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7K Metals – A Gold Firm and Multi-Level Marketing Company

To understand some precious metal investments, you have to comprehend a whole other method for investing and doing business which is the case with 7K metals. It is not a standard gold firm or precious metal dealer or broker.

This company, for which you can read a review at https://www.investorscircle.net/7k-metals-review/, is a multi-level marketing organization.

That means when you invest with the company, you will be investing in metals along with having the opportunity to become a part of the company and recruit others in your close circle to do so as well. Are businesses like this legitimate?

As long as everyone is aware of the concept and where their primary source of investment income is coming from, sure. But it is essential that businesses in this category be 100 percent transparent in what they are about and where the investor’s “income” will come from. In saying that, it’s essential to understand what a multi-level marketing platform is or MLM.

These are also referenced as network marketing or direct marketing. Concisely, which means when you invest, you have a choice to then be responsible for marketing the company to other people as an independent representative.

What you will be selling, in this case, gold, silver, palladium, or platinum, is crucial, but it is critical to bring new people into the fray.7K Metals - A Gold Firm and Multi-Level Marketing Company

What Is Multi-Level Marketing 

When you are an investor and see a name like 7K Metals, you are intrigued by the precious metals they offer and if these will work with your investment strategy.

The business, 7k Metals, does offer precious metals. Still, the company is unique compared to other gold firms in that investments in these precious metals are only one aspect of the company’s objectives.

When a company of this sort brings in a new client, another objective is to set them up as an independent business representative who then brings in recruits who will also promote the company’s wares. This marketing campaign is, in fact, a straightforward approach with industries growing swiftly worldwide.

The business model works in that distributors of precious metals earn a sum of income from their precious metal sales. Still, they also retain a percentage of the sales from the group of people that they have recruited as independents.

The businesses do not only depend on selling gold and other metals of their own volition but rely on distributors to sell products plus recruit new people to come in as distributors beneath them. The greater number of recruits signed on under a distributor, the more income they achieve. Go here for details on investing in precious metals using an MLM platform.

That makes it not so much about a gold or silver investment or what these precious metals are doing on the market but also includes conducting business ventures. The multi-level marketing concept depends on a network of distributors contributing to the company’s success while building their own wealth.

The approach involves:

  1. Lead generation
  2. Recruitment
  3. Management and building

Many investors are not always aware of what they have become involved with, believing MLMs to be a standard precious metal investment.

While it is a legitimate marketing strategy, all MLMs should be recognizable before investors register to ensure the individual intends to become a part of the business.

How Does Multi-Level Marketing Work

When you reach out to a company that offers goods or services you want to invest in, like precious metals, you might find this company is a network marketing organization that will involve you selling these products and recruiting others into a team that you develop to do the same.

The gold and other metals you purchased are your primary consideration. Still, when you are a distributor, another main concern is earning a commission on what you sell and how many people you recruit, plus receiving a commission on what these individuals sell.

There is also potential for bonuses and incentives based on your effort in establishing a team. That can often involve buying stock to sell at various events or to close acquaintances. The activity is growing in popularity, particularly since the pandemic and this resultant economic strife.

Are There Positives to Becoming a Precious Metals MLM Associate

While these marketing strategies have existed for decades, they are only currently coming into the spotlight with little feedback thus far. The Federal Trade Commission (FTC) has profoundly stated that (quote) “some MLMs are illegal pyramid schemes.” Go to https://consumer.ftc.gov/articles/multi-level-marketing-businesses-pyramid-schemes for details on pyramid schemes.

That does not indicate that all are in this same category, but it suggests that everyone should be cautious when becoming involved in a situation they are unsure of.

In a study from AARP, investors in precious metals or other wares recruited to become distributors found they either did not earn anything or lost money in the endeavor. The Consumer Awareness Institute concurs with that study.

As long as precious metals are authentic and proven legitimate, plus IRS-approved for retirees who want to hold them in an IRA, many investors will choose to work with a company with credentials. But will they agree to become distributors is the question. Let us look at a few reasons precious metals might be a good distributorship if you are interested in that sort of thing.

1. Gold and other metals are in demand in the current economy.

With the economy in flux looming toward a recession and inflation at a record high, people are looking for alternative investments, primarily gold, to diversify and stabilize their portfolios. Click here for tips on investing in precious metals as a beginner. Marketing these products would require little effort.

2. Receiving assets to add to your account is a positive for your future success.

As an investor in the company, you will receive monthly assets that hold steady in value, leading to a good retirement portfolio. Or you can sell them back to the business for the total amount you paid for the metal.

3. You are promised incentives in your role as a distributor.

This can be true with some businesses, but it is vital to do your due diligence with research before believing anything. Some promise trips and incentives that are too good to be true and often are. It would help if you talked with past and current people involved in the program to learn what is true and what is not.

4. Look into the company’s years in the industry, knowledge, and reputation.

The more years a company has in the industry, its knowledge of precious metals and positive reputation will speak volumes about its integrity. But it is essential to get a solid following from the clientele by talking positively about their experiences with the company and the successes they have had with them.

When you open a self-directed individual retirement account where you hold precious metals in an IRA, the company must thoroughly understand IRS stipulations and know which metals are IRA-approved.

Plus, if these business leaders want to be successful in the MLM business, they will need an extensive understanding of how it works and how to succeed.

5. Precious metals are easy to distribute.

Suppose you must become a distributor of precious metals and recruit others into the fray. In that case, it is relatively easy to discuss precious metals and their value as an investment despite the economic landscape.

These ideal long-term investments make them perfect for the retiree working toward a brilliant future. Plus, most people feel good about having gold or other metals in their possession, even in small increments.

How Does a Legal MLM Company Operate

When an MLM company is legal, the independent salespeople are given stock to sell directly to clientele without a storefront. Most of the money these sales teams accrue is based on their sales commission and the associates they recruit.

Illegal pyramid schemes work solely by continuously recruiting new people without selling goods or services. A primary reason for most MLMs to fall into this category is proving intent with the company’s functionality, which is challenging to prove.

Failing in business because your independent contractors could not move the products to make commissions is not illegal. But it is unlawful to create a company with the full intention of having recruitment and money investments as your resource for income.

An organization referenced as the “Direct Selling Association” was created to discern between legitimate and not so much, allowing only authentic companies to join. The organization provides consumer resources on protection from illegal companies and guides on industry ethics.

Before becoming involved with any company, it is essential to do your research, starting with the ethics organization to see if the business is included in the registry. If not, there is a slight chance they have yet to be advised of the organization, but as a rule, it should raise a red flag.

Final Thought

Investors nowadays want to bring gold and other precious metals into their investment portfolios primarily because of the state of the economy and the current record inflation rates.

A company like 7K Metals shows their website as one for investors to buy and sell precious metals, but they go further to offer the opportunity to become a part of their company. Looking at the website, it does not sound like you have to do this to work with them as a business.

A multi-level marketing strategy is only illegal if a company takes it to that level. Doing that would mean the business emphasizes recruiting and earning money from that component while disregarding the buying and selling of goods and services.

Fortunately, there are organizations to protect the consumer, like the Direct Selling Association and loads of research to take advantage of before becoming involved in any scheme.

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