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7k Metals is an extremely popular company for people who want to start a side hustle in the precious metals industry. They operate as a multi level marketing business. You pay money up front to get involved, and then you earn money if you refer other people.
So what exactly does 7k Metals claim to offer? Why are they so widespread, and what are the most important things to know regarding their services?
We'll tell you plainly right now: Making a multi level marketing scheme for the precious metals industry is nonsense. There are a million reasons why it doesn't work, and it's possible that the only thing propelling 7k Metals is the belief of everyone who's trying to get their money back.
But here's what the company claims to be about.
About 7k Metals
When you go to the 7k Metals website, it looks like a perfectly legitimate gold dealership. The homepage has very little information advertising that this is a multi level marketing scheme. They talk about how to save money on gold purchases, have your deliveries shipped to you, manage your personal travel, and work with the company's network. But there's no bragging about the buy-in price.
After you buy the membership with its hefty price tag, you get access to a variety of different company services. For example, you can use the monthly autosaver program. This allows you to choose to invest a certain amount of money in precious metals each month. Then you'll choose a shipping date. Your products will be automatically shipped to you every month.
This is not a bad idea in theory, and there are actually several other companies that employ it. The idea is that you can automate your personal investments in gold so that you're not constantly filling out new purchase orders. That makes it a lot easier to diversify a certain percentage of your portfolio if you're creating a personal investment spread.
But crucially, most other companies do not charge hundreds of dollars just to access their monthly autosaver programs. The money you pay goes toward the precious metals, not toward some arbitrary membership.
The website also alludes to "world class experts" in the precious metals industry, but it doesn't give any further information. There's nothing written about the team's qualifications or background. The company just says that the team is constantly looking for great deals on rare coins and selecting the monthly company coin based on whatever is the most economically viable.
That all sounds great, but there are several customer reviews that call this into question. Customers have reported being charged high markups and working with executives who don't seem to know anything about gold and silver.
Another thing that you supposedly earn with your membership is the company's "travel portal." This is a portal that takes you to a generic booking website hosted on another platform. Like any free booking website, you can use the platform to compare and contrast different hotel rates, plane fares, and so on. The membership gives you free access to this portal, but it does not give you any travel discounts or benefits.
7k Metals does offer some exclusive precious metals products. They have customized jewelry for high prices, though past customers have mentioned that the products aren't worth the price tag. They also state that their marketplace will give people access to rare collectible products.
If you want to buy products from 7k Metals without a membership, you do have the freedom to do so. Their products are all listed on the website, and they even have updating prices in real time. But when you compare these prices to the spot price of gold, you'll typically find massive markups. Even with the discounts of a membership, you'll still be paying more than you'd find at a more reputable dealer.
Costs and Fees
As previously mentioned, the prices of the company's precious metals inventory are listed directly on the website. They tend to be much higher than what you'll find with other precious metals companies. Joining as a member doesn't lower the price enough to compete.
Though you can buy precious metals without a membership, 7k Metals really pushes the membership. They strongly encourage people to sign up and then refer as many friends and family as possible. On the website, they repeatedly emphasize how you can earn money by buying gold products and referring your pals.
Once you have received a referral from an existing member of the company, you can purchase a membership. There are two tiers of membership. The basic tier gets access to features like the travel portal, while the premium tier gets access to extra discounts. If you're wondering whether the discounts of the premium tier are worth it, they aren't.
The minimum cost to get involved is $250, paid up front. This covers you for a year. At the end of the year, if you want to stay with 7k Metals, you have to pay another $250. Otherwise you'll lose your investment. During the year, to get back the investment, you'll need to refer other people to the firm and get them to pay $250.
Some sources indicate that there is an additional "travel pass" cost of $250. This would make the minimum amount that you pay $500. Aside from the third party travel portal, there's not much information available on what the "travel pass" gets you. You don't seem to get exclusive discounts or vacation offers with it, so it might just be a way of splitting up the cost to look less expensive.
If you opt for the premium tier instead, you'll pay $500 for the year. And you'll have to work even harder to refer enough people to make your money back. Again, there are sources that say that you'll pay another $500 for the travel pass. So that's a total of $1,000 just to access the company's products and marketplace discounts.
The only people who really make money in this scenario are the ones who are very good at referring people. They're able to climb the company ranks. You'll earn commissions for your own referrals, as well as any referrals made by people you've referred. Once you climb to the top of the pyramid, there's tons of passive income flowing upward toward you.
That's how the people in charge of 7k Metals have made so much money. It doesn't matter whether their products are good or not. It just matters that they have people who are so desperate to get their own money back that they're willing to drag others into the company.
If you are someone who would thrive doing a multi level marketing scheme, then we don't recommend pursuing one in the gold industry. There's not much that 7k Metals can offer that you can't easily disprove with a Google search. Many health and wellness MLMs are much more successful because they're able to leverage different jargon.
You have to be able to maintain a team if you want to make money. And you have to keep that team motivated, and you have to be able to sell the company and the product. But once you learn more about how the industry itself works, it's hard to sell these products with a straight face. 7k Metals has their own marketing materials and strongly discourages members from trying to learn anything from other sources.
The vast majority of people who invest in MLMs lose some or all of their investment. Some statistics indicate that less than one percent of people who get involved in these companies actually turn a profit. And many of those got in on the "ground floor," when the company was first being founded.
Is 7k Metals a Scam?
7k Metals is not technically a scam. Though multi level marketing schemes are banned in some countries in the world, they are legal in the United States. They only become illegal when the company refuses to pay you unless you refer other people in addition to selling their products.
However, even though 7k Metals technically operates within the bounds of the law, that doesn't mean that they're a good company to work with. There are endless reasons not to invest your money into a multi level marketing firm, especially one centered on precious metals. It just makes no sense.
In order to buy gold from 7k Metals, you need to have a fundamental misunderstanding of how the precious metals industry works. There are several ex-members of the company who have written reviews saying as much. They point out that they were encouraged not to ask questions and that they were given "hype" marketing materials without much substance.
You'll find quite a few good reviews of the company online. But anyone who has bought from this company is trying to make money. In order to make money, they need to refer you. In order to refer you, they need you to believe that this company is excellent.
It's difficult to trust the judgment of any "customer" involved in an MLM. In fact, when you look at websites like the Better Business Bureau, you'll even find that some reviewers have shared their referral codes in their positive reviews.
Negative reviews of the company almost exclusively come from people who realized that they had made a bad investment and left. They point out the many, many issues at play. Rather than doing a blow by blow of every customer's experiences, we'll explain a little bit about how the precious metals industry works. Then we'll get into why an MLM is not suited to this industry.
Buying Precious Metals
The 7k Metals membership is somewhat confusing. On the surface, the premise is straightforward. But once you apply logic to the setup, it doesn't make any sense.
The premise is that you are buying a 7k Metals membership to get access to their marketplace of gold products. In accessing these gold products, you can create your own small business as a gold retailer. Then you can use the 7k Metals network to find clients and make your money back.
Not only do you need to pay an up front fee just to access the marketplace, but you also need to renew the membership annually. And it costs hundreds of dollars just to get a foot in the door.
So you'd think that they must have an incredibly exclusive collection, right? Maybe members are able to get deals that even wholesalers can't get. By paying a higher price, you get access to more discounts down the road.
Nope. That isn't the case. Negative reviews from former members say that the jewelry and other precious metals products are not high quality. They state that the company's bullion is marked up and wildly overpriced, and that the company misleads people about the value of their investments. So not only are you paying for a membership, but then you're overpaying for the products.
There's basically no way to make your money back just by selling 7k Metals gold products. Nobody is going to buy shoddy gold at a ridiculous price. So 7k Metals members are encouraged to sell memberships instead. The more people you refer, the higher you climb in the ranks. The higher you climb in the ranks, the more compensation you get. That's how a multi level marketing scheme works.
Because the company's products do exist, it's not a Ponzi scheme. And because you technically have the option to make money without referrals, it's not an illegal pyramid scheme. But these technicalities do not erase the fact that it's basically impossible to make back your investment unless you treat the company like a pyramid scheme.
Legitimate gold products are openly traded on various global exchanges. In fact, you can find out the current price of gold simply by typing a request into Google. Gold and silver products fluctuate in price so frequently that they can change from minute to minute. But the data is also so publicly available that some websites even have prices that update in real time.
The vast majority of gold dealers do not ask people to purchase any kind of membership prior to buying. They just show you what they have in their inventory and then quote a price. A good dealership will expect you to research the price to make sure that you're getting a good deal. In addition, they'll be willing to answer questions, which 7k Metals apparently is not.
Most successful MLMs are in industries like health, wellness, and beauty. They peddle products that they claim are different from all of those already on the market. But 7k Metals doesn't have this advantage. Though there is some difference in jewelry craftsmanship, gold is gold. The price of gold is the price of gold. You can find out how much gold costs and buy it from anywhere, and you won't need a membership to do that.
So they're really just depending on people not understanding the industry and investing their money based on a misconception. And since so many people want to make their money back through referrals, they write glowing positive reviews about their consumer experiences, even though there's no way to tell how much of the information is actually true.
Pros & Cons of 7k Metals
7k Metals might sound like a great way to start a side hustle. Just one membership and you'll have access to a travel pass, network of sellers, marketplace of products, and marketing information. That makes it super easy to start selling gold by yourself, right?
Wrong. 7k Metals is a multi level marketing scheme that depends on new people to join. If you want to make back your money, you'll have to refer others. The products themselves have not received great reviews, and the company management has been harshly criticized by former members.
If you do want to start a side hustle selling gold, then it's vitally important for you to do your research first. Learn about the precious metals industry. Find out about the spot price of gold and how different products are priced. Learn about how different dealerships source their products and how to tell which ones are reputable.
We absolutely do not recommend getting involved with 7k Metals in any way, shape, or form. It's much better to work with one of our recommended gold companies instead. These investment companies have high quality gold bullion available to purchase both with your cash savings and with your retirement funds.