7K Metals is a relatively new company that claims it can help you easily generate wealth from precious metals like gold & silver. In fact they actually state that as a member you’ll be able to live an “exceptional life”…
But with a start-up cost ranging to around $8,000 you might be pretty wary about the whole thing – and rightly so… Well what’s the truth? Is it really legit like they claim, or is 7K Metals a scam that’ll just end up costing you more money than you ever actually manage to make?
Thankfully you’ve landed in exactly the right place to find out the answer to those questions as I’ve took a closer look into it all & in this honest review I’ll be uncovering the truth about how it really works… Including whether or not you can really benefit from it.
What Exactly Is 7K Metals?
On the surface 7K Metals looks like your average website through which you can purchase silver & gold, at allegedly discounted prices, however if you dig a little deeper you’ll discover that it’s actually a multi-level-marketing company.
This basically means that alongside the purchasing of precious metals people can also sign up & recruit others to the site in order to earn commissions at their expense… And hence the name “multi-level”, the commissions can be earned from multiple levels of recruits.
So the whole thing has a “behind the scenes” structure which looks similar to the one shown below:
Looks kinda worrying right? Well yeah, that’s because it is kinda worrying. As you can see these types of multi-level-marketing programs very closely resemble pyramid schemes so you have to tread VERY carefully when considering joining one.
Literally the only thing that actually separates it from being classed as a pyramid scheme is where the focus lies. If the focus lies on making retail sales of a genuine product, then the MLM would be legit, but if the focus lies on the business opportunity & making money… Then it is likely a pyramid scheme (which is not legit).
The reason pyramid schemes are such bad news is because they are unsustainable, meaning they will at some point inevitably collapse which will result in most of the investors losing all of their money.
And they also only really favour the people at the very top (as do MLM’s) so overall very few people actually profit from these types of programs. Normally it is just the creator & those that got in early, or those that are very experienced marketers & manage to recruit hundreds of people below them.
The FTC themselves actually put out a publication about MLM’s not so long ago which stated the following:
So yeah, first off 7K Metals is an MLM company – and even if after this review I determine it to be a legitimate company, the overall industry success rate in MLM’s is less than 1% which is not good news.
In my opinion there are many, many better ways to make money online – but if you’re absolutely dead set on 7K Metals then do keep on reading as I’ll explain how it all works & whether or not I believe there’s actually potential to make any money with it below. 🙂
How Does 7K Metals Work?
Well the 7K Metals company which was (according to their website) founded by Zach Davis, Richard Hansen, and Josh Anderson has allegedly been launched to “improve the lives of people around the world” and help people “learn the biggest secrets that have been keeping them from creating wealth with gold and silver“…
But what does this all mean? How are you actually going to be making money with 7K Metals?
Well first off in order to actually get started with it you’re firstly going to have to find an “Associate” to refer you to the site as you can’t actually purchase any of the 7K Metals products without a membership…
This means that there aren’t actually any retail sales going on at all, which isn’t good, instead the people inside of the program who are promoting it are really just promoting a membership… A membership which gives them the opportunity to make money.
So remember what I said earlier about the pyramid scheme thing? Yeah well it’s definitely not a good start on that front.
But anyway since you’re here reading this 7K Metals review I assume you’ve already found an “Associate”. They’ve probably sent you to the site & now you’re here trying to find out if it’s actually legit…
Well after entering you’re referrer’s ID into the 7K Metals site you’ll find out that in order to get access (even if you just want to purchase some precious metals) you firstly have to pay a membership fee.
How Much Does 7K Metals Cost?
You can either choose to pay $250 per year, or $10 per month (with a $75 upfront fee)… Which is pretty expensive in my opinion! Especially since this literally doesn’t do anything other than enable you to access their products.
Then, once you finally get access after paying the fee you’ll be able to purchase their products which (as shown below) range from around $46.27 all the way up to a whopping sum of $38,728.70…
It’s worth pointing out though that whilst 7K Metals claim their prices are discounted & that they are selling “At-Cost Gold”, a quick Google search I ran brought up a site that was selling the same 1KG bar for $38,513.71… Which is $214.99 cheaper than 7K Metals (and there’s no membership fee required to purchase it via the site I found either).
Take a look:
With that aside, one way of making money via 7K Metals is obviously by purchasing the precious metals in the hope that the value will increase in the future, at which point you can re-sell & make money…
However as a member of 7K Metals you’ll find out that that’s not the “real” way to make money with the program, and instead you’ll be pushed into participating in their referral program, the multi-level-marketing program.
You’ll also be heavily pushed into this by the person who referred you too as the person who referred you will earn a percentage of the commissions you generate (if you manage to generate any), so it’s in his/her interests for you to begin recruiting others… I’ll explain all this below though…
What Is The 7K Metals Compensation Plan?
The 7K Metals operates a typical binary compensation plan through which affiliates earn points when they recruit new members & get them to purchase precious metal packages or products through the site.
When an affiliate recruits somebody who pays the $250 yearly fee they earn 100 points – and then if that person goes on to purchase any products more coins will be awarded to the recruiter with the amount of coins depending on the money spent.
More money spent, more coins awarded to the recruiter… So naturally your recruiter (if you were to join the program) is likely going to get you to invest as much money as you possibly can into the site.
At the end of each week the amount of points is added up on each leg of the binary compensation plan, and then the affiliate will be awarded $1,000 for every 500 points matched on each leg… But they can only earn up to a maximum of $1,000 per week.
Achieving the required 500 points each week though is pretty darn difficult!
There are also some residual commissions paid out to affiliates too but in order for the affiliates to qualify these they must continually earn at least 25 points each month & they must have also recruited 2 affiliates who have also achieved the same criteria themselves… Which again is pretty darn difficult!
So overall in my opinion the compensation plan doesn’t look all that exciting, which brings me onto…
My Verdict – Is 7K Metals a Scam?
Well, I can’t exactly say 7K Metals is a scam – but what I will say is that in my opinion it’s very risky, and given that only affiliates can actually purchase the products it kind of looks a bit like a pyramid scheme.
I mean as far as I’m concerned a legitimate MLM should sell products to the public without them having to pay money to sign up for an affiliate membership or anything, just like any normal online shop would…
It seems to me that there is more of a focus on the actual business opportunity rather than the products & I have to admit that is not something I like. Plus the compensation plan looks pretty lame & I think even an experienced marketer would struggle to make money through it, let alone a newbie…
So overall it’s safe to say that I won’t be recommending the 7K Metals opportunity to you because I don’t believe it will truly help you make money like it claims. In fact I believe that you would probably be much more likely to lose money than make it if you happened to join.
There are just so many better ways to make money online as far as I’m concerned. There’s no need to invest ridiculous amounts in so-called “at-cost” precious metals or work your butt off recruiting people into an opportunity… You could just join a legitimate (and free) program like Wealthy Affiliate instead where you can learn how to properly make good money online, without the risk.
But anyway whatever you decide to do I just hope that my review here helped you out & hopefully it gave you a better insight into how the whole thing actually works. If you do still happen to have any extra questions though then don’t hesitate to leave them below & I’ll get back to you as soon as I can. 🙂