Buyer Beware - Numis Network

There has been lots of excitement around Numis Network lately.  The company and its distributors make a great case for why numismatic coins themselves are a legitimate product.  The issue that remains, can the holy grail of MLM be met...meaning can you create a long term residual income with Numis Network?  I would say that is shaky at best.

Just about every gold and silver MLM company as failed.  Numis Network is not the same as many of these others. They are not simply selling a substitute form of U.S. currency like selling silver dollars.

With that said, go ahead and go online and you'll almost always find a lower price. The price of Numis Network coins is a bit on the high side but almost always within what the market asks.  My research shows an average online price for a 2010 MS70 to be around $93 while Numis Network offers them for $99. They're selling something that has very little margin and has a product that can be purchased at the same or lower price elsewhere.

Here's the bigger issue.  The pay plan has to be based on something else since there is not a decent margin on these coins. That leaves their Fast Track Collector's Kit to generate commissions. Is this a legitimate stand alone item that really has value for a non-distributor.

The kit contains:

To carry, display and safeguard your coins you are provided a graded coin case.  These cases can be purchased retail for about $60 and are offered separately by Numis for $59.95.  Included in the kit is a MS70 Silver American Eagle which has a value in the $80-$100 range. Also included is a training system that will teach you about the industry of numismatic coins.  However, much of this training can be found online from various sources for free.  Of course you also become a member of the silver coin of the month club.

If you are into collecting coins them Numis is great.  The MLM business part, however, is another question.  The business is based on selling an overpriced starter kit that is only in existence to generate commissions.

The legality of Numis Network rests in the motive of buying these kits. Are people buying these because they want it and would have bought it anyway even if there were no opportunity to make money as a distributor? Or, are they buying these kits because they are part of the $495 to become an executive distributor?

It is clear that no matter how great some products or services are...they just aren't a fit for the MLM industry.  The coins have very little margin and add little to the pay plan. To compensate, Numis Network came up with the $325 Fast Track Kit.  That seems to be how they can afford the average payout of $200.

It is a big challenge to establish long term residual income when the main source of revenue is from the a one-time transaction. In order to make it, one must always be signing up new customers and distributors.  It just doesn't work to sell non-consumable products in MLM.  Even though there is $6 paid from the monthly coin sales in their binary plan it is tough.  This is because Numis Network is buying the coins on the low-end and selling them on the high end.

An issue that I'm not even going to touch is the ridiculous investment claims that some Numis Network distributors make.  Although the company is doing a decent job attempting to rein this in they have their hands full.  This is a subject for an entire new post.

Will a lawyer ever question the value of the $325 kit and the motive for purchasing it?  What will they find?  I suppose only time will tell but it certainly raises a red flag.

For coin collectors, Numis Network may be a great company to align yourself with.  With that said, if you are wanting to generate a long term residual income then you should do your own homework and make an educated decision.