7K Metals is a multi-level marketing company with very successful founders. Though the company has a good reputation in general, many people have joined and found that they haven't made enough money to break even. If you want to make money by selling precious metals, you can probably do so without needing to pay a company for the privilege.
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About 7K Metals
This company was first started in 2016 and is based out of Idaho. They use a multi-level marketing model for their salesmen, which they say helps to motivate people and improve outreach. If you want to sell their products, you'll pay a membership fee. Then you'll do your best to sell enough to make a return.
The goal of the company is to improve the financial security of people worldwide. Precious metals are a reliable source of wealth and have been for thousands of years. If there was a global emergency, people who have investments in precious metals and other assets are more likely to have financial security.
Instead of focusing only on investing the money of clients, they also seek to help their members become independent by selling their products. Upon joining the company, you're given access to a marketplace of precious metals. The founders say they are sold at the original purchase price without any markup for profit.
There are two main types of offering from this company. They sell precious metals to clients at market price, and they sell memberships to people who are interested in becoming sales reps.
There are several categories of precious metal available through the company.
One of the flagship products is the Selected collection. This is a collection of products specifically put together by the 7k team because they are expected to increase in value as time goes on. The goal is to invest in items that will have a solid return later.
In addition, the company sells a variety of jewelry crafted from silver and gold. The pricing of these can vary, but it tends to be competitive when compared to similar options from jewelry stores. Some of the types of jewelry you might see include:
The Dealer Direct program is available for those who purchase a membership. You'll get discounted prices on certain items in the marketplace, along with deep discounts for purchasing in bulk. If you plan to deal a lot of precious metals, this is a great way to purchase supplies.
There is also the 7k Gear category, which is unrelated to precious metals. You'll find clothing items and accessories like sweaters, t-shirts, and backpacks.
Company memberships come with two different levels, one basic and one premium. Regardless of the membership level you choose, you need to purchase a travel savings plan. The cost varies by membership level.
Members can make money by referring other members. By using the company affiliate program, you can earn money when people sign up using your name or referral link.
How the Company Works
If you do decide to get a membership, you will have access to the precious metals marketplace. When you buy materials at the market price, you can resell them with a markup for profit. You can also get discounts for bulk purchases.
Once you become a member, the first step is to choose a starter pack. Starter packs come with three options, each of which is tailored to different financial situations. You can choose based on your overall goals and your current finances.
After choosing the starter pack, you will receive monthly deliveries of your assets. You can choose whether you want to deal in silver or gold. The next step is to use an AutoSaver coin. This allows for automatic month to month purchases, which makes the process much simpler. You don't need to constantly renew your transactions or look at the marketplace.
From there, you can choose to hold onto the precious metals or to sell them at a marked-up price. Precious metals are often prioritized for investments because they protect against inflation.
Your membership will have benefits like access to rare coins and reduced bulk prices.
Fees to Join
There are fees to become a member. A basic membership costs about 250 dollars per year, while a premium membership costs about 450 dollars. Premium memberships give you access to additional discounts, so they're a better choice for people who are very invested in joining the precious metals industry.
That said, you can get similar discounts from precious metals dealers who don't have any membership fees at all. So this isn't the most highly recommended option for people wanting to open their own small business.
The premium membership also comes with included bonuses such as:
These bonuses are not necessarily worth the extra 250 dollars for the membership program.
Another cost is the travel savings plan. This is a card that allows you to reduce the cost of travel. In addition, it helps with setting up your automatic monthly purchases. For basic members, the card costs another 250 dollars; for premium members, it costs another 500.
That means that you can expect to pay 500 to 1,000 dollars upfront to be a member. There is no guarantee that you will make your money back if you sell precious metals.
Plan for Compensation
Like many multi-level marketing companies, 7k Metals has a complicated compensation plan that you might have trouble understanding. This is the simplest breakdown.
You'll earn money through memberships, renewals, and coins. The program gives you points based on your success.
When you recruit a new member, you earn 100 points. When you sell a coin, you earn 20 points.
These points have different monetary value depending on how highly ranked you are in the company. The more people you recruit and the more assets you sell, the higher you will rank.
The value of points for each rung of the pyramid is as follows:
Gold level members are paid the most highly, but it's extremely difficult to advance this far up the chain.
Problems with Multi-Level Marketing
Multi-level marketing is a strategy that allows people at the top of the company to make money, while people at the bottom are more likely to lose money. To make money, you have to climb up the ladder. The founders are at the top and make the most money.
The biggest problem with multi-level marketing is that it is impossible for everyone who participates to make money. If you want to profit, you have to get other people to join.
This isn't necessarily the case for 7k Metals, as you don't have to use the referral program if you don't want to. But referrals are the fastest way to make money. If you want to make money with precious metals, you'll have to find buyers in a competitive industry.
And if you want to invest in precious metals for your portfolio, there are companies that will sell you products without making you pay to do that. The goal of 7k Metals is to give people products that they can resell.
Many of the people who join don't make any money. Instead, they lose the cost of their membership while the person who referred them is compensated.
If you want to run a small business selling precious metals, there are also dealers who can supply you without requiring a membership. That's a significantly cheaper alternative than investing in this company. You will need to refer others if you want to make a significant income.
Rarity of Success
People are rarely successful in making money when they invest in multi-level marketing companies. The same is true of 7k Metals. Researchers have found that up to 99.9 percent of individuals who join multi-level marketing companies lose money instead of making it.
7k Metals itself doesn't release financial data about how much money members make or lose. That's a red flag, as it indicates that the results aren't anything to be proud of. In addition, numerous people have reported losing money through the system.
There are certain challenges that make it even more difficult to be successful in 7k Metals than in other multi-level marketing companies. The precious metals industry is competitive, so it's hard to sell products at a markup. In addition, despite the strong competition, it is also a much smaller industry than more common MLM premises.
Products like cosmetics, anti-aging treatments, health diets, and "wellness" items are easy to market. There's always a way to separate the brand from the crowd. But precious metals don't vary in quality, and their value is established based on global markets.
That makes it easy to look for exactly what you want from accredited dealers. It also makes it difficult to sell precious metals at anything above market value, especially if you're a small business owner. You need to build a reputation in the industry first, which is something many people are not able to do.
To open a business selling precious metals, you can work with dozens of non-MLM dealers for supplies. Many of these precious metals dealers have high discounts for repeat buyers or those who buy in bulk. The 7k Metals membership discounts aren't significant enough to beat these.
If you do buy into the company, your best bet for making money is to sell memberships to other people. That's done through high-energy sales pitches about owning your own business.
How to Make Money
The company claims that you can make money by reselling the precious metals you purchase. If you want to do this, you can buy from a dealer who doesn't require memberships. They also claim that precious metals are a good investment against inflation. While this is true, again, you can buy from any precious metals dealer.
So if you're interested in making money, you have to convince other people to join the company. You'll be compensated after they pay the membership fee. Of course, you also have to live with the knowledge that most of them will lose money. The main people who profit are the founders.
If you want to participate anyway, you can do the following:
The more people you recruit, the more commissions you get when those recruits make sales. Instead of being paid directly for each member you recruit, you'll be paid for the purchases they make and the sales they make. So you'll need to encourage them to keep participating in the business after they sign up.
That means that the hefty membership fee all goes to the founders. You don't get a cut of that. In order for the business model to work, you have to be invested in making sure that your recruits keep promoting the company.
7k Metals is a multi-level marketing company that has all the same problems that most multi-level marketing companies do. At the same time, it operates in an industry that's difficult to sell to people.
If you want to sell precious metals, there are many suppliers who will sell you high-quality products without any fees. This will make it much easier to get started in the business.
The only way to make a real income with the company is by recruiting new members. There's a hefty membership fee to join, and you have to pay annually to keep your subscription intact. As such, there's a lot of pressure to drum up enough sales and recruitments to make the price worth it.
All in all, this is a business that makes money for its founders, but not for most other people.
Although we do think that 7k Metals is a decent company, we believe that there are better companies out there to make your investment with.
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