Merlim Network Review: Mobile apps with pyramid recruitment
Merlim Network was founded in 2014 and is the MLM division of Magitek International.
Magitek International is a mobile app developer based out of out of Colombia. The company also has a presence in Brazil, Ecuador and Nigeria.
Heading up Magitek International and Merlim Network is Fredy Morelo (right), who serves as CEO of both companies.
Neither Merlim Network or Magitek International provide any information about Morelo’s corporate history on their website.
Possibly due to language barriers, I was unable to research any information myself. From the looks of it though, Merlim Network appears to be Morelo’s first MLM venture.
Read on for a full review of the Merlim Network MLM opportunity.
The Merlim Network Product Line
Merlim Network market apps created by Magitek International.
- Merlim Toons – “a utility app that allows you to send feelings, actions and moods while you interact with friends and family through social networking sites or apps” ($5)
- Merlim Master – “created for and by entrepreneurs of the network marketing industry as a management tool to allow you to have all the necessary options to administrate your business in this industry” ($50)
- Merlim Cardboard – “a portable device which allows you to experience virtual reality from your mobile phone” ($25)
- Go Hender VR – VR puzzle game ($25)
- VR Tek – a “portable VR visualization device” ($70)
- Joystick Bluetooth – “this Bluetooth controller allows you to interact with the virtual environment” ($15)
Merlim Network also market a range of mobile games, as well as an app development service for nightlife venues, hotels and eateries ($1 to 10).
Merlim Ads is an inhouse ad network used to display advertising to users of Magitek International’s apps.
- 1000 impressions plus banner design = $40 a month
- 2000 impressions plus banner design = $70 a month
- 3000 impressions plus banner design = $100 a month
- 4000 impressions plus banner design = $130 a month
The Merlim Network compensation plan mentions online tournaments, which keys can be purchased for.
An activation Key or T-KEY grants a user or Affiliate access to an Online Tournament in which participants may win cash prizes by winning on the first three places by the end of the tournament.
No further information about the nature of these tournaments is provided.
The Merlim Network Compensation Plan
The Merlim Network pays affiliates to market Magitek International apps.
Merlim Network affiliates are also directly and residually paid when they recruit new affiliates.
Merlim Network Affiliate Ranks
There are six affiliate ranks within the Merlim Network compensation plan.
Along with their respective qualification criteria they are as follows:
- Wood Cane – recruit at least one affiliate
- Bronze Staff – recruit at least three affiliates and generate an accumulated 800 binary team points
- Silver Staff – recruit at least four affiliates (three of which must be ranked Bronze Staff or higher) and generate an accumulated 6000 binary team points
- Golden Staff – recruit at least five affiliates (three of which must be ranked Silver Staff or higher) and generate an accumulated 18,750 binary team points
- Platinum Sword – recruit at least six affiliates (three of which must be ranked Golden Staff or higher and two Silver Staff or higher) and generate an accumulated 56,250 binary team points
- Diamond Crown – maintain at least six recruited affiliates (three of which must be ranked Platinum Sword or higher and two Golden Staff or higher) and generate an accumulated 150,000 binary team points
Commission Earnings Cap
Merlim Network affiliates are subject to the following weekly commission earnings cap:
- Wood Cane – $300 a week
- Bronze Staff – $3200 a week
- Silver Staff – $6000 a week
- Golden Staff – $12,000 a week
- Platinum Sword – $24,000 a week
- Diamond Crown – $48,000 a week
Direct App Commissions
Merlim Network affiliates earn commissions when Magitek apps are purchased by retail customers and recruited affiliates.
- general app commission is 50%
- app development for businesses is 20%
- Merlim Ads advertising purchases pay a 20% commission
Residual App Commissions
Residual app commissions are paid out via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Merlim Nework cap payable unilevel levels at five, with affiliates paid a percentage of app sales generated by their unilevel team as follows:
- general app commission rate is 5%
- Merlim Ads commission rate is 2%
Merlim Network affiliates earn a 10% commission when they recruit new affiliates.
Residual Recruitment Commissions
Residual Recruitment Commissions are paid out to Silver Staff and higher ranked affiliates, via the same unilevel compensation structure as Residual App Commissions.
When a new Merlim Network affiliate is recruited, the following points are generated:
- Premium Bundle affiliate = 80 points
- Gold Bundle affiliate = 140 points
- Platinum Bundle affiliate = 200 points
Commissions are paid out as a percentage of these generated points as follows:
- level 1 (personally recruited affiliates) – 7%
- level 2 – 5%
- level 3 – 3%
Residual Binary Commissions
Residual binary commissions are paid out via a binary compensation structure.
A binary compensation structure places a Merlim Network affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary houses two positions. The second level of the binary team is generated by splitting each of these two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level. Note there are no restrictions as to how deep a binary team grows.
Positions in the binary team are filled via direct and indirect recruitment of new Merlim Network affiliates.
Commissions are paid based on points generated by app purchases and affiliate recruitment:
- tournament keys – 3 points
- sale of Merlim Toons – 3 points
- sale of Merlim Master – 25 points
- sale of Go Hender game – 13 points
- sale of business apps – 100 points
- Merlim Ads sales – 15 to 60 points
- recruit a Premium Bundle affiliate – 80 points
- recruit a Gold Bundle affiliate – 140 points
- recruit a Platinum Bundle affiliate – 200 points
At the end of each day generated points are tallied up on both sides of the binary team.
Commissions are paid out on matched volume as follows:
- 80 points matched on both sides of the binary team = $40 commission
- 140 points matched on both sides of the binary team = $70 commission (only payable to Gold and Platinum Bundle affiliates)
- 200 points matched on both sides of the binary team = $100 commission (only payable to Platinum Bundle affiliates)
The largest amount of points matchable is calculated first, with the lower matches used to match leftover volume amounts.
Note that the first volume match each day is not paid out on.
Unmatched points are rolled over and the new points are tallied up again the next day.
The Leadership Bonus is a 7% bonus pool made up of Merlim Network’s company-wide revenue.
The Leadership Bonus pool is split into four smaller pools, which correspond to Merlim Network affiliate ranks as follows:
- Silver Staff – 1% pool
- Golden Staff – 1.5% pool
- Platinum Sword – 2% pool
- Diamond Crown – 2.5% pool
Merlim Network affiliates earn a share in the pool that corresponds with their respective affiliate rank.
Joining Merlim Network
Merlim Network affiliate membership is tied to the purchase of an affiliate bundle:
- Premium Bundle – $330
- Gold Bundle – $530
- Platinum Bundle – $930
Each Bundle comes with an assortment of Magitek International app licenses.
Without affiliate recruitment commissions, the legitimacy of Merlim Network would hinge on whether or not the majority of company-wide revenue was derived from retail app purchases or affiliate membership fees.
With affiliate recruitment commissions Merlim Network is operating as a pyramid scheme, so how much retail revenue is being generated is thus irrelevant.
That said, I find it hard to believe there’s any significant retail app purchase activity going on.
Merlim Network is technology platform created by Magitek and which allows you to benefit from internet and new technology trends.
Merlim Network’s apps and products are very much of the “me too” variety, in that they’re just imitation copies of existing ideas. Merlim Cardboard ($25) and Google Cardboard ($15) is probably the most obvious example.
That Magitek International apps are bundled with Merlim Network affiliate packages is telling. There’s no need for it, other than to force revenue through the company to pay commissions out with.
Merlim Network’s tournaments with cash prizes also sound a lot like gambling (specific information on tournaments is conspicuously absent), which may trigger regulatory issues later down the track.
Nowhere in the Merlim Network compensation plan are retail commissions relevant, outside of the base commission rates paid on sales.
The vast majority of the Merlim Network compensation plan is geared toward paying a package fee and then recruiting new affiliates who do the same.
All of this together strongly suggests that affiliate fees are the primary source of revenue being generated within Merlim Network.
As stated previously, this makes Merlim Network a pyramid scheme.
Once recruitment of new affiliates dries up, Merlim Network loses its primary revenue source and the scheme collapses.
A 10% recruitment commission rate plus residuals combined with non-retail viable overpriced “me too” apps ($5 for an emoji pack?), translates into the majority of Merlim Network affiliates losing money.