In this Karatbars Review, we will look at the business opportunity Karatbars International. This is an MLM company with a worldwide distribution that seems to have various opinions on it.
- Name: Karatbars
- Website: https://www.karatbars.com/
- Price: Free; $135 for the Bronze level; $350 for the silver level; $800 for the gold; and $2,000 for the VIP
- Owners: Harald Seiz
- Overall Rank: 23 out of 100
Karatbars Product Overview
Karatbars and its owner Harold Seiz sell off little gold bars and other gold gift items made from 24 karat gold which is about 999.9% pure gold, to kick this review off.
When we say tiny, we mean tiny. The product is packaged in cards that hold about a 1 gram gold bar each. Gold must be a big seller as the company started in 2011 in Stuttgart, Germany, and over the past few years, it was able to expand into over 125 countries of the world.
The cards are all signed by the assayer attesting t the purity of the tiny gold bars. Those cards are made by London Bullion Market Association and London’s Good Delivery.
There is also a legitimate trademark stamp placed on these cards. There is no question about the products working as gold is gold no matter what form you get it in. The difference in Karatbars’ gold is that it is soft and almost impossible to use in any product because of that softness.
When you buy a card, you are getting a small bar of gold, so you are not being scammed at this point. Of course, Karatbars is an MLM corporation, and you will pay if you want to play.
Karatbars MLM
The other common MLM characteristic is that the price of Karatbars gold is a lot higher than anywhere else you can buy gold. But it wouldn’t be an MLM corporation if it didn’t inflate the cost of the product.
Then like a majority of MLM companies, Karatbar has had its run-in with the law on a couple of occasions. Both Canada and the Netherlands have issued warnings to their citizens that buying from Karatbar opens you up to being scammed.
The warnings are obvious as they advise their citizens not to invest any money in this outfit. While it is a legitimate MLM company, it is not registered with and not rated by the BBB at the time of this writing.
Despite its high cost and trouble with the law, Karatbar still manages to pull in a hefty revenue stream that reaches between $10 and $100 million.
The Good & the Bad of Karatbars mLM
The Good
- One product to sell
- There is a slight chance to make some money
- Wide market range- about 140 countries
- Sells real gold
- Has a charitable arm
- 2 ways to sign up
The Bad:
- Its an MLM company
- Complicated compensation plan
- Overpriced product
- Pay for charity card
- 800,000 competitors in the same company
- Fraud warnings
- High entry fee.
Who is Karatbars For?
Karatbar is for just about anyone who likes being involved with an MLM or network marketing business. Sign-up is not too hard, and you can sign up as a customer only or as an affiliate representative.
It is also for those people who like to collect or trade in gold. After all, gold is one of the most secure investments anyone can make. It is easy to buy, sell and get money when you need cash. Plus, gold is accepted anywhere in the world.
That makes working through Karatbar convenient and easy. Also, Karatbar is for those people who like to sell things. There is only one product to market, which keeps inventory low and makes sit easier to carry multiple product items.
With gold being the desired metal, there should be enough people to sell to once you pay your fees and get your starter kit. So there are some advantages to signing up at Karatbar if you want to be a big spender and deal in the gold commodities market at some level.
On top of that, Karatbar is for those people who are familiar with gold and how it works. Whether for investment or sale, you can make a little money buying and reselling the gold cards.
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Karatbars Tools & Training
We found no mention of any special tools you will need to sell these little gold bars. Nor have we found anyone speaking about any training the company provides. This is a red flag in most cases, as you are left on your own to make your affiliate association work.
The company does provide a small contact form on its different pages calling it support, but what kind of support and how fast it comes to you is left to the unknown. As stated earlier, signing up is simple, and the first page is ready for your password, username, and e-mail address.
We did not pursue a membership, so we cannot speak to the other sign-up details. We then searched the internet to find what tools and training this company provides. There was nothing but silence on this topic.
No one knows if you actually get training at all. That is not a good thing as novices to the gold market will be in for a surprise when they see how complicated it is to sell tiny gold bars.
Affiliates will get discouraged very quickly when they do not know how to overcome rejection and make good sales.
Karatbars Review: Support
You are not going to be surprised by what we have to say in this section. Since there is no mention of training or special tools you can use to sell Karatbars gold bar cards, do you really think they will offer great support?
As mentioned in the previous section, there is one little support or contact form on the website that appears on the website’s different web pages. Even on their business page, there is no mention of providing any help to its affiliates or customers.
There is a lot of hype on that page trying to entice you to sign up and send them some money, but that is about it. Again, we searched the internet, and the topic of support was not even discussed.
There must be many red flags to talk about if customers and affiliate support do not even rate a casual mention. The lack of support and its small contact pop-up is a giant red flag that should not be ignored.
There is also no mention of any forum or community options to tap into when facing a difficult situation. Of course, the owner will support the sales of his product because that is how he makes his money.
But as far as we can see, that is as far as his interest goes when it comes to his independent employees. He probably thinks they are a dime a dozen, and when one quits, he can sign up 10 more.
The lack of support in any real form tells you that this is not a good company to sign up with.
Karatbars Review: Price
The price of the products varies. You can get a classic Karatbars card for as little as 69 Euros for only one gram gold bar. Currently, that is about $20 to 30 dollars higher than the average gold rate for 1 gram.
However, while we stated earlier that there is only one product, which is true, it just comes in various forms; Karatbars elevates the prices of its products quite high. If you want to attend a Karatbars event, the ticket alone will cost you over 3,500 Euros.
That is just an online customer price. If you want to sign up and sell Karatbars gold bar products, you are looking at other hefty figures just to get started. You are going to pay if you want to play.
The Commission
It is possible to sign up for free, but you will not receive any return payment even if you make sales. To make a commission, you have to buy one of the 4 starter kits Karatbars has available.
These prices are not fixed, and you may see different ones we have, but the latest figures start the Bronze starter pack off at $135. The Silver is$350, the Gold is $800, and the VIP level is $2,000, all in American money.
That is a hefty fee to pay to sell gold bars your potential clients can get cheaper at other resell businesses. Of course, the real compensation comes in when you sell a starter pack to some unsuspecting person.
For some reason, the Silver commission is lower than the Bronze with its $26 payout. The Bronze is $60, the Gold is $150, and the VIP pays 20% or $400. This means that you are not going to make a lot of money selling the gold bars.
The majority of your money will come from recruiting others to sell with 800,000 affiliates already; good luck in that venture. There are also the Karatbars bonuses and gold fund, but as we have said, it isn’t straightforward.
Like other MLM corporations, the representative fail rate is in the 90 to 95% range because there are very few people to sell overpriced gold to, and there are really very few people you can recruit.
Making money to sell gold at this company is a pie-in-the-sky adventure at best.
My Final Opinion of Karatbars
My Final Opinion of KaratbarsMany people will call this company a scam and a pyramid scheme because, basically, that is all MLM companies in reality. The money flows to the top while those at the bottom rarely get a living wage.
Legally Karatbars is not a scam nor a pyramid because they sell a product, even if it is high-priced, and they do not make their money solely from recruiting. The reality is people are being scammed.
The customer is being scammed because they are being asked to overpay for the gold they receive. The affiliates are being scammed because they can’t sell their products or recruit enough people to make a top wage.
That is the nature of the business when you sign up at an MLM company like Karatbar. You only make money if you are one of the few who get in on the ground floor in a new market that just opened up. Other than that, you might as well send a check to the company and call it good.
My final verdict is that if you get a sense of worth selling gold, you may enjoy working for this company. But there are more legitimate resellers to fulfil that need and create that feeling of self-worth.
This is not a company we would recommend anyone working for, and it is too shady for it to be legit. In other words, run before you sign up.
Wealthy Affiliate vs Karatbars MLM
Karatbars At A Glance
- It is a company that sells tiny gold bars at a high price
- Uses the MLM business plan
- It uses the MLM complicated compensation plan
- Has representatives in about 140+ countries of the world
- 800,000 affiliates work for the company
- It does have country-specific fraud warnings issued against it
Forbes On Karatbars
Although all the hype and negativity about this company and its products, Forbes class them as 10 Blockchain companies to watch in 2019. You can read that below.
Is it enough for us to get started with Karatbars? I ask that you do your due diligence and make your decision, I know where I stand on this company, and you should do the same.
Katabars Review Summary
Investing in gold is a smart idea. It is a precious metal that never seems to lose its value or the number of people who want to own it. But there is a better way to buy and sell gold than by joining Karatbar.
Karatbar may sound like an excellent company to work for. However, when you do a closer inspection, you will see it is MLM to the core, and the workers do all the heavy lifting while the upper-echelon administrators get all the benefits.
This is not a company you want to work with, and we cannot recommend it and sleep well at night. If you want to buy and sell gold and make some real legitimate money, try to get hired on at a real legitimate gold reseller or seller instead.
The money you save by not paying Karatbar’s high fees will help you get a solid footing in your new employment.
Final Thoughts
It is best you join a company that offers a free entry fee and trained you on how to build a successful business and has the ability for you to market whatever products or services your heart desires.
If you need help on how to get started, check out my #1 recommendation on building a successful business online. You can get access to hundreds of training videos, 24/7 support, professional consultations, private access to training guides, tools, personal private assistance, my personal help, and much more.
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Although these gold bars are very pretty to look at and nice to own, they don’t serve a purpose for most people, apart from an investment point of view. The problem is they are already very highly-priced due to the company being an MLM model, so how long will you have to wait before you make money on these?
I don’t think I would join up with a company such as this, as I think it will be extremely hard to sell this type of product to the general public. Unless you know a lot of rich people who don’t mind splashing out on this type of product.
I could not have said it better, Michel. Why would pay for a higher-priced product to the public when they know that the value is much lower. Although they focus their business model by recruiting people to sell this product.
In spite of the amount of volume of work that occurs with this company, it just shows that it is possible to sell anything once you put your mind to it. It’s a crazy world we are living in today.
Hello Bishop. Thank you for taking the time to share this informative and helpful review of Karatbars International. This actually looks like a great opportunity to make money buying and selling gold. As we know, MLM is not an easy business model and it becomes even worst when there are no Training and good Support just as it is with Karatbars + high prices make it difficult to sell these items.
Regards!
Any companies that lack training and support, that is a red flag for me. Maybe that would change in the future, but what about some of the 800,000 distributors who are not making money cause they do not possess the skills to market on or offline.
My advice to this company is to develop a marketing plan that anyone can follow with proven results. Just like some of the marketing companies are doing today.
Hello there, thanks for this awesome article it would be of great help to the public as it has been of help to me. I have a lot of experience with MLM companies like this in the past, and I must say that they were not good at all. I don’t think this company would be any different as all the reviews I have seen about them were really poor, so I would sit this one out.
A company at this magnitude should have a training program for its members, and able to have a strong support system when considering the amount of money that is invested. Just my opinion on this.
Thank you for the feedback, Feji. I myself worked with numerous companies like these in the past, and if there is no support system, I would not get involved. It just goes to show where their heart is the focus. training and support is a must for me.
There are too many companies that do not have training and support and they turned out to be companies that just in the business to make a quick buck, and just pack up and close their doors. if they can work on these two aspect of their business, maybe I might have second thoughts.
I am very interested in owning gold as part of my investment portfolio. I am also an entrepreneur and am always on the lookout for business opportunities. I have heard about Karatbars, and I thought it could be a good way for me to sort of combine my interest in gold and also earn money selling it. After reading your in-depth review of Karatbars, it is clearly not something I’d like to pursue. Thank you for saving me time and headaches.
Happy I was able to enlighten you on this company and their product. I am not sure if their business model will change in the near future, but if they do, I will come back and update this post and reach out to my audience. Companies do change sometimes and is important we recognize this and do our diligence by making the necessary changes in our Reviews.
Thank you so much for sharing with us such a beautiful article. It’s great to see new businesses online and to see their reviews. Karatbars is actually the gold of a company that I understood from your article. Karatbar is for anyone who likes to engage in MLM or network marketing business. Signing up is not very difficult and can only be signed up as a customer or authorized representative. It is also for those people who like to collect or trade in gold.
After all, gold is one of the most secure investments anyone can make. It is easy to buy, sell and get money when you need cash. Plus, gold is accepted anywhere in the world. This makes it convenient and easy to work with. I will definitely visit the link provided in your article and know the details here and hope I can achieve something better in the future.
Thank you for understanding my Review and seeing the value of investing in gold today, because of its wide acceptance and very secured commodity that is available all over the world.
I have invested in a few of my own and will continue to buy gold on a continuous basis every time I get the chance because I believe this would be the money we all will be using in the future. Also, it would be a good investment for my kids and grandkids.
I’d not come across this company or it’s product before but it very much sounds like one of the many MLM companies that is very close to being a pyramid scheme/scam but manages (somehow) to just stay on the legal side of the line by offering a product, even if it’s one whose price is overinflated. To me, from what you’ve written, this sounds like a scam in all but name, so thank you for bringing it to my attention so I know to avoid it!
You are welcome, unfortunately, I wish that the 800,000 had felt the same way you did, but they saw otherwise and now most of them are paying the price. There are countless members who are trying to reach out for support but not getting the feedback they were looking for. I hope for those members that the company change their business model and reach out to these innocent people. thank you for the feedback.
Hi Bishop,
A few years before in the part of the world where I live government announced demonetization and people struggled a lot. At that point in time I realized the importance and the value of Gold investment. Since then I am interested in Gold investment and I came across a few ads about Karatbars.
While doing some research on Karatbars I came across your review and after reading your review I pass away Karatbars.
The cons outweigh the pros. Of all, I am not a fan of MLM business model and you know very well the success rate with the MLM business model is very low. Just being a member is also not going to help because of their expensive price and the information you provided on their price is helpful.
Hey Paul, either I was in that same part of the world or else news was getting around that in some time or the other, gold is going to be the only value that would be around so that it is important that we shift our assets to gold. So I was thinking seriously about making that investment as well.
Never did I thought about investing as a business though, and Karatbars would definitely not the one that I would look to because of the higher value they possess. Certainly, people would prefer to purchase gold at a lower value to get more for their money in the future. And as you mention, MLN businesses is not a profitable business to get into todsy. Thank you for the feedbsck.
Some time ago I had known an MLM company that its product was Gold, just as other companies have dishwashing detergents as a sales product. Until here I saw it logical.
But if there is something positive for me in MLM companies it is training, and I was very surprised that this company does not have that! It is key in an MLM company where one enters practically without knowing anything. Also, according to your article, there are no business tools that we can use
It really attracts a lot of attention.
What else did I want to ask you, besides the product, there are no network bonuses like in any MLM company?
Thank you very much for this review, we will have a lot of eyes!
regards
Pablo
Pablo, is two things I look for in a company, is training and tools. If these two are not available in a marketing company, that sends out a red flag for me. It shows that the company has no concern about your skills or success. Most time it shows that they are in for the money and themselves.
I am not saying that this company is one of them, but their approach is quite similar to companies that focus solely on themselves rather than the members or marketers. With so many scam companies online, it is difficult to tell which ones are genuine. that is why I focus on companies that have a free service so that you can take a look before any investment is being made. That is just the way I see it.
What an interesting company. Karatbars. I had never heard of this company and now I know why. I don’t think that this would be a company I would want to invest in to build an online business or extra money. The fact that there appear to be limited resources with Karatbars certainly puts my guard up. I like your totally honest review of this company. That is a great way to allow the reader to build their own opinion. If they totally love the idea of dealing with gold, then they can go for it. You have been an open book.
I personally have had experience with pyramid schemes and I have never had any success with them. The entry is usually affordable, but the payoff is not wanted you would have expected. They don’t explain the amount of work you have to put into it.
I am very glad I came across your article, I shall steer clear of this company, should I ever run across it. Thank you!
Wanda, I too had my runnings with MLM companies in the past, and I would not look in their direction again. anytime that my commissions are determined by recruitng people, that is a no-no for me. I rather be trained in marketing so once i am equipped and understand how it works in today online world, then i woould be able to market any product to reap the benefits.
this is the reason I proposed to all those who wants success online, start with affiliate marketing, and join Wealthy Affiliate to get all the knowledge and experienced that you will ever need. not only you would start making money for free, you will know if the business is a right fit for you before you make any investment.
Hi, thank you for letting me know about this company – Karatbars. As you mentioned, this MLM company didn’t provide any training when you joined, somehow still have to pay up to $2000 huge amount of the VIP starter kit in order to make commissions, this is totally not worth it.
I will absolutely not consider this company at all. Thanks for your information.
Hi Miki, very straight to the point with your decision. I can definitely see this is a no-brainer to you. I felt the same way when I saw it for the first time. I said before and I would say it again, I want no part with MLM companies that focuses on recruiting people to make a sale.
Show me a company that has Tools, training, support and a free entry fee, then you would get my attention. That is why I see so much value in Wealthy Affiliate and proud to be a premium member.
Thanks for this review of the Karatbar MLM program. I had been asked to check into this company by friends who are considering buying into this to make money, as they know that I will do the research and provide them an objective recommendation on such “opportunities.” I generally will check out a few review sites and the company website itself, but your review is enough for this one.
The first red flag for me is the high entry price, which after reading that it is an MLM is not surprising (the MLM is another red flag for me). The lack of a support program is also a red flag for me. Normally I will stop at three and recommend that they not get involved, but I decided to read through the rest of your review to see what else there may be to watch for with this company. I was thinking perhaps I would be persuaded to change my opinion.
But there is plenty more information to indicate that if it is not a scam, it most certainly is not a good way to earn money. Gold is something that is valued everywhere, but most people are not going to pay more than the market price for it. The MLM aspect means that you will be recruiting more than selling in the hopes that your downline sells (and recruits). The bottom line is that the Karatbar company is not something I would recommend. Thanks for the straight story and saving me time.
Hey Dave, I am happy that in this Review you gathered all the facts to come to the conclusion that if this MLM company is one to try out, and that their gold if it is the right investment for you today. After my thorough investigation, I decided to pass up on this business.
As you have mentioned, support is key to building a successful business, and if that is not in place, it would be a difficult task. Plus any business that you need to recruit individuals to build a successful commission base income, is a no-no for me. That is the reason the most business with that strategy is deemed scam and only a few on top would have all the success if you are lucky to get in at the early stages.
I would definitely not recommend this business to anyone although a few people are having success. I always think about new people who are now coming on with no experience. Thank you for the insight and feedback on this review.
This is really a detailed review of Karatbars. I once come across this company by a friend but haven’t gotten a real review of it. You’ve said at length of what we need to know about this company.
One thing about MLM business is that though legit, at the end of everything people still tend to get scammed because the money only flows at the top leaving the workers to do the hard work. This is not good. Personally, I’ve really learned a lesson about MLM businesses.
There are lots of things you’ve pointed out about this company that I frowned out. Things like a possible zero training for its affiliates, Support may not be active, no community of forum to encourage young marketers, etc. It’s just not good.
Just like you’ve said, this can only benefit folks that know their way around the marketing of the product. But I don’t think it’s recommended for any young affiliate.
In fact, you’ve said a lot of things that got me discouraged about the credibility of this company. There is nothing more than having a business of your own and you’ve stated this clearly on the latter part of your “Katabars Review Summary.”
Great post.
Kell, I did my due diligence by investigating business because gold draws my attention, and in time past it was mention that this would be a universal currency throughout the world. so my interest was definitely there when I started my investigation.
From your statement, it seems that you know a lot about MLM companies and their compensation plan, and why it is designed for the ones at the top. A pyramid strategy that most government dislikes. It is great that you grasp that.
Any company that does not have training in their marketing plan do not have its members success at hand. Support and community interaction falls under that same umbrella. this shows the credibility of this company and why you should stay away from joining a company that has that business model.
Thank you for stopping by and giving your take on this!
Not easy to get help? Your sponsor, upline, free groups with free training links on free websites, thousands of posts on Facebook, tutorials in your free online office, and free training calls and video conferences nearly every day and night of the week.
Private coaching? We don’t sell it, because we are not a pyramid or scam. We give people help because we do not make money unless we are helping those under us make money. Contact the owners? 24/7 support. Corporate leaders on training calls and making public appearances at training events. Can you try it for free? Yes, and you can earn your first business package and affiliate status while participating for free!
You have an opportunity to build a business showing people how to save money the best way, by saving gold. Less than 1% our population owns physical gold. Why? Too expensive for the average hard-working people. We show people how to acquire gold bullion in transaction friendly and affordable amounts. The Vatican has purchased gold from us. Fed Ex has delivered for us for years. Affiliates are paid on our Karatbars Mastercard Debit card weekly and monthly. They did their due diligence. Check us out.
Thank you for the feedback and the detail operations of your business. It is great that you offer free coaching calls and tutorials on Facebook. It shows the commitment and loyalty to new members.
Any business that has a direct line to the owners says a lot of the credibility of that business and if that is the case here, I commend you for it. keep in mind that this review is to educate the public about Karatbars and what they need to know before they make a wise decision.
Gold is a very good way to save and the market value is much lower than the business part of it, do you think that would resonate with people? If it works for many and the business part has the potential of providing a full-time income for most of the members, then that speaks for itself and those who wish to come into the business would have a fair understanding. Thank you for your input and clarification.