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 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 that 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.
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.
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The Good & the Bad
- 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
- 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.
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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.
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.
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 in 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
Many people will call this company a scam and a pyramid scheme because, basically, that is all MLM companies are 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 their 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.
It is best you join a company that offers a free entry fee and trained you on how to build a successful business and have the ability for you to market whatever products or service your heart desires.
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