7k Metals Review: Unbiased Deep Dive into the MLM Precious Metals Company
Investigating 7k Metals: a potential investment or a financial pitfall? Our 7k metals review provides a direct analysis of their MLM operations, products, and member earnings to reveal the truth behind the company’s glittering facade. Here’s what you need to know.
Key Takeaways
-
7K Metals is a network marketing company established in 2016 that promises discounted precious metals through membership packages, focusing primarily on selling memberships rather than the metals themselves.
-
The company’s business model relies heavily on member recruitment, creating concerns about its similarity to a pyramid scheme, as the success of members is largely dependent on their recruitment abilities.
-
While 7K Metals offers the potential for members to earn income and purchase precious metals at discounted prices, the emphasis on recruitment over product sales, combined with income limitations due to its compensation plan, raises questions about the legitimacy and profitability of the enterprise.
Understanding 7K Metals: Company Overview
Established in 2016, 7K Metals is a network marketing company that specializes in the sale of precious metals like gold and silver. The company’s unique selling proposition lies in its promise to deliver discounted precious metals to its members. However, the primary emphasis of 7K Metals’ marketing is not on selling precious metals, but rather on promoting and selling its membership packages.
This focus on selling memberships, particularly the monthly auto saver plan, raises questions about the company’s business model and its resemblance to a pyramid scheme.
The MLM Business Model
MLMs replace the traditional corporate structure with a network of unsalaried salespeople. These salespeople, or members, are tasked with selling the company’s products directly to consumers and recruiting additional sales representatives. The result is a hierarchical sales team where each member earns commissions on their own sales as well as a percentage of the sales made by the members they recruit.
Adopting this business model, 7K Metals allows its members to purchase precious metals at lower prices and generate income via active recruitment. However, the success of an individual member often hinges on their ability to recruit new members and build a strong team. This heavy reliance on recruitment has raised concerns about the company’s business model and its resemblance to a pyramid scheme.
Precious Metals Products
7K Metals offers a diverse range of precious metals products, including gold and silver bullion, jewelry, bars, and a variety of precious metal coins. But the company’s product line isn’t limited to traditional precious metals. 7K Metals also offers other precious metals, collectible coins, and even opportunities to sell precious metals, the value of which is determined by factors such as historical relevance, rarity, and demand.
While these collectible coins offer a unique product for potential customers, they also pose potential drawbacks. One such drawback is that the value of these coins can be significantly reduced when melted down, due to their value being tied to their collectibility rather than the intrinsic value of the metal.
Analyzing the Founders & Leadership Team
The leadership team at 7K Metals boasts a variety of backgrounds and experiences. The company was founded by a group of entrepreneurs, including Roger Ball and Zack Davis, who have made their mark in the MLM and precious metals industries. With their collective experience in the field, the founders have designed a binary compensation plan that rewards members for enrolling new members and making sales.
However, the company’s restricted point system within its compensation plan can limit the income potential for members, affecting their overall earnings.
Zack Davis
One of the co-founders of 7K Metals is Zack Davis, a seasoned professional with a diverse background in the consumer goods industry, marketing, and precious metals. Prior to co-founding 7K Metals, Davis had operated an MLM company called Black Ink. His rich experience in the MLM industry, combined with his expertise in marketing, makes him a valuable asset to 7K Metals.
Roger Ball
Another key player in the 7K Metals leadership team is Roger Ball. Like Davis, Ball has also had substantial experience in the MLM industry. He owned JD Premium, a company that offered nutrition and personal care products before its closure in 2015, and was acknowledged as the owner of Paycation. Ball’s prior experiences have equipped him with crucial entrepreneurial skills and insights that have been instrumental in the founding and development of 7K Metals.
Josh Anderson
Josh Anderson, another co-founder of 7K Metals, brings to the table a rich blend of network marketing experience and knowledge in the precious metals industry. Before stepping into his role at 7K Metals, Anderson served as the CEO of JD Premium and gained extensive marketing experience from an early age. His experience in network marketing and precious metals has allowed him to make significant contributions to 7K Metals.
Richard Hansen
Rounding out the leadership team at 7K Metals is Richard Hansen, a co-founder with over 34 years of experience in the network marketing industry. Hansen’s expertise in precious metals, particularly numismatics, enhances 7K Metals’ product offerings and adds a unique dimension to the company.
Membership Options & Costs
Several membership options, each with unique costs and benefits, are available for those interested in joining 7K Metals. The membership options range from the basic Standard Membership to the more advanced Plus and Premium Memberships. Each membership level comes with its own set of unique benefits and income opportunities.
Standard Membership
The Standard Membership at 7K Metals is priced at $199 and provides a range of benefits, including micro silver and gold purchases, access to a curated market and discount program, and a buyer’s certification valid for one year.
This membership also grants access to Gold and Silver US at COST pricing, effectively offering a discount on precious metal purchases.
Plus Membership
For a higher fee of $359, individuals can opt for the Plus Membership, which is perfect for those looking to make a few extra bucks. This membership includes additional benefits such as collector’s training, unlimited member direct pricing on bullion, and a Standard Plus Travel Savings Card. To maintain this membership, a member is required to personally accumulate 15 points.
Premium Membership
The highest tier of membership is the Premium Membership, which comes with a price tag of $449. Premium Members enjoy a host of benefits, including unlimited access to Stack & Sell, reduced premiums, and the option to subscribe to monthly AutoSaver plans. However, this membership also requires individuals to meet the minimum age requirement of 18 years and possess a valid government-issued ID.
Compensation Plan & Earning Potential
7K Metals presents a compensation plan that has the potential to yield substantial returns. However, like many MLM companies, making a significant profit can prove challenging due to the company’s emphasis on recruitment and team building.
The compensation structure of 7K Metals operates on a binary 2 leg compensation plan, where members earn by enrolling new members and through residual income from downline sales.
Binary Compensation Structure
In a binary compensation structure, distributors are organized into two legs or sub-teams, and commissions are determined by the sales volume of the weaker leg. This means that for members to earn substantial commissions, they need to balance recruitment efforts in both legs and ensure that both teams are performing well. However, maintaining this balance and consistently recruiting new members can pose a significant challenge.
Earning Potential & Challenges
Even with a well-balanced team and consistent recruitment efforts, the earning potential at 7K Metals can be limited. While the company’s compensation plan presents the potential for high returns, the reality is that less than 1% of members achieve significant profit. This, combined with restrictions on points within the compensation plan, can limit the income potential for members and have an adverse impact on their earnings.
Pros & Cons of Joining 7K Metals
Like any investment decision, joining 7K Metals has its own set of advantages and disadvantages. On one hand, the company offers the potential for earning income and access to discounted precious metals. On the other hand, the business model focuses heavily on recruitment and selling memberships, which can pose significant challenges for members.
Advantages
One of the main advantages of joining 7K Metals is the potential to buy precious metals at discounted prices. The company offers the following benefits to its members:
-
Acquiring precious metals ‘direct’ from wholesalers
-
Offering precious metals to members without any additional markup
-
Allowing members to obtain precious metals at substantially reduced premiums
Additionally, members have the opportunity to generate income by promoting the company’s products and the membership program.
Disadvantages
Despite these advantages, there are significant challenges associated with joining 7K Metals. The company’s business model, which prioritizes recruitment and selling memberships over selling products, has led to allegations of scamming and exploitation of vulnerable individuals.
Furthermore, the difficulty in generating income, coupled with the company’s restricted point system within its compensation plan, can limit the income potential for members and adversely impact their earnings.
Customer Reviews & Complaints
Valuable insights into the company’s operations and customer service can be gleaned from customer reviews and complaints about 7K Metals. While there are many positive reviews from satisfied customers, there are also complaints and concerns about the company’s practices, particularly in relation to refunds, account cancellations, and unauthorized charges.
Positive Reviews
Many customers have expressed satisfaction with their experience in 7K Metals. They appreciate:
-
the company’s MLM model, which offers the potential for a passive income stream
-
a compensation plan that rewards active members
-
the company’s product offerings, particularly its discounted precious metals
These factors have received positive reviews.
Furthermore, several members have shared their success stories, testifying to the potential for wealth accumulation and positive impact through their participation in the successful business membership program.
Complaints
However, not all reviews of 7K Metals have been positive. Some customers have raised concerns about the company’s business practices, alleging that it exploits inexperienced or elderly customers. Members have also reported difficulties related to refunds and account cancellations, and have raised concerns about unauthorized charges.
These complaints, coupled with allegations of the company resembling a pyramid scheme, have led to questions about the legitimacy of 7K Metals.
Is 7K Metals a Scam or Pyramid Scheme?
Whether 7K Metals is a scam or a pyramid scheme is a matter of debate. While the company does sell genuine products, its emphasis on recruitment and selling memberships has raised concerns about its business model and its resemblance to a pyramid scheme.
Scam Concerns
The concern that 7K Metals may be a scam arises from the challenges faced by members in making money. The company’s emphasis on recruitment and selling memberships, combined with its restricted point system within its compensation plan, can limit the income potential for members.
These issues, coupled with allegations of exploiting inexperienced or elderly customers, have led to concerns about the company’s business practices and raised questions among the business bureau. Many people are now considering starting their own business to avoid such issues.
Pyramid Scheme Analysis
In terms of being a pyramid scheme, 7K Metals does not fit the traditional definition, as it does offer genuine products. However, the company’s heavy emphasis on recruitment and selling memberships, rather than selling products, does raise concerns.
In a legitimate MLM business model, the focus should be on selling products, not on recruiting new participants. Considering this, while 7K Metals may not be a pyramid scheme in the traditional sense, the concerns raised about its business model are not unfounded.
Alternative Precious Metals Investment Options
If you have reservations about investing in 7K Metals but are interested in precious metals, numerous alternatives are available. Several companies offer similar products and investment opportunities, without the MLM structure or the emphasis on recruitment and selling memberships.
Top 3 Gold & Silver Companies
When it comes to investing in precious metals, companies like Barrick Gold, Pan American Silver, and Newmont Corporation are industry leaders. These companies offer a range of products and services, from gold and silver bullion to precious metals investment accounts. They also have excellent customer service ratings and offer a low price guarantee on their products.
Comparing 7K Metals to Alternatives
Compared to these alternative options, 7K Metals stands out due to its MLM structure and emphasis on recruitment and selling memberships. While the company does offer a diverse range of precious metals products, its business model and compensation structure present unique challenges for members, particularly in terms of earning potential and income stability.
In contrast, traditional gold and silver investment companies provide a more straightforward approach to investing in precious metals, without the need for recruitment or team building.
Summary
In conclusion, 7K Metals presents a unique blend of MLM and precious metals investment. While the company offers potential income opportunities and access to discounted precious metals, its emphasis on recruitment and selling memberships raises concerns. Customer reviews and complaints further highlight these concerns, with allegations of exploiting inexperienced and elderly customers and the difficulty of making money. While 7K Metals may not be a pyramid scheme in the traditional sense, the concerns raised about its business model are not unfounded. As with any investment decision, potential members should conduct thorough research and consider alternative options before making a commitment.
Are you prepared to expand your investments with the inclusion of gold?
The financial investment in gold and other precious metals can aid expand your spending profile. Because gold has little or absolutely no connection with equity or bonds, it lowers the threat for you in total. You can place your money into gold with specialized gold IRA companies.
Frequently Asked Questions
What are the benefits of 7K metals?
Joining 7K will give you benefits such as access to the Buyer’s Certification Program, unlimited silver and gold bullion, and the exclusive Auto Saver Program for monthly coin deliveries. These perks can help you enhance your precious metals investment strategy.
Who are the owners of 7K metals?
Zach Davis and Josh Anderson are the owners of 7K Metals, who pioneered the membership model for obtaining value from gold and silver.
What is 7K Metals?
7K Metals is a network marketing company that sells precious metals like gold and silver. It was established in 2016.
How does the MLM business model of 7K Metals work?
7K Metals operates as an MLM business where members can buy precious metals at reduced prices and earn income through active recruitment. It is structured in a way that rewards members for bringing new people into the business, creating a network of distributors.
What are the membership options and costs at 7K Metals?
7K Metals offers different membership options, including Standard, Plus, and Premium, each with its own costs and benefits. The costs vary depending on the chosen membership level.
