Karatbars Review: Gold MLM Scam or Legit?
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Gold is a multi-trillion dollar industry and keeps growing each year. But did you know you can also make money by selling gold? You probably already knew this and it’s why you are searching through Karatbars reviews to determine if this is a good money-making opportunity. This Karatbars review will look at the good, bad and ugly to see if this is a legit opportunity. I recommend you hold off making any decisions until you read this shocking review completely.
What is Karatbars?
Karatbars.com is an MLM and an alternative currency company backed by gold, which was founded by Harald Suez. Founded in 2011 and based in Stuttgart, Germany, Karatbars packages real gold into unusual paper notes and plastic cards resembling a credit card. This gold can then be saved or spent like cash with other participants.
Karatbars has (or will have; it is scheduled for later in 2019, but unclear whether it has launched) its own private block chain exchange network. Karatbars merge features of an MLM with features of a cryptocurrency, but with the tangible value of real gold.
What are the Karatbars’ Products?
Karatbars packages certified grams of real gold into their products, which can resemble coins, paper notes, credit cards, portfolios, and so on.
How Much Does it Cost to be a Karatbars Distributor?
Karatbars’ actual prices in dollars fluctuate, because the company is based in Europe and uses the euro, so the exchange rate to dollars changes daily, and also because the price of gold fluctuates, so all prices are approximate.
Joining as a Karatbars basic distributor is free, and registration includes a referral link, an online Karatbars shop with a personalized landing page, and back office management tools. Distributors earn points, where every 2€ in sales counts as 1 point.
Distributors have to earn 200 points before they earn any commission at all, which ranges from 0.5% at 200 points, to 3.5% for 9,000 points in a month. Distributors are also eligible for various bonuses and incentives. However, Distributors are strongly encouraged to purchase a business package.
All business packages include a discount of 100€ for using the K-Exchange, Branding Karatbar, and purchasing VIP packages. They also come with a 3% discount on Karatbar gold purchases for a year, and 20% commissions on every business package sold.
- A Bronze business package costs approximately 99€, which increases base commission rates to 5% and higher team payouts
- A Silver business package costs approximately 285€, with base commissions of 10% and higher team payouts
- A Gold business package costs approximately 635€, with base commissions of 15% and higher team payouts
- A VIP business package costs approximately 1,620€, with base commissions of 20% and higher team payouts
If you find the amounts listed above to be too much money to invest in a business, you might want to try Wealthy Affiliate since they offer a FREE trial without a credit card. And if you want to make some extra side cash without being involved in a business at all, you can try SurveyJunkie.com and Fusioncash.com which are all free.
Karatbars Compensation Plan
Unfortunately, like most MLMs, their compensation plan is pages long and quite complicated to understand. But we’ll try our best to break it down here. The compensation plan has 7 income options and they go into quite a bit of detail about each one.
Distributors have to sell 400€ worth of gold to earn any commission, and sell 2,500€ in one month to earn Silver Supervisor rank. However, all points accumulated in your downline count toward your ranking. Distributors also benefit from a worldwide turnover pool that pays to 8 levels deep.
Eligible Distributors in the upper levels also qualify for incentives that include a leather bag, gold pen, Rolex, Mercedes, or a luxury villa worth 750,000€.
So if this compensation plan breakdown is making your head spin, you’re not alone. Fortunately, there are business opportunities with a straight forward compensation, such as Wealthy Affiliate. You don’t need 25 pages or a rep to explain it to you.
How Much Money Can You Make With Karatbars?
Karatbars don't publish an earnings disclosure, so it is difficult to estimate what their distributors are earning.
What We Like About Karatbars
Let’s look into some of the things we like about Karatbars.
Karatbars include authentic, certified, 24K or 999.9 gold. Unlike pure digital currencies with speculative value, Karatbars have the timeless value of gold.
We covered what we liked, now it’s time to look into some of the red flags. It’s up to you decide if the complaints against Karatbars are deal breakers or not.
No BBB Rating
At the time of this review, this company's BBB listing isn't complete. This may be a deal breaker for those of you that rely on this to determine a company's legitimacy.
In 2014, Canadian regulators took action against Karatbars, calling it a pyramid scheme, and in 2016 a court ruling upheld the Canadian AMF, banning Karatbars and issuing fines against some of the local promoters of the product.
No Income Disclosure
This should set off some red flags. Why aren't they being open regarding how much you can earn as other MLMs do? Ultimately how much you can earn is anyone's guess.
Get Ready To Recruit
According to a news report, they were found to heavily encourage their distributors to hire new recruits and you will also notice this in their compensation plan.
Is Karatbars a Scam?
Karatbars is not an opportunity that may be right for you. While gold is a great investment, and trading gold can be a legitimate way to make money, Karatbars gold may be viewed as overpriced, overpackaged, and there appears to be too much focus on recruiting.
Fortunately, there are other ways to make money from home such as My Best Work At Home Recommendation. It's FREE to get started so there is no risk on your part.
So, there you have my opinion on Karatbars. If you have any experience using Karatbars or want to share your thoughts, please feel free to leave a comment below.
Until next time,
Eddy with a Y