Company Name: Karatbars International
Costs: Free, $135, $350, $810, $2172
Industry: Precious Metals, Gold
What Is It
Karat bars International is an MLM company that sells small amounts of physical gold as its product.
If you want to buy gold, do so through a company that is not associated with the MLM industry. If you want to do MLM, pick one with a transparent compensation program and products that do not rely on doomsday scenarios. In my opinion, these two parts do not go well together!
The product that Kartbars international is pretty simple to understand – it’s a piece of gold. There’s a lot of hype around the gold they sell, making it sound like it’s “better” than others. But there are many companies that sell gold on the marketplace, all with various quality control techniques. I am not convinced that the gold you receive from Karatbars is any better than others
Its value is certainly going to be the same on the marketplace anyhow.
(A Short Gold Rant From Me)
One thing I don’t like about the gold buying/selling community is that everyone seems to have an ‘end of the world’ mentality.
- The economy is going to crash!
- The next depression is coming!
- The dollar is fiat currency and worth nothing!
- Paper money isn’t real money!
- Save in gold to store real wealth!
However, these types of sales pitches usually cherry pick data and present information in a way that makes you want to buy gold, rather than actually understand the facts.
The truth is, if the sh*t hits the fan tomorrow, I’d rather have invested in bullets than gold. Are you going to start stocking up on bullets? Most people aren’t.
Yet you we listen to a presentation about how the dollar is going to crash and how we’ll be buying bread with wheelbarrows full of money, and suddenly we want to stock upon gold.
The other thing you need to understand about gold is that yes, it does retain its value over time versus the dollar which loses value. However, that doesn't mean that gold is a better investment. And don't forget, there are many other types of investing that can also grow your wealth, most of which are more profitable than owning physical gold.
The value of gold in 1980 was about $850 an ounce. In 2013, reached about about $1,700, reaching a high of $1900. Now (2015), it’s about $1200.
What’s the point of all those numbers?
If you had invested in gold in 1980 you might have doubled your money if you bought and sold at the right point. [reference]
If you had invested in stocks and received a conservative 7% return, you would have almost quadrupled your money.
Real estate varies based on location, but the median home price in 1980 was around $65k. Today it’s about $275k. [reference] Again, more than 4x your money’s worth.
In both scenarios, gold was a worse investment vehicle.
Also consider that this precious metal also doesn’t provide an opportunity for passive income. It does not pay dividends like stocks, or have the option of renting it out like a house. It sits in your bedroom or in your office safe doing nothing other than hoping that inflation rises.
Don't get me wrong, it is smart to have some precious metals in your investment portfolio, but it’s not the life-saving miracle money system that gold sellers want you to think.
Back To Karatbars International…
So does Karatbars International have a good product? It’s gold just like any other, except it’s sold for above market value. You are going to have a hard time selling gold for more than it’s actually worth, considering people interested in buying gold are going to be fixated on what the spot pricing is.
The business opportunity behind Kartbars International is pretty standard MLM even though the sales presentation explicitly tells you that they are different from MLM.
The main difference is that there are no “levels” to worry about, and what percentage you make off of each recruit. However, you still need to recruit members into the company to grow your sales volume. Recruiting members and making money off of their sales is still MULTI-LEVEL marketing in my book.
You’ll also need to purchase packages to qualify for certain types of bonuses. The price of these packages is the main disadvantage of promoting Karatbars. You can see a price breakdown here:
Comp Plan Breakdown Vid
Watch Out For Gold Bugs!
Another thing to consider is that a lot of what you’ll be doing to sell gold is to scare people. This is a common tactic with ‘gold bugs’ as they are called (people who believe gold is the only true money).
Read any pro-gold website or watch a YouTube video on the topic and you’ll get the pitch about how the economy is tumbling, we’re ready for the next depression, and the only people with money in the future are going to be those that are hoarding gold right now.
You’ll see charts forecasting the downfall of the US dollar, and how predictions about how China’s going to take over the world, etc etc.
The truth is, gold may be a store of wealth, but it only stores it. You cannot go to the store and buy something with a piece of gold anymore. Buying gold is an investment, not a hedge against the end of the world.
The other thing you’ll have to battle is all the scam reports on this company. There are lots of affiliates out there trying to sell this product. So many that areas of Canada are starting to send out warnings.
There are also long arguments happening on the internet between scam reporters and affiliates. Is this something you want associated with your business as a seller of physical gold? I know I don’t.
If you want to buy gold, get it from a reputable place at a decent price. Two places I recommend are JM Bullion and APMEX. A third place that seems popular is GoldSilver.com from Mike Maloney. However, because of his association with the notorious scam artist Robert Kiyosaki, I cannot recommend you buy anything from his website.
If you want to invest in gold, there are many legitimate places to do it. As far as business opportunity goes, because of the high price of gold and lack of evidence that it's more valuable than any other type of gold, KaratBars International is not a company I would invest my time or money into.
How To Make Money With Gold
I think buying gold and investing in precious metals is very interesting, and enjoy talking about it. Personally, I have not invested in physical gold because I feel I can make more money in other investment areas namely stocks and real estate.
If investing in gold and precious metals is your passion, you can still make money from it! Here's how: teach other people about it! This is what I do for a living. I teach people about topics I'm interested in on the internet, and make money from advertising on my website. People come to my website to learn, and if they click on an ad or buy something through my website I can make money.
Everyone wins. People learn something, you make money, and advertisers make money.
You can learn how to build a simple website where you can talk about anything under the sun related to your topic. If you pick gold and precious metal investing, you can talk about market trends, how to properly store gold in your home, which gold vaults around the world are the most secure, how to invest in gold ETFs, silver investing, and more!
For my own business I write about computer software. I also have another website about eating healthy. It took me about 18 months of working on my sites to quite my job and now I do this full time. Got any questions? Let me know in the comments and I'll be happy to answer them.
Whatever type of product you decide to promote, it's VITAL that you generate leads to grow your business.
But let's face it, "parties" are boring, and no one likes the annoying Facebook friend who's always promoting a biz-op.
That's why I use this lead generation system. Learn how to generate leads outside of your circle of friends and family and discover what it means to truly own your own business, rather than just be a cheerleader for one network marketing company.
Latest posts by Nathaniell (see all)
- Can You Really Make Money Doing Calligraphy On Etsy.com? - September 22, 2018
- 16 Companies That Pay You To Deliver Stuff - September 21, 2018
- Can You Really Make Money On Care.com? - September 21, 2018