What Is 7k Metals? People Called It A Scam, Is This True?

What Is 7k Metals? People Called It A Scam, Is This True?

2020 has been a tough year for everyone.

  • Bushfire
  • Race riots
  • Covid-19 pandemic
  • Countries shut down
  • And the list goes on…

Experts said this could be the most significant recession ever, and millions have already lost their jobs.

Meanwhile, at the time I write this review (5 August 2020), tragic news from media just reporting that a massive explosion ripped through central Beirut, Lebanon, causing dozens of deaths, and thousands of people injured.

Bad things are happening every day, and everyone is living in panic.

But MLM companies seem to ride this wave to expand their businesses by encouraging their distributors to recruit new sellers.

This is not my defamation, even the big media websites are reporting about this issue…

MLMs are using the coronavirus to recruit new sellers
MLMs are using the coronavirus to recruit new sellers

My guess is that’s why you’re here because you just you’ve been “hunt” by 7k Metals distributor, instigating you to invest in their MLM program/precious metals for lucrative returns, am I right?

If so, you’re in the right place. And doing your due diligence to research an MLM company before joining is the exact way to avoid scams and find a legitimate way to make money from home.

Rest assured, I’m not an associate with 7k Metals (and I never will), so I won’t pitch you to buy any products or even join the company.

I spent over 15 hours writing this review based on my research and information available on Google. So you don’t need to.

That said, any recommendation and conclusions are only opinions and may not apply to all persons or situations.

Without further ado, let’s get started!

Table of Contents

Company Overview

What Is 7k Metals? People Called It A Scam, Is This True?

Company Name: 7K Metals

Business Niche: Commodities/Precious Metals MLM

Joining Fee: $199~$499 Per Year

Co-founders: Zach Davis, Josh Anderson, Richard Hansen, and Roger Ball

Website: https://www.7kmetals.com/home

Direct Competitors: Karatbars

Pros

1) Valuable Physical Assets
2) Unique Niche

1) Emphasis Recruitment Over Product Selling
2) MLM Has A High Failure Rate
3) Expensive Investment

Overall SCAM Rating: 10/100 (Legit MLM)

Recommended: Not Really

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What Is 7K Metals?

Based in Idaho, 7k Metals is a Multi-Level Marketing (MLM) company that markets a wide range of precious coins, bars, rounds, bullions, metals, and other similar products.

4 MLM veterans founded this company in 2016. Namely, Zach Davis, Josh Anderson, Richard Hansen, and Roger Ball.

According to 7k Metals, they aim to enhance the lives of people who’re struggling with the fluctuating economy (Just like now in 2020).

They believe that they can help people attain their financial independence and preserve their wealth with silver and gold, which is a great mission. 

But I found what’s so funny here is that…

If 7k Metals’ primary customers are people who’re broke, how can they be able to afford the expensive precious metals if they don’t have much money to invest?

Also, the price to join their MLM program is costly, too. I’ll get into that in a second.

How Does 7K Metals Work?

Product Pricing Control

7k promises its members to get the lowest cost of precious metals in the market by cutting out as many intermediaries as possible.

7k eliminated the middlemen to save you money and make buying precious metals more accessible.
They bought the precious metal from reliable distributors directly and relied on the MLM model to remarket to products to more people.
 
This helps the company to assure its members of a price that’s the most affordable in the market.

MLM Program

7k MLM program can be broken down into 3 simple steps, viz:

Save => Share => Earn

Let me further explain the framework above.

When you decide to be their member, you can choose to join the “AutoSaver” program, where the expert will hand-select valuable and collectible coins and deliver them to you every month. 

They said the purpose of the “AutoSaver” program is to help you put your savings on autopilot and save for the long term.

If you found their service great, you can share it with your friends and family. 

If they joined through your referral, they’d automatically become your downlines, and you’ll earn a commission from each product order and recruitment they make. I’ll delve into their MLM compensation plan in later chapters.

If you’re still confused with 7k business operations, kindly check out the short video below. It’s the video I used to research how the business works.

FYI, here’re 3 more videos that I used for researching:

Co-founders' Background

Zach Davis

Co-founder of 7k Metals: Zach Davis
  • He first got into the world of MLM while in college.
  • Partnered with Josh Anderson to run Black Ink International and JD Premium in 2009~2011.

Josh Anderson

Co-founder of 7k Metals: Josh Anderson
  • The current CEO of the company and helped them to get over 26,000 distributors.
  • Before this, he is the CEO of JD Premium for 2 years (2009-2011), an MLM company specializing in personal care and nutritional products.
  • He realized the power of MLM at the age of 21 years old.
  • He managed to build a substantial MLM company that brings in 18,000 people in its first year.
  • In 2009, he influenced a new MLM company in 2008 that grew to 9,000 people in 120 days.

Richard Hansen

Co-founder of 7k Metals: Richard Hansen
Co-founder of 7k Metals: Richard Hansen
  • He has been in the network marketing industry for 34 years.
  • The expert in the collection and mining of precious metals.

Roger Ball

Co-founder of 7k Metals: Roger Ball
  • He made a name for his vision and insight into the world of entrepreneurship.
  • He is a high-paying affiliate for a company called Paycation in 2012.
  • Used to be the owner of JD Premium, but he shut it down in 2015.

So far so good, 7k Metals seem well-organized by a group of seasoned leaders.

7K Metals Product Line

As I mentioned earlier, 7k markets a range of precious metals that presented in different numerous variations and designs.

Here’re the 4 major product categories offered by the company so far:

1) 7k Selected

This is the collection of hand-picked precious metals products with the highest potential in rising value if hold for the long term.

2) Jewelry

7k Metals has an assortment of silver and gold-made jewelry like watches, chains, rings, and monkey clips.

7k Jewelry
7k Jewelry

3) Dealer Direct

This is the member-only deals where you can purchase larger precious metal product volumes at very low prices if you’re an active member.

4) 7K Gear

7k is not only selling precious metals, but they also have their own merch that their “die-hard” fans can buy. They include phone wallets, backpacks, fleece sweaters, fitted hats, t-shirts, and a polo shirt.

7k Gear
7k Gear

Extra Info On The Pricing:

Coins

  • Silver – Ranges from $19-226
  • Gold – Ranges between $162 and $1,945

Bars

  • Silver – $18.88/oz
  • Gold – $150-155/oz
  • Platinum – $966/oz

How To Join 7K Metals?

To join 7k Metals as an associate/distributor, you need to sign up with one of their membership plans ranging from $199~$499 PER YEAR.

  • Standard: $199/year
  • Plus: $359/year
  • Premium: $499/year

The only difference between these 3 plans are the bundled products that you’ll get.

Optionally, while signing up, you can add-on their “AutoSaver” program that I mentioned earlier, where you would get the hand-picked precious coins from 7k Metals every month.

However, the “AutoSaver” program will cost you an extra $129 to $299 per month, depends on which packages you choose.

The plans inside “AutoSaver” program are consist of:

  • Variety Plan($129/month): “A different MS 70 or equally awesome coin every month.”
  • Basic Plan ($95/month): “One 7k labeled Specialty Series MS 70 Silver Eagle or standard 7k labeled Silver Eagle to your door every month.”
  • Specialty Plan ($299/month): “Gold Coin or Low Mintage Coin delivered to your door every month. Some graded some not – all unbelievably cool.”

How To Make Money With 7K Metals?

To be honest, I almost gave up writing this review when I was researching the 7k Metals compensation plan.

They’ve got the most confusing compensation plan I’ve ever seen compared to other MLM companies I reviewed before. It racked my brain to figure out how they work.

There’s no point for me to get into every precise detail of the compensation plan as that’ll bore you and “put you to sleep faster than a sloth on Ambien”. 

For your better understanding, I will only summarize the 3 main ways of earning commissions from 7k Metals. Let’s get right into it:

1) Memberships & Renewals

You’ll earn 100 points from the recruitment you make each time. 

You also can get that 100 points whenever your personal enrolled member renews their membership.

The accumulated points are going to determine how much you’ll make monthly.

2) Coin Of The Month

You’ll receive 20 points from every coin you sold, including the one from the AutoSaver Program.

3) Weekly Cycle Commissions

This commission is paid weekly to the associates who hit the given target.

In order to get qualified to earn this commission, you’re required to accumulate at least 500 points on each leg of your binary team structure, as shown in the figure below.

Weekly Cycle Commissions
Weekly Cycle Commissions

Besides, the commission you get is dependent on your ranks. There are five ranks in 7k Metals:

  • Associate – earn a weekly maximum commission of $500 for every accumulated point of 500 on each leg team.
  • Copper – earn a weekly maximum commission of $1,000 for every accumulated point of 500 on each leg team.
  • Bronze – earn a weekly maximum commission of $2,000 for every accumulated point of 500 on each leg team.
  • Silver – earn a weekly maximum commission of $3,500 for every accumulated point of 500 on each leg team.
  • Gold – earn a weekly maximum commission of $7,000 for every accumulated point of 500 on each leg team.

I’ve given you the overall picture of how their compensation looks like. If you wish to learn more about it, here’s a complete and more thorough explanation of their compensation plan that you might find it helpful:

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Pros

1) Valuable Physical Assets

If you’re a big fan of Robert Kiyosaki and have ever read one of his books called “Fake”, you’d probably recognize the quote below:

“Gold and Silver are God’s Money” – Robert Kiyosaki

Robert said these words because he reckons that Gold and Silver are the best long-term investment assets as they wouldn’t depreciate.

Therefore, I think that the precious metals from 7k Metals might be a good investment if you could afford it.

However, please compare the prices of these metals on the international market before you buy their products. This could save you from spending unnecessary fees.

2) Unique Niche

If you check out my other MLM company reviews, you’ll notice that a far majority of them are either operates in the health & wellness or beauty & cosmetics niche.

Both of the markets are highly competitive that almost impossible for you to make money unless you’re one of the pioneers who join the MLM program early.

Nevertheless, 7k Metals is in a commodities niche, which is quite unique, so the competition is relatively low. 

Cons

1) Emphasis Recruitment Over Product Selling

From their compensation plan, we already can know that 7k Metals emphasize recruitment heavily.

Well, to me, this isn’t that surprising as I know that most MLM companies encourage recruitment more than product selling. 

In MLM, your ranking is your business. You can only earn more commissions by striving to get a better rank, and the only way out to do this is to RECRUIT and RECRUIT and RECRUIT…

That’s why it’s called Multi-Level Marketing.

Wouldn’t you agree?

2) MLM Has A High Failure Rate

Even though I said that 7k Metals opportunity is less competitive, MLM’s high failure rate is still a fact that couldn’t be ignored. Only people who joined the program early have a better chance to succeed.

According to a report from FTC, they claimed that only 1% of people are able to make tons of money from MLM, and most of them are TOPPs (top-of-pyramid promoters). 

For the rest of the people, they LOSE MONEY.

That’s why it’s challenging to make a stable income out of MLM unless you are one of the TOPPs.

Here’s the screenshot of the report, proving that I am not lying to you.

FTC states that only 1% of people are actually making money in any MLM program.
FTC Report

3) Expensive Investment

Although investing in precious metals could bring high returns in the future, very few people can afford such investments every month simply because they’re expensive.

Unless you’ve got a connection with wealthy friends who’re interested in investing commodities, this opportunity might not suit you.

So, Is 7K Metals A Scam?

It’s important to know what a pyramid scheme actually is before making any final verdict on the company.

A pyramid scheme (aka Ponzi Scheme) doesn’t have actual products, and the only way people could make money is through recruitment.

To learn how to spot a pyramid scheme, you can watch the video below for more info:

Going back to 7k Metals, they’ve actual products that the associates can sell for retail commissions. And you’ll get something in return once you pay for it.

They also laid out every detail of their compensation plan for people who would like to earn commissions by referring new members to join.

The members can also choose to earn retail commission by selling products even though the earning potential will be restricted.

When it comes to customer reviews, they’ve got an excellent rating from customers on Facebook. 

Likewise, there are no customer complaints filed on BBB reported about the authenticity of the products they sell, meaning that they aren’t scamming people in terms of the business.

Customer reviews on 7k Metals
Customer reviews on 7k Metals

In conclusion, I think that 7k Metals isn’t a scam or pyramid scheme.

Why Don't I Recommend 7k MLM Opportunity?

Although I say that 7k Metals is a legit MLM company, it doesn’t mean I would recommend their opportunity because I’m aware of how low the MLM’s income potential could be.

Admittedly, 7k Metals has a unique niche, but I reckon that the MLM structure might be unnecessary.

Investing in precious metals can be risky for beginners who don’t have a financial background, but this risk is compounded with the addition of MLM.

As I mentioned earlier, it’s tough enough for you to make money from MLM, let alone those “shiny objects” from 7k Metals aren’t easy to sell because of the hefty pricing.

You Deserve A Better Opportunity

Kudos to you! You’ve just read 2600+ words and still counting. If you make it this far, I commend your commitment.

Meanwhile, I can also feel how serious you’re when it comes to finding a proper way to make money from home.

As you might know, MLM is a flawed business model.

For sure, there’re still people who make a good amount of money with MLM. But it often represents a tiny group of people who joined the program early.

That said, it’s challenging for people who’re BOPs (bottom-of-pyramid) to make some serious dough because they’re running out of people to “recruit”.

MLM Unilevel Compensation Structure

Instead, Affiliate Marketing is my top recommended business model for anyone to make money from home.

The reason is simple…

Advantage 1: No Recruitment Needed

  • You don’t need to “chase” after people and talk them into MLM opportunity where most people lose money.

Advantage 2: Freedom of Choice

  • You can promote any products you love and not be restricted only to promote the products from one MLM company.

Advantage 3: Low Startup Cost

  • Unlike MLM, where you’ll need to pay a pricy introductory fee to join, it takes little to no startup cost to kickstart your entrepreneurial journey in Affiliate Marketing.

If you are sick and tired of MLM and “Biz Opp” Scams, click the “Learn More” button to discover my top recommended learning platform that can help you turn your passion into profits with Affiliate Marketing!

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Zac Phua

Zac Phua

Phua is an internet business enthusiast who loves to talk about online business ideas, affiliate marketing tools, tips, and other sources of income available on the internet. He launched lifegoalfinisher.com and use it as a resource center where he can share his thoughts and experiences to benefit any newbie who wants to learn more about internet marketing.

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9 thoughts on “What Is 7k Metals? People Called It A Scam, Is This True?”

  1. Hi Zac Phua, 

    I have never bought and MLMs and I am quite scared to spend money on them. 5k metals sounds like an MLM with a very different sort of style. Although investing in precious metals could bring high returns in the future, very few people can afford such investments every month simply because they’re expensive. I found that it costs 200-500 dollars just to join. I wonder if you have tried it and if it worked for you. 

    Regards,

    Aparna

  2. I can’t understand why people go on creating these MLM models – no, I am joking, I fully understand why they do that, but it is a really bad thing. I know it can sound naive, but I ‘ve always thought that it is far better to run businesses that can really benefit people. That being said, thank you so much for this review of 7k Metals.

    PS: love your popups!:) 

    1. I totally agreed with what you’ve said, Andy.

      That’s why I often recommend beginners to try affiliate marketing instead of MLM because it has lower risk.

      Still, there’re legit MLMs out there, but I can say 90% of them are borderline illegal.

  3. Hello there! this is an amazing review you have got here. I am sure this quality information will be beneficial to anyone who come across it. I can’t lie to you bruv, but the whole explanation here is just giving me reasons not to even think of signing up for it as I’m confused of their claims.

  4. I don’t really  understand why people go on creating these MLM models – no, I am joking, I fully understand why they do that, but it is a really bad thing. I know it can sound naive, but I ‘ve always thought that it is far better to run businesses that can really benefit people. That being said, thank you so much for this review of 7k Metals.

  5. Hello there, Thanks for sharing this awesome article I know it would be of great help to the public as it has been of help to me. I have heard a lot about &k metals and I have been planning on joining them but after reading your article I think it just a total waste of time as they are just another MLM brand.

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