Let me guess, you’ve stumbled across Karatbars, and you’re wondering, is Karatbars a scam or a great gold business to help you make money as claimed?
Else, someone introduced you to this opportunity, and you want to ensure it’s legit before you join. Regardless of how you came to know about Karatbars, worry not because you’ve just landed at the flawless place where I’m going to reveal everything about this company, including the ugly truths.
Before we begin, I’d like to commend you for taking the time to do a bit of research before joining or buying into any seemingly good business opportunity or product. This’s the only way to evade swindles and discover the genuine way of making money online.
Karatbars Review Summary
Product Name: Karatbars International
Price: Starting at $135 up to $800 + shipping
Karatbars is a network marketing company that sells gold. It allows people to join and sell the gold to customers, as well as recruit new members to make money. However, the price of gold in Karatbars is almost double the price in the global market. This means that you would undergo a loss of over 50% if you try to sell the gold you bought at Karatbars in the global market. Another thing, the company had scam warnings from countries like the Netherlands and Canada, and people were advised to avoid investing in it. For these and other reasons revealed in this review, I wouldn’t recommend this business opportunity to anyone. Continue reading this thorough review of Karatbars to find out all the facts.
To be frank, I’m not a paid affiliate of Karatbar, and I’m not associated with it in any way. Therefore, you can be sure that I’m not going to pitch this opportunity to you here, as many people are doing.
Rather, I’m here to expose all the facts about this company in my unbiased third party Karatbars International review to help you understand everything about how it operates.
So, is it true? Can you make a good income with Karatbars?Or is Karatbars International a scam to be avoided?
Read this review to the end and pay close attention to understand everything clearly!
What Is Karatbars
Karatbars International GmbH is a Multi-Level Marketing (MLM) company that was founded by Harald Seiz. It operates within the mining and metals industry since it was launching back in 2011.
According to their website and some reviews out there, Karatbars is based in Stuttgart, Germany. However, the company’s domain (karatbars.com) was registered in Switzerland as per their registration data on WHOIS.com
Now, who should we believe? Their website or WHOIS.com?
Anyway, Karatbars uses the MLM business model to sell gold to its members. It operates as a gold reseller and allows people to buy small amounts of gold at a standard price.
Their gold is genuine and comes with official certificates. Nonetheless, their gold price is extremely high compared to the current market price and could lead you to a loss of over 50%!
I guess they set the price high so that they can be able to pay their affiliates’ commissions, but I’ll explain this in detail in the next section of this review, so keep reading.
The company is showing up the gold as its product, while behind the scenes, it’s like they’re playing a game with the buyers’ money to pay their members.
Today, Karatbars Intl offers its business opportunity to about 70 countries and intends to spread out to more than 194 worldwide countries. You know, most folks have confidence in gold investment as one of the best ways to secure your future wealth and financial state.
They say it’s because of the instability of the banks and paper cash, as well as the fact that gold will ever be considered precious.
Therefore, Karatbars want to sell you the idea of investing in gold as a future investment and a way to save money.
The huge issue here is that most people lack sufficient cash to invest in precious metals like gold. However, Karatbars Intl is growing in popularity due to the business opportunity it offers to its members. With that said, let’s look at how this company really works.
How Karatbars Works
Karatbars GmbH sells gold in small quantities, and you can purchase as small as one gram of gold. The producers of this gold include London’s Good Delivery (GDL) refiner called Atasay Jewelry and London Bullion Market Association (LBMA).
The company claims that its gold is the finest and highest quality accessible in the market. However, this is a fake claim because their gold is just like any other gold from any other vendors.
The gold contains no impurities or alloys; it’s pure gold that’s soft and can’t be used in any kind of jewelry works. It’s packed in a unique way and has a barcode stamped onto it for validation purposes.
As mentioned earlier, the primary issue that I have with Karatbars gold bars is that their price is overly high compared to other vendors in the current market. Moreover, some sources claim that even the gold itself is of low quality.
The pictures below show some of the Karatbars International gold products and their costs.
As you can see, they are selling 1g of gold at EUR 66.91 (around $73.94). I did a quick research on the current standard price of gold at this time of writing (November 15, 2019) and found it was $47.14.
Do you see why I said their gold price is extremely high? It’s $26.80 more than the standard price in the current market, meaning that you could have made a loss of over 50% if you bought the Karatbars International gold.
Are you wondering why they set such a huge price? In my opinion, Karatbars sets its gold price higher so that it can get funds to pay commissions to its members for bringing in gold buyers.
The commissions are paid according to the compensation plan, which we’ll look into in the next section of my Karatbars International review as we see how you can make money with this company.
How Can You Make Money With Karatbars
As an affiliate of the company, you can earn money by receiving commissions (direct, binary, and unilevel), bonuses, and incentives, as well as the Karatbars Gold Fund.
To be frank, investing in the gold business is a great way to make good money in the current market. However, I’m skeptical that Karatbars is the company to help you do that.
To make money with Karatbars’ opportunity, you’ll need to buy its gold and recruit new members to do the same. However, the price of gold in this company is over 50% higher than the retail gold price in the current market.
This means that it can be very hard for you to convince anyone to buy them, considering that they can buy them at a price that’s 50% less than that of Karatbars Intl.
Therefore, working with Karatbars could be a waste of time if you are unable to sell their products or recruit people since you won’t earn anything. With that said, Karatbars pays its affiliates following their compensation plan, which I’m going to explain to you in a sec.
Karatbars Compensation Plan
As with many MLM companies, the compensation plan of Karatbars GmbH is a 27 pages long pdf that looks very complicated. Therefore, I won’t go very deep into it, but I’m going to show you the main ways to earn rewards from Karatbars, which include the following:
1. Package CommissionAs a Karatbars’ distributor, you can earn this commission for selling a new package to a distributor who you recruited personally, which depends on the package he/she buys. You can earn:
⦁ EUR 60 or roughly $66 for the Silver Package.
⦁ EUR 150 or roughly $165 for the Bronze Package.
⦁ EUR 300 or roughly $331 for the Gold Package. Note: the above exchange rates are based on the Foreign Exchange rates from EUR to USD at the time of this writing.
2. Unilevel Commissions Distributors can earn the uni-level commissions as a percentage of the funds spent by the distributors they recruited into their downline.The amount earned also depends on your rank as a distributor and ranges from 0.5% to 5.5%.
These commissions are paid through a uni-level compensation format.
3. Binary Commissions Karatbars uses a binary compensation structure to pay the binary commissions to its distributors.
You earn the commissions depending on what your downline recruits spend.The binary commissions are paid out group-wise after each leg has met the required minimum number of units’ sales.
4. Worldwide Turnover BonusIt’s not clear how this bonus is paid out to the distributors in regards to Karatbars Intl’s compensation plan. However, it seems to be a portion bonus pool that consists of 95 cents for each gram that’s sold by the company.
5. Gold Pool This pool is composed of 1% of the lump-sum gold purchase of the company, which seems to count both the gold purchases and package purchases above 50 EUR ($55).As a distributor, you’ll need to have three unilevel legs that have generated 9,000 points each for you to qualify for the Gold Pool.
Then, the points are divided by 1000 to give the number of Gold Pool shares that you may qualify for. You can also earn other bonuses from Karatbars, including Matching Bonus, Loyalty Bonus, and Dual Team Bonus, among others.
Basically, that’s how the compensation plan for Karatbars International looks like. As I said, I’m not going to explain it in detail since it’s so long and complex, and I think it’s just a waste of time.
However, if you’d be interested in seeing it in full, you can check it out here.
So, now you’re wondering, can you make money with the business opportunity offered by this company? Continue reading this Karatbars International review to find out.
Can You Make Money With Karatbars
According to Dr. Harald K. Seiz, you can earn a return of $15,000 – $136,000 per month if you invest your money in their gold business. This claim is so overhyped because there’s no proof, and there’s no way to make such a huge income from Karatbars Intl, especially when you’re just starting out.
Moreover, the company is not legally licensed to sell the gold. Even the gold they’re selling is extremely overpriced in regards to the current gold price in the market.
So, do you think it’s going to be easy to convince people to buy this gold at such a high price when they can get it from elsewhere at a much lower cost? Honestly, I think it’ll be very hard!
Additionally, not many people can afford to buy the gold just to ‘store wealth’ in the first place. This means that even the gold market is a bit limited. Given that the competition is still high, you are unlikely to get many people to sell the gold to or to recruit into the Karatbars Intl’s system.
If you don’t get customers and recruits, how will you earn? No way! It’s going to be very difficult for you to make a decent income in this company unless you have very good direct selling and recruiting skills. And if you can’t earn, then it could be a waste of time and money!
Now, let’s look at the cost of joining the Karatbars’ gold opportunity.
It’s free to join Karatbars, but you’re required to buy one of their three packages for you to be eligible for commissions. The packages include:
⦁ Bronze Package, which costs $135,
⦁ Silver Package, which costs $350, and
⦁ Gold Package, which costs $800.
These packages differ in the content and products they come with, as well as the bonus and commission features that you’ll get according to their compensation plan. Karatbars had a VIP Package that cost $2,100, but it was discontinued in December 2015 based on numerous sources.
On top of the packages’ costs, you’ll also have to pay shipping fees as you purchase your own supplies, which may vary depending on your country.That’s all I could find about the cost of joining this company, and I honestly don’t think it’s going to be readily affordable to the average person.
So, what are the benefits and cons of Karatbars International GmbH? Well, that’s what I’m going to show you next, so keep reading.
GOOD VS BAD
⦁ The gold offered is authentic.
⦁ It offers small quantities that anyone with any financial ability can buy.
⦁ The affiliates can use their affiliate program to make a passive income.
⦁ The company’s address is not clear whether it’s Germany or Switzerland or somewhere else.
⦁ The financial regulation organizations in Canada and Netherlands have already warned investors that it’d risky to invest in Karatbars Intl.
⦁ The company isn’t licensed to sell the gold
⦁ The gold sold here is very overpriced.
⦁ There’s no income disclosure statement.
⦁ It’s not listed or accredited by the Better Business Bureau.
⦁ You’re required to buy tools in order to promote the products, and this can be very costly in the end.
According to the website, Dr. h.c. Harald K. Seiz is the founder and CEO of Karatbars International GmbH. He founded the company back in 2011 in Stuttgart, Germany.
However, as I mentioned earlier, the company’s address is not clear since the website says it’s in Germany while the WHOIS.com data says the site was registered in Switzerland.
Anyway, Harald K. Seiz was born in 1963 in Calw, near Stuttgart. Since 1983, he has been working as a financial and investment advisor who’s been so successful.
He has been working in the company and has grown its revenue while consistently and successfully internationalized it. He was awarded senatorial dignity by the Federal Association for Economic Development and Foreign Trade (BWA) in 2016.
Harald K. Seiz is the CEO, founder, senator, and author of BWA, and he’s an expert and a passionate entrepreneur. He inspires his audience in lectures by sharing his lived success knowledge. He encourages people to accept life and its challenges and to take the success road.
Harald K. Seiz leads the company with the help of a management team that includes Martina Tag (Chief Operating Officer), Farnaz Frenzel (Human Resources), and Jasmin Schwellinger (Assistant of CEO & COO), among others.
Overall, the company’s leadership looks good. However, it’s good to see what the people who have already joined this opportunity are saying about it. Therefore, let’s move onto the next section of my Karatbars International review.
What Are Karatbars Users Saying?
To determine the authenticity of any company or business opportunity, it’s essential to research the experiences of those who have already joined it. This will help you to know if it’s worth your time and investment.
In the case of Karatbars, there are numerous mixed users’ reviews online, with some praising the opportunity and others condemning it. Here is what Karatbars International’s real users are saying.
This one from TrustPilot.com was long, and you can see it in full here.
Although the company seems to have many positive reviews, the negative ones are also many, and this would make you start doubting even the positive ones.
With that said, let me show you some ugly truths of this company so you can be more informed to make the right decision about joining Karatbars
Karatbars Ugly Truth Revealed
1. The Products Are Excessively Overpriced.
The gold sold by Karatbars is set at a huge price that’s more than 50% higher than the current gold price in the market. As of this writing, their gold is sold at roughly $73 per gram, while the global gold price is around $47 per gram.
That’s a difference of about $26, which is more than half the price of gold in the global market. Actually, I couldn’t figure out why they set the price so high, but I guess they want to get the money to pay their affiliates’ commissions.
What I’m very sure of is that if you bought, let’s say 10 grams of their gold, you could make a loss of about $260 if you decide to sell it to someone else.
That being said, the high price would make it much harder for you to make any sales and earn the commissions. Most probably, that’s what caused this MLM to have very low success potential, as we’ll see in a sec.
2. Low Potential Success!
As I mentioned right above, the success potential in this company seems to be very low. This is because of the huge price of their gold that makes it hard for members to make sales and make money.
To succeed in this business, you’ll need to buy their gold products and recruit other people to do the same. So, if you can’t afford to buy their products and are unable to recruit many people into your downline, it’s going to be extremely difficult for you to make any money with this program.
Karatbars doesn’t give any income disclosure statement, and therefore, we can’t tell what percentage of their members are making money and/or how much they earn.In my opinion, the majority of people who join this company are most likely to fail to make a decent income, and that’s why I don’t recommend it to you.
It’s just like other MLM’s that lead most of their members to fail, such as:
3. Overhyped and Unrealistic Earning Projections!
Dr. Harald K. Seiz promises a return of $15,000 – $136,000 per month. This represents returns of between 874 and 2,172 percent in just 12 weeks from the time of initial investment.
In my opinion, this makes Karatbars look just like a typical MLM company that uses exaggerated claims to try to lure people into joining their opportunity.
Indeed, this is a huge red flag because there’s no way to earn such a huge amount of cash in such a short period through Karatbars International MLM business.
4. Scam Alert By Canadian Authorities!
Autorité des marchés financiers (AMF), a financial and investment regulation authority in Canada (like the SEC) issued a scam alert in 2014.
There were over 5,300 members in Karatbars from the Province of Quebec, and the AMF stepped in to “protect the Canadian investors from the Karatbar Scam.”
AMF was triggered to issue this alert by a citizen who reported Karatbars to be a Ponzi scheme. Although the warnings may be several years old, they still make you wonder about the company’s operations.
Furthermore, the Netherlands Authority for the Financial Markets issued similar warnings.
My friend, this is now more serious than the other ugly truths! When the financial authorities get involved, it indicates that the company could be doing something shady.
Would it be a wise decision to risk your money and time in such a company under these circumstances? For me, I honestly wouldn’t.
Are You Tired Of Scams?
Is Karatbars A Pyramid Scheme?
In legal terms, Karatbars is not a pyramid/Ponzi scheme because it has real tangible products that its affiliates can sell to make money. Additionally, its members don’t only rely on recruiting to earn money.
However, the only way to make a huge income here is recruiting new people into the system. Again, their compensation plan resembles those of other MLM’s and uses a pyramid-like structure to reward the affiliates.
This makes the company look like a pyramid scheme. Moreover, the Canadian AMF issued the scam alert to investors after someone complained about Karatbars as being a pyramid scheme.
Many people online are calling it a Ponzi scheme, but it’s not one in legal terms.
Nevertheless, the fact that Karatbars International is not a pyramid scheme doesn’t mean that you should join it.
With that said, let me give you my final verdict regarding this company’s business opportunity.
Is Karatbars A Scam?
So, the main objective of this review was to answer the question – is Karatbars a scam?
Well, Karatbars doesn’t seem to be a scam on the surface, but a legitimate gold reseller company. It’s possible to make money with their business opportunity, but overall, I wouldn’t recommend it to you for several reasons.
First, their gold is extremely overpriced when compared to the global price of gold, and this could lead you to over 50% loss if you try to sell it in the global market.
Secondly, it might be very hard for you to make money with this program if you’re unable to sell the gold and recruit many people into the system.
Furthermore, financial regulatory bodies in the Netherlands and Canada have warned the investors against investing in this business. You can’t take these warnings with a grain of salt because these regulatory bodies must have deemed the company’s activities unregulated and illegal, and this is a huge deal in the finance field.
I agree that the gold industry is a lucrative one to engage in, but it’s also very competitive. In such a case, you’ll need to be at pace with the global market price of the products.
However, Karatbars’ gold price is almost twice as much as that of the retail market and would be hard to sell to make money. As we saw one of their users saying, only a few people who are likely to be at the pyramid top can actually make a decent income.
It’s much harder to profit with this business, as Harald makes it seem.
So, overall, I’m not going to recommend this opportunity to anyone since you might end up losing your money rather than getting more of it. With that said, I honestly hope that my Karatbars Review has given you all the information you needed to know to make a rightful decision regarding this opportunity.
In case you’d be interested, you can make money online as I do without such risks as in the Karatbars business through the method I use, as I explain below.
How I Make Income Online
Although it’s legal and lucrative, I don’t like the MLM business model since it involves too many restrictions, risks, and expensive costs.
Rather, I prefer, use, and recommend the Affiliate Marketing business model for anyone who wants to make real money online. This is because it doesn’t require you to recruit anyone to make money, you’re free to promote any products of your choice without restrictions, and best of all, it’s totally free to get started.
You can do it too! It requires your hard work and dedication, as well as patience. But if you put in the necessary effort and give it time, you surely can create your own lucrative digital business as I and many others have done.
To do it efficiently, you can follow the training I followed at Wealthy Affiliate, which is free to get started. If you’d like my personal assistance, just send me a direct message via Wealthy Affiliate once you join.
Anyway, I hope you’ve enjoyed reading my Karatbars review and found it useful.
If you have any questions or thoughts whether Karatbars is a scam or anything else, then please leave them in the comment section.
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