Founder & CEO: Mr. Harald Seiz
Program Cost: Free to join
Rating: 4 out of 10
My Personal Introduction to Karatbars
I got introduced to Karatbars through a man working out at the same gym as I. We started talking while doing cardio on the treadmills. We spoke about work and he told me he had a business opportunity he wanted to present to me.
I told him that if it was about a MLM opportunity, I did not want to waste my time, but he promised it was much more interesting than that. He told me it was about investing in gold, which caught my attention. I am one of those people, who think investing in gold is a good idea for the future, since we never know what will happen to our currencies world wide.
I met him two days later at a café not far from the gym, so I could head over for a workout after our meeting. He presented Karatbars (their website) and then we watched their introduction movie. He said it was better than him explaining the business, since he did not know so much just yet. He was new to Karatbars himself.
After watching the movie he happened to say the first thing that got me suspicious about the business model. He said that he was going to pay for my first $600 investment in Gold.
I asked him; “why would you do that?” He continued with telling me that the only thing I needed to do in exchange was to find 3 people that wanted to invest in gold as well.
“Kaching!” The coin dropped and I understood that this was another MLM business opportunity. It was just presented a bit more romanticized when offering to pay for my first investment in gold, and don’t we all want beautiful, shiny, valuable gold?!
I thanked him politely and said that I was not interested in any MLM business model, since I have tried it earlier with a company called, Nu Skin, and they are all built the same – the money is in recruiting, which I really dislike to do.
Nu Skin was a big failure and I lost a lot of money in the process trying to become an independent distributor, so I learned my lesson. You can read about my journey with Nu Skin below if you want:
It would have been different if you could start making money from investing in gold only, but NOP – there is not where the money is.
Let us look closer at Karatbars and their business model.
If Karatbars interests you this far, take a look at their introduction movie. You have to excuse the misspelling of the word “Englisch” in the title of the movie, since the company is from Germany^^.
Karatbars International Overview
Karatbars International was founded in 2011, and operates in over 70 countries as of today. Their headquarters is located in Stuttgart, Germany.
Karatbars International is a global e-commerce business operation that specializes in selling gold bars. The company is financially secure, debt-free, and fully self-funded, and distributes these gold bars through affiliates.
Karatbars claims it is a logical, affordable, and universal solution to the world’s current debt and currency crisis. The company offers 7 ways for affiliates to earn income through its binary compensation plan. More about this further down.
Karatbars’s own presentation: “Karatbars International GmbH offers a wide range of products and options in the 999.9 fine gold market space. Our core products are 1g, 2.5g, and 5g minted 24 karat gold ingots from LBMA accredited refineries”.
The owner and founder of Karatbars, Mr. Seiz, wanted to offer a way to help people buy gold for less than it costs. His mission was to bring gold to the masses.
He invented a business model where people can buy gold at a discounted price, which allows people to invest the Gold, and change the currency into a much more valuable and secure investment commodity. However, there is a but…it always is..
Continue reading to find out more.
The Process of Buying Gold and How Much Does Karatbars Cost?
Karatbars gold is purchased by first completing a simple form online (on their affiliate website), where you also have to upload your identification. Once the form is submitted, you will receive an email including a form that must be signed electronically and be submitted.
After submitting the documents, a Karatbars International executive will call you to discuss options and inform about the process involved in purchasing the right gold for the best retirement benefits.
How Much Does the Gold Cost?
To get a gram of pure 999.9 gold, you have to invest in Karatbars Silver Level, which cost $371.49. They start with a Bronze Level, but it does not even give you a gram of gold.
Then you have Karatbars Gold Package, which costs $844 and included 14 x 3% bonus cards, 14 X $106 bonus cards and 2 X 1g gold cards. Obs., all prices are originally in Euros, but I have converted them to $.
Karatbars also has a VIP Package. The VIP package costs $2040.55 and Karatbars claims it to be; a full business in a box. It contains all of the previously listed items in the other packages, but contains even more bonus cards, brochures, and 3 x 1g gold cards.
As you can see and what I have read from doing my research online, the gold is way over-priced to buy as it is. You can buy gold cheaper at another gold supplier. You also have to pay for shipping.
However, to solve expensive shipping costs, Karatbars offers a vault where people can store their gold until later, when they can ship more gold in one shipping.
How Can They Claim Their Gold Is For the Masses to Buy?
So how can they say that their gold is as discounted that the masses can afford it? What Karatbars business opportunity offers is basically to earn discounts when signing up other people with Karatbars.
The more members you get to sign up under you, the cheaper the price of gold gets. In this way, Karatbars can claim their gold is for the masses to afford.
Karatbars International – the Good
and the Bad
Pros with Karatbars Business Opportunity
- Good to invest in a secure source or foundation for the future, with our fluctuating currency.
- The value of gold will never go down.
- Good to be able to invest in gold to discounted prices.
Cons with Karatbars Business Opportunity
- Based on a MLM business model, or pyramid scheme. Only the top people can take advantage of the bigger discounts on gold.
- Too hard to recruit like minded people and get them to recruit as well.
- If your downline does not invest enough efforts into enrolling people, everything fails and you will not be able to buy gold for a discounted price anyhow.
- The gold is over-priced even to a discounted price. You have to have such a huge team to get the good discounts.
- Not enough people see the value of investing in gold yet. They are not aware that the currency can lose all its value with a blink of an eye.
The commission percentages are very low compared to similar competing business opportunities.
Karatbars’s website needs significant improvement in explaining the compensation plan and for overall user experience and appearance.
Now to the question I think many are wondering about..
Is Karatbars International a Scam?
Or is it Legit?
Well, gold has been around for 5 thousand years, and it has also been the world currency for 2,800 years. Gold is definitely here to stay and is great investing in.
Karatbars’s business model is what many people call a pyramid scheme, or a ponzi scheme.
The people on the top of the pyramid with most people in their downline are the ones that can buy the gold cheapest and make the “BIG” investments.
But is Karatbars a Scam? No!
It is a business opportunity like any other MLM company, and if you are seriously good at recruiting people, you can buy discounted gold and invest in it for the future.
Karatbars offers 7 different ways for affiliates to earn income. These are:
- Direct Commissions
- Unilevel Bonus
- Generation Bonus
- Package Bonus
- Dual Team Bonus
- Karatbars Pool
- Karatbars Gold Fund
I would definitely have jumped on the bandwagon if one did not need to recruit people to get the gold to a good price. I will invest in gold in a near future, but I doubt it will be Karatbars’s over-priced gold.
The thing is that the Karatbars gold is even too costly for many people when discounted.
How Does the Karatbars Business Opportunity Work and Who Is It For?
The business opportunity is not a way to earn commissions from sales, like other affiliate programs, but to be able to buy gold to a discounted price as you build a team. The larger team you can build with people under you (your downline), the more discounts you will get.
Unlike paper currency, the value of gold will always increase. In other words, the more gold you can invest in today, the better prosperity and safety-net you are building for the future. It would be nice to know that you can retire with peace of mind, and maybe also a lot earlier than others.
Your first task is to enroll 3 likeminded individuals to the program. This is what the man from the gym tried when targeting me. He said he needed me to be able to build his organization.
When you have got your 3 people to sign up, you have to make sure that they find their 3 people each to do the same. If the people below you will not recruit their 3 people each, everything fails.
You will not be able to buy gold to a low discounted price, and that was why you worked your a..* off trying to recruit in the first place. This is absolutely a dilemma, and I understand why many people are against Karatbars and their business model.
Karatbars Tools & Training
The training as an affiliate with Karatbars consists of:
- Conference Calls
- Training Sites and Webinars (Also Available in Spanish)
- Training Calls 2x Per Day – 7 Days Per Week
- Skype and Interactive Facebook Support
The support is through all the training models, as mentioned earlier and also from contacting your sponsor that got you to sign up.
Conclusion / Verdict –
The program is not a bad idea. It is just that it is very difficult to find and recruit likeminded people and be able to buy the discounted gold. You may also have to enroll a big team before you can afford buying the discounted gold even.
However, it is great that Karatbars gives an opportunity to invest and build a more secure foundation for the future, since we never know when the paper currency is going to lose all its value.
You can also make purchases with the cards you get from Karatbars, which is good. They also say that a converter machine is coming soon as well, and will convert your gold into cash when you need to make a purchase.
Karatbars has very mixed reviews out there, and I believe this is a result of people’s negative feelings towards pyramid schemes. So many people, (including myself), that have tried MLM companies have failed, and sometimes failed big time.
The price of failing has also been costly in many cases, since you have to purchase products, or pay for monthly memberships every month to be able to do the business.
Karatbars International at A Glance
Founder & CEO: Mr. Harald Seiz
Program Cost: Free to join
Rating: 4 out of 10
EU Support: +49 (0) 711 128 970 00
US Support: + 1 224 829 00 47
My #1. Recommendation to Make Legit Money Online Not Having to Invest in Expensive Gold
I have to say that I am grateful to Karatbars in a way. It was when doing research about them that I came across the training program that has taught me how to make a living online at home, from the comfort of my sofa.
Some people in the comment section of the website were discussing the review, and 2 of them were referring to Wealthy Affiliate as the best place to learn how to start your own business and start earning a full-time income online.
One of the guys was discussing that it was way better to take help from this program and start making money online to later invest in gold somewhere else, where the prices are better. Or in fact, do whatever you want with the money you make online. You basically decide how much you want to earn depending on your own efforts.
It really spiked my interest, since I had been looking for different ways to be able to work from home and make a good income, not having to be locked up in an office I did not want to be at, 8 or more hours a day, doing a job I really did not enjoy that much.
This made me start researching Wealthy Affiliate instead.
After having searched for hours trying to find scam alerts, or other complaints about the program, and only found one bad comment from a person upset he had not gotten access to the Premium training as a FREE starter member, I signed up through on of the guys commenting on the website. (The image to the left illustrates the basic process of affiliate marketing).
His name was Frank, who also became my personal coach in the beginning of my Wealthy Affiliate journey. Now I do not need him any more ^^.
I am so happy that this man at the gym introduced me to Karatbars, so I during my research found Wealthy Affiliate instead. If you too are dreaming of becoming your own boss and make a serious income online, you should definitely check out my Wealthy Affiliate review:
Let me know if you want me to review another program that you are interested in and I will be happy to. If you found this article interesting, please share it with your network. Thank you!
Best of luck and success to you all – 2017 is the year we make money online!
About the Author
My name is Stina Pettersson. I am the founder of Make a Living from Home in 2017 and the author of the articles on this site. I am originally from Sweden and am currently a business owner to 3 online businesses.
I help people to start their own online business and make a living from home. I am especially fond of helping the stay at home parent, or single parents to increase their income.
I hope I will get the honor to help YOU achieving your online success.