Karatbars International GMBH is a company that sells small gold bars and gift items made of gold.
Unlike other MLM companies, Karatbars is unique because it mainly deals in gold products.
Although Karatbars does not explicitly call itself an MLM company, they operate like one and prefer to be seen as an e-commerce company with an affiliate program.
When most people think of MLM, they think of selling products to friends and family and holding house “parties.”
An MLM requires you to buy a product or service to meet legal requirements. However, Karatbars does not require you to buy anything at all, only to recommend a product purchase for your own financial security.
Karatbars International headquarters and logistics center are in Stuttgart, Germany. It’s in charge of support, marketing, customer and partner communication, order execution, and delivery. The headquarters also coordinates the establishment of new countries across Europe.
Karatbars provides consumers with an appealing and affordable way to purchase 999.9 pure gold bullion, as well as gold merchandising, collector’s items, and gift cards.
However, they are DAMN complicated to work with and all orders take FOREVER to be run.
Not to mention that you stand no chance of actually earning recurring income.
MLMs like Karatbars are a bit of a mixed bag. They CAN be a legitimate way to make money, but some have a reputation for literally ruining people’s lives – so it’s important to know what you’re getting, since each one is unique.
Like most of my readers, you were probably introduced to this one via a friend or some influencer you trust online.
And it makes sense why so many people recommend them:
Making money outside of a 9-5 can be… life-changing, to say the least.
So in this article, I want to help you explore two things:
- If MLMs are actually a worthwhile business to pursue
- If Karatbars is a worthwhile MLM
Before that, I want to clear the air on something.
There are A LOT of people out there who bash all MLMs in any form. However, I’m not one of those people.
Instead, I want to genuinely educate you about them so you can make an informed decision on how to proceed.
If you’re unfamiliar with what MLMs actually do:
They’re businesses in which you pay money to a company for the ability to sell their products.
Sometimes the products are actually kind of decent (I still remember my mom throwing Pampered Chef parties when I was younger).
Other times the products are really poorly made and come with a high price tag.
Typically, the only way to really make money is to get people (mostly friends & family) to sign up with you for a recurring subscription.
If the product is 100% legitimate & valuable, it’s entirely possible to get people to sign-up and continue paying you.
If the product is subpar, you’ll usually burn those bridges kinda quickly and end up with $0 coming in each month.
The biggest issue I’ve seen is that this puts significant stress on your personal relationships, as you’re reliant on selling to your “network.”
Think about it: if you KNEW that every time your friend Sally called, she’d be trying to sell you on one of her products… you’d eventually stop answering Sally’s calls.
Now, this doesn’t mean MLMs are outright bad… it means you need to know what type of MLM you’re getting yourself into before you sign up.
Again, some MLMs provide real value to people, but MOST don’t – so in this article, I’m going to explore the case with Karatbars.
But before that, I want to ask you a question: what if there was a way to build actual recurring, semi-passive income?
Income that:
- Doesn’t have inventory
- Doesn’t make you sell to your friends & family
- Doesn’t force you to recruit people onto your “team”
Something that you could make anywhere from $2,000 – $10,000 consistently, month after month?
A stream of income that you can build as high (or low) as you feel like building it?
If that sounds interesting, you might want to think about using the Digital Rental Method.
If you wanna see what Karatbars looks like on the inside, keep reading.
Karatbars Company And Founder History
Karatbars International GmbH was established by its CEO, Harald Seiz, in Stuttgart, Germany, in 2011. Over the years, he has successfully expanded the company internationally.
Dr. Harald Seiz was born in Calw near Stuttgart in 1963 and has been a prosperous financial and investment advisor since 1983.
In 2016, he was granted senatorial honors by Hathe Federal Association for Economic Development and Foreign Trade (BWA).
Mr. Seiz is a driven entrepreneur with extensive knowledge of global financial markets. He has been devoting himself to a topic that some consider outdated: gold as a viable investment since 2016.
This concept has since become visible in Karatbars International’s product portfolio, with the following philosophy:
Gold should be accessible to as many people as possible as a stable, long-term investment.
What Does Karatbars Sell?
Karatbars sells gold bars and gift items with a high purity of 24 karats and 999.9% gold. They offer these products in different gold bullion denominations:
- One gram
- 2.5 grams
- 5 grams
They are fully insured and delivered to the customer’s address in a timely and dependable manner. These gold bars are produced in Turkey.
The individual gold bars bear a trademark symbol as well as the imprint of the quality assurance firm. For added security, hologram stickers are provided on the reverse side of the plastic card.
Karatbats sells Classic cards too and it’s one of their most popular products. Classic cards are one-gram gold pieces fixed to a high-quality card.
Karatbars is particular about small-sized or light-weighted objects because they are easier to transact with and serve as a potential means of exchange and payment.
The Collector Karatbar is another popular product from the Karatbars group. Karatbars are cards that have gold nuggets embedded in them.
Collect Karatbars are for the most zealous collectors. Special collections include those named after famous athletes, historical events, and celebrities. Some are also limited editions, and their prices will undoubtedly rise over time.
If you want to exchange your gold for cash, you can do so with Karatbars at their “daily guaranteed buyback price” or at any registered K-Exchange center.
What Are KCB Coins? Is KCB A Good Investment?
Karatgold Coin (KBC) is a cryptocurrency that operates on a blockchain platform. Its primary purpose is to serve as an electronic payment method that is widely accepted and can be used by anyone who values gold as a traditional, secure, and stable medium of exchange.
Mixed Reactions On KBC Investment
KBC Coin is considered a good investment option due to its gold backing. However, some analysts believe it may not be a suitable long-term investment (over a year) due to its low market capitalization.
The standard market capitalization also makes the KBC price vulnerable to manipulation, which increases the risk for investors who choose to invest in it.
As a result, the analogy and prediction that it will replace or surpass Bitcoin may not occur in the near future.
With a low price and a small market capitalization, the KBC coin may crash during the next bear market cycle. As a result, if current market conditions continue, it may not reach $1 within a year.
On the other hand, proponents claim that investing in KBC coins has a high chance of yielding a profit. Based on the coin’s daily rates over the last six months, the cryptocurrency’s character is wavy. As a result, there is a good chance that the KBC coin will reach near-all-time highs in the future.
Because it is a form of cryptonym gold, the KaratGold Coin meets global needs. Each coin represents a fictitious weight of gold, and a specific number of KBC coins can be exchanged for physical gold. In the future, it will also be exchangeable for all fiat currencies and cryptos worldwide.
The KBC Coin is cost-effective, borderless, and secure, and it can be transferred in real-time. Its value is predictable because gold has a long history, and everyone understands that it is stable. As a result, the KaratGold Coin may become widely accepted around the world. As a result, the cryptocurrency may achieve a higher market capitalization in the future, making it a good investment today.
Is Karatbars A Pyramid Scheme?
In Namibia:
Karatbars International has been accused of being a pyramid scheme by the primary financial regulator of Namibia, the Bank of Namibia (BON).
Following an investigation into Karatbars International, the BON issued a media release stating that it had found evidence that the company was operating as a pyramid scheme.
Pyramid schemes are illegal in Namibia, according to the Banking Institutions Act.
Because Karatbars International is a pyramid scheme, the NOB has ordered the company and its promoters to stop doing business in Namibia.
In South Africa:
In a surprising move, the Financial Sector Conduct Authority (FSCA) of South Africa has decided to withdraw its attempts to regulate Karatbars International.
The FSCA had initially issued a securities fraud warning against the company in November 2019. Karatbars informed the FSCA that it markets two products in South Africa: gold bullion and a crypto-asset that would be introduced later.
Instead of investigating Karatbars’ claims, which would have quickly revealed KBC’s promotion dates back to at least July 2018, the FSCA appears to have taken the company’s claim at face value.
The FSCA stated in an update published on December 13, 2019, that neither of Karatbars’ products falls under the definition of a financial product or service.
As a result, they are not registered with the FSCA and fall outside of their jurisdiction.
After allegations that it was luring customers into a pyramid scheme, a German watchdog ordered Karatbars to shut down its blockchain-based business in 2019.
In Canada:
Karatbars International received a securities fraud warning from the Ontario Securities Commission in July 2020.
According to the OSC’s warning, Karatbars International and Karatbit (including Karatbit Exchange) are not registered or recognized in Ontario, Canada, to engage in the business of trading in securities or the facilitation of securities transactions (including buying and selling securities).
Karatbars International was previously warned of securities fraud by Canada’s AMF in March 2014. In 2016, an outright ban was issued as a result of this.
The OSC’s most recent warning appears to reiterate that Karatbars International is still illegally soliciting investment from Canadian citizens.
What Happened To Karatbars International?
After receiving several regulatory warnings from countries such as Namibia, Germany, South Africa, and New Zealand over the past few years, Karatbars International announced in September 2020 that it would rebrand itself as Freebay.
The reboot comes in the aftermath of the disastrous 2019 KaratGold Coin Ponzi coin launch, which resulted in widespread investor losses.
V999, a new Ponzi token for Karatbars to defraud investors, is now available on Freebay. The KaratGold Coin (KBC) has been discontinued.
Can You Make Money In Karatbars Compensation Plan?
Karatbars offers various avenues to earn income through its compensation plan:
Package Commission
Package commissions are paid to distributors for each new package sold to a distributor they recruited.
- Silver package commission: 60 EUR (approximately $70).
- Bronze package commission: 150 EUR (approximately $170).
- Gold package commission: 300 EUR (approximately $340).
Unilevel Commission
Unilevel commissions are paid to distributors as a percentage of the money spent by distributors they recruited below them based on their rank.
A distributor’s unilevel commission rate is 0.5%, with a maximum commission rate of 5.5 %.
Binary Commission
Through a binary compensation format, distributors are offered binary commissions on what their downline spent.
These are distributed generationally after each leg has sold a certain number of units.
Worldwide Turnover Bonus
It’s unclear how this pool is distributed to distributors, and their compensation plan doesn’t help explain it.
It appears to be a percentage bonus pool made up of 95 cents for every gram of gold sold by Karatbars.
Gold Pool
This pool is made up of 1% of Karatbars International’s lump-sum gold purchase, which I believe includes both package purchases and gold purchases worth more than 50 EUR ($55).
A distributor must have three unilevel legs that generate at least 9000 points each to be eligible for the gold pool.
The points are then divided by 1000 to determine the number of Gold Pool shares that distributors are eligible for.
Karatbars’ compensation plan is 25 pages long and extremely complex. I can only imagine the information that a sales representative or distributor would need to share in order to close the deal.
Sounds complicated, right?
Damn right, it does…and that’s because it is.
Money shouldn’t be this difficult to make, though, and it sure as hell shouldn’t be this hard to figure out how much you’re rightfully owed!
How Much Does It Cost To Join Karatbars?
Becoming a member of Karatbars is free; however, to qualify for commissions, you need to purchase one of their packages—the cost of each package increases based on the products, content, and bonus features you choose.
- Bronze Package – $135
- Silver Package – $350
- Gold Package – $800
- VIP Package – $2,000
The most significant difference between the packages is the amount of money you’ll earn per cycle. You’ll earn around $10 with the bronze package. You’ll make more than $100 with the VIP.
Is Karatbars International Still Banned In Canada?
Based on the available information, Karatbars are still prohibited in Canada.
In July 2020, the Ontario Securities Commission issued a securities fraud warning against Karatbars International.
Is It Worth Investing In Karatbars Gold Bars?
According to Investopedia, the precious metal gold is a good investment.
It claims that gold (1) does a good job of holding its value over time, especially when the US dollar falls in value (as it did in 2008), (2) is one of the best ways to protect against inflation, (3) is virtually immune to political problems, and (4) demand for gold is only going to rise.
By offering gold bars in very small denominations, Karatbars makes gold investment accessible to almost everyone.
Whereas most people begin with an ounce, Karatbars allows you to purchase as little as one gram of gold.
The Karatbars rate for one gram of 24K gold, on the other hand, is around 60 EUR or $66 USD. What is the current market price for 24K gold? The price per gram is closer to $40 USD.
Karatbars is adding an additional 50% to their gold prices. In other words, there’s no reason to buy gold from Karatbars on a regular basis. The only reason to buy gold from Karatbars is to become a member of their affiliate program.
The issue here is that Karatbars lacks a solid product.
They have a smokescreen that conceals the fact that Karatbars MLM is nothing more than an affiliate scheme in which a new recruit passes money up to the founders, who then distribute a percentage of the profit to an older affiliate.
This puts this MLM company on the verge of becoming a pyramid scheme.
Are There Alternatives To Karatbars?
Yes, there are plenty of MLM companies to choose from if you want to pursue this business model. Here are just a few:
Is Karatbars A Scam?
So, time for the $1,000,000 question: is Karatbars a scam?
No, not technically. They aren’t going to run off with your money and not give you what you paid for. It’s 100% possible to make money with this program.
That being said, it’s not nearly as simple as they want you to think it is.
There’s A LOT of work to be done upfront, and no guarantee that you’ll be successful. The commissions are also fairly small.
Don’t get me wrong, I’m all for doing hard work now, so that I can reap the benefits later.
But if you’re going to work really hard for 3 months, and your reward is a $100 check… it’s not really a great opportunity.
If I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.
I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each produce $500-$2,000 checks every single month afterward (AKA recurring income).
And the cool part is that you can do it in a lot less time than 3 months (I personally did it in my first 2 weeks of using the Digital Rental Method).
Read Our In Depth Breakdown Of The Top 5 OppMLM Courses For 2024
Unlike with MLMs, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle.”
All you need is an internet connection.
Some of my friends are Digital Rental Method that run their 6-figure businesses from:
- Camping trips at national parks
- Beachfront in Hawaii
- On the road in a camper van (with a pet pig!)
They focus on living an enjoyable life first, and focus on income second. All thanks to this program.
They can take weeks or months off, and money keeps rolling in.
Living happily is the top priority.
If the thought of living perpetually at your dream vacation spot interests you, using the Digital Rental Method might be for you!
What Is My Top Recommendation For Making Money Online In 2024?
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
I’ve also been on the other side of old friends trying to sell me their fancy new MLM products.
That being said, my #1 recommendation for making real money online is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie, or you’ve been around the block before but have never had that “big win” to propel you forward, using the Digital Rental Method is for you.
Why?
Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
Ownership & Control: With MLMs, you don’t really “own” anything – everything belongs to them.
If you read the contracts, they can kick you out or change your commission at any time (it’s happened in a few high-profile MLM cases recently).
Why pour your soul into a business that could be taken away from you at the drop of a dime?
With the Digital Rental Method, you literally own all of the assets, which means you have ultimate control.
Big Margins: With MLMs, you’re often going to have really slim margins. That means you need to have a VERY large network to make serious money. This usually entails spending A LOT of money on ads and other methods for recruiting members.
using the Digital Rental Method, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your profit increases, and the effort put into creating the next property decreases.
Best-case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with an MLM, you would need to sell twice as much inventory. And I can guarantee you, that’s a lot harder than a few clicks & a phone call.
You’re Helping REAL People: My biggest gripe with MLMs is that you’re likely going to ruin your personal relationships.
The MLM may have convinced you that you’re actually helping people, but it’s often not really true.
But With the Digital Rental Method, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their biz would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other MLM programs like Karatbars, which might make you money 12 months from now.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.
