Hello, my friend, and welcome to my KaratBars Review!
In today’s post, I want to talk with you about the KaratBars business opportunity. Is it or not a legit business and can you really build up an income with this opportunity?
Whether they are bad or not, some red flags that are good to not overlook, and my final opinion.
So let’s just not waste any more time, and dive deep into the facts together!
What You Will Learn Here
- 1 KaratBars Overview
- 2 What is KaratBars International?
- 3 Who is the Founder?
- 4 What is KaratBars’s Financial Situation?
- 5 What Are KaratBars Products?
- 6 Are KaratBars Products Worth Their Price?
- 7 How Much Does it Cost to Join KaratBars?
- 8 Is KaratBars International an MLM or Affiliate Marketing Company?
- 9 How to Make Money With KaratBars?
- 10 Does KaratBars Allow You to Use the Internet to Build Your Business?
- 11 Is KaratBars Legitimate?
- 12 How Much Money Can You Make With KaratBars?
- 13 The Good and The Bad
- 14 My Final Opinion About KaratBars + A Better Alternative
- 15 If You Don’t Want To Waste Anymore Time On MLMs, See My #1 Recommended Way of Making Money Online:
- 16 KaratBars MLM
- 17 Pros
- 18 Cons
Full Name: KaratBars International
Type: MLM Business Opportunity
KaratBars Website: https://www.karatbars.com/
Founder: Harald Seiz
Year of Establishment: 2008
Price to Join: 0 for the Affiliate Program, Thousands of Dollars for the MLM Business Opportunity
If You Don’t Want To Waste Anymore Time On MLMs,
See My #1 Recommended Way of Making Money Online:
What is KaratBars International?
They are proud to bring something unique to the marketplace being founded in 2008, so for quite a while now. Gold is a commodity that is very valuable and a lot of people would be interested in purchasing it.
Based in Stuttgart, Germany, KaratBars International is a multi-level marketing company selling small gold bars and gift items in 999.9 pure gold bullion, which could be bought online and they’ll ship it to you. They also have offices in Singapore and Hong Kong.
Karatbars was established in 2008, and have entered the North American market in 2011. Today, it is the market leader that offers gold in small denominations (1 gram gold Karatbars). According to Karatbars’ official website, they have their gold produced and sourced from Turkey.
Since 2018, they got into the crypto market as well. Karatbars and its cryptocurrency KaratGold Coin (KBC) has often been shared in crypto communities on Facebook, Twitter, etc.
KaratBars operates in 140 countries around the globe and has an impressive number of affiliates (over 800 000 reps).
The vision that they are trying to sell to people like you and me is just the same as of a few gold buds too: fiat currency based monetary system is flawed since the gold standard ended.
If the financial system collapses, gold will be the replacement of currency. Therefore, it’s always good to own gold and buy it from Karatbars, that’s their conclusion.
Allegedly, Karatbars cards and cash gold products are easily exchangeable and will be more transaction-friendly when fiat collapses.
They expect gold to be a good investment where investors would benefit from gold value appreciation.
Who is the Founder?
Harald Seiz is the CEO and founder of KaratBars International.
According to KaratBars’ official website, it was Harald Seiz’s dream to make gold available and transferable for many people at all times.
“Everybody has the right to be free. Gold is freedom. If you have gold, you have money”.
Prior to establishing his own company, Harald was working as a financial and investment advisor since 1983, and also was selling property and insurance.
He is also an author of 5 publications on financial topics. Some of his books like “The Future of Money” (about kind of the rule of gold and money system), and “Think Big” (about general entrepreneurship) is sold on Amazon.
Harald Seiz appears on stage often and in promotional videos. He is promoted and painted as their prominent and visionary leader.
They do a lot of interview-style videos that make it seem like the media is interested in KaratBars.
For example, the NYSE in the background of the video although the company has no ties to Wall Street at all. You can watch the related video below:
What is KaratBars’s Financial Situation?
If you know me, you may have noticed that when reviewing different MLM companies or money-making opportunities, I like to have a look, besides many-many other things, at the company’s overall financial indicators.
So, according to www.BusinessForHome.org. information, KaratBars’ revenue was constantly growing since 2015 and throughout the years of 2016 and 2017.
Then, in 2018 and 2019, it stagnated and wasn’t growing at all. Maybe there are some issues causing this
I’m not sure what exactly has caused this stagnation but there’s definitely something going on within the company.
I understand that it’s ok for a company to go through ups and downs, and thankfully, this is not the worst situation I’ve seen in an MLM industry.
If you are curious, what’s the company with the worst financial situation I’ve found since I’m reviewing MLM companies, you may wish to read my Zija International MLM Review.
What Are KaratBars Products?
In almost 10 years of operation, KaratBars has managed to develop a line of products. I will be discussing further each of them.
Gold KaratBars cards are the classical cards with small integrated fine gold bars of 1 gram. These could be used as normal cards and are a potential means of exchange and payment.
#2. Gold Cards Designed for Special Occasions
Here you can find GoldCards for an Anniversary date, Christmas, Easter, and even high school or college graduation.
The same as the classical GoldCards, these cards for special occasions have a weight of 1 g.
#3. KaratBars Coins
This is probably a product for people who like collecting gold coins or investing in gold.
KaratBars coins are weighted 1 g each, just the way the previous KaratBars products I have mentioned.
#4. WHIM Laptop
WHIM Laptop, as well as Impulse K1 Phone, are the two products launched by KaratBars in 2019.
Both were designed to provide the highest level of security and privacy through the Voice-over-Blockchain-Protocol (VoBP). This is a new technology that allows users to communicate fully encrypted and secure.
#5. Impulse K1 Phone
These are banknotes like papers that are valued from 0.1 g, with tiny gold bars embedded.
Are KaratBars Products Worth Their Price?
From the customers’ point of view, KaratBars mini gold pieces are sold 20-30% higher price than the same quantity of gold elsewhere on the market.
Therefore, it’s automatically not the best starting point of investment.
However, overpriced or not, it’s a real product that you receive after paying for it. So, it’s not a scam in the purest sense of the word.
How Much Does it Cost to Join KaratBars?
The good part about this MLM that gets a lot of people to sit on the hook is that they say that it’s free to get started.
There’s no cost to sign up with KaratBars and become an affiliate or a customer, according to your own liking.
But, if you want to make money off of KaratBars’ business opportunity, you’ll need to buy one of the KaratBars Starter Kits.
Is KaratBars International an MLM or Affiliate Marketing Company?
When gathering the information about KaratBars company to write this review, I have seen people arguing whether it’s an MLM company or an affiliate marketing company.
KaratBars itself calls its business opportunity an Affiliate Program, trying to avoid the MLM label. So, some people are living with the idea that KaratBars has something to do with affiliate marketing.
In reality, though, just a quick look at their compensation plan clearly shows that it’s an MLM in the pure sense.
This image below doesn’t remind you of anything?
Alright, it’s true that they have kind of a combination of an affiliate program and MLM. Anyone out there can open a free account to participate in their global affiliate program.
But because KaratBars products are expensive and the commission you get is too small, it’s difficult to succeed using their affiliate program.
And it seems like it’s only there as a free alternative to their real objective: get people into the paid business opportunity where you build a team.
How to Make Money With KaratBars?
There are really a few ways that you can earn an income, other than just having the gold for yourself, with this KaratBars business opportunity.
And that’s by direct commissions or building up a team of people with the KaratBars opportunity.
There are eight levels in the KaratBars Compensation Plan: Distributor, Supervisor, Bronze Supervisor, Silver Supervisor, Gold Supervisor, Bronze Manager, Silver Manager, and Gold Manager.
Once you sign up with KaratBars, you start at the first level at the bottom, as in any MLM. As you can see in the previous image, the commissions are really low, and it can only grow if you move up through the ranks.
In order to be eligible to earn higher commissions (up to 5%), you’ll need to invest in one of the KaratBars crypto packages.
Just to give you an idea of their pricing, here’s one of the packages:
And this doesn’t include the VIP level, which can cost you up to 1 mln EUR.
Does KaratBars Allow You to Use the Internet to Build Your Business?
In short, yes, they do. When you open up a KaratBars account (even the free one), you’ll get the so-called replicated website.
But before you get excited about the opportunity of having a website that’s supposedly making money for you, I want you to make clear for yourself what is this replicated website, in essence, and what could you expect from a website like this.
So, in this particular case, your replicated KaratBars website will look like this: www.karatbars.com/yourusername.
For example, if your user name is John Smith, then the URL address of your KaratBars replicated website will look like this: www.karatbars.com/johnsmith.
First of all, it worths mentioning that this is not a website that you own and have full control over.
Because it’s free, this not something that belongs to you, and if for any reason something happens to KaratBars business, you can lose everything and all your efforts regarding the promotion of your website will be in vain.
Secondly, you don’t get anything unique because replicated websites visually look pretty much the same.
The same design, layout, colors, logos, testimonials, welcome page, blog, etc.
Imagine that all 800 000 KaratBars affiliates got this kind of replicated website. The only thing that differentiates one site from another is the user name, user photo, and maybe a user contacts email address or phone number.
How do you think your KaratBars replicated website is going to stand out from the rest of KaratBars’ affiliates and business partners? John, Mark, Derek, Samantha, Michael…….
Next are the SEO issues. SEO is the ability your website has to show up in organic search engine results.
Because replicated websites got a lot of duplicated content, coupled with convoluted and poorly structured URLs found in most replicated websites will make finding your business through a search engine nearly impossible.
The architecture of most replicated websites does not allow for simple changes or content updates which also compounds the poor ranking of your website among search results. Could you do something about it?
Yes, you could use PPC campaigns (paid advertisements) but bear in mind that it could cost you a lot of money if you don’t know how to do it right.
Is KaratBars Legitimate?
In my opinion, any company that has the crypto component combined with the MLM business model is a shady one, to say the least.
I’m not just saying this out of the blue, based on history, and the number of companies that have utilized both of these components and have ended up scammy and collapsed.
I’m going to list here some of the KaratBars’ red flags:
RED FLAG #1: The MLM Component
So, the company tries very hard to downplay the MLM structure and makes it really convoluted to find it out how exactly it works.
But in essence, their compensation plan includes building a team by recruiting people, who will then recruit more people in turn – classic MLM.
And by doing so, they have different bonus levels, which are shown in the image below:
Also, it’s important to talk about the pre-crypto phase packages. Because like I said, they’ve been going for a long time even before crypto became part of their offering.
Their real or paid business opportunity involves “pay to play” to access it, and this is a very visible sign of a pyramid scheme. And so, the pre-crypto packages were priced as follows:
Bronze – 99 EUR (here you get no gold);
Silver – 285 EUR / 1 g of gold;
Gold – 635 EUR / 2 grams of gold;
VIP – 1620 EUR / 3 grams of gold.
As you can see, these are very high prices that you have to pay for different levels, they have changed since crypto was introduced and now are even more expensive.
Whereas, if you have a look and analyze that pricing, only 10% goes for the real product, while 90% is paid for the privilege to recruit and get higher commissions – definitely pyramid-like.
RED FLAG #2: Regulator Warnings
Thankfully, KaratBars didn’t go unnoticed by some of the regulator agencies. For example, in 2014, the Canadian financial authority, AMF, issued a public warning about KaratBars International:
“Affiliates are lured by the possibility of earning large payouts, from the KaratBars plans and gold products purchased by referrals. If you believe you’ve been defrauded through investment in KaratBars, we urge you to contact the AMF”.
As a result, in 2016, KaratBars was convicted in a court trial and was fined. Meanwhile, the Dutch AMF also issued a warning about KaratBars.
Also, the Bank of Namibia also labeled KaratBars a pyramid scheme in 2019, and they wrote:
“KaratBars business practice is not sustainable without the continuous recruitment of new participants who are eligible to pay a joining fee”.
You can read in more detail about all of these warnings here.
How Much Money Can You Make With KaratBars?
Well, the only way to find this out is to look at an official document provided by KaratBars which would show how much people are making with them on each level, on average.
Usually, it’s called an Income Disclosure Statement and every MLM company is obligated to make this information publicly available.
Unfortunately, I’m here to disappoint you by saying that I wasn’t able to find such a document from KaratBars. This raises another red flag for me. If KaratBars business opportunity was so great and easy to make a lot of money, why wouldn’t they share the real numbers?
Perhaps, the answer is because the figures aren’t that encouraging. The lack of an Income Disclosure Statement makes me believe that KaratBars is another MLM company where if the money is made, it’s only on the top of the pyramid. While the rest of the people are only losing money or earning pennies.
The Good and The Bad
#1. Valuable Product
Gold is one of the precious metals that had a great demand at all times. It’s known for 2.800 years and it represents a good and stable form of investment that protects your money from inflation.
#2. Free to Get Started
If you still wanna try your fortune selling gold, you can do so with KaratBars for free, using their affiliate program.
#3. A Number of Industry Organisations Stand Behind KaratBars
KaratBars is registered with WTO (World Trade Organisation, and LBMA (London Bullion Market Association).
It also governed by the World Gold Council, and it’s endorsed by the Vatican, the USA, and the British Government.
#1. Regulators Warnings
Like I’ve said earlier in this post, there were several instances when regulators around the world called KaratBars a pyramid scheme.
#2. Overpriced Product
This could serve as a real impediment for you to sell KaratBars gold since people could find better pricing for the same quality.
#3. No Income Disclosure Statement
KaratBars doesn’t provide a publicly available Income Disclosure Statement so there’s no chance to find out how much people are making with them, on average.
My Final Opinion About KaratBars + A Better Alternative
KaratBars refuses to recognize itself as an MLM company when it actually is. Instead, they call themselves an e-commerce company with an affiliate program.
I believe it’s logical since a lot of people try to stay away from MLMs nowadays and thus, they try to not get people scared upfront but warm them up by the idea of great earning potential until they got your money.
There are too many red flags and too many “too good to be true” claims that’s why I’m super suspicious about KaratBars’ business opportunity.
This is a conclusion I have come to based on my own research, and you can come to your own, as always.
I’m not saying that this is a straight-up scam, however, I have little confidence that this company is legit and able to deliver its own promises.
If you want a proven method to make money, I’d suggest looking into blogging.
There’s no risk associated as in the case of KaratBars or many other MLMs, and you don’t rely on the efforts of other people to make money – these are just a few things why I love this method!
If you want to give it a try but feel like don’t know where to start, don’t worry as you have me right by your side!
This entire website was created to help you learn how to make passive income online so trust me, you are in the right hands 🙂
First of all, I recommend starting out where I did it myself, and this will not cost you a penny!
Inside, you’ll find a lot of super-useful marketing tools that will help you make your dreams come true: 24/7 support, keyword research tool, affiliate programs research tool, and even website hosting is included!
If you feel like you’d need more info about how this business model works, simply click the red button below:
If You Don’t Want To Waste Anymore Time On MLMs,
See My #1 Recommended Way of Making Money Online:
Here you have it, my friend! I hope you’ve enjoyed reading my KaratBars Review and it was a useful spend of time.
I would love to hear your thoughts about KaratBars business opportunity, please leave them in the comments section down below. If you have any questions, I’ll be glad to help if I can!
Wish you a wonderful and productive week, and I’ll talk to you within my next post very soon!