7K Metals Review: Is It A Pyramid Scheme
or A Legitimate Business Opportunity?

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By: Scam Risk - Expert Reviewer

7K Metals: Network Marketing Company?

I’m guessing some people you’re close to gave you some information about an mlm company and you want to know… is 7k Metals a scam?  Or maybe you’re wondering if mlm is even a legit business model, or just another pyramid scheme?

Well, here’s the deal…

The way the 7k Metals is set up is that you join the program for an annual fee so that you can buy their products (ie, silver coins, precious metals, etc) at wholesale, then as members you make money by either selling those products or getting other people to sign up too.

If I had to guess, either a friend or family member told you about 7k Metals singing its praises, talking about how it’s such an easy way to make money, but you’ve probably also heard that a lot of mom members have lost money because of pyramid schemes. 

But, before you jump in and get started, there’s a few details about this MLM company we should review.

Now, if you’ve gotten this far, then you’re way ahead of people.  

So, is 7k Metals a scam?  

Let’s find out. 

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Table of Contents

What Is 7K Metals About?

7k Metals was founded in 2016 by a group of network marketing company entrepreneurs from Idaho. They use the MLM business model to provide membership packages to people who are in the market of precious metals, silver and gold coins, bars, bullion and the like. 

That being said…  

The goal of the company is to dramatically improve the circumstances of people all over the world who seek to improve their lives. 7K Metals is driven to give people the tools they need to create wealth and achieve financial freedom through gold, silver and other precious metals.  

The men who started the ball rolling are: 

  • Zach Davis 
  • Richard Hansen
  • Roger Ball
  • Josh Anderson

We’ll cover these gentlemen a little later… 

They strive to offer their members the most inexpensive precious metals by only charging their members their cost for these metals. 7K purchases these precious metals, like gold bar and silver,  from the world’s leading distribution outlets for the least amount of money possible.  

Is 7K Metals A Scam Or Is It Legit?

Just so you know, I don’t have the 7k Metal membership.  The information that I’ve provided has been what I’ve found online.  So technically, since you actually get something in return for your initial fee, 7k Metals is an upstanding network marketing company. 

On top of that, I haven’t found anybody complaining online about being scammed with shoddy products, so people believe it’s genuine.  And as for the company itself, it has good team leadership, so you assume they’re here to stay. 

Although, there is something I find unsettling about the products distribution method.  Since it’s only available to enrolled members, I would have liked to see them provide memberships to people directly instead of through the MLM business models. 

Also, there is a way for you  to earn commissions by signing up new members into the company so they purchase these precious metals at a ‘discount’.  And since I don’t care too much for the MLM business models and not familiar with their products, I personally wouldn’t suggest that 7k Metals is anything to pursue. 

But with that said…

You could give 7k Metals a shot if you’ve had previous experience with an MLM company (check out our list of top MLM companies) and are well-versed in the world of precious metals. However, before you jump in with both feet, you should research the cost of the metals from this company from a worldwide standpoint. 

If the price is right, then 7k Metals might be well worth your time to become an associate… because if precious metals are your thing, then this is right up your alley. 

With all that said, I hope that you have found this 7k Metals review to be insightful and informative and that you’ve learned a good deal about the company. 

But, what’s the purpose of learning all this if you don’t make money with precious metal, right? 

So, let’s dig a little deeper. 

7K Metals MLM Business Opportunity

How Does 7K Metals Compensation Plan Work?

7k Metals is set up with what’s called a “binary” compensation plan.  The way this works is that you make money when you sign up new members. So, basically, think of this compensation plan as an upside down “V” with you at the top.  Members that you sign up will either be on your right side or left.  

7k Metals has a point system in order to determine how much you’ve sold:

  • The associate either signs up new members to cover their $250 annual fee or they pay it themselves (100 points)
  • The associate purchases coins with automatic delivery (25 points)
  • You make money from the coins purchased from the affiliates you signed up
  • 7k Metals only pays out on the least amount of sales you made
  • There are 2 commission plans centered on your team sales
  • You earn $500/week if your left and right sides have 500 points
  • You earn $1000/week if they have 1,000 points
  • Anything between 500-1,000 gets reset on the following week

So you only have a week to get over 1,000 points, or you start over. 

What?!?

Yes, it’s in black and white right there in their compensation plan.

Of course you have to reach certain milestones in order to get a pay out from 7k Metals: 

  • You need at least 25 points every month
  • Sign up at least 2 new members who have 25 points in a month
  • Finally, a matching bonus of 5% for anyone you sign up.

Is 7K Metals A Pyramid Scheme?

You cannot sell retail through 7k Metals.  It would be ideal if you could get unaffiliated customers to buy precious metals.  But it doesn’t work that way… you simply can’t purchase anything if you’re not a member. 

So, it seems that the product is not their main focus. 

In order to make money through 7k Metals, you have to sign up new members.  This is where my “pyramid scheme” flags go up. 

Basically, a pyramid scheme is defined as a company that persuades you to buy into the program to make money, not so much about selling its product. 

But since 7k Metals does have decent products, like precious metals, then they are technically not a pyramid scheme.

Technically!

If you still have reservations, we recommend taking a look at their standing with the Better Business Bureau here.

So What Are The 7K Metals Precious Metals Product Line?

The products sold through 7k Metals are: 

  • gold coins
  • mint silver
  • platinum, gold and silver bars

This is the pricing breakdown: 

  • Silver coins – $19-226
  • Gold coins – $162-1,945
  • Silver bars – $18.88/oz
  • Gold bars – $155/oz 
  • Platinum bars – $966/oz

All the way up to $47,627 for a kilogram of gold. 

7k Metals also has a wide selection of jewelry for you to choose. 

Also, 7k Metals has an agreement with a top private safe company so that you have a safe place to store all your collections.  

Now, 7k Metals does allow you to shop their website for specific products at the member’s price, but you have to be a resident of the United States with a membership plan.  

It goes without saying that you need to know a lot of wealthy people with disposable income to purchase these products for you to make money. 

I just don’t think this is a long-term business plan. 

Who Are The Owners Of 7K Metals?

Like I mentioned before, the owners of 7k Metals are:

Zack Davis

Davis and Anderson have the most experience with MLM companies.  Davis was first introduced to network marketing when he was in college and since then has helped a lot of people reach their goals. He and Anderson have operated a separate MLM company called Black Ink International since 2011. 

Richard Hansen

Hansen has been a network marketing veteran for the last 34 years and is experienced in collecting and mining precious metals. 

Roger Ball

Ball is well-known as an entrepreneur.  He was the owner of JD Premium, and he closed it in 2015.   He previously owned JD Premium, but closed it down in 2015.  He was also a member of a company by the name of Paycation in 2012.

Josh Anderson

Anderson came across network marketing when he was 21 yrs old.  He was able to build a team of over 18,000 people in his first year and in addition to that was able to build a team of 9,000 people in his first 4 months with another mlm company in 2008.  

Soon after, Anderson was appointed the CEO of the company and grew the organization to 26,000+ members.  

He was also CEO of JD Premium from 2009-2011, while Davis was CMO for the company.  They primarily distributed personal care and nutrition products. 

For the most part, the 7k Metals leadership of on par. 

Can You Make Money With 7K Metals?

You’re paid out on a restricted point system for every 7k Metals product you sell. I really don’t like this because you simply don’t make much money by selling the product.  It’s as if this was by design. 

For each sale you make, you’ll earn 20 points, but you need 500 points in order to get a payout. So, given this type of compensation plan, I can see how very few if any people are successful with MLM.

Actually, almost 70-100% of members lose money with MLM. You can find in-depth statistics on the industry here.

Sadly, we couldn’t find any information as to whether or not 7k Metals members actually earn anything, and the company has yet to disclose that.  

My guess is that very few people make money with the organization. 

Membership Fees

1. Members

It’s required of all members to choose either the basic of the premium membership.  Below is the pricing: 

  • Basic Membership: $249 / year
  • Premium Membership: $449 / year

2. Travel Card

You are also required to purchase a travel savings card from 7k Metals.  Below is the pricing: 

  • Basic Membership: $250
  • Premium Membership: $500

You are able to get the best travel deals every month with this program. 

Should You Join 7K Metals?

Well, 7k Metals is a network marketing company, so if you’re are OK with that, then you should investigate further.  If you know a fair amount about MLM, then this could be for you.  Especially for people who like the idea of buying precious metals like silver and gold.  

On the other hand, if you don’t like the MLM business, then I would stay away from 7k Metals. 

Add to that the notion that if you have no interest in precious metals, I would take a hard pass. 

Given the nature and expense of precious metals, it requires a certain amount of money to purchase them. 

That being the case… 

If money is an issue, buying these products may not be in your best interest… and if your circle of influence is such that money is an issue for them, your warm market prospecting will hamper your ability to earn commissions. 

Pros & Cons

It’s always a good idea to weigh out the upsides and downsides of any business venture… especially MLM.  So below is our list of things to consider: 

Pros

  • 7k Metals don’t hide anything concerning their business model
  • Their leadership experience is stellar
  • Members can purchase inexpensive precious metals.

Cons

  • You can’t purchase outside of being a member
  • Multi-Level Marketing (MLM)
  • They focus a lot on recruiting new members
  • It’s very expensive to maintain membership
  • Their precious metal product line is limited

It’s worth going into detail about these cons…

1. The Cost

The market for precious metals is unpredictable, so invest at your own risk.  On the other hand, Gold is Gold.  So if the market drops, you can hold on to it… then sell it when the market goes up again. 

But gold (and other metals) is still expensive, so be careful not to overdo it if you don’t have a large amount of money. 

2. You Have To Sign Up As A Member To Buy Products

Their website does have a page that indicates the ability for “guest checkout”, but it’s a little misleading in that you can’t really buy metals as a “guest”. 

Once you’ve decided on what you’re going to purchase, you have to provide the member’s name who suggest the site to you. 

Ultimately, you will need to pay a membership fee to buy any line of products. 

3. The Auto-Ship Program Is Mandatory

Whether you like a particular product or not, you’ll need to sign up for auto-delivery just to maintain the member status.  

Now this may not be an issue if precious metals sell like hotcakes, but you’re likely to be stuck with unwanted inventory.  

Sounds crazy, right? 

Now you see why most members actually lose money. 

4. Most Members Fail

As with most MLM companies, the vast majority of its members (upwards of 98%) typically fail or quit.  

And since 7k Metals is relatively new, I have a feeling that eventually their members will call it quits also. 

Now, if you can sell ice to an Eskimo and like MLM, then you may have a shot at succeeding… 

But for the most part, the people that got in at the beginning are the ones who make the most money.

5. Products Exclusive For Members

Maybe it’s me, but only allowing members to buy precious metals from 7k Metals seems counter-intuitive.  It just seems fishy if you need to pay a good chunk of money upfront for membership in order to buy anything else.

6. Very Limited Market

It goes without saying that the market for precious metals is small, maybe even shrinking given the current state of affairs… and 7k Metals confirms as much. 

It’s simply not easy to sell gold and silver.  People don’t buy them for the fun of it, it’s mainly for long-term profit.  But how can you profit if the market is dwindling? 

You could interest people in buying gold bars and precious metals, but will they actually buy them? 

To me, it’s sounds too risky, especially if you don’t know much about gold trading. 

7. Affordable Products Sold Out

It goes without saying that the market for precious metals is small, maybe even shrinking given the current state of affairs… and 7k Metals confirms as much. 

It’s simply not easy to sell gold and silver.  People don’t buy them for the fun of it, it’s mainly for long-term profit.  But how can you profit if the market is dwindling? 

You could interest people in buying gold bars and precious metals, but will they actually buy them? 

To me, it’s sounds too risky, especially if you don’t know much about gold trading. 

My Final Thoughts

Although 7k Metal may look like a solid company with strong management, at the end of the day, it’s still an mlm company… and trust me, it’s not easy to make money with mlm.  

The idea of hitting up your friends and family with the notion of either buying silver and gold from you and recruiting them into this business model just to have them fail and blame you for scamming them out of $250 or $500 makes for awkward holidays and family reunions. 

So, what would I suggest… 

Passive Income

How would you like to be able to make money, 24/7? 

With no membership fees…

and 

With no products to sell…

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What is Digital Real Estate? 

Well, don’t get the wrong idea.  This has nothing to do with buying houses, then fixing and flipping them.  

What I’m talking about is Local Lead Generation.  

Local Lead Generation is the process of creating small websites that attract customers looking for a specific service, then renting these websites out to a local business is a specific city.  

The great thing about this business model is that small businesses are always looking for new customers, and they are willing to pay you very well for helping them find those customers. 

So, you’re probably asking… 

“How Do I Make Money With This?”

Well, it’s pretty simple really.  

When a customer looks online for a service (ie, House Painting), the first thing they see at the top of the search engines is your website for that particular service… in their exact city.  

They call your phone number that you have listed at the top of the website and get forwarded to a local painter who is ready, willing and able to help them.  

You don’t even have to answer the phone call!

Next… 

Once the painter finishes the job, you get paid a percentage (usually 10-20%) of the total.  

So, let’s say the standard cost for painting a house is $5,000… you would get $500… all for sending the painter a phone call.  

Now let’s say you have 10 or even 20 of these websites… that’s $5,000-$10,000 per month… whether you get out of bed or not.  

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