Is Lyoness A Scam? – Facts And Proofs Revealed!
There have been many people calling Lyoness a scam in the recent years and it didn’t stop.
However, there are also quite a lot of people who appear to be very happy and contented with Lyoness. Whether they are paid affiliates of Lyoness or genuine persons making money with the company, they’re out there.
Well in my opinion, Lyoness is not a scam. There are certain perks of joining this company, one of which is getting shopping discounts and making a few extra cash. However, in some instances, many people are taken for a ride and lose money as a result.
Now, I’m not asking you to believe me without further research. Therefore, I encourage you to spend a couple of minutes to read this updated Lyoness review so you can decide for your self.
In here, I will go into details how much money you can hope to make with Lyoness and how you can avoid losing money in this company.
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What Is Lyoness
Lyoness is an online shopping platform that uses a multi-level marketing business model. It resembles another MLM company called Shopping Sherlock.
Lyoness was established in Austria by Hubert Freidl, Iwan J. Ackermann, Max Meienberg and Uwe Proch in 2003.
Before we proceed, let me clarify that Lyoness is a trademark for a group of companies and corporations.
Different brands are associated with and managed by the Lyoness, including the Cashback World, Cashback Solutions, and Lyconet.
How Does Lyoness Work
Lyoness offers several benefits for Consumers (online shoppers) and Merchants. But for this Lyoness review, I will focus on the Consumers side.
As an online shopper that is a member of Lyoness, you can get a 1% up to 5% cashback reward whenever you shop online in one of Lyoness’ affiliated brands and merchants.
You will also earn “Shopping Points” every time you purchase an item from their tie-up stores. You can use these Shopping Points for deals exclusive to Lyoness members such as cash bonus or discounts.
On top of personal discounts, you can also earn money every time your recruit and their recruits will shop online. But more on this in a moment.
While I am writing this Lyoness review, the company claim to have more than 130K partner merchants worldwide.
Cost To Join Lyoness
For online shoppers, Lyoness offers a free membership similar to what GPT sites offers. However as a free member, your will only get a set of benefits which I will discuss below.
If you want to become a premium member, Lyoness offers a couple of upsells and yes, you need to pay money.
There are some people on the Internet that says they spent more than $3,000 to get a premium member status with Lyoness hoping to get better perks, bonuses, and privileges.
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Lyoness Compensation Plan
The Lyoness MLM business model comes to play in the “Friendship Bonus” program.
But the Friendship Bonus program looks a lot like how affiliate marketing works rather than the typical MLM compensation plans.
While most MLM companies compensate its members every time they bring new people on, Lyoness’ Friendship Bonus won’t pay you whenever you recruit someone.
However, recruitment is still necessary as you will receive a 0.5% commission from the purchases made by the people you have referred to Lyoness, and another 0.5% over the purchases made by the people they brought in.
Let’s be honest, this doesn’t look so bad, right?
These benefits are even great, considering it is free to become a Lyoness member. You will get a chance to earn more money if you are a premium member.
But don’t get too excited because you might go full 180 real quick once I reveal why many people call Lyoness a scam.
But before that, this video will explain the entire Lyoness compensation plan.
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The Ugly Truth About The Lyoness
There are many valid reasons why people are calling Lyoness a scam. Let’s take a look at each of them.
#1 Expensive Products
One of the complaints by Lyoness members is that the products offered by the company’s partnered merchants are way too expensive.
What’s the point of getting a $5 cashback for a $100 product when the same item is sold for only $20 in non-Lyoness partner outlets. Right?
#2 Pay To Play System
It is true that you can become a member of Lyoness for free however, to take full advantage of the Lyoness compensation plan, you will have no choice but to upgrade your membership status.
#3 Most People Don’t Make Money
From a Lyoness income disclosure statement, the average Lyoness member in the United States receives a gross annual commission of approximately $275. That’s only $23 per month.
If you think that’s bad. Wait till you hear this!
The same document states that 46% of the Lyoness members make $0 in commissions.
Some of them even lose Money when you take into account the average annual expenditures while doing the business. And what if those people are premium members?
To make matters worse, similar figures can be said based on a separate Lyoness income disclosure for the Lyoness affiliates residing in Canada.
With these numbers, it’s no wonder many people are calling Lyoness a scam. But I would love to hear your opinion.
Do you think Lyoness is a scam after all? Is it a worthy investment in your opinion?
And if Lyoness affiliates are reading this, can you pitch why people should join your company?
Feel free to use the comment section below.
#4 Tons Of Negative Lyoness Reviews
There are a vast number of people calling Lyoness a scam. Just do a quick Google search, and you will land on Lyoness review like the one below.
Even other review sites share the same opinions too!
My Story: How I Earned A Six-Figure Income From Home Without Paying Thousands Of Dollars. Yes, You Can Too!
And while we’re talking about the company’s reputation, let’s take a look at how Lyoness is doing outside the US and Canada.
Is Lyoness Illegal In Other Countries
While Lyoness proudly claim that they are operating in more than 40 countries, I bet this number will soon drop as legal cases were filed against Lyoness worldwide.
Italy
In January 2019, Italy’s Competition Authority (AGCM) ruled that the Lyoness cashback formula is an unfair and a deceptive commercial practice.
The AGCM further explained that such a thing constitutes a pyramid scheme according to the Italian Consumer Code. A penalty of €3.2M (~$3.6M) against the company was imposed.
Germany
The public prosecutor’s office Cologne has initiated a preliminary investigation against the Lyoness Germany in August of 2018.
Proceedings are still ongoing as I am writing this Lyoness review.
Norway
The (Norway) Lottery Authority has concluded that Lyoness is an illegal pyramid-based conversion system as of June 2018.
Lyoness operations are now prohibited in Norway.
Australia
In Australia, Lyoness was also accused of being a pyramid scheme in 2015. The case was dismissed later on.
Similar cases are up against Lyoness in other countries such as Poland and even in Austria, the birthplace of the company.
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Is Lyoness A Scam
The accusation that Lyoness is a scam has been the topic of multiple debates, both offline and online, for a while now.
Clearly, there are varying opinions on whether Lyoness is a scam or not. I believe the answer to this question depends on how you define a scam yourself.
You can look at it the same way as the Green Rush. While the hemp consumption is considered legal in the US, Canada and other countries, some territories still considered it a crime.
The same thing applies to Lyoness in my opinion.
While many countries already banned the operation of Lyoness, the company still operates freely in the US and Canada. And while Lyoness is considered a pyramid scheme in other countries, some authorities think otherwise.
For example, the Federal Court of Australia has found that Lyoness is not a pyramid scheme.
How Not To Lose Money With Lyoness
Learn the business opportunity that you are getting yourself into.
Remember, it is free to become a Lyoness member, so if you stick to the free membership, you can continue to reap the benefits without losing anything. The trade of would be you can only expect to make a few dollars.
It is clear that for anyone to make a substantial income with Lyoness, you will have to upgrade your membership to premium and convince your recruits to do the same, which will also convince their recruits and the recruits of their recruits.
The people calling Lyoness a scam are actually the ones hoping to earn more than a few bucks of cash backs and shopping points, so they choose to invest money and become a premium member. If that is the direction you are going, be very careful!
There are Lyoness affiliates have spent more than $3,000 for this business opportunity and was all in vain.
No matter how the company sugarcoats its, making money with Lyoness is not easy.
And a company using a multi-level marketing business model without products is a dangerous investment because you are likely getting yourself in a pyramiding scheme.
Now based on all the information I’ve just shared with you, Is Lyoness a scam in your opinion or just an innovative platform misunderstood?
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Should You Join Lyoness
It is not my place to tell you what to do with your time and money however, I have some suggestions if you’d hear me out.
Before you join Lyoness, make sure that the platform is useful to you. For starters, check which merchants are partnering with Lyoness and whether you are a regular consumer for those. That way, you can maximize your cashback and shopping points even as a free member.
For you who are planning to become a premium member of Lyoness, remember that most people are not making money with Lyoness. There are even those who lose money in the process.
And if you feel that building and managing a team of online shoppers is your calling, then you should learn this program.
It is a powerful strategy that allowed many network marketers to build their network marketing business, find the right people to work with, and eventually became successful.
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Lyoness Business Alternative
Meanwhile, if you are looking for another way to make money online other than getting involved in MLM and a possible pyramid scheme, I know of a business program that is less risky than investing hundreds (and even thousands) of dollars.
This online business program has helped me get where I am today.
I didn’t find success in my previous MLM companies like Lyoness; however, I did manage to make a six-figure income from home with this program and eventually, I was able to finally quit my job!
The same thing could happen to you too! You can read My Humble Story Here.
Thank you for taking the time to read this Lyoness review. I am hoping that you found the answers that you were looking for.
If you think this is useful, kindly share this to the people you know.
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Until here, and I wish you the best in your future endeavors.
Your pal,
Jack
