Company: Karatbars International
Founder: Harald Seiz
Welcome to my review of Karatbars International!
I am going to let you know in advance that this is going to be one of the most brutally honest reviews you have ever read.
Some say that Karatbars is a scam, while others say that it is a legit company, so it doesn’t surprise me that you’re here wanted to get to the bottom of it.
After you’ve read this review, I think you will be able to make an informed decision.
I am not affiliated with any of the companies I review and provide analysis of the company from head to toe.
I do not add any of my opinion in the overview, products or compensation plan sections.
I will save opinion and facts for the list of pros and cons sections.
This allows you as a reader to digest the information in a much more organized way.
You should read the review in its entirety because there is a lot to cover in this review.
There are some high notes and some low notes so take them all for what they are; reasons to join or not to join.
In other words, keep it simple!!! Let’s get started with the company’s overview.
You can also check out the step-by-step training that helps me earn over $10,000+ per month working from home.
What Is Karatbar?
Whilst they don’t refer to themselves as an Multi-level Marketing (MLM) company, and would much rather you perceive them as a e-commerce company with an affiliate program, they do appear to operate as a MLM.
I don’t blame them, because when people think of MLM’s, it’s usually, selling stuff to friends and family, and holding home demonstrations.
Having said that, you’ll find that all MLM’s require you to purchase a product or service to satisfy legal requirements, however, Karatbar doesn’t require you make any purchases at all, only the recommendation of product purchase for your own financial security.
Gold being a commodity that holds value even in failing financial markets is the basis for their marketing strategy.
Karatbars sells small gold bars and gift items in 24 karat pure gold bullion.
Some of their most popular products are Karatbar Classic Card which is a 1 gram gold bar embedded in a card, providing insurance against economic downs.
A Karatbars International Overview
After reading several other reviews of Karatbars International, there seems to be two sides of the story.
Check it out…
Karatbars International was founded by CEO Harald Seiz in 2011.
The company specializes in the gold bar sales and gold bullion niche market.
According to some reviews, the company is headquartered in Stuttgart and in the past few years the company has expanded to over 120 countries including Australia, Bahamas, Germany, Hong Kong, Namibia, Nigeria, South Africa, Thailand, Trinidad and Tobago, United Kingdom, United States and Venezuela.
In other reviews, a much different story is told.
The company claims to be based out of Germany but if you look at the website domain, it shows that the company is actually operating out of Glarus, Switzerland.
There is a German phone number associated with the registration though.
In Seiz’s biography, it is stated that he joined a precious metals company in 2008.
This company is believed to be KB Gold.
There seems to be a bit of confusion between the companies because they are so similar in name and if you compare the compensation plans, they are almost identical.
If you’re looking for a way to make money through investing in gold then, based on the research I’ve conducted, this opportunity might NOT be what you’re after (read the rest of the review to understand why).
Product & Services
This is probably the most simple part of the company to understand.
It is really easy to understand that you purchase gold at the retail level.
The company hypes the importance of gold with comments like, “the global economy is going to crash any minute.”
Although the comment is true in a sense because the economy crashes from time to time, it fails to mention any exact time frame for this global crash.
Another thing that the company does is tell you that the gold you get from Karatbars International is the best possible.
I’m not really sure what makes their gold better than anyone else’s but I wouldn’t take their word for it.
Ok guys, the Karatbars International Review PDF is a (25 pages long compensation plan), so I’m going to recommend using the link I provided so you can read it on your own.
I will provide the nuts and bolts of the plan so that you can use this section as a quick reference but there is nothing better than using their own plan as a guide.
7 Ways To Make Money
1. Direct Commission
2. Unilevel Bonus
3. Generation Bonus
4. Package Bonus
5. Dual Team Bonus
6. Karatbars Pool
7. Karatbars Gold Fund
7 Uni-Level Ranks
1. Supervisor – 200 Points / Cumulated Distributor
2. Bronze Supevisor – 500 / Per Month
3. Silver Supervisor – 1250 / Per Month
4. Gold Supervisor – 2500 / Per Month
5. Bronze Manager – 4000 / Per Month
6. Silver Manager – 6000 / Per Month
7. Gold Manager – 9000 / Per Month
After a quick read through the compensation plan there are a few things I noticed.
It isn’t exactly clear in a lot of places. For example, who is paying me and there some people complaining about never getting paid or getting shorted.
I’m just wondering if anyone else has had troubles with this.
So if you have some experience with this company, can you confirm either way.
Investing in gold is one way to make money, but there are much more lucrative ways at a fraction of the cost. See this review.
Things I Don’t Like About Karatbars International
1. The first thing I want everyone to read in this section is a warning from Canada back in 2014. It is a AMF Scam Warning.
Ok, I get it, the warning is from two years ago and the company is still promoting around social media and global websites.
This article is still relevant because it shows you how some countries take fraud seriously while others are behind the ball.
Here is a quick excerpt to demonstrate the problem with Karatbars International in Canada: “The AMF reminds investors of the risks involved when investing in companies such as Karatbars that are not reporting issuers and do not hold AMF registration or authorization.”
2. Here is another aspect of the business that I don’t like.
The prices that you purchase the gold in are substantially more expensive than the actual value of market gold.
In this case, Karatbars International usually sells gold to people at a 25%-35% markup.
This is absolutely ridiculous and it is now easy to understand why so many of these gold bar MLMs are shutdown every year.
In fact, I am wondering why authorities allow unlicensed gold distributors are allowed to sell at all.
Anyway, the comment that I posted above, show us another aspect of Karatbars International that scares me.
3. If someone wants out of the company and their investment returned, they have to approach their sponsor rather than the company itself.
This is crazy because the second that your sponsor senses that a recruit wants their money back, they disappear.
What this means is that Karatbars International takes no responsibility for any sponsors which is just a cop out.
This happens with every gold selling MLM and will never change.
This is part of the reason most of them are shutdown within the first year and others rarely last more than a few years.
Take a look at this article from the Calgary Herald from 2015.
These people were all affiliates of Karatbars International, yet nothing in the article says that the company itself faces any charges.
It is simply the affiliates. The article also says that “other organizations and banking institutions were also invoved,” so maybe there is more to the story than just Karatbars International.
Either way, this is something I do not want to be a part of.
This is the number one turnoff for me when it comes to an online business opportunity.
I want it to be legit and I want it to be 100% legal with any speculation surrounding it.
When it comes to picking a MLM, go for the sure thing.
4. This is the last part of this section and then I’ll end my rant about these gold scheme MLMs.
Why is it that everyone of these gold ventures thrives on the fears of everyday citizens.
Notice that there are always claims about:
• The economy crashing
• The next great depression is near
• Paper money is worth nothing and isn’t even real
• Invest in real gold to accumulate real wealth
Since I am a 3rd party reviewer, I have an advantage because I have zero risk or reward with any of these companies.
With that being said, I would never invest in a company that offers these kinds of pay-to-play situations.
So you start out by investing some money in exchange for some gold.
Then you get paid a little slice of the pie until you buy a few thousand dollars worth of gold so you can get paid at the highest level.
Take a look at the revenue generation of these companies.
It is all generated by recruiting and not the gold purchases.
Plenty of goldex type scams have been shut down for less and I don’t see this company lasting much longer.
Here’s a better way for you to make money without the risk. Check it out here.
The Final Verdict
Here is the deal, some are claiming success with the company and some are saying Karatbars International is a scam.
Here is an image I want to show you and also keep in mind that most areas in Canada are issuing warnings about the company and asking people to please avoid the company.
Look, I cannot personally verify which is which because I am not a member but any company that is getting this kind of negative publicity, should probably be avoided until the legal issues are cleared.
In fact, there always seems to be an issue with gold marketing niche MLMs when it comes legitimacy and Karatbars International no different.
If you are interested in a sure thing, check out this review.
There is a lot to like and there is literally no risk involved.
You can try it out for FREE and then decide if you want to continue with the services.
The training program is top notch as well.
I hope this review helped you on your journey of finding the perfect MLM for you.
If you have any experience with this company, want to leave a comment or questions, feel free to fill out the form below.
Latest posts by Adam (see all)
- 3rd Party Review – Is Get Transcribed Legit or Scam? - April 13, 2017
- FreeEats App Review – Legit or Scam? - February 4, 2017
- Get-Paid.com Review – Legit Pay or Scam? - February 4, 2017