Are you tired of the rat race and looking for a way to build your financial future? Are you concerned every time you open your bank account and view the balance?
Whether you’re a salaried individual or a business owner, making money can be extremely challenging if you’re unsure what to do. Many of us get stuck in the vicious cycle of mortgage repayments and taxes that we can never seem to escape.
With rising inflation and economic uncertainty, it can be daunting to think about your future. Many financial experts suggest ensuring multiple income streams to help you combat inflation, survive economic uncertainty, and have savings for a rainy day. Some even recommend diversifying your investment portfolio by purchasing precious metals, which are considered a “safe haven” asset.
Here is where 7k Metals comes in. 7k Metals is a dealer that sells precious metals such as gold and silver. It is also a multi-level marketing company (MLM) that allows individuals to create their own passive income by selling precious metals.
The MLM program at 7k Metals is innovative, as you can set up your own precious metals business without doing most of the work. According to 7k Metals, you don’t need to spend time learning about the best strategies or how to bring in more traffic.
Well, that’s what these guys are claiming. Is it true? Let’s find out whether it’s a scam or a legit MLM business in this 7k Metals review 2023!
Before you read this review:
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What Will I Learn?
- History Of 7k Metals Company
- 7k Metals: Precious Metal Products
- What Are The 7k Metals Member Requirements?
- How Much Is The Fee To Join 7k Metals?
- Can You Make Money With 7k Metals?
- How Does 7k Metals Compensation Plan Work?
- What Is 7k Metals Good For?
- 7k Metals Lawsuit
- How Much Does 7k Metals Cost?
- Is 7k Metals A Pyramid Scheme?
- FAQs on 7k Metals Review
History Of 7k Metals Company
Four industry experts, Roger Ball, Josh Anderson, Zach Davis, and Richard Hansen, set out on a mission to change the world in 2016. With more than 100 years of business experience between the four co-founders and a passion for helping the average person, the four co-founders decided to launch 7k Metals.
Located in Idaho Falls, 7k Metals offer its members reasonable prices on precious metals, giving them the opportunity to achieve a better life. The founders and CEO believe that precious metals such as gold, silver, and other precious metals are powerful tools for achieving financial independence.
According to the company, they’re able to give their members gold and silver at highly discounted rates by purchasing at the lowest costs from the world’s leading distributors.
It’s already starting to sound like any other MLM company. You can add fancy words such as “financial freedom” and “opportunity to make money” to lure in people, but at the end of the day, 7k Metals is another MLM company that requires you to pay an upfront payment for the “opportunity” to sell precious metals.
I personally am not in favor of MLM companies and what they do. They often sell low-quality overpriced products and tell you to start selling within your inner circle (friends and family) before getting them to join the business.
Multi-level marketing companies have an excellent sales pitch that makes the entire proposition alluring: bring five people on board, and you’ll get the ball rolling.
At the back of your mind, you may be thinking five people is not much and decide to join the program, but what’s actually happening is now your inner circle feels like you’ve entered a cult and looking for prey to sell your questionable products to.
Let’s not be quick to judge and compare 7k Metals with other MLM companies. I’m going to be fair and go through this 7k Metals review before giving my unbiased opinion about the company. Continue reading to learn more about 7k Metals.
7k Metals: Precious Metal Products
7k Metals offer its members five different kinds of products, and these include:
Some of the options available for members include the following:
Ancient Greece Alexander The Great Gold Coin – $ 129.99
Antiques St Helena Pegasus 1 oz Silver Coin – $189.99
Daydream Future 2 oz Silver Coin – $299.99
Real Heroes FireFighter 1 oz Platinum Coin – $3,299.99
Australian Kookaburra 1/10 oz Platinum Coin – $144.99
A quick search on their website would tell you that there are many different options available for members to choose from and sell. They even sell jewelry, including gold necklaces, silver earrings, and more.
Although the company has a lot of products, when you look at the price tag, it’s clear that you need to know influential and wealthy people to sell these products to. I feel like it’s not a sustainable business plan, especially when 7k Metals claim that they’re here to provide powerful tools in the form of gold, silver, and other precious metals to help individuals achieve financial freedom.
What Are The 7k Metals Member Requirements?
Let’s keep my thought aside about whether or not it’s a viable passive income for a minute and look at the requirements for becoming a 7k Metals member.
On the company’s website, the following are the key requirements you must fulfill to gain access to their membership:
Be of legal age in your country of residence
Must be able to enter into a legal agreement with 7k Metals in your country of residence
Must be a resident of the United States, Canada, United Kingdom, Ireland, Australia, Singapore, New Zealand, and Mexico
If you’re a US employee, you need to provide a valid social security number and federal tax ID
If you’re a resident of a non-US country, you need to provide proof of residency and your tax status
Complete the 7k Independent Associate Application and Agreement
The perk of becoming a member is access to member pricing, which the company claims are lower than the product pricing mentioned on its website.
Another benefit of becoming a member is earning weekly payments by selling precious metals – the MLM model I was talking about. I’ll explain all of this in the later sections of this review to help you understand what it is.
How Much Is The Fee To Join 7k Metals?
There are two types of fees that an individual must pay to become a 7k Metals member, and these include membership fees and a travel savings card.
How Much Does the 7k Metals Membership Cost?
Members can subscribe to two types of memberships: basic and premium. The basic membership fee is around $249 per year, and the premium membership fee is slightly more expensive, costing about $449 per year.
With the membership, you’ll get access to the Buyer’s Certification Program, which covers all the information you need to know about buying gold and silver, what type of buyer you are, and the type of precious metals that is right for you.
How Much Does the 7k Metals Travel Savings Card Cost?
Besides the annual 7k Metals membership cost, you must pay for a travel savings card that gets you the “best travel deals.” The pricing for the travel savings card is as follows:
Basic membership fee: $250
Premium membership fee: $500
Can You Make Money With 7k Metals?
The restricted point system makes it difficult for members to make any money. Think about it. You only get 25 points for every product you sell, and you need 500 points every week to receive a payout. That’s 20 expensive products you need to sell every week to get a paycheck.
You don’t make any money if you don’t get the 500 points. To make money, you need members to sign up who will have to get more members to sign up, and so on.
According to AARP Foundation’s study, 44% of the participants in an MLM drop out in the first year, while a minimum of 90% drop out within five years. The same study revealed that almost two-thirds of the participants would not join the same MLM company if they knew what they know now.
AARP Foundation found that nearly 25% of the surveyed participants made money, 27% broke even, and about half lost money. Statistics suggest that most members often lose money at an MLM company than make money.
Unfortunately, I couldn’t find information about whether 7k Metals members were making money or losing it. So far, the company has not disclosed any financials, which raises the suspicion that only a very few (the echelon) in the organization are making money.
How Does 7k Metals Compensation Plan Work?
7k Metals has a binary compensation plan. Simply put, you make money when you get other people to sign up with the company – a referral on your right and another on your left. So how does the 7k Metals compensation plan work for you? I’m afraid not so good.
The 7k Metals compensation plan is a point-based system to determine how much you have sold. Whenever an associate purchases a coin with automatic delivery, they get 25 points and can earn 100 points for signing new members.
When each of your associates (the right and left referral) gets to 500 points in a week, you are eligible for a $500 weekly paycheck. However, you must keep accumulating those points weekly to receive $500 paychecks.
To increase your weekly earnings, you must help the two new members on your right and left get new people to sign up, one on each side. If you successfully do that, you advance to the copper ranks and are eligible for a $1,000 weekly paycheck.
The company has many different ranks under its membership program, which you can achieve by continuing to help new members get more recruits and add personal team members.
Below are the different ranks under the membership program with the maximum weekly income:
Associate – $500
Copper – $1000
Bronze – $2000
Silver – $3500
Gold – $7000
Executive Gold – $10000
Presidential Gold – $12500
You only have a week to accumulate the points, as the points will reset in the following week. Also, you need to reach certain milestones to be eligible for a payout from 7k Metals, which includes:
Get 25 points every month
Sign two new members who have 25 months in a month
A matching bonus of 5%
If you don’t achieve the minimum target of $500 per week, you’re going to lose money as you’ve already paid $500 (membership fee and travel savings card).
What Is 7k Metals Good For?
I won’t sugarcoat anything here in this 7k Metals review, but the reality of network marketing is that it’s super hard. You need to know many people or have a vast network of people to start a conversation and bring them on board.
Ideally, you would need to share the opportunity to join 7k Metals with at least five people daily for five days a week. That’s 100 people a month, and who knows how many might convert.
Whether you’re at a party or a meet and greet, you always need to be thinking about asking people to join 7k Metals, and in many cases, it can put a strain on relationships. Personally, I don’t think I’m cut out for this role.
However, if you’re the social type and own a dance studio, coffee shop, or any place with a lot of traffic, you may be able to meet the requirements to start receiving paychecks.
If you’re uncomfortable venturing out of your comfort zone and talking to strangers about joining this “business,” then making a decent passive income on 7k Metals can be far from reality.
Individuals keen on learning about direct marketing may want to consider joining an MLM business like 7k Metals to know how it is.
I’m not sure how true the brochures or presentations by 7k Metals claiming that you can become an entrepreneur by selling precious metals are, but joining an MLM business can help you develop an entrepreneur mindset.
You’re constantly thinking about how to strike up a conversation with another individual about joining the business, even if you’re waiting for your appointment at the dentist.
Statistically speaking, the chances of success in an MLM-based model are very low. There are other side hustles you can join to make a decent passive income.
For example, driving passengers on Uber is a guaranteed way to make money on the side without straining yourself to meet targets established by 7k Metals.
You could consider walking your neighbors’ dogs or advertise window cleaning services on different platforms that can average about $50 an hour. There are many side hustles you can consider if you’re looking for a steady and guaranteed stream of passive income.
7k Metals Lawsuit
When it comes to investing in assets, especially precious metals, many companies have conned their consumers out of millions of dollars, one example being metals.com.
Metals.com and its parent company TMTE pulled off $185 million from more than 1,600 investors, with around $140 million coming from retirement accounts. After an investigation in 2019, the Commodity Futures Trading Commission (CFTC) brought a lawsuit against the company in Texas for engaging in a fraudulent scheme.
After scouring the internet for a bit, I found no class action lawsuits or FTC actions against 7k Metals or their co-founders, which is good news considering the history of legal issues in this industry.
I looked into the background of all the co-founders to find any dirt that could point to legal issues and make this 7k Metals review even better, but I couldn’t find anything. However, there is something that I found interesting about the backgrounds of the co-founders, and it is their experience. Let’s go over the experience of the co-founders one by one.
Zack Davis has substantial experience running MLM companies. As a college student, he found his calling – network marketing. Davis is the co-owner of Gravity Factory and a co-founder at 7k Metals. He has also sold gas and mineral rights in the past together with Anderson.
Richard Hansen is a network marketing guru with 34 years of experience in the precious metals industry. He is a numismatic expert and precious metals enthusiast.
Then, there is Roger Ball, the business guy. He was the founder of JD Premium and Paycation, and Roger Ball was the one who brought all the co-founders together.
Finally, we have Josh Anderson. He found an interest in network marketing at a very young age and had an impressive network of 18,000 people with one network marketing company, where he later became a CEO.
All co-founders have similar interests in network marketing or experience that points to working or owning a network marketing company. This tells me that they have substantial experience in building a business brand that speaks about empowerment and other things, but behind all that is a membership business model.
These guys definitely know how to convince people to pay membership fees and purchase a travel savings card. Also, I don’t understand why a member needs to invest in a 7k Metals travel savings card. Suppose I don’t travel regularly. Why must I pay for a mandatory travel savings card to get the best flight deals?
Instead of focusing on selling precious metals, they sell memberships and travel savings cards and have guides to lure new people into the “exciting” opportunities gold and silver can unlock.
How Much Does 7k Metals Cost?
The Costs of MLM Products
With an MLM business, the products are often low-quality and highly-priced as the business needs to pay commissions to many distributors and even top-tier members. Surprisingly, 7k Metals have a decent product offering at good prices.
The cost of the products depends on whether you’re buying silver, gold, or platinum, and it also varies according to the weight of the precious metals you’re looking to purchase. The silver coins can range from anywhere between $19 and $226, while the gold coins can fetch up to $1,945 or even more, depending on what’s available.
The following are the prices of one ounce of precious metal bars:
Silver bars: $18.88
Gold bars: $155
Platinum bars: $966
It’s important to note that the price of precious metals can fluctuate, and any costs disclosed here may not be the same as what you would get when you’re checking the product pricing.
They Have an AutoSave Program for 7k Metals Coin of the Month
Besides selling individual products, 7k Metals has an AutoSave program where subscribers receive a 7k Metals coin of the month.
An expert at 7k Metals research and selects the 7k Metals coin of the month every month and sends it to subscribers on their preferred shipping date. It allows you to increase your collectible coin collection without doing most of the leg work.
How Much Does 7k Metals Coin of the Month Cost?
What you may be wondering right now is how much the 7k metals coin of the month cost. The 7k metals coin of the month cost may not be encouraging, but I’m here to provide you with all the detail in this 7k Metals review. Below is the monthly cost of the coins according to the exclusive monthly options:
1 oz Silver Eagle Coin: $105
Variety Coin: $135
1/10th oz Gold Coin: $309
These coins can be expensive compared to the deals you may get elsewhere. The reason is that 7k Metals needs to pay commission on the products and keep enough money aside for running the business and sending paychecks to the co-founders.
You Can Opt for Digital Storage Via Sound Money Wallet
Once you’ve joined 7k Metals, you get access to Sound Money Wallet, which allows you to access 7k Metals products and purchase precious metals through the phone app. Members can buy whole and fractional silver and gold using the app.
7k Metals cannot ship fractional coins, but they’ll make sure you have it in your digital wallet. Although trusting someone to hold on to your silver or gold may have its perks, it’s not exactly something many people would be comfortable with, especially if the business starts having financial trouble.
If you’ve got whole coins in your Sound Money Wallet, you can request a transfer to yourself or another person or swap it with another member. There may be shipping, handling, or insurance charges.
Is 7k Metals A Pyramid Scheme?
Although 7k Metals mentions that you can purchase the products on their website and check out as a guest without becoming a member, that’s not the case when I checked their website. After adding a product to the cart, I proceeded to check out, and the website diverted me to the 7k Metals login page displaying two checkout methods, “Returning Members” and “New Members.” There was no guest checkout. It’s already starting to look like a fishy MLM business model, but is it a pyramid scheme?
If you could get unaffiliated customers to buy precious metals, I wouldn’t call that business a pyramid scheme. However, after what I came across, it seems that 7k Metals is not hell-bent on selling its products but encouraging the members to sell the company’s membership. I guess it makes sense because that’s where all the money is.
To make money on 7k Metals, you must sign up new members rather than sell precious metals. That’s a red flag that screams “pyramid scheme.” Simply put, a pyramid scheme is when a company requires you to bring in more members rather than sell the product.
However, there is one thing to note. 7k Metals has decent products (precious metals) that members can purchase, so technically, the company is not a pyramid scheme. Technically.
Complaints About 7k Metals Refund Policy and Operational Issues
Another thing that’s interesting to note is the company’s BBB (Better Business Bureau) page, where it’s labeled as a multi-level marketing company.
Although the company has an A+ accreditation, opening the complaint section will show some disgruntled members requesting refunds. Every business has one or two people who may not like the service or product, but reading all the complaints to understand the member’s story provides a better picture of what’s happening.
There are complaints about how overpriced their coins are and how certain members did not want to auto-renew their membership, but 7k Metals still charged them.
Another complaint talks about handing in a refund request, but the company refused to handle it since she was already past the refund date (a 3-day 7k Metals refund policy seems outrageous to me!).
Of course, when members start posting complaints on BBB, it will make some noise and affect the reputation the company worked hard to build. To combat that, they’re resolving all the complaints made on the BBB website.
My question is, if the company was as cooperative as it is on BBB, why isn’t it like that outside of the platform? Why isn’t it helping their members out? After all, happy members don’t leave complaints—just a thought.
FAQs on 7k Metals Review
Is 7k Metals Legit?
According to BBB, 7k Metals has an A+ accreditation. There is no doubt that the business is legit, but looking at other factors besides becoming a member is essential. The company has a total of 59 reviews as of writing this and an average of 3.7 stars out of 5.
You’ll see a pattern if you start reading the reviews one by one. Many people are giving 7k Metals 5 stars and talking about how the company helped them achieve their financial goals, while many others are giving 7k Metals a 1 star, stating that the company and its representatives lie to get members to sign up for the program.
If it were easy to build your own business and make money as the network marketing company claims it to be, everybody would be doing it. However, that is not to say that 7k Metals is a scam. There are no lawsuits or FTC complaints registered against the company or any of the co-founders.
Is 7k a Legit Company?
It is definitely a legit business, but how they might be carrying out their operations and how aggressive their members are in pursuing other people to sign up might make it seem like the business is illegal.
Reviews state how their members call them one after the other to sign up or how there is no support for members outside the United States. Some even allege bad business practices, such as labeling their products as “sold out” when prices in the market fluctuate or how the company treats their members looking for a refund.
If you have a passion for selling precious metals and have the financial means to build your network, you may want to consider joining multi-level marketing companies like 7k Metals.
How Much Does 7k Metals Pay?
7k Metals have a commission-based compensation plan that starts at $500 a week for associate rank and reaches $12,500 per week for presidential gold. There are certain conditions for the members to meet before they can be eligible for a paycheck, including getting two members to sign up and reaching 25 points every month.
Besides that, you won’t receive your paycheck if you don’t reach 500 points in a week. After a week, the points go down to zero, and you have to start all over again.
What Is the Alternative to 7k Metals?
If you’re looking to secure your future, hedge against inflation, and keep your savings safe, there are many other precious metal companies that you can approach.
One of the best ones right now is American Hartford Gold which allows you to buy gold and silver and even open up a gold IRA. The company has fantastic reviews on Google and many achievements and awards to its name.
This company boasts over $2 billion in sales and is not a multi-level marketing company but a company that allows you to invest or purchase precious metals. It’s the right way to build wealth by depositing your savings into “safe haven” assets. Although you won’t make a passive income, you’ll be taking the first step to secure your future.
Find Out More Here —> Visit AHG.
How Much Does It Cost to Join 7k?
There are two purchases new members have to pay for, and these are membership and travel savings cards.
The membership comes in two different plans, with the basic membership fee costing $249 annually and the premium membership fee costing $449 yearly.
Besides the 7k Metals membership cost, members must also purchase a travel savings card that costs $250 for the basic membership and $500 for a premium membership fee.
The top way to safeguard your retirement is to open a precious metals IRA. Check out the below providers and request a free kit.
Best Overall Rating (Where I Invested)
#2 American Hartford Gold
Best Buyback Program
#3 Augusta Precious Metals
Most Educational ($50,000 Minimum)
#4 Noble Gold
Best Metals Selection