MLM Explained – The Ultimate Truth!

MLM - pyramid

Hi there people, I looked for MLM related information on the internet when they idea appealed to me, but was fairly disappointed because no one gave the complete explanation of what MLM actually is and how it can help masses to earn good amount of money if they opted for right companies to work with and invest in. Also, it is not clear anywhere that which company looks promising when it comes to MLM investment. So, after lots of research and comparison, I am putting forth this article which is going to shed light on what MLM actually is, its history etc. and how you can earn lots of money by working with the right company. I hope it helps you.

MLM Explained – The Ultimate Truth!

What is MLM?


According to Investopedia: “MLM (Multilevel Marketing) A strategy that some direct sales companies use to encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits’ sales. The recruits are known as a distributor’s “Downline.” All distributors also make money through direct sales of products to customers.”

Confusing, Well let me explain it a bit more. MLM is basically a strategy that allows the companies to expand in steps. This is how it works, when you join an MLM company you can earn money in two ways:

Direct sales of their products. You will earn the commission from what you sell.

You recruit people. The more your recruit, the more commission you earn.

The 2nd point is actually more detailed and I will be explaining it shortly. So if you are still confused about it, don’t worry and keep reading on. Because by the end of this article, you will have full knowledge of how a Multilevel Marketing company works.

MLM History:

I am sure everyone wants to know how all this Multilevel Marketing started. Exact history is not known but this is how modern MLM came into being:

Back in the 1930′ there was a man by the name of Carl Rehnborg. Whilst in China in between 1917 and 1927 he was first introduced to the benefits of using supplements in the diet and the additional health benefit that it gave people.

When Carl got back to America he set up a company called The California Vitamin Company. In 1939 he re-branded the company as Nutrilite. It wasn’t until 6 years later that Carl invented the multi level marketing strategy to help boost the sales of his company.

At this point of time, there was no system in place to recognize and reward the distributors for their efforts in recruiting other Distributors for the company. With the realization dawning on the Distributors and the Company, the system of paying 2 percent bonus to the sponsor Distributor on the sales that were achieved by the Distributor and the network that he sponsored or built was introduced. This then led to the birth of modern day system of ‘Pyramid Selling’.

Nutrilite achieved unprecedented growth and profits in the following decades thanks to the fast growing network not only in the US but across other continents as well.

The big turning point came when two new consultants Jay Van Andel and Rich DeVos became distributors of the Nutrilite products and noticed the real power of this business modal as sales were growing at an exponential rate. In early 1960s, these two men broke away to build their own company which grew to be the biggest in MLM business world over called ‘Amway’. This company initially made a foray into House hold and cleaning products and went on to buy Nutralite Company and merge the food supplement products into its portfolio.

Yet another distributor named Dr. Forrest C Shaklee too broke away from Nutralite at the same period that ‘Amway’ took birth and found the new Company named Shaklee dealing with Nature’s sunshine products.

Today there are several hundreds of Companies that are practicing Pyramid selling or Multi Level Selling and compensation methods to sell their products. Numerous brands such as Avon, Tupperware, Electrolux, Discovery Toys, Herbal life, Kleenez, Oriflame, and Reliv etc. have been highly successful in growing their business globally using this concept of sales.

Though there are a lot of criticisms and charges levied against this system and companies both by the industry watchers as well as the trade and Governments, the figures reveal that the concept has been successful in the growth of more businesses in recent years. The Direct Selling Association of US reported that about 25 % of its members were engaging in MLM channel of selling in the 1990s whereas by the year 2009, it was found that over 94% of the members had been practicing this method contributing to about 97% of the total Direct Sales.


MLM Trends

There have been three major trends developing over recent years in MLM, each of which has had a deep impact on the way we do business – and the results we get. Sometimes, those results can turn out to be less than desirable.

Trend # 1: Technology

Technological progress in two specific areas has transformed MLM over the past decade, and will continue to do so in the foreseeable future.

  • Computer technology
  • Telecommunications technology

The impact of computers – hardware, software and networking – have revolutionized the nature and operation of network marketing. Automated record keeping, reward calculation and processing (including electronic funds transfer), desktop publishing, database creation and maintenance, mailing and more have made the four essential components of successful networking more accessible, affordable and more effective.

Those four components are:

  • Communicating with your distributors.
  • Training your distributors.
  • Recognizing your distributors.
  • Supporting and encouraging your distributors.

Traditionally, there have been three serious obstacles to these: Time, distance, cost.

Computer and telecommunications technology have all but eliminated these three obstacles. Nowhere has this been more evident than the Internet.

All the developments in telecommunications – voice mail, fax, fax on demand, conference calls, e-mail, auto responders, etc. – have changed the nature and speed of evolution of network marketing, and the rate of change is accelerating.

Technology by itself is neither good nor bad. It depends on what we do with it, and why and how we do it. Just as there have been major benefits for us all from these technological changes, there are major risks as well.

The main one, from the standpoint of network marketing, is that we risk losing the personal touch so vital to creating and maintaining personal relationships. Automation is fine for improving efficiency. But efficiency is not the same thing as effectiveness. We need to be aware of this risk, and avoid the tendency that often develops in connection with technology… impersonal “processing” rather than personal interaction.

Trend # 2: Appeasement

This trend has been at the heart of most developments in reward plans over nearly two decades. What it boils down to is this… companies (that is, the people who own and run MLM companies) have figured that if they make rewards easier to obtain, they’ll attract more distributors.

The results of this trend are easy to recognize.

  • Larger networks producing lower leverage results

Most people dislike the idea of “selling”. So part of the trend has been to appease this dislike by telling people they don’t have to sell – just buy.
The result is huge networks of consumers – single customers who buy only for themselves at wholesale prices.

  • The illusion of progress through controlled group structure

Most network marketers find it harder to get new distributors than new customers. So, having “solved” that problem by simply recruiting customers, some companies add to the “smoke and mirrors” strategy by artificially creating an illusion of achievement and progress through the use of contrived network structures.

This gives rise to claims that the system builds your downline for you.

This has led to enhancements such as “infinity bonuses”, which are, in reality, nothing remotely like infinite, and “re-entry certificates”, which allow you to sponsor yourself downline when your matrix is full.

Trend # 3: Restructuring of workplace

People are continuously realizing that job market is shrinking day by day, which has caused an alarm in the younger job seeking generation. And as a result, there is a growing crowd of people — well-educated, skilled and experienced, who are increasingly considering network marketing as a suitable option for them. Many, if not most, of these professionals would have hardly thought about joining MLM until the job market started shrinking.

Once they adapt their existing expertise to the unique nature of the only Fourth Generation business system yet to evolve — MLM — they generally build their business faster than ever. They thrive in the dynamic, co-operative, synergistic, interdependent, relationship-based environment of this most enlightened, egalitarian form of free enterprise. These are the people now shaping the future of network marketing for the twenty-first century.

These are the major trends in recent times. Other so-called trends are usually nothing more than manifestations of these two, or combinations of the two.

Why should you join MLM?

Here are the 5 main reasons you should join MLM for:

  1. Entrepreneurial freedom:  I know you’ve heard it before, but it’s true. You can quite literally fire your boss and run your own business with low overhead costs. You may want to gradually build up to this point by starting out on a part-time basis. But if you’re so inclined, you can also pursue direct sales full time.
  2. Unlimited earnings potential: Unlike in the corporate world where your rise in rank may hinge on anything from your talent and tenure to your temperament, MLMs allow you to determine your own worth. No salary caps here. Decide what you want to earn then go for it.
  3. Personal development: MLMs are big on helping you become your best. Personal development ensures that you become a more effective entrepreneur, and it promotes continued company growth. From books and videos to conferences and one-on-one coaching, you have the tools you need to tap in to your full potential.
  4. Continuous training: Much like personal development, training is always accessible. No more filling out a training request and waiting for your boss to approve it based on budget. Any and everything you need to know to be successful in your business is at your fingertips.
  5. Camaraderie: There’s nothing like connecting with people who share your vision. As the old saying goes, “Iron sharpens iron.” By joining an MLM, you will align yourself with like-minded people who can identify with your struggles and support your success.

Which Company To Invest In And How You Can Earn Money Successfully:

MLM - pyramid

Now this is the main question that everyone asks, and with the hundreds of MLM companies out there, I don’t blame anyone because most of those companies are frauds or crash soon after they start. Why? Lack of leadership! So what you want is a company that has a dedicated leadership that are hell bent on making their program work and in return, make you wealthy!

Also, you have to make sure that you know about the latest interest of the youth of the world because that’s going to your major market. And since the majority of the young people is inclined towards mobile and gaming industry, that’s where you should be looking!

So, just to help you guys out, I have found an MLM company that works using the mobile and gaming industry; Game Loot Network.

Now what is this Game Loot Network and how does it work? I will be explaining it all here so you don’t have to go around wasting your time and looking on fake reviews.

Game Loot Network is a mobile revolutionary MLM company that offers you the luxury of earning money by playing the games provided by Game Loot Studios. They offer games for smart phones! Now who wouldn’t want to earn money while doing what most people find awesome – playing games! I personally think this is a pretty cool idea. And people working for Game Loot Network are actually making money.

There are 2 ways you can earn money/win stuff in Game Loot Network:

  1. Play their games, earn Tokens, convert those tokens into Bids and use those Bids on cool real life items on their rewards portal:
  2. You use their MLM approach.

I am going to go in detail of their MLM approach and how it works, for you. If you can attain a vast distribution list you are in the game!

The Compensation Plan of Game Loot Network:

The Game Loot Network compensation plan pays affiliates when they recruit new affiliates. Payment is done when they spend money each month on buying Token packages that suit them. Also, commissions are paid out on recruit of a new affiliate as well as on a monthly required minimum spend.

All the affiliated members of MLM Company Game Loot Network are required to spend some money each month to qualify and stay qualified for commissions.

Affiliate Ranks Of Game Loot Network:

  1. Premium Gamer – you need to sign up as a Game Loot Network affiliate, spend at least $10 a month and recruit and maintain at least one new affiliate member.
  2. Game Ambassador – Pay one time Game Ambassador Fee ($29.95) OR sign up with a Fun 500 or higher package ($100). Or spend at least $50 a month and recruit and maintain at least one other Game Ambassador or higher ranked affiliate.
  3. Level 1 Ambassador – spend at least $50 a month AND recruit and maintain at least three Game Ambassadors or higher ranked affiliates!
  4. Level 2 Ambassador – spend at least $50 a month and recruit and maintain at least six Game Ambassadors or higher ranked affiliates.
  5. Level 3 Ambassador – spend at least $100 a month, recruit and maintain at least ten Game Ambassadors or higher ranked affiliates and have a downline spending at least $5000 in sales each month.
  6. Level 4 Ambassador – spend at least $100 a month, recruit and maintain at least ten Game Ambassadors or higher ranked affiliates and have a downline spending at least $20,000 in sales each month.
  7. Level 5 Ambassador – spend at least $100 a month, recruit and maintain at least ten Game Ambassadors or higher ranked affiliates and have at least five Level 4 Ambassadors or higher ranked affiliates in your downline (one in the first ten levels of separate unilevel legs).
  8. Level 6 Ambassador – spend at least $100 a month, recruit and maintain at least ten Game Ambassadors or higher ranked affiliates. Have at least five Level 5 Ambassadors or higher ranked affiliates in your downline (one in the first ten levels of separate unilevel legs).

How You Can Earn Money Using Game Loot Network:


You can earn money in Game Loot Network by the following six ways:

  1. 10% Fast Start Bonuses:

If you are a Qualified Premium Gamer or a Game Ambassador of this MLM company, you will be paid a 10% Fast Start Bonus on every Fun Pack purchased by each of the Premium Gamers, you referred within the first 30 days from the registration date.

  1. 20% Matching Bonuses:

The Matching Bonus of Game Loot Studios pays the affiliates a percentage match of unilevel commissions and Coded Bonuses paid out to personally recruited affiliates. Once a Game Loot Network affiliate qualifies as the Level 2 Ambassador or any higher rank, they get eligible and are paid a 20% Matching Bonus.

Not sure what Unilevel commissions and Coded Bonuses are? Read on to find out!

3. Coded Infinity Bonuses:

It is a commission that is paid out on the purchase of token packages by an affiliate’s recruited downline, within the first 30 days of their registration at Game Loot Network; an MLM company.

Note: Only Game Ambassador Affiliates can qualify for this bonus who have purchased a Fun 500 package ($100) or higher.

Here is an easy explanation of how much what level Ambassador can earn!

  • Level 1 Ambassador = 15%.
  • Level 2 Ambassador = 30%.
  • Level 3 Ambassador = 35%.
  • Level 4 Ambassador = 40%.
  • Level 5 Ambassador = 45%.
  • Level 6 Ambassador – 50%.
  1. Unilevel Commissions:

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them at level 1.

When any of these level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.

Similarly, when any level 2 affiliates recruit new affiliates, they are placed on level 3 and the process continues. It is said to be an infinite process!

  1. Go Deep Bonuses:

Available to Level 4 Ambassadors or higher, the Go Deep Bonus pays an additional 1% bonus commission on every unilevel leg, starting from the 11th level onward.

The bonus depends on what generation you got. A generation is defined when another Level 4 Ambassador affiliate is found in any individual unilevel leg including the first ten levels.

NOTE: When you qualify for either the Level 5 or Level 6 Go Deep Bonuses, you also qualify the previous bonuses as well.

NOTE: If you have a Level 4, 5 or 6 Ambassador within the top 10 levels of any of your legs, these will count as one of your generations.

  1. Global Revenue Sharing Pools:

The Pool starts from Level 3 Ambassador. The Global Revenue Sharing Pool combines monthly affiliate fees and advertising revenue, paid out via five percentage bonus pools.

  • Level 3 Ambassador – 1% affiliate fees and 5% ad revenue.
  • Level 4 Ambassador – 1% affiliate fees and 5% ad revenue.
  • Level 5 Ambassador – 1% affiliate fees and 5% ad revenue.
  • Level 6 Ambassador – 1% affiliate fees and 5% ad revenue.
  • Founder Pool – 2% affiliate fees and 5% ad revenue.

NOTE: The Founders Pool rewarded affiliates who signed up before August 1st 2015 and recruited at least ten affiliates, five of which went on to recruit at least ten affiliates themselves.

Final Word:


Always go for something towards which the audience is easy to incline. That is why I have added Game Loot Network as a promising way to earn money using MLM techniques because games are played by youngsters and older people alike. Just go with the flow my people, and you will soon starting tons of money and be able to buy what you have always wanted!

For Star Wards fans: May the force always be with you!

Good luck!

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