Is Lyoness a Scam?

lyoness-mainName:  Lyoness
Owners: Hubert Freidl

Bare Naked Scam rating: 3 Thumbs Down


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What is Lyoness and is it a Scam?

Lyoness is another Multi-level Marketing (MLM) company that is advertised as a business opportunity that has been making the round lately.

In this review, we’ll find out if Lyoness is a scam or if it’s a good legitimate opportunity that you can use to make some side-cash.

The company has been around for quite a long time, it was founded 2003 and it has undergone quite a few major changes since then.

It also resembles another company in the same MLM industry called Shopping Sherlock.

Currently, the company’s core product is a service called Cash Back which refunds a percentage of cash that is spent in their online stores.

They want you to believe that you can buy everything that you need from the company’s stores while receiving a little refund at the same time, in other words, saving cash.

Here’s how it works:

There’s only one problem with that picture, and we’ll get into it in the next section.

But first let’s talk about the compensation plan.

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The Compensation Plan

The idea is to purchase a membership and then recruit new people to the company to receive extra bonuses.

The bonuses vary depending on the number of people you recruit but the most common type of bonus is simply reward points and these points can be spent in their stores. You’ll also need to pay to become a member and this can be quite expensive depending on the type of membership you choose.

In other words, the idea is to recruit new people so you can continue shopping with the company and encourage other people to do the same too. You’ll receive a bonus every time someone under you makes a payment or purchases something from the company.

When you reach the $75 threshold, you’ll receive one of the five different types of accounting units. This threshold can be reached after you recruit 35 people. The entire compensation plan is rather complex, and a full detailed breakdown can be found here.

And, here is a 20 plus minutes long video which explain how the compensation plan works. Only if you are serious about the Lyoness business, you should screen through the entire video:

To get account units, there are three methods: down-payment, become a founding member, or shop on a daily basis. The down payment is the most expensive but the quickest, you’ll have to pay somewhere between $300 and $3,000.

In my opinion, this business opportunity is really not worth the price because it’s far too complex and nobody even understands how it works. It’s a little too expensive and I have heard quite a few horror stories from people who claim they lost thousands of dollars on this company.

A word of caution, don’t buy anything until you know exactly what it is that you’re getting!

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Cashback Royalty Card

The Cashback Royalty card works much like any other card, but you show it at Lyoness verified merchant’s cashiers, when you’re finished shopping. When you show the card, they’ll scan it, and reward you with cashback, usually around the 1% mark.

lyoness-cash-back-cardThis sounds good, but in reality it’s a little more complicated because most major stores are not Lyoness merchants. Instead, the Lyoness merchants are small and obscure stores that are usually far and few in-between. It sounds convenient, but really, it’s not.

But what about Walmart?

It’s true that some major department stores are Lyoness merchants. However, that doesn’t mean they’ll accept the card. In fact, Walmart will not accept your Lyoness card unless you click through the link on Lyoness’ website which is essentially an affiliate link to Walmart.

So what happens is that you buy something from Walmart through Lyoness and Lyoness earns a commission while rewarding you with a few cents in return. It’s pretty complicated but honestly anyone can become an affiliate for Walmart, so what Lyoness has done with this store chain is not that impressive.

Most of the registration flyers will contain this card, it’s a kind of recruitment tool that Lyoness members use to promote the company and its services.

Lyoness Pros:

Here are what I consider some Lyoness pros:

  • Cash-back service. It’s always nice to save a bit of cash when shopping online. I don’t shop online that much but I can see how some people might find it appealing!
  • Lyoness is actually not a scam. They deliver everything that they promise and the hype around the company is not as high as other multi-level marketing businesses.

Lyoness Cons: What I Don’t Like…

For starters, the cashback is so low that it’s nothing worth getting excited about. I would rather pay more for convenience than save a couple of cents and chase down Lyoness merchants. I also don’t like how you have to continue recruiting new people to the program in order to make cash.

I have read a lot of reports from members that attended fancy presentations where the host drives a sports card and wears expensive clothes, encouraging members to join so they can do the same. That’s a pretty common recruitment method amongst multi-level marketing businesses and scams.

Conclusion: Is Lyoness a Scam?

So, Is Lyoness a scam?

The answer is no, it’s not a scam because it does deliver on what it promises and it doesn’t promise too much. The main recruitment tool is not based on greed, but rather on saving money shopping, and that’s the same premise the FBI came to when investigating this company.

FBI concludes Lyoness is not a pyramid scheme.

In fact, the FBI has labeled this company not a pyramid scheme (after a lengthy investigation because numerous reports were filed).

That doesn’t mean it’s a good opportunity!

Actually, there are much better opportunities out there, especially for people that don’t want to feel like they have to buy stuff online just to make some cash.

Lyoness kind of pushes people to buy because that’s how they make their cash, but most people only buy products online once in a while, not every single day!

So that’s what I think about Lyoness. In my opinion, it’s not worth the trouble, and you can make a lot more money investing in your own business. Even if you just offer a simple service, I’m sure you can make way more money compared to working for Lyoness.

Consider learning how to create an online business, here’s a link to my favorite online training course where the whole process is explained in detail. Check it out.

I would like to invite you to share your thoughts and opinion on Lyoness by leaving a comment below, please, help to share this if you find this article helpful by clicking on the social media buttons (Facebook, Twitter, Google Plus).

Your pal,


My Secret to Online Sucess

About the Author

Jack is an experienced online marketer who would like to extend his help to whomever wants to learn more about building a successful online business. Connect with me on Facebook and Twitter. Read more about Jack and here...

Leave a Reply 12 comments

Iva - Reply

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:

Matija - Reply

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

Good luck

Disclaimer: this is not full information

    Jack Cao - Reply

    Thanks for sharing your point of view Matija! Truly appreciate it!

    ~Jack (BareNakedScam)

Doc Wiese - Reply

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. 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.

    Jack Cao - Reply

    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.

    ~Jack (BareNakedScam)

ErikWillPay - Reply

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.

    Jack Cao - Reply


    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.

    ~Jack (BareNakedScam)

Ozzy - Reply

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:
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.

    Jack Cao - Reply

    Thanks for sharing this Ozzy.

    ~Jack (BareNakedScam)

Kumar Varish - Reply

It look like they are very popular in EU

Derek E Banks - Reply

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.

fred - Reply

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.

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