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Is 7K Metals A Legit MLM Company Or A Pyramid Scheme?

Is 7K Metals A Legit MLM Company Or A Pyramid Scheme?

*This is not a financial advice article. Refer to a professional for financial advice.

Thank you for visiting our 7K Metals review. In this review, we’ve taken a close look at 7K Metals to see whether this precious metals dealer is a legit MLM company or a pyramid scheme.

7K-Metals Review (2022): Legit Or Pyramid Scheme? Complaints Included!

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Rating Overview From The Same Company:

  • Free Storage for Non-IRA Precious Metals
  • Biggest Promotions in the Industry
  • Unmatched Customer Service
  • No High Pressure Sales Tactics
  • Outstanding Ratings & Customer Reviews
  • FREE and Easy IRA & 401(k) Rollovers
  • A+ BBB Rating and AAA BCA Rating
  • Highest Buy-Back Guarantee
  • 2021 Company Of The Year Award

With that being said, let us now look at how 7K Metals measures up!

Since this is a comprehensive review, please feel free to use the quick links in the TOC list to jump straight to any section:

What Is 7K Metals?

Is 7K Metals A Legit MLM Company Or A Pyramid Scheme?There is an episode in the popular and reviled cartoon South Park called “Cartmanland.” In it, the titular Cartman opens a theme park and makes a commercial on it that boils down to: you can’t come. It turns the park into a huge business success, much against Cartman’s wishes.

This is the vibe that we get from 7K Metals. It’s a precious metal dealer, among other things, that doesn’t just let you buy their precious metals. They have an astounding variety of Numismatic Guaranty Company (NGC) accredited coins, custom-made in what looks to be quite the private mint.

But you can’t just buy them.

And this is the start of the many issues that people experience with 7K Metals. You’ll hear the term Ponzi thrown around when it comes to investments, but “pyramid scheme” isn’t exactly common.

Yet here, it’s used often.

It’s definitely one of the more unusual companies we’ve encountered, and in our 7K Metals review, we’ll try to cover as much as we can about the company that’s caused quite a bit of a stir with its approach to precious metals dealership. All in all, it’s a unique one, to say the least.

Products And Offerings

7K Metals, in essence, has two products: its precious metals and its affiliate program. The website is going to make it look like you can access one without the other, but you can’t.

For starters, to buy precious metals from 7K Metals, you need to become an affiliate in what seems like a fairly convoluted pyramid scheme. There is some that view this as a good thing. So, if you’re looking to become an affiliate and don’t mind depositing money to do that, 7K Metals might work for you.

But what if you just want to buy some bullion? That’s where things get tricky. Anyways, let’s try and cover these two products on their own.

1. Precious Metals

We feel like one of the reasons 7K Metals gets away with its quirks is its coin collection more than anything else. Additionally, there are other products that seem to be of high quality, such as jewelry, but it’s coins that stand out the most.

They have most of the popular gold and silver bullion products such as:

  • American Eagles
  • American Buffalos
  • Austrian Philharmonics
  • Plus, rounds, bars, and much more.

7K Metals Gold Coins And Gold Bars

But it’s the custom coin section that probably attracts the most attention, and rightly so.

For one, we have not seen 0.999 pure, NGC-graded silver coins with intricate coloring of this kind outside of Australia’s Silver Lunar Series. The ones with opal on them get sold out right away.

Second, to make coin collectors even crazier, these are issued in limited mintages of 499 in what appears to be a private mint in Palau. An exotic precious metals coin from an exotic island nation that is NGC-graded, and affordable too.

Also, here is a sample of gold coins in the Real Heroes Fighter Pilot selection:

7K Metals Real Heroes Fighter Pilot

In addition, the company sells a variety of jewelry crafted from silver and gold. If this was a straightforward inventory, it would be one of the better we’ve seen. But it’s far from that.

2. Memberships

7K Metals Memeberships

When attempting to buy anything on the site, you’ll be told you need a membership in order to do that. And you’re told you need a referral to get that membership.

An exclusive club just to buy precious metals? Surely that’s a little over the top.

However, the site does say that you can reach out to them and request to become a member yourself, which, we suppose, might be a plus. As we said and 7k Metals complaints are quick to point out, all of this hinges on you wanting to become a member of a “multi-level marketing company”.

If you’re just wanting to buy their custom coins or products, you ought to hope that someone spilled them on the aftermarket.

When you become a member, which many appear to have become unwillingly, you’ve become an associate or affiliate of the company. You’re either entitled or expected, depending on how you see it, to refer others to the company, help them with sales, and so on.

And, the more of that you do, the more you’ll get compensated.  A fairly classic pyramid scheme scenario, and again, not exactly what most bullion buyers are after.

If you are ready to take action, >>>>see HowToInvestGold’s list of the top 5 precious metals IRA companies (cash sales also available).

7K Metals Membership Cost?

From what we’ve discovered, there are two membership plans: an annual $250 regular one and an annual $450 premium one. Supposedly, the premium one comes with a few free coins and included bonuses such as:

  • A Business Builder credit, given annually by the company
  • A world coin
  • A silver round coin
  • And silver eagle coin
  • Plus, a medallion

But paying $250 a year for the privilege to buy precious metals is, again, very strange. If you take an average gold IRA as an example, it costs about the same (or less) to cover both the administrative and storage costs of that retirement account annually.

Overall, there’s quite a bit of work involved in both. Which begets the question: what are you paying $250 for here, exactly?

The basic presumption is that everyone joining 7K Metals wants to become an affiliate on some level. That is our presumption, as we doubt people would bother paying $250 or more a year just to buy precious metals when, surprise, every other dealer has a checkout cart you click on and fill in your shipping info.

This brings our 7K Metals review to the most convoluted part of 7K Metals, and that is their membership.

How Does 7K Metals Compensation Plan Work?

Would you expect an impoverished pharaoh to have a small pyramid? Of course not.

Big pyramids are associated with a lot of wealth. And pyramid schemes are therefore laid out in an extremely complex manner, with levels and levels and levels. Needless to say, the lower you are, the less you earn, and scaling up is about as difficult as scaling a real pyramid.

It seems there are 5 tiers of membership: Associate, Copper, Bronze, Silver, and Gold. When you recruit a new member, you earn 100 points. aND When you sell a coin, you earn 20 points.

The value of points for each rung of the pyramid is as follows:

  • Associate: 1 dollar per point
  • Copper: 2 dollars per point
  • Bronze: 4 dollars per point
  • Silver: 7 dollars per point
  • Gold: 14 dollars per point

Makes sense for a precious metals company with a pyramid scheme, right? As you move up in these tiers, you earn more with each referral and sale.

The problem with this, and any other MLM or pyramid scheme, is that moving up is either difficult or implausible for most. The highest tier earns 14 times as much for every referral as the lowest tier does.

So, like every pyramid scheme, it’s the most profitable for those near the top, and the lower you go, the less profitable it is. Unsurprisingly, most if not all of the members in this program are in the lower tiers.

Can You Make Money With 7K Metals?

As with any pyramid scheme, your ability to make money off of 7K Metals hinges entirely on how many people you can bring to the company. New memberships, renewals, and sales are all rewarded.

This immediately dismisses profitability for a lot of people.

In order to make good money from 7K Metals, you’d have to have a huge audience that is interested in precious metals or affiliate programs and willing to join this program.

While it’s said that you can earn money through sales, this is yet another part of the company that isn’t fully clarified. Presumably, this means sales to members you’ve referred to the company.

So again, there is the assumption that whoever you’ve referred to the company will be willing to make an account with a $250 a year membership and participation in who knows what else.

Lots of people are going to be put off just by hearing about this, never mind actually participating in it, if they’re only interested in precious metals.

You might be able to turn a profit by buying 7K Metals’ products and reselling them, but based on what we’ve heard about inaccurate and excessive pricing of their products, even this seems to be a stretch.

If you want to read up more on 7K Metals MLM business model, you can check out their polices and procedures.

7K Metals Policies

With that said, let’s move on to 7K Metals reviews, ratings, and complaints next.

7K Metals Reviews & Ratings

The company is conspicuously absent from most consumer watchdog sites that precious metals dealers are frequently on, such as the Business Consumer Alliance (BCA) and ConsumerAffairs.

On the Better Business Bureau (BBB) page, they have an A+ rating and are accredited, with a 4.23/5 review based on 60 ratings. That’s actually pretty good given the structure of the company.

7K Metals BBB Ratings
The positive reviewers on BBB say that their pyramid scheme program hasn’t left them dissatisfied, while also saying that they have great products. And some even say they’ve made good money from the website.

One reviewer even insists that the company isn’t a pyramid scheme despite it pretty much fitting that description entirely. So perhaps for some, pyramid schemes aren’t a bad thing.

Overall, though, the company seems credible enough if you’re into affiliate sales and the like.

If you are ready to take action, >>>>see HowToInvestGold’s list of the top 5 precious metals IRA companies (cash sales also available).

7K Metals Complaints

As you’d expect and can see above, negative reviews are mostly disappointment over not being able to buy the precious metals up-front. Some say that the company is indeed a pyramid scheme that takes a percentage of your initial investment when you leave.

And then, of course, there are the customers who didn’t understand how the site works and simply wanted to purchase precious metals. These seem stuck with their membership: while 7K Metals didn’t steal their money or anything, it’s not exactly giving it back on ideal terms, either.

Overall, the 7K Metals complaints are grouped in one of the two: either the reviewer feels that making money through the company is unfeasible, or they didn’t understand that it’s not just a precious metals dealer and now can’t get their money back.

But given the number of positive reviews, we’re inclined to think plenty of people like the company’s bottom line.

Pros And Cons Of 7K Metals

To give you a quick recap, here are some pros and cons of 7K Metals:

  • Great selection of precious metals, including unique and valuable coins
  • The option to join the company and earn money through it
  • A lot more legitimate than you’d think from a quick glance
  • No way to buy precious metals without a membership
  • A membership and site structure that will obviously be misleading to many
  • No shortage of opinions that making money through their product is difficult

7K Metals Review Verdict: Legit MLM Company Or Pyramid Scheme?

Is 7K Metals A Legit MLM Company Or A Pyramid Scheme?When it comes to the verdict of our 7K Metals review (2022) and answer to the question of whether the company is a legit MLM or pyramid scheme, we’ll have to say it’s both.

Let’s be real: any MLM company has elements of a pyramid scheme to it. The questions that remain are how legitimate the company is, and how difficult it is to climb up that pyramid.

We’re going to start with the good, and that is that 7K Metals appears to be a legitimate MLM company. So, if you’re into MLM, understand that it needs a network of people as a minimum and has risks associated with it, there’s plenty to suggest you won’t be disappointed.

And if you’re into precious metals, all the better, as you’ll have access to great products and be part of what looks like a sizeable precious metals company.

The bad is the obvious, more or less. It’s very easy to not understand that the company isn’t a regular precious metals dealer. More specifically, for someone that doesn’t know what MLM is, it will be difficult to understand what the company is about.

They’ll probably jump to signing up because of the product strength and then become part of the company. While they won’t be left to their own devices, nor will they have their money taken from them, it’s obvious why this can be a huge issue.

7K Metals Review Takeaway

If there’s one takeaway from our 7K Metals review, it’s that the company should make it much clearer that they don’t offer precious metals to individual buyers akin to normal stores. This would eliminate a lot of complaints.

Even still, the way the membership program works would probably confuse some people wanting to buy the products.

Despite all the confusion surrounding the company, they still seem true to a what-you-see-is-what-you-get. Those who like MLM and feel that they can make money with this company probably won’t be any more “scammed” than with any other company with programs of this kind.

But those looking to just buy precious metals should look elsewhere. More than anything, perhaps, 7K Metals is a reminder that you should carefully check what you’re signing up for.

If you are ready to take action, >>>>see HowToInvestGold’s list of the top 5 precious metals IRA companies (cash sales also available).

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If not, you can go directly to 7K Metals website.

Disclaimer: The owner of this website is not licensed as an investment advisor and, accordingly, does not make any recommendations regarding clients’ personal investment portfolios. It is recommended that you carefully evaluate and research the risks and rewards associated with investing in alternative assets such as physical precious metals and cryptocurrencies before you make a purchase.

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