Karatbars International Is A Scam-Read This Review Before You Join
Have you ever thought of invest in Gold? Then you probably heard about Karatbars international.
In this review, I am going to discuss about Karatbars International. How they run their business, is it a scam, or should you invest in Karatbars International or not.
Karatbars International is known for selling of small gold bars and gift items in gold bullion. It is in Stuttgart, Germany. The business is running in over 100 countries worldwide.
It was founded in December 2011 by a German national Harald Seiz.
This video you can watch for some basic information about Karatbars international
How Does Karatbars Works?
Karatbars compensation plan looks like a puzzle to me, there are so many details which hard to understand.
Karatbars objective is to trade gold bullion in a (multi-level marketing) MLM structure. Bullion is gold, silver, or other precious metals in the form of bars.
Karatbars offers tempting and they said it is an affordable option for consumers to purchase 999.9 pure gold bullion as well as gold merchandising, collector’s items and gift cards.
If you want to invest, then the price depends on which package you want to buy. Bronze Package from $135 and Gold Package is $800.
Deliveries in smaller quantities are packaged under video surveillance at the home of Karatbars International and shipped via FedEx.
Select either Become a Customer if you just want to purchase their products or Become an affiliate if you want to sell and do the business opportunities that they are offering.
Can you make money from Karatbars?
You can make money on Karatbars if you will invite many people to join and buy their expensive products.
If you do not want to buy the products, choose the UNILEVEL option which is only promoting Karatbars and earn a small commission if the person you recruit purchases the product but you have to wait for a month to get your profit. And the second option is the Dual system, like the other MLM business with a binary system marketing plan. You have to recruit two members to place as your left and right down line and so on, it means you will have more responsibilities as you establish your group.
To expand your network, you have to tell your down lines to recruit a new member and buy the starter package too. You will become desperate for selling a product to gain a commission from them.
What I like About Karatbars
- Karatbars offers free membership and free training for their affiliates.
- Joining for free but you need to work very hard for a very small commission.
What I don’t like About Karatbars
- Not everyone wants gold or can afford to buy gold.
- Selling gold is not easy because it is involving a high cost.
- There is no income if you don’t recruit new members
- Their gold price is between 29% and 35% more expensive than what you can buy on the open market.
- The success for joining is not 100% guaranteed
- Bank of Namibia identified Karatbars as the latest pyramid scheme and advised promoters and participants of Karatbars to stop conducting such business activities.
- AMF the bureau for financial regulations in Canada has prohibited them from directly or indirectly trading in securities under any form of investment covered by the Securities Act issued by Karatbars, whether via the Internet or otherwise.
- You cannot call it an investment because you will only buy their business kit with a small amount of gold. You’re buying the business, but you didn’t get the real opportunity.
- When I check their website and attempt to fill up the registration form, they are asking me if I would like to become an affiliate or become a customer. I tried the two options, but I wasn’t able to continue the process because it requires a sponsor detail. You need a sponsor or an up line before you register on their website. Sponsor or up line in a network marketing business is the person you are mentored by and connected to for any specific type of bonus. So, you cannot easily get access to their website even if it’s free to join because you need to have a sponsor. What if you fall for a grabby sponsor? That only wants is to get a commission and after you joined, he will not teach you or help you to run the business, the success rate is very low.
Is Karatbars Scam?
Karatbars denies that they are a Multi-level marketing company but the way they run the business is as same as the other MLM, the compensation plan set out like networking or in a pyramiding structure, you have to double your account if you want to earn more. You need to invite other people to join and pay the starter package so you can get your possible earnings.
In my understanding, selling gold is just a front of Karatbars, the main purpose of this company is on Multi-level marketing, they hire people as an affiliate to introduce their company to others and multiply the progress. They expand globally in the process of networking.
I cannot tell that Karatbars International is a scam. Because they have legitimate products to sell. Maybe the marketing strategy is a bit confusing or complicated for an ordinary person to understand. The members are not focusing on investing gold but they are much interested in recruiting others so they will get the commission and other opportunities as what Karatbars stated on their marketing plan. The people might impress to join because of the unrealistic way of earnings from this company.
I have searched Karatbars on the internet and I read several reviews and arguments regarding this company. The members were separated by different opinions. Some are not satisfied with what they are getting from the company. And the others are enjoying the privilege of being an affiliate maybe they are working too hard for it and they have a wide range of a network.
Some members may be telling lies when they say that they have become successful from Karatbars so they can encourage more members to join. We never know if they just scripted those testimonials. It’s hard to figure out who’s telling the truth about what’s going on with the company.
Karatbars is not 100% recommendable because of the negative feedback coming from its members. In a networking company, only the pioneers can earn a big amount because they will get the commissions and earnings from their down lines or their invites.
Karatbars is a Multi-level marketing company in an e-commerce layout.
Included in my research, Karatbars has legality issues from other countries such as Canada and Namibia.
Investing in gold is a wise choice. But selling it to other people is not easy. Not everyone needs or wants to put their money in gold investment.
Planning to start a business or an investment is not easy. It is like a gamble; you could win or lose. You just must be smart about choosing a good business partner. And you have to educate yourself first if you can handle this kind of business, you have to do some research and look for a reliable mentor.
My Final Thought
There are so many existing MLM companies today. But not all the members become successful and even the company itself. They can operate for several years but its ability to last is not guaranteed. Like Karatbars International, even they are operating for many years there still no guarantee how long they can handle the negative feedbacks of their members who want to pull out their membership.
The other members are asking for a refund because they didn’t get the commissions that they are expecting from this company. The members from the upper lines are rushing to get the position on top so they will get the commissions from their recruits. There is no real partnership because they only want your money and, in the end, they will ignore you if you failed to recruit more members. There is a risk to join this company because a good reputation is unclear. You are not secure if you put all your money into this kind of investment. Do not waste your time and effort.
If you are thinking to start an online business, then check My #1Recommandation.