7K Metals Review: Coin of the month autoship recruitment
7K Metals launched earlier this year and are based out of Idaho in the US.
Zach Davis, Josh Anderson and Richard Hansen are cited as co-founders, with Sam Cook serving as 7K Metals’ CEO.
Richard Hansen’s and Sam Cook’s 7K Metals corporate bios identify respective precious metals collecting and mining management backgrounds.
The MLM side of the business appears to be driven by Zach Davis and Josh Anderson (left and right respectively).
Zach Davis first learned the power of referral marketing as a college student.
From his first experience in the industry to his most recent he has helped thousands of people realize their ability to make a more significant contribution to the world.
Josh Anderson got his first taste of network marketing at the age of 21. He was able to build a large team that focused on other people’s success. That team reached over 18,000 people in its first year.
In 2008 Josh, influenced a new MLM company that in 120 days grow to 9,000 people, at which time Josh become the CEO of the company and lead the company to over 26,000 distributors.
Davis and Anderson together run Black Ink International, an MLM training company they founded in 2011.
On his LinkedIn profile, Anderson cites himself as the CEO of JD Premium from 2009 to 2011.
JD Premium marketed a range of nutrition and personal care products. The company was shut down by owner Roger Ball in 2015.
Zach Davis served as JD Premium’s Chief Marketing Officer from 2009 to 2011.
In addition to running Black Ink International with Anderson, in 2012 Davis was also a Paycation affiliate.
BehindMLM reviewed Paycation in 2014 and found it to be a travel niche recruitment opportunity.
Read on for a full review of the 7K Metals MLM opportunity.
The 7K Metals Product Line
7K Metals has no retailable products or services, with affiliates only able to market 7K Metals affiliate membership itself.
The company does have a coin shop on their website, however only 7K Metals affiliates are actually able to purchase anything.
Products listed on the 7K Metals online store range from a 1 oz Silver Various Generic Round costing $16.63 to a Silver Maple Box for $8915.
The 7K Metals Compensation Plan
The 7K Metals compensation plan sees affiliates sign up and get paid to recruit new affiliates. A residual commission is also paid out when recruited affiliates purchase coins from the company.
Both recruitment and residual commissions are paid out via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The second level of the binary is generated as required, by splitting each of the first level positions into another two positions each.
Positions in the binary team fill left to right via direct and indirect recruitment of new 7K Metals affiliates.
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Residual binary commissions are tied to sales volume tracked via points.
Sales volume is generated when
- a new affiliate signs up for $250 or pays their $250 annual fee (100 points)
- an existing affiliate pays for coins via monthly autoship (25 points per coin ordered) or
- a personally recruited affiliate purchases a coin from 7K Metals (points generated depends on how much is spent)
At the end of each week sales volume is tallied up on both sides of the binary team.
A 7K Metals affiliate earns $1000 per 500 points matched on both sides of the binary team (capped at $1000 a week).
Matched volume is flushed from both sides of the binary team, with leftover volume on the stronger side carried over.
Note that in order to qualify for residual binary commissions, a 7K Metals affiliate must:
- generate at least 25 points every 30 days and
- recruit at least two affiliates (one on either side of the binary team) who each have generated at least 25 points over the last 30 days
Matching Bonus
A 5% matching bonus is available on binary commissions earned by personally recruited affiliates.
Joining 7K Metals
7K Metals affiliate membership is available via two options:
- Pay $250 for annual membership or
- pay a one-time $75 fee and then $10 a month
As per the 7K Metals website, the first membership option provides ‘unlimited access to bullion‘.
Conclusion
The key problem with 7K Metals compensation plan is a lack of retail sales activity.
All purchases are made by affiliates, which includes a recruitment commission when an affiliate signs up for $250.
Once an initial commission has been paid up, monthly residuals are generated via 7K Metals’ “Coin of the month program” (autoship).
The standard offering of the Coin of the Month a PCGS or NGC silver coin at the MS70 grade or PR70 grade.
The minimum autoship amount is $98, which pays for one coin a month and generates 25 points.
Perhaps not co-incidentally, 25 points a month is the requirement to qualify for MLM commissions.
This lends itself to autoship recruitment. Under this model the primary method of commission generation is the recruitment of new 7K Metals affiliates on autoship.
Alone this is not a problem but coupled with the absence of significant retail activity, defines 7K Metals as a product-based pyramid scheme.
As with all pyramid schemes, once affiliate recruitment dies down it’s unlikely that those at the bottom of the company-wide binary team will continue to pay $98 a month.
This sees affiliates above them stop getting paid, with they too eventually ceasing to pay $25 a month.
This effect trickles up the company-wide binary team, eventually resulting in an irreversible collapse.
7K Metals affiliates can sell the autoship coins to recoup some of their losses, however this is unlikely to mitigate the total loss of each affiliate. Nor does it excuse or justify the operation of a pyramid scheme.
Update 8th November 2018 – Following a claim by Robert Olson that the information above was outdated (#53), BehindMLM published an updated 7K Metals review on November 8th, 2018.
A few people have shared this new program with me, basically trying to get me to join just because Roger Ball is behind it.
Initially, being able to save on silver & gold bullion and graded coins sounded good, until I saw their pricing, and realized that I could buy the same coins on eBay with free shipping (without having to spend $250 per year), for around the same price they charge without the $5 – $25 shipping (which is only free after purchasing 500 oz of silver or 5 oz of gold).
Even checking other precious metals dealer sites like “Bullion Exchange”, “SilverTowne”, etc, the price of a 7KMetals coin wasn’t significantly less, e.g. 1 oz Gold American Eagles were in the $15 – $35 price range difference on average (after shipping costs). And no volume ordering was necessary to secure those prices.
If you jump on their conference calls, all you hear is them praising the members that sold memberships and made $1,000 for the week; yet you don’t hear about how many members have actually used the service to save on their precious metals purchases.
Add to that the fact that all the top people in it are preaching to their downlines to secure “3 positions” (such as under a corp, spouse, etc.) to maximize the pay plan due to its short comings.
Personally, I see this for what it is… a glorified money game using a suido membership that cannot be retailed, as its sole “product”, with a flusing binary plan that has tremendous breakage.
Mark my words, there will be people joining this membership, hoping and praying to get 5 sales left & right so they can make $1,000, but if they’re placed on an inside leg, it’ll never happen… or take a very long time to happen, leaving many people “stuck”.
Their binary reminds me more of a “cycler” board type structure that needs 10 sales in order for a check to be generated.
Combine that with having to order an overpriced $98 MS70 graded 1oz Silver Eagle that can be purchased for up to 50% less elsewhere just to stay “active”, and you’ve got a recipe for disaster.
They will soon quickly find themselves having to make some serious adjustments to their pay plan and product, or else the refund requests will start piling up because members didn’t make that $1,000 per week they were sold on, like other members that are posting their checks on Facebook. Caveat Emptor!
Craig K,
Where exactly can you get an MS70 Silver Eagle for 50% of $98?
That is a great price, Website please…
Cliff,
I just did a quick Google search and found that the Liberty Coin website is selling some MS70 coins in the $50 range with free shipping.
libertycoin.com/product-p/16-(w)-ase-p-ms70.htm?gclid=Cj0KEQiA-_HDBRD2lomhoufc1JkBEiQA0TVMmrRCAmMhhBceAaPB5WMax0BjiBTpXEEe9FOvWcSHJFkaAtmu8P8HAQ&Click=4333&utm_source=googlebase&utm_medium=shoppingengine
I’m not trying to be a naysayer but I’m doing research on 7k as well. I’m looking for that good opportunity and this seems very pyramid scheme-y. Maybe get in early and reap the rewards before it implodes?
Good luck to you sir if you plan on doing it.
Craig K,
For some reason, some people have difficulty viewing precious metals MLMs in the same way they would any other MLM.
For instance, you compare 7K’s prices to that of Ebay, Bullion Exchanges, and Silver Towne. While it’s true that all 4 companies offer similar pricing, what you fail to point out is that Ebay, Bullion Exchanges, and Silver Towne offer no MLM opportunity.
In other words, these companies don’t offer to pay you tens of thousands of dollars per month for driving traffic to them. Therefore, 7K isn’t necessarily competing with these other companies, just like vitamin MLMs aren’t competing with GNC.
7K is competing with other network marketing companies. It’s simply another alternative to the vitamin, consumable product MLM norm. At least with this MLM, people are getting something for their money instead of blowing it on vitamins.
You also mention the $250 membership. It’s true that this is touted as a “membership”. However, for people looking to build a business, it’s nothing more than the enrollment cost. A cost shared by virtually all MLMs.
And of course you don’t hear much about members saving money on metals on conference calls. These calls are for members wanting to build a business. They already understand the savings associated with buying metals from 7K.
Why reiterate that on conference calls? These people are here to learn about making money and introducing new people to business so they too can make money.
The buying of multiple positions within a binary comp plan is a common practice that’s been going on since the advent of binary comp plans decades ago.
It’s nothing more than a way to maximize earning potential. That’s it. Anyone who’s been involved in MLM for any length of time understands and knows this.
Every comp plan has breakage, and this one is no different. It’s also no different from the numberous successful binary plans that have been impleneted over the years. I’m not sure what point you’re trying to make about the membership being the sole product.
People being place on an inside leg and being stuck is irrelevant. If those same people sponsor other associates then the comp plan pays them the same amount regardless of where they are in the binary. And of course some people will not make money…..that’s been going on since the dawn of network marketing.
I don’t understand the “cycler board” comment as well.
The monthly coin is overpriced. This is necessary to pay associates the sometimes massive commissions associated with MLM.
Here’s the way I see it: Would you rather spend 100 bucks a month on vitamins, or 100 bucks a month on 50 bucks worth of silver? You do the former, and I’ll do the latter, and in the 5 years lets get together and compare MLM product portfolios.
Furthermore, the comp plan states that you don’t have to purchase the overpriced coin, and you can still qualify for commissions by signing up one person per month. I don’t know of any other company that allows you to do that.
Your last statement is pure speculation based on faulty opinions.
In MLM the product should come first and foremost. If the product is not comparable to non-MLM alternatives then retail customers aren’t going to be interested.
When the product becomes irrelevant you’re selling the MLM opportunity, which is a strong indicator of pyramid scheme activity.
I agree.
I’m not sure how the remainder of your comment is relevant to any of the points I made above.
If you can’t justify the product without the income opportunity, you’re not selling a product you’re selling the income opportunity.
That means no retail viability, which means you’re in a closed-loop pyramid scheme.
I agree, but again, how is that relevant to 7K?
And not having “retail viability” doesn’t mean you’re in a closed-loop pyramid scheme (I’m not sure what you mean by closed-loop pyramid scheme).
First, “retail viability” in this context is purely subjective. If just one person decides to buy metals from 7K while ignoring the business opportunity offered by 7K, does that make 7K “retail viable” in your opinion?
If not, why do you feel your definition of “retail viable” is more accurate than the guy who decides to make 7K his retail shop for metals? More importantly, do you feel he shouldn’t be allowed to make 7K his retail shop for metals because you don’t believe 7K is “retail viable?”
Second, I do understand the government frowns upon MLMs who have no focus on retail customers, and I would ask the same questions of government that I just asked of you.
Third, it is provable that 7K offers metals at some of the best prices you can find. There are a few companies that offer very similar pricing, but I have yet to see a company offer the same products for less (not that I’m claiming a less expensive company doesn’t exist).
And 7K offers THE best pricing I’ve seen for those who buy metals in bulk (not that I’m claiming a less expensive company doesn’t exist). I’m not sure how one can disagree that this meets the definition of what most would consider to be “retail viable.”
Quote (#4):
You’re not selling metals, you’re selling the income opportunity. That means you’re not retail viable.
Yeah, it does.
Nah. You either have retail customers or you don’t.
You yourself mentioned the need to use the MLM opportunity to market 7K Metals, that means there’s no retail viability (otherwise the product would stand on its own).
No retail viability in MLM = pyramid scheme.
Either you have retail customers or you don’t. Everything else is just waffle.
Of course the income opportunity is part of the allure to 7K.
Do you really think people sign up in Amway to buy overpriced laundry detergent? No, they sign up because there’s an opportunity to make money marketing the overpriced detergent. Fortunately for 7K, the metals aren’t overpriced.
And yes, your definition of “retail viability” is subjective, which is why you didn’t answer my questions. Furthermore, 7K is flush with people who purchased the membership for the sole purpose of buying metals.
They have zero interest in the business, making your definition of “retail viability” subjective. It’s obviously “retail viable” for those who simply want to buy metals.
7K has retail members. You’re trying to discredit an MLM buy using arguments that don’t apply to the MLM you’re trying to discredit.
And that’s a symptom of non retail viability.
No, it isn’t.
You either have retail customers or you don’t. If you’re marketing the business opportunity then it’s clear you don’t have retail customers.
Retail customers aren’t interested in the business opportunity, they only see value in the product or oservice.
Affiliates cannot be retail customers in MLM. Period.
And you’re going to speak for all of 7K Metals affiliates now? Please.
One or two sure.
The 7K Metals compensation plan is heavily geared toward affiliate autoship recruitment though. This is reflected in your own comments (“have to market the business opportunity”).
All of which suggests there’s little to no retail activity going on.
@Saunders
Rather than post an offtopic rant (I only skimmed over the first few sentences), go read up on Vemma.
An MLM company without significant retail sales is a pyramid scheme. That’s all there is to it.
If you have to market the MLM opportunity itself to push the product, it’s obvious retail is not viable.
An MLM opportunity with a strong focus on affiliate autoship is also symptomatic of a lack of retail viability.
There’s no subjectivity to it, it is what it is.
I suppose you consider Sam’s club, and Costco pyramid skems as well?
(Ozedit: Nope, because neither are MLM opportunities. Offtopic derail attempts removed.)
@T Being hearing that chestnut of an excuse for almost a decade. Try again.
After reading the comments and punching the numbers, even with a $250 annual membership, if I want to buy silver/gold for investment, I could still buy for less, including paying shipping, than can be bought for $25 (price subject to change with value of metal) and free shipping, (nothing is free).
And unlike Amway, should I not sell my silver on a retail market, I would not be stuck with selves of out dated soap, I’d be stuck with selves of silver/gold. And that I could always sell later.
^^ Cool. Now what about the affiliate autoship recruitment?
That alone makes 7K Metals a pyramid scheme (no retail activity), irrespective of whether you think the coins are good value or not.
I can speak from experience being with a now defunct Numis network & International Silver Network..
The problem with Numis is that they only dealt with ANACS graded coins yet I made a lot of money while they lasted along with 10-15 free coins a month. They didn’t charge a yearly membership & they had a retail page..
I made even more money with ISN which also had a retail page,no annual dues & only a monthly 1 coin obligation..
The problem was with the owners & the top guy who knew nothing about precious metals.
I went to meetings with my team & even a free cruise with my entire family yet these pretentious individuals are very closed minded & want others to recruit yet they never taught individuals how to prospect & network..
I was going to enroll in 7k (even though $250.00 is a scrape on the knee for me” its not for most people)..
I am only repeating on what I saw when I was with 2 companies 1st hand.
I just buy the silver rounds. The local coin stores sell them for $2.00 above spot, plus the gas it takes to go to the coin store and back.
I can get them at .90 above spot through 7K. Yeah, I have to wait a week to get them, but the savings is worth it.
From what I am reading why has the government not stepped in to cease this pyramid co.
Most autoship recruitment schemes fly under the regulatory radar and just wind up collapsing.
We do see some companies busted but unfortunately for every scheme that’s taken down, there’s dozens that slip through.
1) I have been a long time researcher of good deals on products and/or services; memberships.
-7KMETALS is one of many.
2) I have been a a long time researcher of good prices on products and/or services; wholesale and/or at cost.
-7KMETALS is one of many.
3) I have been a long time researcher of sales & marketing models of moving products and/or services.
-Multi Level Marketing is one of many.
-7KMETALS is one of them; optional.
(Ozedit: Offtopic derail attempts removed)
Focus on exposing the pyramid scheme structure of those. Leave MLM & 7K alone.
Geez, I hope you offer your victims something more substantive.
Facts are facts. Your word means shit.
Either address the facts raised in this review or you’re just wasting everybody’s time. And leave the “what about” bullshit on Facebook. Kthx.
Victims?
1) 7K Metals has about the lowest prices for precious metals in the industry. That allows members more bang for their buck; to retail.
2) Product (intrinsic value) is definitely moving to end consumers.
3) More than half the members are buying wholesale/selling retail.
4) The other half are building a business; with a viable product.
5) Sams, Costco, Golf clubs, Fitness centers, etc.., all have membership models; so no harm there.
6) So it is all legitimate honest, with good intent, with integrity.
7) So like I said, the ponzi schemes are all around; not 7KMetals.
Who said anything about a Ponzi scheme? Autoship recruitment = pyramid scheme.
And mathematically the victims of a pyramid scheme are always there. Whether you choose to acknowledge them or not is irrelevant.
Except there is no retail. It’s all internal consumption as far as the MLM opportunity goes.
Nope. You can’t speak for “half the members”.
Are not MLM companies and are thus entirely irrelevant.
So the multi-layered MLM commissions are generated out of thin air. Right you are pal.
@ROBERT OLSON
The Easter Bunny 100% agrees with you. Harry Potter is coming into the opportunity soon!
Thanks for the laugh Robert!
Pyramid Scheme? MLM is actually an upside down triangle.
It is a win-win-win; all members win.
Product is moving, so it is not a pyramid scheme. Simple as that.
Auto ship is optional.
Sharing the membership is optional.
Building the business is optional.
Purchasing product at cost is optional.
Purchasing product at premium is optional.
I actually got interested for the retail aspect.
Easter Bunny, Harry Potter-Seriously (LMAO).
False. An MLM company deriving the majority of sales revenue internally = pyramid scheme (ref: Vemma, Herbalife)
Except those that don’t, by chasing an impossibly sustainable business model.
Irrelevant.
Irrelevant.
Irrelevant.
Irrelevant.
Irrelevant.
Retail isn’t possible within 7K Metals’ MLM opportunity.
The 1990s called, they want their copy of “pyramid scheme excuses” back.
Good Lord,
How on earth do you come up with this nonsense ?
I believe “inverted pyramid of piffle” is the technical term (© Boris Johnson).
The answer to your question is that he throws words at the screen in the hope that other slightly thick people will just assume all those words mean he knows what he’s talking about.
The reason this post got my attention is the claim of no retailable product. That stood out, because my initial search was to find the best overall price so that someone could retail if they chose to.
The next reason this post got my attention is the presumption that retailing is somehow mandatory by members/associates/distributors, etc.., to make multilevel marketing, network marketing, referral marketing, etc.., legitimate.
I submit that it is not. Now a viable product of value does have to move & that is definitely happening. (Ozedit: marketing spam and derail attempts removed)
What you do outside of 7K Metals is neither here nor there. There is no retail within 7 Metals’ MLM opportunity.
An MLM company without retail is a pyramid scheme (at the very least). This is fact and not up for debate (ref: Vemma, Herbalife).
One has to understand this business.
Marketing: simply means moving a product or service from the the manufacturer or provider to the consumer.
Multi-Level refers to the system of compensation provided to those persons who are causing the product or the service to be provided.
Multi: means more than one. Level refers to what may be better termed as generation.
It could be called multi generation marketing.
Retailing is not an absolute requirement in a referral marketing company (or the business model). However, in the processs of building a business retailing can happen and quite often does.
Keep in mind that is Network Marketing, not a retail store front, nor is it direct sales; although they are listed under the DSA. The point is that retailing happens naturally as a consequence of building a home based business with the MLM business model.
I submit that in fact has retailing going on by their members & their associates; also individuals not members or associates are elated to get the products 7KMETALS in their possession.
Great. Instead of paying you retail, I choose “purchasing at cost” as an option.
Did you just make this up?
Awesome & right on point. That is the beauty of MLM vs. a retail brick & mortar business or direct sales business.
I can offer a product or service at retail and/or share with someone how they can get them at cost. No, I did not just make that up; retailing happens in the process of building a business, sharing, teaching, etc… A win – win – win potential for all.
The biggest problem (mistake) is individuals treating a MLM company like a direct selling company. Two different models.
BTW & FYI;
The 7KMETALS available products, membership benefits, associate incentives, marketing plan, etc.., has all improved since this post first started.
The fuck are you waffling about?
MLM compensation plan = MLM company. And an MLM company not generating at least 50% of its revenue from retail sales = pyramid scheme.
Those are the facts pertaining to MLM regulation. Period.
I’m happy to flag this review for an update but if 7K Metals is the same autoship recruitment scam I’ll be back with a vengeance.
This Olson yokel is either an overt fool or he is breaking our chops.
Hard to believe anyone of close to normal intellect cant see this “program” as a money game that will eventually fizzle out.
Let’s all show some maturity in posting information period. There is not any need to be swearing and/or name calling.
I am in the regulatory compliance industry & have also had training as a paralegal. That being said send me the statutes, regulations, court cases, etc.., that substantiate your claims & statements.
I still submit that a company if it chooses can pay out its advertising budget to a network of consumer business builders instead of to television, radio, magazine, newspaper, etc… As long as a viable product is moving in the market place it is legal.
Retailing is not mandatory, nor is it illegal not to retail. Sponsoring is not illegal. Sharing is not illegal. Teaching is not illegal. Memberships are not illegal. Purchasing at cost is not illegal. Purchasing at premium is not illegal. Auto ship is not illegal.
Then by evidently having no knowledge of the recent Herbalife and Vemma actions by the FTC, let me state in no uncertain terms you are an absolute failure at your profession.
BehindMLM extensively covered both the Vemma and Herbalife actions as they played out.
And just for good measure here’s the FTC spelling it out for you.
Go and educate yourself instead of trying to bullshit people into joining pyramid schemes.
you wouldn’t need to be here fighting tooth and nail if this were true.
I think Robert’s impression and explanation of MLM is spot on due to the fact that that is how they operate in reality.
However, Oz is right Robert and this is a pyramid scheme. Please read his links. Good luck retailing to the majority though to make it legal. Like I said, I opt for purchasing at cost – because I can. Aren’t you doing the same?
“Legal MLM” is like saying I’m going to watch you bleed to death, but I’m not going to kill you. They don’t jive.
It’s a flawed system and should be outlawed. Too many reasons to explain why here. Perhaps read Dr.Taylor’s 20 years of research.
scribd.com/document/149677221/THE-CASE-FOR-AND-AGAINST-MULTI-LEVEL-MARKETING-by-Jon-Taylor
What the FTC says about one or two companies does not mean it is a blanket statement for all companies. Each case is different & has different variables to the situation; apples & oranges.
There are over 1000 multi level marketing companies. What is/are the statutes at large in regards to multi level marketing companies. Then what are the regulations made around the statutes; are they congruent.
On another note in this case the product is one of intrinsic value (a store of value); individuals may actually desire to not sell at all (wholesale or retail), but rather hold on to it. It simply is not logical and/or rational to presume any one or any agency can force or suggest anybody has to retail a product and/or service.
If they do then they have to be challenged on their ruining and authority. Agencies and/or their agents are not infallible. We all know this by now.
Mr Olsen, Mr Robert Olsen,
The real world has called and ask that you return to it.
Thank you
Read the third link, it’s a statement regarding the MLM industry in general. Not withstanding the FTC alleged violations of the FTC Act, which is federal law all MLM companies operating in the US must abide by.
Look, I’ll make it simple for you – provide documented evidence of a pyramid scheme winning in court on the basis it doesn’t have any retail sales.
Hell, even if we put aside the courts, on the basis of common-sense an MLM company with no retail = non-viable product = business opportunity being marketed = pyramid scheme. The laws regarding pyramid schemes and MLM are just common-sense that the FTC chooses to enforce from time to time.
By all means continue to live in your alternative reality but do it somewhere else. Kthx.
Not the brightest bulb in the chandelier.
You do understand that “MLM” is not a company right? It stands for multi-level market-ING. It is a method that you “do” and the company uses. It is what it is, and does not change with the name of the company or product.
It is ironic that there is so much emphasis on the phrase “pyramid scheme”. Our life’s in today’s society are full of pyramid schemes; it is not nessasriily good or bad, it just is what we are stuck with; the paradigm we have at this time.
What I meant before is that in every case with any case, the variables are many. On another note MLM company products and/or services are typically of a high quality & are therefore have more value then like products found in the average retail establishment.
Essentially those that switch their allegiance to a particular companies products and/or services are paying retail; a network of retail consumers.
A legitimate network marketing company allows you to do this as a retail customer.
A pyramid scheme in which the income opportunity is primarily being sold doesn’t, you can only sign up as an affiliate.
7K Metals falls into the latter category.
There is a village idiot quality to this statement that is hard to get my mind around.
A legitimate forward thinking company simplifies the process of movement of products and/or services by providing for a way for consumers to sign up/enroll to order them. They drop ship & offer auto ship. They prefer to pay individuals for referring individuals to them vs. traditional advertising and/or retail store fronts.
I personally use products and/or services from several MLM companies simply because they are high quality. Not a single one of them has required me to get them from an individual; the company simply drop ships.
Individuals & the FTC need to be properly educated that Direct Sales & Multilevel Marketing are two separate business models.
Both legitimate, just like apples & oranges are both edible fruits, but different. The problem is the greed & lack of integrity by individuals & some company bosses.
^^ None of that has anything to do with an MLM company like 7K Metals not offering retail and being an affiliate-heavy autoship pyramid scheme.
MLM compensation plan = MLM company. Simple as that.
As I’ve previously stated, if you want to live in an alternative reality that’s fine – do it somewhere else.
Going to start marking waffle as offtopic spam.
All of the information you started out with for your expose on 7KMETALS is outdated.
Retail is definitely available. That is the main reason I looked into them more extensively.
They have an 80 (+) retention of members; they can purchase at lower costs (on the average) compared to what two dozen other online precious metals dealers offer. They than make more retailing. They get excited share with a few friends or family members who in turn desire to become members, so they can buy at cost & retail.
There is an auto ship that is available for convenience, but it is most definitely optional.
By “members” you’re referring to affiliates/distributors?
Retail customers shouldn’t have to sign up for anything.
lol. yeah. he’s really not very good at this
No,
The “Members” typically purchase at cost, which as far as the precious metals industry goes, is about as close to wholesale that the average individual is able to get the bullion at; no minimum or maximum to get it at that cost.
They in turn retail to neibors, friends, family, aquainteces.
The “Associates” typicalily purchase metals at a premium and specialty products to get points & the travel discounts.
Members are not Associates unless they sign & agree to be.
Retail Bullion Customers are typically not part of 7KMETALS.
Well like I said a few comments back I’ve flagged this review for an update. I’ll suss it out then.
Where can one see the 2017 or 2018 company income disclosure to see the actual retention rate and average income earnings?
Don’t bother asking.
Robert will just come up with some irrelevant strawman argument while conveniently ignoring the facts as Oz has pointed out on numerous occasions: call it what you like, pyramid scheme or endless chain recruitment scheme, whether there is a “product” or not, if it is possible for people to make greater than 50% of their income from recruitment alone, the company is both illegal AND more importantly for potential members, guaranteed to fail.
Throw in the “pay-to-play” autoship requirements and it is illegal, guaranteed to fail AND going to cost its’ members more than if it were an autoship free company.
On another note MLM company products and/or services are typically of a high quality & are therefore have more value then like products found in the average retail establishment.
As Olsen is well aware, but chooses to ignore, all MLM products are either lower quality than those of an equivalent price, or more expensive than those of equivalent quality. The multi-layered commissions, and the cost of administering and monitoring the Byzantine commission structure, do not come out of nowhere.
The willingness of MLM scammers to make fools of themselves by going on to sceptic blogs and repeatedly asserting that 2 + 2 = 5 is quite sad.
Hey Yo,
In the about section; top right corner of their web site.
@Little round man
Auto ship is an optional convenience process offered in the market place by companies, both MLM & non-MLM.
@Malthusian,
Just about every product found in the brick & mortar retail stores (Walmart, KMart, Target, Family Dollar, etc.., have lower quality & cheaper products than MLM companies. I personally pay more & order/consume products/services from several MLM companies for that reason; however I am not building businesses with them.
The rest of you, no sense in being all immature. I personally have no stake in 7KMETALS.
I will say that if you have not been procuring silver from whoever; that you will feel really stupid real soon. JS.
“every product found in the brick & mortar retail stores …have lower quality & cheaper products than MLM companies.”
“that you will feel really stupid real soon. JS.”
I feel really stupid after reading your never ending nonsense on here.
Hey Robert,
No, “autoship” is a convenience for sellers who don’t want consumers re-assessing whether or not they wish to buy again.
No, 50 years of being an educated consumer has proven to me that the exact opposite is true, owing mainly to the obscene profit margins required to pay commissions to multiple levels.
I am sure that there are a whole lot of people who are holding silver that is selling for the same inflation-adjusted price that it was selling for 100 years ago will be recognizing how stupid they feel someday (hopefully soon).
SD
Auto ships and/or Auto pay is a convenience thing period; regardless of what company type or business model, simple as that However, I personally don’t like them if they are mandatory, required, can not be turned off, etc… There are a few products/services that I like so much, that I have on an auto ship. Ironically they are not from MLM companies.
Precious Metals have always been a great store of value; history has proven that time & time again. Paper assets, fiat currency, debased metals, etc.., has always ultimately failed.
The MLM companies that have public stock, big fancy buildings, etc.,, are the ones to be concerned about. There are several that have very high ethics and simply pass the funds that do not need to be spent on public advertising to the individuals sharing it with individuals they meet & know.
The MLM business model is not a bad thing. It is some of the MLM company owners and/or MLM company Independent Reps who are bad; they need weeded out of the industry.
Updated 7K Metals review went live today. Link in an update at the end of the review.
I appreciate all the comments here and especially Robert Olson’s.
I am looking at joining after a friend made a pitch and I attended a video meeting. I found this site by Googling the company.
I have zero intentions of becoming a distributor or signing up other people. I just like their selection of gold and silver coins and I believe they will hold their value.
Some of the items on their website, like the $1,300 gold coins, are out of my reach right now but other items are pretty affordable.
As other comments pointed out above, this company will collapse. Look at the business history of the ‘Founders’.
It says the have years and years of experience with MLM opportunities. Why do they have all that experience with x-number of companies, and a lot of that time was as founders or top people?
Because they will run it into the ground and move on to the next scheme.
Davis and Anderson are using their connection with Ball for his money to front the business, and tout him as a wealthy business person.
It’s true Roger Ball has has business success, but tends to run MLMs into the ground. He started as a founder of Melaleuca and was bought out by his former brother in law to keep the business from going under.
He is the type that will start a business venture and when it starts to fail he will close it down, or sell it if he can and claim it as a business success for himself.
Again, this business will fail, it may be within 5 years, or take as long as 10, but it will close down.
After that, Davis and Anderson will move on to the next scheme to make themselves rich.
Doing a CBA for this type of opportunity for myself shows that I would lose money, mostly because I find it against my nature to try and get people to pay for something that has a high probability of being a poor investment.
Just throwing out my two cents worth of opinion.