Lyoness USA – Find Out What You’re Signing Up For!
Thinking about signing up for the Lyoness (a.k.a Lyconet) program?
There is an enormous amount of conflicting opinions about this company, the compensation plan, and whether it is a scam. And perhaps an even larger amount of controversy about crazy amounts of money lost over time spent as a member in the MLM company.
In this review, let’s take a look at the information and evidence, and decide for ourselves!
What Is Lyoness and Who Is It For?
Fasten your seat belts for this one, folks.
If you have been looking into Multi-Level Marketing (MLM), you may have come across one of the three titles or websites that fall under the “Lyoness” company’s business structure – Cash Back World, Lyoness, or Lyconet.
Yes, that’s right. Three different names.
I had a difficult time even discerning which was which and where I needed to be in my research.
Nevertheless, I prevailed. My brain is now fried, though. And you will soon see why 🙂
Lyoness is a MLM company.
Customers have the option of either remaining a customer and receiving cashback for purchases made at certain merchants and retailers either online or locally, or they may become Marketers by joining in the Lyconet MLM plan.
I’ll discuss this plan in detail in just a bit.
Established in 2003, Lyoness is active across 40 countries, and claims to have over 5 million members as of 2016.
They are basically a shopping community that offers cashback discounts through the over 120,000 merchants that are partnered with the company.
Here are the two ways that you can participate as a member:
1. As a Customer
You are not signing up to participate in MLM. You simply want to receive a little cashback for purchases made. And I do mean A LITTLE.
You can receive up to 5% cashback, depending on the merchant.
There are also what is called Shopping Points. These are also received when you make a purchase, and can be redeemed for coupons on products purchased later on. Each merchant lists what percentage of cash back, and how many shopping points you will receive when you purchase from them. See photo below:
When your cashback points hit the required cap of $10, you are paid the money directly to your bank account.
The shopping points that you acquire can be redeemed for coupons like the ones below:
There is also the option to purchase eVouchers, which are basically the equivalent of a gift card, and you will also receive the cashback and shopping points for purchasing these.
This is about as deep as it goes when you decide to be a customer.
2. Becoming a Marketer
With this option, you are choosing to be a partner in the Lyconet Marketing Program, and it is free to sign up.
As an Independent Lyconet Marketer, you have signed the agreement and are carrying out the policies and procedures.
You are now labeled one of two things:
a. A Shopping Adviser: You have not yet reached one of the career levels
b. A Premium Marketer
AND, you are operating on two very confusing forms of commission:
a. Balance Program: You are paid out weekly based your own purchases and on the number of units your customers and marketers make each week.
b. Career Program: You are paid out monthly based on your own purchases and what your shopping network makes each month.
How Commission Works
Though the company claims that it is not a pyramid scheme, here is an example diagram of what your network would possibly look like:
In order to earn a commission, you would need to have people sign up under you (they need to put your name in the “recommender” box when they sign up.
They then, need to be purchasing things to earn shopping points, and they need to be signing up people under them to further elevate their status and yours….and so on and so forth down the line.
Commission is solely based on shopping points, not cashback amounts.
To even begin earning a commission, you need to have generated at least 50 shopping points in the current week, AS WELL AS THE PREVIOUS 5 WEEKS, and then you will be eligible.
The 50 shopping points could come from your own purchases, or from a combination or yours and the people in your down line.
The problem that I am seeing here, is that based on the average number of shopping points that you get for each purchase, this is an enormous amount to have to come up with when you are first beginning.
Also…let’s just acknowledge that there is no actual product being sold to customers by yourself or your down line.
You are just directing people in the direction of products.
Below is an example of a Career Program commission schedule:
And here are the career levels:
There are more rules and regulations for commissions, and you can read them here.
Tools And Support?
I found no way to contact the higher ups in this company.
On the customer website, there is a number that you can text if you need help signing up, but that’s about it.
The Lyconet Website basically has a “Signup” or “Login” button, and it has forms that you can download that explain the policy and user agreement, and the compensation plan.
The plan is pret-ty confusing and it would be very helpful to have someone who knows what they are doing explain it so that you are at least starting off on the right foot.
As far as tools that are available, you would use the incentives of cashback with purchases made and possible commissions upon signing up to be a marketer.
There was no sign of any training, and even after thoroughly evaluating the compensation plan, I wasn’t any more informed on how to actually reach out to people, or how to market.
I’m sorry to say that I also could not get a hold of any positive reviews. Real ones, that is.
Um…I suppose that if you would like to sign up for the program it is fairly simple. There is sign up button on the website that allows you to become a marketer fairly quickly.
And if you choose to simply remain a customer and buy from the list of merchants without attempting the marketing, the process is user-friendly enough.
You can choose which vendor you would like to shop from, and proceed easily from that point.
What’s the Final Word?
As a customer, without any plans of marketing the company and receiving commissions, it might not be terrible.
You can receive a little cash back on each purchase and just cut it off there.
As a MLM….run.
I can’t say it’s a scam, but I have seen MULTIPLE reviews of enraged people who claim to have lost thousands of dollars buying into this.
The commissions are very unrealistic to obtain, and you could spend years trying to reach a high level of success.
On top of that, there is no real training available, and with no actual product to promote, you might get yourself into serious financial trouble.
If you want to make a good amount of money online, do it the right way. Don’t waste your time.
I hope this article has been helpful to you!
There are real ways to make money online!
Have you been a member of Lycon.com? Leave your input below!
Wishing you much success in your online business journey!