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.
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.
My Story: How I Earned A Six-Figure Income From Home Without Paying Thousands Of Dollars. Yes, You Can Too!
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.
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.
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.
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.
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?
While You’re Here: Check Out My #1 Online Business Recommendation
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.
Before You Leave: Check Out My #1 Online Business Recommendation
Until here, and I wish you the best in your future endeavors.
This information is severely outdated. I just attended a presentation about this today and none of what you have in this article is what was presented to me.
Shoppers join this program for free, and just use the app while they are shopping at their normal places (as long as they are a part of the network). They receive anywhere from 1%-9% cash back on all their purchases. On top of that, for every $50 spent in network stores they earn 1 Shopper Point. That Shopper Point is redeemable for $10 in savings for all stores.
Marketers can also start for free. And they will be upgraded to a commission-capable account after spending $5,000 with the networked stores within 6 months. Most of us spend much more than that on our usual purchases like gas & groceries in 6 months. Marketers can choose to pay $299 to become a full account immediately, and start earning money off of all the customers in their network. It is NOT a necessity though. And the $299 is given back to you in marketing materials, website, training platform, and more. None of the $299 is paid out to the person referring you.
Lastly businesses can take part in two ways. For $299 they can become a listed merchant. The app promotes shopping within network. And all merchants will show up locally for shoppers who are using the app in their area. The 2nd way businesses can join is by paying $599, and then they are able to register shoppers to join the network for free, and earn 1% of all the purchases of those shoppers no matter where they shop. Businesses will set their commission rate of between 2%-10% for all sales done by networked shoppers. Cashback World takes 1% of that, and pays the rest in the form of cash back & shopping points to the customers.
I literally signed up as a shopper this past Thursday evening. I have spent about $25 & used the app. I have received $.50 in cash back, and 1 Shopper Point. So for $25 spent, I have basically $10.50 given back.
I can’t speak to how it used to work, but this is how it works now.
Now BANNED in Italy and Norway!
From January, 16, 2019, any activity linked to Lyoness (Cashback World) will be illegal.
Italian Regulators (AGCM) find Cashback World/ Lyoness PYRAMID practices and impose €3,2million penalty.
Following a boom in local investor recruitment, Lyoness caught the attention of Italian authorities.
Italy’s Competition Authority (AGCM) announced a preliminary investigation into Lyoness in September 2018.
The investigation concluded in late December, resulting in Lyoness being declared a PYRAMID SCHEME.
As per AGCM’s investigation,
For those unfamiliar with Lyoness’ business model, the company uses a cashback ruse to mask pyramid recruitment. Those recruited invest in units, which pay a fixed ROI once enough new investments have been made.
Of particular note is that the AGCM investigation revealed cashback shopping within Lyoness only accounted for about 16% of Lyoness’ revenue in Italy.
The remaining 84% was sourced from direct investment in shopping units.
Now it is time for other countries to step up to the plate and do the same and get this Ponzi shut down.
Regulators ‘press release:
(Open in Chrome to translate)
More information at:
The company is absolutely legitemate and i totaly aprove it
…although i didnt make anything to be fair xD…
More members = more merchants = more cash back… bcs they’ll fight for bigger base of people
I worked as leader 5 years ago
Bunch of us (me and my friends) with me being first to even make them know about it
TL/DT We were all 18 20 years old without any income thus no shopping power and invited so thr same *shopping power like literaly necesities food gas water, trips now and then
the card is FREE, it actually costed me 1,5$ to buy for someone to get in, well for reasone for someone not to give everyone cards without any information about it and make 1000000 of non active members
And it does what it tells
You can pay your bills with it if there are like electric distributors who parred with LY
And even get shopping points to use for up to amazing discounts like literaly free car service
Premium was costy around 300$ to 3000$ which would be given back to you through everyday shopping and would give you premiums*(anything different tge price the person who is telling you is scamming you directly, not lyoness, but that person on lyoness behalfe) . It was kinda pyramidic but rly it wasnt, you could make more than your upline if he has 10000 people and you have those 9999
He would earn measily 0,5% from your shopping and 0,5% from your direct invitations (5-7 people, from everyone else below… nothing, “don’t be a parasite”) which considering monthly shopping at LY merchants is small income, depends on spender
You literaly have to aproach this with understanding
If there are very few members in your area then there will be very few merchants and thus very low cashback%… bigger the better
So aproach it like something that has future IF YOU MAKE IT HAPPEN (if not, virtualy someone else will) just like you would have to do with your own business
Disclaimer: this is not full information
Thanks for sharing your point of view Matija! Truly appreciate it!
Lyoness got 10,000 out of me, stupid as that was. I invested for each of my family member and others to help them, who in time were to repay me when the lyoness promises came through. Tell me Jack is this a place I can get help if there is any. http://www.fromhold.net I was brought in here in Oregon at the peak of it… Big seminars, lots of people giving the high Hitler sign to praise this horrible man and this company… They all added to the flame, then I too became a backer without full understanding, none of us had understanding only promises and assumptions those in front of us knew what they were talking about. Follow the leader into the ditch.
Hi Doc Wiese,
I’ve browse the website that you’ve provided, and on first look, it seems legit.
My advice is to contact them, and see what they can offer.
But, don’t fall into the trap of them asking more money from you.
If they are able to make claims foe thousands of Lyoness members, they should be able to recover their legal fees from Lyoness directly and not from you.
Just try contacting them and see what they can offer you. Be just be on the guard.
Hope this helps.
A man name ERIK WESGAARD who might change his name, is from Norway now living in turkey ripped me off bad. Hes doing a pay it forward program that he will do all the recruiting for you, all you have to do is invest in whatever scam he’s doing. If he doesn’t deliver by a certain time he claims he will give you all your money back, needless to say he pulled this on me and bailed. He will find any excuse to delay the process such as, his recruiter that he hired is being slow and Needs to talk to him, or even claims he has cancer and can’t contact you due to being in the hospital. He’s a scam artist, stay away from him.
Thanks for sharing this information!
Is Erik related to Lyoness in any way?
Since this review is about Lyoness, it would help to know that Erik is a promoter of the company.
Looking forward to hear from you.
Lyoness proven to be a PYRAMID Scheme in NORWAY.
The Lottery Authority in Norway is a government agency responsible for illegal marketing, illegal gaming and pyramids.
Finally Lyoness has been found an illegal pyramid system and this is just the start.
The ACCC in Australia messed up the case and Lyoness won. The die hards in Lyoness then went on to use the ACCC to claim that Lyoness was legitimate and convinced many Australians to invest in the ponzi scheme of units which hasn’t paid. To read the full story: https://www.businessforhome.org/2018/01/lyoness-and-lyconet-a-pyramid-scheme-in-norway/
If you live in Australia and have invested money into Lyoness then it’s time you tell your story to the media. If enough people do this, Lyoness will be exposed on national TV and the government will have to act.
Take the time to fill out this form, stick to the facts.https://www.9now.com.au/a-current-affair/2017/extras/tell-us-your-story/form/contact-us
Thanks for sharing this Ozzy.
It look like they are very popular in EU
Besr opportunity in the world. Where can you earn off the shopping of other people without paying any money. Free to join no fees. Pays every Tuesday. Where can you get paid at Wal-Mart without stock and get paid off other shopping at Wal-Mart for Free or any place.
Sure it’s a recruitment scheme- all network marketing schemes grow by word of mouth. Lyoness payment scheme is generous- when you’ve grown it- they have never missed paying me what’s due to me, on time every time- and that includes my team. If embraced properly their Loyalty Rewards programme for SME’s is really fantastic value to help grow their business, save them money and develop another income stream for them.
My only gripe against them is their inability to communicate properly with their people but this may only be in my part of the world.