HybridAdz Review: Auflo scheme fund feeder
A welcome message published on the HybridAdz website has the name “Deirdre L. McCormick” attached to it, credited as HybridAdz’s CEO. Outside of HybridAdz itself however, I was unable to find an MLM history for McCormick (either as an affiliate or executive).
The HybridAdz website domain (“hybridadz.com”) was registered on the 14th of August 2013 but the domain registration is set to private. Of note is that the HyrbidAdz domain uses the name servers of Auflo, which appears to be some sort of app marketplace with an attached MLM income opportunity.
Auflo launched in July 2013 with a “Tim Hays” (also goes by Timothy Hays) named as the owner of the scheme by affiliates on social media.
Auflo charged affiliates $2.40 for matrix positions and required a constant influx of new members to purchase positions to keep matrices cycling. Affiliates were charged $2.40 for a “subscription”, with each subscription generating a new matrix position each week.
On September 3rd Auflo attempted to launch a revenue sharing scheme, however the scheme collapsed and was shut down by the company on September 14th.
Explaining the emergence of HybridAdz, Hays sent out the following email to affiliates on September 7th:
Introducing our first white label website by Deirdre McCormick
Hybridadz was built using a similar structure to AUFLO, except that it has a SUPER FAST 2×2 with double re-entries!!! 5X FASTER! – LIGHTNING SPEED! – $1.00 DAILY Subscriptions”
Call me cynical but with their revenue-sharing scheme failing it appears Hays is in need of new funds to keep Auflo going, hence the launch of HybridAdz and the
script recycle “white label” cover story.
Read on for a full review of the HybridAdz MLM business opportunity.
The HybridAdz Product Line
HybridAdz has no retailable products or services. Instead, affiliates join HybridAdz and then purchase matrix positions in the company’s compensation plan.
Bundled with each matrix position purchased by affiliates are a series of advertising credits, which can be used to display advertising on
the HybridAdz website domain.
The HybridAdz Compensation Plan
The HybridAdz compensation plan revolves around affiliates buying positions in a series of four 2×2 matrix levels.
A 2×2 matrix places an affiliate’s purchased position at the top of the matrix, with six positions under it which need to be filled.
Hybrid Matrix charge affiliates a $1 a day subscription, which in effect is a mandatory daily purchase of a Bronze Matrix position (see below).
HybridAdz Bronze matrix costs $1 to enter and pays out $2 when it is full and a position cycles out. In addition to the $2 commission, another 2 positions are given to the affiliate and the process repeats itself.
Once an affiliate has cycled out of ten individual Bronze matrices, they are “upgraded” to the Silver Matrix level.
Entry into the Silver Matrix level is $10, paying out $20 when an affiliate cycles out. As before, an affiliate also receives two new Silver Matrix positions whenever an existing Silver Matrix position cycles out.
Once an affiliate has cycled out of ten individual Silver matrices, they are “upgraded” to the Gold Matrix level.
Entry into the Gold Matrix level is $100, paying out $200 when an affiliate cycles out. As before, an affiliate also receives two new Gold Matrix positions whenever an existing Gold Matrix position cycles out.
Once an affiliate has cycled out of ten individual Gold matrices, they are “upgraded” to the Platinum Matrix level.
Entry into the Platinum Matrix level is $1000, paying out $2000 when an affiliate cycles out. As before, an affiliate also receives two new Platinum Matrix positions whenever an existing Platinum Matrix positions cycles out.
For every Platinum Matrix position that cycles out, an affiliate is given two additional Platinum Matrix positions to start over with.
25% Commissions Withholding
Note that 25% of all cycle commissions paid out at the Bronze, Silver and Gold Matrix levels are withheld by HybridAdz and used to cover an affiliate’s level upgrade once they have cycled out at least ten times from a level.
An affiliate is only able to keep 100% of the cycle commission paid out at the Platinum Matrix level.
Affiliate membership to HybridAdz is free, however affiliates must purchase $1 Bronze Matrix position(s) if they wish to generate commissions.
The $1 a day affiliate subscription also essentially equates to an additional $30/$31 a month cost.
The simplest way to break down the HybridAdz compensation plan is to remember that for every $2000 Platinum cycle payment made to an affiliate, at least two thousand $1 positions had to have been purchased at the Bronze level.
Two thousand positions would assume a 1:1 money in and money out payout, however with some of deposited money from affiliates being paid out along the way, the actual dollar amount required to generate a single $2000 Platinum Matrix cycle commission is higher.
Whether 2000 affiliates purchase one $1 matrix position or one affiliate purchases 2000 positions, over time HybridAdz requires an exponentially increasing amount of $1 deposits to cover Platinum Matrix level payouts.
Which, let’s face it is the ultimate goal of an affiliate purchasing positions in HybridAdz.
The mandatory $1 daily injection of funds by affiliates will go some way to create movement in the lower matrices initially, but over time will just overwhelm the system width wise.
Don’t forget that $2000 or thereabouts also assumes a linear flow of money from a Bronze position to a Platinum position, which it is anything but.
Putting all of this together, the notion of a “white hat” offering of Auflo makes little sense. Auflo itself uses a similar multi-tiered matrix model to HybridAdz, with the main difference between cost per position and a weekly subscription over daily.
A “white label” re-branding would imply an identical business model and compensation plan being used by another company, which HybridAdz is clearly not.
What I believe we’re looking at here is rather a simple reboot attempt. This is even more probably upon consideration of Auflo’s short-lived and failed attempt at a revenue sharing scheme.
What tends to happen in matrix schemes is people buy in at the start and then sit around waiting for matrices to cycle themselves. Forcing everyone to buy one new position a day creates the illusion of matrix movement, but at the expense of those already participating rather than new money which is a requirement of matrix-based schemes.
Auflo itself launched only in July and seems to have wound down after two months. With the same multi-tier matrix compensation plan structure behind it, HybridAdz will no doubt pan out in a similar manner.