Is 7K Metals a Scam? Precious Metals MLM Uncovered!
Today you're going to learn more about 7K Metals, an Idaho-based MLM company that offers precious metal bullion.
We're going to discuss 7K Metals' background, its products, its compensation plan, and more.
But the most important question is this: is 7K Metals a scam?
Read on to find out the answer.
7K Metals Summary
Product: 7K Metals
Price to join: $249 (annual membership fee); $499 (annual membership fee for premium members)
Do I recommend? No
Summary: 7K Metals offers gold and silver coins and bars for individuals who want to invest in precious metals. But keep in mind that you have to become a 7K Metals member to purchase the precious metals products.
Apart from investing in silver and gold bullion, 7K Metal members can earn commissions by referring others to the company network marketing or MLM program. But is i7K Metals a scam simply because its marketing strategy is MLM?
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What Is 7K Metals?
7K Metals offers is a company based in Idaho Falls, Idaho. It offers people an easy way to buy and invest in precious metals at wholesale prices. But unlike other precious metals dealers/brokers, 7K Metals services are open to affiliates only as it has a multi-level marketing business model.
You can only join and become a member if you had been referred by another 7K Metals associate. If you do not know any associate or there is no 7K Metals associate in your area, you can always contact the company with your location so you can enroll as a member.
Members can purchase different types of precious metal products through the company's website. There are At-Cost Gold coins and bars with prices ranging from as little as $127 to as much as $44,962.
Another product you can invest in via the 7K Metals website is the At-Cost Silver coins and bars. You can invest in as little as $15.78 for a Silver Round or as much as $8,640 for a box of 500 oz silver coins.
Investors can also buy specialty products through the 7K Metals website. These products include silver bullets, specialty coins, platinum bars, and more.
The company also caters to numismatists. Collectors' edition silver and gold coins and bars are available for purchase on the company's website. The most affordable option is the Korean Scrofa 1 oz Silver Gem Uncirculated Coin which is available at $69, while the most expensive is the MS64 St Gauden NGC/PCGS which you can purchase at $1,797.10.
7K Metals doesn't just offer silver and gold coins and bars. Affiliates can also buy different types of jewelry via the website. These jewelry include rings, necklaces, watches, cufflinks, bracelets, and more.
7K Metals was founded by Zach Davis, Josh Anderson, Richard Hansen, and Roger Ball. Davis, Anderson, Hansen, and Ball all have a long history with network marketing.
But the most important question is, how do you make money with 7K Metals?
The simple answer is by becoming a 7K Metals Premium Member. Once you become a Premium Member, you have the chance to earn points with every member or premium you personally enroll in your downline. You will also receive points if they renew their membership.
Once you reach a certain number of points, you'll earn weekly commissions or commissions based on your rank.
These commissions can run from anywhere between $500 to $7,000 per week.
Is 7K Metals A Pyramid Scheme?
Let's take a look at what a pyramid scheme is to determine whether 7K Metals is a pyramid scheme.
The first sign that a business is a pyramid scheme is that you're compelled to buy a lot of the business' products so you can earn money. With 7K Metals, however, you're free to invest in the products as an ordinary member if you want to but you're not compelled to purchase them to earn commissions.
Numerous upsells are also signs that you've joined a pyramid scheme. 7K Metals does not seem to offer frivolous products or unnecessary upsells, so it passes the second test.
The biggest telltale sign that something is a pyramid scheme is when your income is dependent on the number of people you enroll as new associates. In a pyramid scheme, your income will also depend on the flow of money others pay the company as membership fee. So if you can't convince people to join your team as an affiliate/associate and there's not a lot of money in the form of membership fees coming in, then you're not going to earn that commission.
Here is where 7K Metals fails the test.
According to the company's compensation plan, you can earn commissions by earning points and you'll earn these points by enrolling new members or when existing affiliates renew their membership.
How Much to Join 7K Metals?
Ordinary 7K Metals members need to pay $249. This is an annual membership fee.
Premium members, on the other hand, are required to pay $499 every year. Premium members are allowed to earn commissions.
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What is 7K Metals's Compensation Plan?
Here are some ways you can earn commissions with 7K Metals when you become an affiliate.
How to Earn Points:
* Membership and renewals
Earn 100 points when you enroll as a new member or renew your 7K Metals membership. Your points will go up to 150 when you enroll as a new Premium member or renew your Premium membership.
You will also earn corresponding points when you enroll new members or when your team members renew their 7K Metals membership.
* Coin of the Month
Purchase a Coin of the Month to get 20 points.
Weekly Cycle Commissions
Earn weekly cycle commissions for all 7K Metals memberships you or team members in your downline sell. If you are a 7K Associate, your left and right teams should have an accumulated 500 points each to qualify for the weekly cycle commissions.
If you are a 7K Gold Associate, your left and right teams should have accumulated 500 points up to 14 cycles per week to qualify for the commission.
Commissions Based on Rank
7K Associate - earn a weekly maximum commission of $500 when your left and right teams accumulate 500 points per cycle. Your left and right teams must have one team member each.
7K Copper - earn a weekly maximum commission of $1000 when your left and right teams accumulate 500 points per cycle. But keep in mind that your left and right teams must have two active team members each. Your left and right personal team members must also have one associate each.
7K Bronze - earn a weekly maximum commission of $2000 when your left and right teams accumulate 500 points per cycle. But keep in mind that your left and right teams must have three active team members each. Your left and right personal team members must also have one copper associate each.
7K Silver - earn a weekly maximum commission of $3500 when your left and right teams accumulate 500 points per cycle. But keep in mind that your left and right teams must have five active team members each. Your left and right personal team members must also have one bronze associate each.
7K Gold - earn a weekly maximum commission of $7000 when your left and right teams accumulate 500 points per cycle. But keep in mind that your left and right teams must have eight active team members each. Your left and right personal team members must also have one silver associate each.
What Products Does 7K Metals Offer?
You can only purchase gold and silver coins through 7K Metals by becoming a member or associate.
So what are these membership programs?
There are two types of membership programs, and these include the:
* 7K Member
You will need to pay $249 when you sign up as a 7K Member. This is an annual membership fee which allows you to buy gold and silver at wholesale prices through the 7K Metals website. As an affiliate, you can also refer to other prospective members to 7K Metals.
This includes a travel savings card valued at $250.
* Premium Membership
The Premium Membership costs $499 per year. Benefits include an MS-70 Collectible Coin, a specialty item, a World Coin, and a Silver Round. You'll also enjoy an annual Business Builder credit and a travel savings card valued at $500.
Apart from these benefits, premium members may also earn commissions. This will be based on the members' ranking (see compensation plan above).
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What I Like About 7K Metals
* Wide selection of precious metal products available
If you're looking to invest in precious metals, 7K Metals offers a wide selection of gold and silver bullion, from coins and bars and more. The wide selection of precious metals and the variations in prices ensure that anyone can invest in them.
If you like to invest in gold coins and bars, you can easily purchase them from 7K Metals. The most affordable gold coin is the Perth 1 gram Gold Bar which can be purchased at $53.79. But if you have a lot of disposable income, then go ahead and purchase the RCM Kilo Gold Bar which costs $44,897.90 at the 7K Metals website.
Silver and specialty products are also available, and you can certainly find one that suits your budget. You can also find a wide selection of rare coins and jewelry at the 7K Metals store.
What I Don't Like About 7K Metals
* You can purchase the products only if you're a member
You'll need to pay a membership fee of $249 before you can purchase precious metal products off of the 7K Metals website. But if you want to earn commissions, you'll need to shell out nearly $500. The people behind 7K Metals essentially made money off of you before you can make a profit from earning commissions.
* Investing in precious metals is risky
Investing in precious metals is not for everyone because of the inherent risks this particular investment carries. 7K Metals itself issued a disclaimer that the precious metals market "can be volatile," and the investment "involves a degree of risk that makes [precious metals] unsuitable for certain individuals.
Moreover, precious metals investments are not insured by the CIPF or the CDIC. Just like other insurance products, the total value that you will redeem may be worth less than the original. So, before investing in precious metals, always practice due diligence and talk to your financial advisor.
* The MLM business is really unnecessary
Unless, of course, MLM is the only way the people behind 7K Metals to make money and get more people to buy their precious metals products. Investing in precious metals is risky enough, but then this risk is compounded with the addition of multi-level marketing.
Even 7K Metals has issued a disclaimer that your success as an associate will "results only from successful sales efforts, which require hard work, diligence, and leadership."
* Precious metals is harder to market to younger buyers
As incomes stagnate and as priorities change, precious metals are becoming harder and harder to sell especially to people who belong to younger generations (they're more likely to invest in cryptocurrency rather than precious metals).
If you want to become a 7K Metals premium member so you can earn commissions, you better make sure that you reach out to individuals who are in the age range of traditional gold buyers (40-to-65-year olds).
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Is 7K Metals A Scam?
7K Metals is a unique company where you can purchase and invest gold and silver bullions. Apart from coins and bars made of precious metals, 7K Metals also allows you to earn commissions by becoming a premium member. Recruit and build your downline to climb the ranks, earn points, and earn commissions which range from $500 to $7000.
But is it a scam?
I have nothing against investing in precious metals. Maybe it's better than investing in stocks or bonds or real estate. Maybe it's true that a stash of gold and silver kept in a safety deposit somewhere secure is your best protection against the uncertainties of the future instead of cash stashed in time deposit or savings account.
But I don't think the MLM part of 7K Metals is necessary at all. Investing in precious metals are not particularly attractive for many people for a lot of reasons. Plus, MLM has a bad rap so if you are an associate selling 7K Metals membership, it's likely that you're going to run into more roadblocks than you originally expected.
Is it worth your time?
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