It’s likely that you have come across 7k Metals through an email list, on social media or got it recommended by a friend or family member.
Is 7k Metals a scam? The reasons why you’re here is because you have want answers right so, that’s what I’m going to provide for you within this 7k Metals review.
First and foremost I must commend you for actually doing a bit of extra research before committing to joining 7k Metals. For all you could have known, the product could be a major scam so the fact you’re here right now, researching whether or not that’s the case is a pretty smart move on your part.
To be fully transparent with you, I am personally not a member of 7k Metals so I can assure you that I will not attempt to sell you it unless of course it’s worth investing in.
What I will aim to do is provide you with an unbiased 3rd party look at 7k Metals that will hopefully help you to make the best decision you can in the end.
PRODUCT NAME: 7K Metals
OWNER/S: Zach Davis, Josh Anderson, Richard Hansen, and Roger Ball.
TYPE OF PRODUCT: precious metals MLM
PRICE: $249 + monthly purchase
SUMMARY: I personally don’t think that 7k Metals is a scam or pyramid scheme, mostly because of the niche that it is in but, if this was your typical health and wellness MLM, the lack of retail commissions being available to associates of the company would be a massive red flag.
Nevertheless, you should note that the only way to actively make money with 7k would be through recruiting a ton of people because the passive income from the precious will take time to increase considering that 7k charge 15% more for them and of course the really low success rates within the MLM scene is another reason to think twice before investing in this company.
I guess the main positive here is that the precious metals themselves will likely never lose all of their value so, if you’re desperate and need some income immediately, you should be able to recoup a large portion of your investments.
FINAL RATING: 2/5
RECOMMENDED: No
WHAT IS 7K METALS?
7K metals is a MLM company that specialises in having individuals invest in precious metals or selling jewellery as a consultant for the company. 7K was co-founded in 2016 by a group of individuals namely Zach Davis, Josh Anderson, Richard Hansen, and Roger Ball.
All of these guys seem to have a long history working within the entrepreneur space with Richard having a good amount of experience working with precious metals whilst Zach and Josh seem to more so be experts within the MLM scene.
Zach learned about the power of direct marketing when he was in college and since then he states that he’s “helped thousands of people realise their ability to make a more significant contribution to the world”
Josh claims that he manged to build one of his direct marketing teams to 180k members within his first year of business, when he was 21. Moreover, in 2008 Josh grew his team to 9k in 120 days, which eventually led to him becoming CEO of that company.
Josh had also worked within another company called JD premium where he was the CEO from 2009 – 2011. That company was eventually shut down in 2015 by the owner Roger Ball, I guess, in preparation for starting up 7k Metals as he’s now one of the company’s co founders.
Their experiences may add a bit of credibility to 7k however, whether or not it’s a good business opportunity to pursue is a little different when simply compared to the experiences of the owners running it.
That’s why in this review I’ll go over the compensation plan, the pros and cons so that you can make a more informed decision on joining 7k or if you should give this MLM a skip.
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7K METALS PRODUCTS
The main premises behind 7K is to sell precious metals to members so it makes sense that it’s also the main products they sell.
But, It’s not the only things they sell. Besides silver and gold in coin and bar form, they also sell jewellery, other accessories like bags and other merch like shirts, sweaters and hats.
This merch is also kind of expensive ranging from $25 to $119.95 but, this is only something a superfan would buy so I’m not knocking 7k on offering members this just so they can show their love for the company.
The jewellery offered by 7K include chains, watches and rings, which range from $22 to $699 for their gold panda ring.
Lastly you have the precious metals. The silver based products range from around $20 for a 1 oz coin to roughly $1850 for 100 oz silver bar. 500 oz of silver is around $10k.
1 oz of silver is worth $18 as of the writing of this review which means 7k are charging a little more than actual market value but, $1.5 – $2 isn’t horrible considering the value of silver doesn’t ever drop too drastically and it has also technically increased in value by 25% in the last 10 years.
Gold on the other hand is worth significantly more than silver with 1 gram of gold costing $60 whilst a 1 kg bar costs over $50k. For some perspective in comparison to silver, a 10 oz bar of gold is worth 15k.
A gram of gold currently goes for $50 so, there is significantly larger price gap here compared to 7k’s current value but, it has grown in value by around 70% in the last 10 years so, the outlook on gold is pretty positive even if 7k is charging around 15% more than market value.
HOW DO YOU MAKE MONEY WITH 7K METALS?
As is the case with pretty much all MLM businesses there are 2 ways to make money with them, 7k Metals being no exception.
1. The first method is by directly selling the product to other individuals and in return make a commission for the sales
2. You make money through your recruits and downline, by getting residual income by following and meeting certain criteria as well as make money through bonuses and incentives due to meeting company set goals.
HOW TO GET STARTED
If you want to join 7k the first thing you’d need to do is sign up through an already existing associate of the company but, if you don’t know any associates you can also directly contact 7k and they should help you out with that.
There are 2 different membership levels you can choose to sign up as.
7k Member
In order to just become a 7k member, you’d need to pay $249 annually. This will allow you to refer others to 7k and also give you access to $250 in travel savings
Premium Membership
This membership will cost you $499/year. The benefits here 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.
The premium membership will let you earn from the compensation plan too.
The other major difference between the 2 memberships is that the non premium will require an additional $10 monthly fee for affiliates who wish to withdraw calculated commissions.
COMPENSATION STRUCTURE
The compensation plan is one of the more important elements of 7k that’s why I’ll be covering some of the more important elements of the plan here.
Firstly you should know that although the core premise behind 7k is to have you purchase the precious metals, as it is also a MLM company, members will also be given ranks dependant on how good they are at recruiting, which in turn means said members that rank higher will also benefit more from the compensation plan.
Residual Commission (Binary)
7k metals pays its members using a binary structure. This structure simply means that each affiliate will be able to recruit 2 people, on the left and right leg. This means you’ll be able to recruit 2 affiliates, you’re 2 recruits will be able to recruit 2 people too, their recruits can recruit 2 people and this can theoretically continue on forever, in the vertical sense.
The commission that are eventually paid out via this structure are determined by the amount of points a member accumulates.
- recruitment of a Regular affiliate ($249 a year) generates 100 points
- recruitment of a Premium affiliate ($499 a year) generates 150 points
- purchase of coins by recruited affiliates generates 20 points
As for how much an affiliate will be eligible to earn, that will be dependent on their rank within 7k.
- Associate (recruit and maintain at least two MLM commission qualified affiliates, split one on each side of the binary team) – $500 weekly commission cap
- Copper (recruit and maintain at least four MLM commission qualified affiliates (two must be Associate), split two on each side of the binary team) – $1000 weekly commission cap
- Bronze (recruit and maintain at least six MLM commission qualified affiliates (two must be Copper), split three on each side of the binary team) – $2000 weekly commission cap
- Silver (recruit and maintain at least ten MLM commission qualified affiliates (two must be Bronze), split five on each side of the binary team) – $3500 weekly commission cap
- Gold (recruit and maintain at least sixteen MLM commission qualified affiliates (two must be Silver), split eight on each side of the binary team) – $7000 weekly commission cap
You should also know that in order to qualify for the commissions, an affiliate will need to generate 20 points every 32 days, meaning you’d essentially need to purchase a coin from 7k’s coin of the month every month.
Besides this, the other way to increase your money is just by sitting and waiting and of course hoping that the value of your silver or gold increases over time.
In short the only way to actively make profits with 7k is through recruitment so, you’d need to get good at that to really turn 7k into a booming business.
THE NOT SO GOOD THINGS
Recruitment Is Pretty Much Essential For Success
Of course the main thing to do with 7k is to purchase silver and gold and simply wait on it to increase in value over time but, as I said above this is a purely passive strategy and considering the value of each precious metal is roughly 15% more in 7k than actual market value, it will take awhile for you to become profitable in that regard.
Therefore, in order to make active income with 7k you will need to recruit a lot. That’s why if you’re not willing to do that, it’s probably a better option for you to look into places that offer better deals on the loose precious metals because buying them from 7k probably isn’t the best course of action.
You Can’t Make Retail Commissions
You won’t directly get compensated for making retail sales, which is often an indicator that said company is a pyramid scheme but, considering the niche that 7k is in, being more so an investment based business than a company directly made for selling consumers products, it’s hard to call it out as a pyramid scheme.
Nevertheless, there are a few items such as the jewellery and accessories that could benefit from the retail commissions so I guess that section not allowing members to earn commissions per sale (as far as I can tell) is a minor problem.
The Items A Fair Bit More Expensive Than The Market Value
The precious metals themselves are around 15% more expensive than the normal market price and if you assume most other vendors maybe charge 5% more per sale for the amount of silver and gold, 7k’s valuation of each item is a little on the expensive side.
Now, I personally don’t think this is an insane difference but, when you consider silver has only increased by 25% in the last 10 years, I personally would say that shopping around may be the best option for you if you don’t believe that you can capitalise on the recruitment side of things.
Most People Will Fail
I’ve found that generally within most MLM’s only around 5% of members tend to make a decent income of around $1k/month whilst only the top 1% of members seem to be averaging a full time income of around $2k/month.
I’m not saying that these are the exact figures affiliates for 7k tend to average, mostly because they weren’t transparent enough to show their income disclosure statement but, having seen tens of other income statements from other MLM’s, I doubt that my stats will be too far off the mark.
THE GOOD THINGS
There Are Variety Of Items To Choose From
I do like that 7k offer a large variety and size variants of precious metals to choose from so, I guess that’s a positive.
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IS 7K METALS A PYRAMID SCHEME/SCAM?
I personally don’t think that 7k Metals is a scam or pyramid scheme, mostly because of the niche that it is in but, if this was your typical health and wellness MLM, the lack of retail commissions being available to associates of the company would be a massive red flag.
Nevertheless, you should note that the only way to actively make money with 7k would be through recruiting a ton of people because the passive income from the precious will take time to increase considering that 7k charge 15% more for them and of course the really low success rates within the MLM scene is another reason to think twice before investing in this company.
I guess the main positive here is that the precious metals themselves will likely never lose all of their value so, if you’re desperate and need some income immediately, you should be able to recoup a large portion of your investments.
MY PERSONAL RECOMMENDATION
I personally will always recommend against using a MLM business model to make money, not because you can’t make money through it (you totally can) but, the system has always seemed shady to myself and is kinda synonymous with the likes of a pyramid scheme or scams (MOBE and Digital altitude).
Instead I prefer working with something created through ones own means and is ultimately dependent on yourself and your work ethic alone.
This method I’m talking about is affiliate marketing.
The reasons as to why I recommend it over MLM based structures are because
– there is no need to recruit constantly
– it is a legitimate method that has been working consistently and continues to grow as more businesses want individuals to promote products
– and because it is free to start up, no unnecessarily large start up funds needed.
The service I recommend is Wealthy Affiliate. It’s free to sign up to and will get you set up and ready to start your affiliate marketing journey within minutes, as it did for me when I begun my journey.
If you have any questions that you would like to ask me regarding 7k Metals, feel free to do so in the comments section below and I will get back to you as soon as I can. If you have your own thoughts about 7k Metals and would like to talk about it, again feel free to do so in the comments below!
Thanks
Amhil