Karatbars Scam: Is It Worth Being A Sellout?
What Is Karatbars International?
Karatbars International GMBH is an MLM company that specializes in the sale of small gold bars and gold bullion gift items.
Because its main product is gold, Karatbars is unlike any other MLM company.
While they do not refer to themselves as a Multi-level Marketing company (MLM) and would prefer you to think of them as an e-commerce company with an affiliate program, although they do appear to operate as an MLM.
When most people think of MLM, they think of selling products to friends and family and holding house “parties”.
An MLM requires you to buy a product or service to meet legal requirements. However, Karatbar does not require you to buy anything at all, only to recommend a product purchase for your own financial security.
Karatbars International headquarters and logistics center are in Stuttgart, Germany. It is in charge of support, marketing, customer and partner communication, order execution, and delivery. The headquarters also coordinates the establishment of new countries across Europe.
Karatbars provides consumers with an appealing and affordable way to purchase 999.9 pure gold bullion, as well as gold merchandising, collector’s items, and gift cards.
However, they are DAMN complicated to work with and all orders take FOREVER to be ran.
Not mention that you stand no chance of actually earning recurring income.
You’re better off learning a system in which you can earn mostly passive income without having to beg friends and family to buy from you.
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This is so simple, it should be illegal.
Table of Contents
Karatbars Company And Founder History
Karatbars International CEO Harald Seiz founded Karatbars International GmbH in Stuttgart, Germany, in 2011. He has successfully and continuously internationalized Karatbars through the years.
Dr. Harald Seiz was born in the German town of Calw near Stuttgart in 1963 and has been a successful financial and investment advisor since 1983.
Hathe Federal Association for Economic Development and Foreign Trade (BWA) bestowed senatorial honors on Mr. Seiz in 2016.
Mr. Seiz is a driven entrepreneur with extensive knowledge of global financial markets. He has been devoting himself to a topic that some consider outdated: gold as a viable investment since 2016.
This concept has since become visible in Karatbars International’s product portfolio, with the following philosophy:
Gold should be accessible to as many people as possible as a stable, long-term investment.
What Does Karatbars Sell?
Karatbars sells gold bars and gift items with a purity of 24 karats 999.9% gold in the following gold bullion denominations:
- One gram
- 2.5 grams
- 5 grams
They are fully insured and delivered to the customer’s address in a timely and dependable manner. These gold bars are produced in Turkey.
The individual gold bars bear a trademark symbol as well as the imprint of the quality assurance firm. For added security, hologram stickers are provided on the reverse side of the plastic card.
Karatbats sells Classic cards too and it is one of their most popular products. Classic cards are one gram gold pieces fixed to a high-quality card.
Karatbars is particular about small-sized or light-weighted objects because they are easier to transact with and serve as a potential means of exchange and payment.
The Collector Karatbar is another popular product from the Karatbars group. Karatbars are cards that have gold nuggets embedded in them.
Collect Karatbars are for the most zealous collectors. Special collections include those named after famous athletes, historical events, and celebrities. Some are also limited editions, and their prices will undoubtedly rise over time.
If you want to exchange your gold for cash, you can do so with Karatbars at their “daily guaranteed buyback price” or at any registered K-Exchange center.
What Are KCB Coins? Is KCB A Good Investment?
THE KARATGOLD COIN (KBC) is a blockchain-based cryptocurrency designed specifically to be used as a widely accepted electronic payment means for all who regard gold as a traditional, true, secure, and value-stable medium.
Mixed Reactions On KBC Investment
Because it is backed by gold, KBC Coin is generally a good investment.
However, because of its low market capitalization, some analysts believe it is a poor long-term (1-year) investment. Because of its low market capitalization, the KBC price is easily manipulated, making it a high-risk investment option.
Others predict that the price of the Karatgold Coin will fall from 0.00550 USD to 0.000561 USD. This translates to a -89.796 percent change, making it a bad investment.
As a result, the analogy and prediction that it will replace or surpass bitcoin may not occur in the near future.
With a low price and a small market capitalization, the KBC coin may crash during the next bear market cycle. As a result, if current market conditions continue, it may not reach $1 within a year.
On the other hand, proponents claim that investing in KBC coins has a high chance of yielding a profit. Based on the coin’s daily rates over the last six months, the cryptocurrency’s character is wavy. As a result, there is a good chance that the KBC coin will reach near all-time highs in the future.
Because it is a form of cryptonyzed gold, the KaratGold Coin meets global needs. Each coin represents a fictitious weight of gold, and a specific number of KBC coins can be exchanged for physical gold. In the future, it will also be exchangeable for all fiat currencies and cryptos worldwide.
The KBC Coin is cost-effective, borderless, and secure, and it can be transferred in real-time. Its value is predictable because gold has a long history and everyone understands that it is stable. As a result, the KaratGold Coin may become widely accepted around the world. As a result, the cryptocurrency may achieve a higher market capitalization in the future, making it a good investment today.
Is Karatbars A Legit MLM? Or Is Karatbars A Scam?
In The Money Show’s Bruce Whitfield scam pyramid interview with personal finance expert Warren Ingram. Warren Ingram is the Executive Director at Galileo Capital:
“They’re talking to desperate people… It’s very hazy… Criminals will profit from this… Take extreme caution. There are numerous ways to purchase gold through established channels…”
- Warren Ingram Galileo Capital
Bruce Whitfield also interviewed a listener who attended a Karatbars conference in Cape Town:
I was invited to the conference… It was a strange affair… It was very theatrical… it was a frenzy… pumping music… energizing people… Then there was a grand entrance – everyone began chanting – and then Harald Seiz, the CEO, stepped in… It was as if the Messiah had entered the room. There was a great deal of emotional fervour… It was like being on stage with a rockstar…
- Susan, a Karatbars Conference Delegate
Bruce Whitfield also spoke with Tony De Gouveia, one of Karatbars International’s main South African affiliates:
No, it’s not a pyramid scheme … Karatbars won a court case in Canada…
I get paid because people in the network buys the product… I would guess more than 10 000 people in South Africa are in Karatbars, buying gold.
Tony De Gouveia, South African affiliate – Karatbars International
Is Karatbars A Pyramid Scheme?
Karatbars International has been flagged as a pyramid scheme by the Bank of Namibia.
The Bank of Namibia (BON) is Namibia’s primary financial regulator.
The BON revealed in a media release that an investigation into Karatbars International revealed it was a pyramid scheme.
Pyramid schemes are illegal in Namibia, according to the Banking Institutions Act.
Because Karatbars International is a pyramid scheme, the NOB has ordered the company and its promoters to stop doing business in Namibia.
In South Africa
In a stunning U-turn, South Africa’s FSCA (Financial Sector Conduct Authority) has abandoned its efforts to regulate Karatbars International.
In response to the FSCA’s initial securities fraud warning in November 2019, Karatbars informed the FSCA that it markets two products in South Africa: gold bullion and a crypto-asset to be launched at a later date.
The FSCA issued the warning because Karatbars and its affiliates heavily promoted their KBC shitcoin as a passive investment opportunity.
Instead of investigating Karatbars’ claims, which would have quickly revealed KBC promotion dates back to at least July 2018, the FSCA appears to have taken the company’s claim at face value.
The FSCA stated in an update published on December 13, 2019, that neither of Karatbars’ products fall under the definition of a financial product or service.
As a result, they are not registered with the FSCA and fall outside of their jurisdiction.
After allegations that it was luring customers into a pyramid scheme, a German watchdog ordered Karatbars to shut down its blockchain-based business in 2019.
In July 2020, the Ontario Securities Commission issued a securities fraud warning to Karatbars International.
According to the OSC’s warning, Karatbars International and Karatbit (including Karatbit Exchange) are not registered or recognized in Ontario, Canada to engage in the business of trading in securities or the facilitation of securities transactions (including buying and selling securities).
Karatbars International was previously warned of securities fraud by Canada’s AMF in March 2014. In 2016, an outright ban was issued as a result of this.
The OSC’s most recent warning appears to be a reiteration that Karatbars International is still illegally soliciting investment from Canadian citizens.
What Happened To Karatbars International?
Following regulatory warnings over the past few years, as well as some from Namibia, Germany, South Africa, and New Zealand, Karatbars announced in September 2020 that it would change its name to Freebay.
The reboot comes in the aftermath of the disastrous 2019 KaratGold Coin Ponzi coin launch, which resulted in widespread investor losses.
V999, a new Ponzi token for Karatbars to defraud investors, is now available on Freebay. The KaratGold Coin (KBC) has been discontinued
Can You Make Money In Karatbars Compensation Plan?
There are different ways to make money In Karatbars’ compensation plan:
Package commissions are paid to distributors for each new package sold to a distributor they recruited.
- Silver package commission: 60 EUR (approximately $70).
- Bronze package commission: 150 EUR (approximately $170).
- Gold package commission: 300 EUR (approximately $340).
Unilevel commissions are paid to distributors as a percentage of the money spent by distributors they recruited below them based on their rank.
A distributor’s unilevel commission rate is 0.5%, with a maximum commission rate of 5.5 %.
Through a binary compensation format, distributors are offered binary commissions on what their downline spent.
These are distributed generationally after each leg has sold a certain number of units.
Worldwide Turnover Bonus
It’s unclear how this pool is distributed to distributors, and their compensation plan doesn’t help explain it.
It appears to be a percentage bonus pool made up of 95 cents for every gram of gold sold by Karatbars.
This pool is made up of 1% of Karatbars International’s lump-sum gold purchase, which I believe includes both package purchases and gold purchases worth more than 50 EUR ($55).
A distributor must have three unilevel legs that generated at least 9000 points each to be eligible for the gold pool.
The points are then divided by 1000 to determine the number of Gold Pool shares that distributors are eligible for.
Karatbars’ compensation plan is 25 pages long and extremely complex. I can only imagine the information that a sales representative or distributor would need to share in order to close the deal.
Sounds complicated right?
Damn right it does…and that’s because it is.
Money shouldn’t be this difficult to make though, and it sure as hell shouldn’t be this hard to figure out how much you’re rightfully owed!
How much does it cost to join Karatbars?
Karatbars membership is free, but in order to take advantage of their commissions, you must purchase one of their packages.
The price of each package increases depending on the content, product, and bonus features that you select.
- Bronze Package – $135
- Silver Package – $350
- Gold Package – $800
- VIP Package – $2,000
The most significant difference between the packages is the amount of money you’ll earn per cycle. You’ll earn around $10 with the bronze package. You’ll make more than $100 with the VIP.
Is Karatbars International Still Banned In Canada?
As far as I can tell, Karatbars is still banned in Canada.
As recently as July 2020, the Ontario Securities Commission issued a securities fraud warning to Karatbars International.
Karatbars Scam Review: Is It Worth Investing In Karatbars Gold Bars?
According to Investopedia, gold is a good investment.
It claims that gold (1) does a good job of holding its value over time, especially when the US dollar falls in value (as it did in 2008), (2) is one of the best ways to protect against inflation, (3) is virtually immune to political problems, and (4) demand for gold is only going to rise.
By offering gold bars in very small denominations, Karatbars makes gold investment accessible to almost everyone.
Whereas most people begin with an ounce, Karatbars allows you to purchase as little as one gram of gold.
The Karatbars rate for one gram of 24K gold, on the other hand, is around 60 EUR or $66 USD. What is the current market price for 24K gold? The price per gram is closer to $40 USD.
Karatbars is adding an additional 50% to their gold prices. In other words, there’s no reason to buy gold from Karatbars on a regular basis. The only reason to buy gold from Karatbars is to become a member of their affiliate program.
The issue here is that Karatbars lacks a solid product.
They have a smokescreen that conceals the fact that Karatbars MLM is nothing more than an affiliate scheme in which a new recruit passes money up to the founders, who then distribute a percentage of the profit to an older affiliate.
This puts this MLM company on the verge of turning into a pyramid scheme.
What Is Our Top Recommendation For Making Money Online In 2021?
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Although it’s not real estate in the traditional sense, it’s all digital.
Where Karatbars falls short is in scalability.
There’s only so much time in a day and there’s only so many people you can reach to sell by yourself.
MLM companies know this! Which is why they push so hard for you to recruit for your downline…you can’t get rich with it as a one man/woman show.
But what if you could make even more money off of little local websites without having to spend hundreds of dollars on overpriced products and a bunch of time recruiting people to sell under you?
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Sound too good to be true? Of course it does! But it isn’t…in fact, business owners wish they had this skill!
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This works for literally any service based business, tree service, plumbing, towing, etc.
How do you get paid and how much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 10 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $500 a month!
See why they call it digital real estate now? That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to worry about:
- Your upline getting paid before you
- Begging your friends and family to buy from you
- Recruiting people all the time
Remember Karatbars? You only get what’s left of the pie if you meet a monthly quota…
The course we recommend actually allows you to collect HUGE FLAT RATE DEALS. Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group much better than the Karatbars MLM in our opinion. This group is much more active.
Unlike Karatbars, where you’re getting maybe $10 per sale, you could be getting 10-20X THAT.
A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding digital real estate.
Unlike Karatbars, more people have been able to walk away from their 9-5 job as well.
Digital real estate allows you to have total passive income with most of your day being spent WITH your friends, NOT selling to them.
Now, I know you probably have tons of questions…