flags.
Essentially, a pyramid scheme is defined as a business that convinces you to join its program to earn money rather than sell its product.
However, because 7k Metals offers legitimate products, such as precious metals, they are not technically a pyramid scheme.
If you have any remaining reservations, we recommend checking out their Better Business Bureau rating.
So What Are The 7K Metals Precious Metals Product Line?
7k Metals sells the following products:
- mint silver
- gold coins
- platinum, gold, and silver bars
Here’s the breakdown of the pricing:
- Coins made of silver – $19-226
- Gold coins – range from $162 to $1,945
- Bars of silver – $18.88/oz
- Gold bars – $155 per ounce
- Platinum bars – $966.00 per ounce
A kilogram of gold can cost up to $47,627.
Additionally, 7k Metals offers a diverse selection of jewelry.
Additionally, 7k Metals has an agreement with a reputable private safe company to provide you with a secure location to store your collections.
Now, 7k Metals does allow members to shop their website for specific products at member prices. However, you must be a US resident with a membership plan.
It goes without saying that you must know many wealthy individuals with disposable income who will purchase these products on your behalf to earn money.
I do not believe this is a long-term business strategy.
Who Are The Owners Of 7K Metals?
As previously stated, the owners of 7k Metals are as follows:
Anderson and Davis have the most experience with multi level marketing company. Davis was introduced to network marketing while in college and has since assisted a large number of people in achieving their goals. Since 2011, they have both run a separate multilevel marketing company called Black Ink International.
Hansen has worked in network marketing for 34 years and has extensive experience collecting and mining precious metals.
Ball is a well-known entrepreneur. He was the owner and founder of JD Premium, which he sold in 2015. He formerly owned JD Premium but sold it in 2015. He was also a member of a company called Paycation in 2012.
Anderson discovered network marketing at the age of 21. He built a team of over 18,000 people in his first year and a team of 9,000 people in his first four months with another multi level marketing company in 2008.
Anderson was soon appointed CEO of the company and oversaw the organization’s growth to over 26,000 members.
He was also the CEO of JD Premium from 2009 to 2011, while Davis served as the company’s chief marketing officer. They were primarily involved in the distribution of personal care and nutrition products.
For the most part, the leadership of 7k Metals is comparable.
Can You Make Money With 7K Metals?
You earn points for each 7k Metals product you sell. This is something I strongly oppose because you do not make much money selling the product.
Each sale earns you 20 points, but a payout requires 500 points. Thus, given this compensation structure, I can see how few, if any, people succeed in MLM.
Indeed, nearly 99% of MLM members lose money. That’s from the FTC itself…
Regrettably, we could not discover whether or not 7k Metals members earn anything, and the company has yet to disclose this information.
If you ask me, the organization generates very little revenue otherwise they would be shouting from the rooftops.
All members must choose between the basic and premium membership levels. The following table details the pricing:
- Membership at the entry-level costs $249 per year.
- Annual Premium Membership Fee of $449
2. Travel Card
Additionally, you must purchase a 7k Metals travel savings card. The following table details the pricing:
- $250 for a basic membership.
- $500 for a premium membership.
This program allows you to receive the best travel deals each month.
Should You Join 7K Metals?
Given that 7k Metals business model is a network marketing company, you should conduct additional research if you are comfortable with that. If you have some knowledge of multi-level marketing, this may be a good fit for you. Particularly for those who enjoy the idea of purchasing precious metals such as silver and gold.
On the other hand, if you’re not a fan of multi-level marketing, I’d steer clear of 7k Metals.
Add to that the fact that if you are not interested in precious metals, I would strongly advise against it.
Due to the nature and cost of precious metals, they must be purchased with a certain amount of money.
That being said…
If money is an issue, purchasing these products may not be the best course of action… and if your circle of influence is cash-strapped, your warm market prospecting will jeopardize your ability to earn commissions.
Sound Money Wallet
When you join 7K, you gain access to the Sound Money Wallet, a digital access point akin to wallet apps on your phone.
There, you can purchase both whole ounces of gold and silver and incremental amounts of gold and silver (fractional ounces).
While fractional ounces less than the weight of a full coin cannot be shipped, they can be stored in your Sound Money Wallet.
Although a digital wallet is convenient, one of the benefits of physical gold and silver is that they can be stored at home.
Entrusting someone else to store it for you has a number of advantages, but even with the best of intentions, you never know what will happen if the “stuff” hits the fan (let’s hope that never happens).
Pros & Cons
It’s always prudent to weigh the advantages and disadvantages of any business venture… particularly MLM. As such, the following is our checklist of points to consider:
- 7k Metals does not attempt to conceal its business model.
- Their leadership abilities are outstanding.
- Members have access to low-cost precious metals.
- You cannot purchase anything unless you are a member of Multi-Level Marketing (MLM)
- They place a high premium on recruitment.
- Maintaining membership is prohibitively expensive.
- Their line of precious metal products is quite limited.
It’s worthwhile to discuss these disadvantages in greater detail…
1. The Cost
Because the precious metals market is highly volatile, you should invest at your own risk. Gold, on the other hand, is pure gold. Therefore, if the market declines, you can hold on to it… and then sell it when the market recovers.
However, gold (and other metals) remain expensive, so exercise caution if you do not have a large sum of money.
2. You Have To Sign Up As A Member To Buy Products
While their website does contain a page indicating the availability of “guest checkout,” this is somewhat misleading in that you cannot purchase metals as a “guest.”
Once you’ve determined what you’re going to purchase, you must provide the member’s name who recommended the site to you.
Eventually, you will be required to pay a membership fee to purchase any line of products.
3. The Auto-Ship Program Is Mandatory
Whether or not you enjoy a particular product, you must sign up for auto-delivery to maintain your member status.
This may not be a concern if precious metals sell like hotcakes, but you will certainly be stuck with unwanted inventory.
That sounds insane, doesn’t it?
Now you understand why the majority of members lose money.
4. Most Members Fail
As is the case with the majority of multilevel marketing companies, the vast majority of its members (up to 98 percent) typically fail or quit.
And, given the relative youth of 7k Metals, I have a feeling that their members will eventually call it quits as well.
If you’re able to sell ice to an Eskimo and enjoy multi-level marketing, you may have a chance at success…
However, those who got in early are typically the ones who make the most money.
5. Products Exclusive For Members
Perhaps it is just me, but allowing members to purchase precious metals only through 7k Metals seems counter-intuitive. It just seems fishy if you have to pay a large upfront membership fee to purchase anything else.
6. Very Limited Market
Although 7k Metal appears to be a solid company with a strong management team, it is still an MLM company… and MLM is not an easy way to earn money.
The prospect of approaching your friends and family with the prospect of either buying precious metals like silver and gold from you or recruiting them into this business model only to have them fail and blame you for defrauding them of $250 or $500 creates awkward holidays and family reunions.
And it’s not just that; 7K Metals struggles with scalability.
There are many hours in the day and only so many people you can sell to on your own.
MLM companies are well aware of this! This is why they make such an effort to recruit you for your downline… You cannot become wealthy performing it as a one-man or one-woman show.
If this is the type of opportunity you’re looking for, feel free to pursue it.
But remember, if you want a successful business, you need a system that takes advantage of your existing skill set.. so instead of starting from scratch, you’re just a few steps from the finish line! Want to find the perfect business model for your unique talents and personality? Take this quiz.