Myths and Truths About Hybrid MLM Plan



MLM, or multi-level marketing (MLM), is a business model in which goods or services are sold through a network of distributors. This marketing strategy is often referred to as direct sales or network marketing.

Based on its structure, there are different types of MLM business plans — traditional (unilevel MLM plan and binary MLM plan) and hybrid MLM plan.

Even though it is one of the oldest methods of selling products at multi-levels, it is often misunderstood by people. They dismiss the idea of MLM marketing as not worth their time and money. You can also use the best MLM Software.

People are of the notion that even if they work hard, the profit is earned by the company and not them.

But that’s not true. It is one of the best revenue-driven models in which both the company and participants get benefitted based on their sales turnover.

In this article, I am going to bust all the common myths associated with the hybrid MLM plan. But before that, let’s first understand the Hybrid MLM plan in brief.

What Is the Hybrid MLM Plan?

The hybrid MLM plan is simply the amalgamation of two or more traditional business models. It is one of the most preferred methods as it helps derive the growth and development of business services.

In this method, every person involved is a distributor, and there is no sales leader.

Debunking Myths Surrounding Around Hybrid MLM Plan

Like every other business model, there are strengths and weaknesses in every plan. But weaknesses are often viewed as misconceptions. Let’s clear some of them today.

Myth#1: Multi-Level Marketing Pyramid Scheme Isn’t Legal

Companies employing binary or binary-hybrid plans are all considered safe and legal.

Permissible MLM business plans and illegal pyramid schemes have a slight difference. In an illegal pyramid structure, no product or service is involved, and companies make use of your money to recruit the downlines.

They simply want you to make more distributors without sharing the profit with you.

But in its all legal form, the main theme is to sell quality products or services to the customers and earn some commission rates for the distributors. The income is based on the volume of sales of the entire team and not on the number of recruits.

In plain terms, the legality of an MLM company has nothing to do with the compensation structure but with the motivation for buying the products.

Myth #2: Multi-Level Marketing Utilizes People

This MLM myth indicates that only the people in top positions (or in other words, people who get in early) make money. Not true.

Apart from CEO or business owners, even distributors and downlines can make a profit. But it requires time and effort. It might be true that the downlines might have to put into extra effort and get trained to earn more money.

In the MLM business model, compensation structure varies from company to company. However, the basic idea is that you earn on the number of sales you make. People have often misunderstood the structure of network marketing.

It depends on how well you promote your product or service to earn a profit. Just having more recruits in your team will not guarantee you success. Thus, it also has nothing to do with whether you joined recently or have been a member for years now.

Myth #3: Multi-Level Marketing Has a Saturation Point

This is one of the biggest misconceptions associated with MLM for a long.

You might often hear people mentioning that network marketing will reach a saturation point, and there will be no new customers. Don’t listen to them.

For starters, every day new babies are born and someone turns 18. Thus, they are added to the pool of new potential network marketers.

Besides, almost every household has refrigerators, smartphones, TVs in their house. Yet, every day new models are introduced into the market and people buy. Why?

Customers are always looking for an upgraded version of what they already have. They want high-quality products. As soon as a new phone is launched in the market, consumers want to buy the new model.

In conclusion, reaching a saturation point in referral marketing or network marketing is impossible unless people stop making new babies.

Myth #4: Multi-Level Marketing Is not a Feasible Option

Did you know that direct selling has almost doubled since 2011 in India alone? The ASSOCHAM reports that the market size was INR12,620 crores in 2016, and it is estimated to grow at 4.8% CAGR to reach INR15,930 crores in 2021.

These numbers speak for themselves that multi-level marketing can work. However, your success or failure depends on the time and effort you put in. Without any hard work, you are bound to fail and make no profit.

So it is wrong to generalize that MLM business will not work out for anyone. Hard work is the key here and any other business, for that matter.

Myth #5: Multi-Level Marketing Doesn’t Make You Rich

Another absurd myth surrounding the hybrid MLM plan is that you can never get rich through network marketing.

If you look at it, being rich is a relative concept. Some people consider themselves rich when they are able to pay their debt and also spend time with their kids and family at home.

It is rather about achieving one’s goals. Anyhow, it all boils down to your effort and time. You need to be focused and trained about the products and services to start earning profits.

Myth #6: Multi-Level Marketing Sells Overpriced Products

It is only half the truth. People like to believe that marketers dealing with MLM plans generally sell overpriced products.

On the contrary, MLM business is all about selling high-quality products. If customers like the products on the first try, only then they will reorder them. Prices may be slightly high to meet the high-quality ends, but it is completely worth it.

Besides, there are times the price gets inflated when the demand is more and the supply is less comparatively.

Wrap Up

This article was aimed to help you isolate all the common MLM myths. Since now you know the truth, it might help you to join the network marketing and start earning. You should know about the Best MLM Plans for your Multi Level Marketing Business for the betterment of your business.

MLM business requires constant effort and time if you want to be successful. Besides, it depends on your marketing skills as well. If you promote more often, the chances of getting more sales will increase.

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