Gold Investors and Multi-Level Marketing: You Can Do Better

Despite being an industry that is centuries old (if not thousands of years old), new innovations are being made in the precious metals market all the time.  Sales models and techniques are changing, and some companies are adapting the multi-level marketing model to try and make it work here.  The levels of success have been varied, as you can imagine.

Here’s the thing – there are some organizations that do not require any exorbitant sign-up fees or memberships, and that’s what I mean when I say “you can do better.”  So, if you’re looking to sell gold as you invest in it, you might find this article helpful.  I’ll be covering some of the things to be on the watch for in terms of positives and negatives with joining these sorts of companies and the returns that you might see from them.

Not all “MLM”s are made equal, after all.  They’re not all bad, but some have clear pitfalls that we can do our best to avoid.  Personally, before I make a firm decision on whether or not I want to invest my money into an organization or join them to sell a product (whether it’s anything from makeup to gold), I prefer to look at some reviews of them first.

Now, in terms of what reviews to look at, that’s where things do get a little bit more complicated.  There are so many “fake” ones out there that learning to tell the difference between a sponsorship and honesty is kind of a struggle.  However, there are some examples to look at of bloggers and writers who we can believe in.

Can You Make Money Selling Precious Metals in the First Place?

Before we go any further here, I think we should tackle this one important question: is it realistic to expect to make a profit from selling precious metals in the first place?  Of course, the answer is yes.  We probably wouldn’t be here otherwise, right?

You can learn more about some of the specifics on this page,, if you’re curious.  However, the main thing to note is that you’re pretty much always going to have to put some money into this market before you can earn any back.

Obviously, you have to purchase a stock of precious metals before you can sell them, at least in most cases.  This isn’t a bad thing.  Rather, it’s just something to be aware of before you decide to start so that you’re not blindsided by it.

That being said, though, there is certainly evidence that plenty of folks are able to earn tons of money by selling gold.  It’s a style of investment, still, it just looks different in practice than some of the other methods in this market specifically.  More often than not, we only hear about the buying part as opposed to the selling.

Is it Worth it to Sell for a Company?

The next thing for us to tackle is whether or not it’s worth it to sell precious metals for another company.  Now, I’m not talking about a “traditional” hire of a salesperson working for a set wage.  Instead, I’m referring to multi-level marketing organizations, which seem to be cropping up more and more these days.

Unfortunately, the answer to our big question here is “it depends.”  You see, not all MLMs are made equal, and some are probably a rip-off compared to others.  Let me explain.

Brief Aside: What is Multi-Level Marketing?

A common misconception is that an MLM is the same thing as a pyramid scheme.  While the business models are relatively similar to some extent, there is a very key distinction.  Pyramid schemes do not actually deliver on the products that they claim to sell and are thus a complete scam.  Despite the fact that most MLMs do have a sort of pyramid-looking structure in terms of their power dynamics, they do actually sell real products, and their members are able to make money from doing so (rather than only being able to profit by bringing more members in).

While it might seem a bit odd, there are MLMs that are dedicated to selling precious metals.  As you can see in this review about 7k metals,  not all of them are of the same caliber.  Requiring a membership fee each month on top of a sign-on fee is probably not the best that you can find, as that blogger notes.

The way that an MLM functions is by using person-to-person sales – so, rather than you going to a website and making a purchase there, you are buying directly from a member of the company.  It’s effective in the sense that it brings a more personal touch to sales that seems to have been lost as of late.  There are plenty of very successful and very famous companies with this model, so don’t count them out just because of the bad reputation that they sometimes receive.

How is this Related to Gold Investing?

If you’re still a little bit confused as to how this is connected to investing in precious metals, I don’t blame you.  Admittedly, it does seem a bit convoluted on the surface.  However, since you’re in the very business of selling gold (though silver, platinum, and palladium are also options), you are naturally a part of the overall market.

Additionally, many of the companies that sell using the MLM model have additional perks to take advantage of for their members, including access to a wide stock of the metals that they can add to their own personal investment accounts or storage.  Some of them even offer things like jewelry for sale.

As you learn how to sell them properly, it also gives you a better understanding of what to expect in your own financial assets.  This can give you somewhat of an advantage over other borrowers, since you will know where to source your precious metals, when the best time to buy them is, and when you should liquidate them.  Insider knowledge is a big deal.

How Can You Know if it’s Worth it, then?

I’ll be the first to admit that it can be really hard to figure out which MLMs are not really worth your time and money versus which ones are, especially when it comes to the ones that have you sell precious metals.  Sure, we can look at guides like this one,, but that doesn’t tell the full story on an individual organization.

This takes me back to my point in the introduction – reading online reviews like some of the ones that I’ve shared above is really important if you want to dive into this method of investing in precious metals.  You don’t have to settle for a company that charges you monthly fees.  There are other options that offer similar perks for less cost.

Remember, though, you probably are going to have to pay some sort of sign-up cost no matter what – that’s sort of how these MLMs work.  Like I said, that doesn’t make them bad, it’s just something to keep in mind.  I think for precious metals especially, it makes a lot of sense.  The product itself is rather costly, so entrusting new salespeople with it isn’t always going to be safe without that small fee.

Depending on the group that you sign on with, you may be selling different precious metals products.  A common one that I’ve noticed is selling coins that contain the necessary percentage of precious metals that allow them to be placed in an IRA (or just collections, really).  However, there are plenty of other options there as well.

The important thing is that you are able to find a company with a sales model that you personally jive with.  Otherwise, you’ll probably find it quite hard to actually sell the products that you’re supposed to be offering with the MLM.

Don’t worry if this style of investing in gold doesn’t really appeal to you.  The traditional methods like buying bullion, coins, or stock for companies in the market are all still perfectly viable as well.  My recommendation?  Explore until you find something that works for you.

I firmly believe that investing is something that is very personal to each person who starts doing it.  With all the intricacies involved, it’s hard to say that one way is better than another – it’s all very subjective, depending on personal preferences of the individual investor.  For anyone who’s still uncertain about whether or not they’d want to work with a multi-level marketing company to get involved with the precious metals market, I understand.

Certainly, it’s not an easy decision.  Given that you’ll probably have to make those upfront payments just to get signed on, it’s no wonder that so many people are hesitant.  However, if you’re able to find one that gets raving reviews from customers and members alike (along with financial experts, of course), then you may just find that it’s worth it!

Related Articles