Is Lyoness A Scam? - Factual Review

Since the launching of the company, there have been many people calling Lyoness a scam.

Lyoness Is A Scam

However, the people who appear to be very happy and contented with this business opportunity are also many. Whether they are paid affiliates of Lyoness or genuine persons making money with the company, they're out there.

Lyoness Not A Scam

Cashback World is the other name for Lyoness, as you can see in the image above. Don't worry; I will discuss more of Lyoness below.

More importantly, I will go into details about why the company is now banned in multiple countries. But wait!

Before you jump into half-baked conclusions, you need to read this Lyoness review first. 

Review Summary

Name: Lyoness aka Lyconet, Cashback World, Cashback Solutions

Founders: Hubert Freidl, Iwan J. Ackermann, Max Meienberg and Uwe Proch

Price: Free To Join + Upsells

Lyoness Review 2019

Lyoness Business Opportunity Rating:

Lyoness Platform Rating:

FOR ONLINE OPPORTUNITY SEEKERS

Once you're done reading this, you will have enough information on why people are calling Lyoness a scam. Whether you should join this company or find another business opportunity.

Let's get started.

What Is Lyoness

Lyoness is an online shopping platform that uses a multi-level marketing business model.

The company was established in Austria in 2003. It resembles another MLM company called Shopping Sherlock.

The key personalities behind Lyoness are:

  • Hubert Freidl
  • Iwan J. Ackermann
  • Max Meienberg
  • Uwe Proch

Important: Before we proceed, let me make it clear that Lyoness is a trademark for a group of companies and corporations.

Different brands are associated with and managed by the company, such as Cashback World, Cashback Solutions, and Lyconet.

How Does Lyoness Work

Lyoness is an online shopping platform where consumers and merchants can enjoy several benefits. 

You can become a member for free. 

However, you can get premium membership status by paying Money.

Some people even spent more than $3,000! Premium members get better perks, bonuses, and privileges.

How To Join Lyoness

For online shoppers, Lyoness offers a free membership where you can get a cashback whenever you shop in one of their affiliated brands, like the ones provided by GPT sites.

While I am writing this Lyoness review, the company claim to have more than 130K partner merchants worldwide.

Lyoness Partner Merchants

As a Lyoness member, you can get a 1% up to 5% cashback reward.

You will also earn "Shopping Points" every time you purchase an item from their affiliated brands and stores. Shopping Points can be used for Shopping Point deals such as cash bonus or discounts.

How To Make Money With Lyoness

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 by most MLM companies.

With the Friendship Bonus, you won't get paid when you recruit people. 

Instead, you will receive a 0.5% commission over the purchases made by the people you have introduced to Lyoness and another 0.5% over the purchases made by the people they brought in.

This doesn't look so bad, right? 

These benefits are even great, considering it is free to become a Lyoness member.

Again, before you jump into conclusions, read the next section of this Lyoness review. I will go into details, base on facts and no hearsay, why many people call Lyoness a scam.

But before that, this video will explain the entire Lyoness compensation plan.

The Ugly Truth About The Lyoness

There are many valid reasons why people are calling Lyoness a scam. Let's take a look at them.

#1 You Can't Make Money Selling Lyoness Products

This is where the Lyoness compensation plan gets murky. The company doesn't have any products, so direct selling is out.

The only way you can hope to make money is by recruiting people to join the company. Now, this is a major red flag. Why?

Because according to the FTC, when your income solely relies on recruitment rather than product sales, you are involved with a pyramiding scheme.

#2 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.

#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.

To make matters worse, similar figures can be said based on a separate Lyoness income disclosure for the Lyoness affiliates residing in Canada.

  • Do you think Lyoness is a scam after all? 
  • Is it a worthy investment in your opinion? 
  • If Lyoness affiliates are reading this, can you pitch why people should join your company?

I would love to hear your thoughts in 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.

Is Lyoness A Scam

 Even review sites share the same opinions 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. 

Italy Bans Lyoness

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. 

Lyoness Germany Case

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.

Norway Bans Lyoness

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. 

Lyoness Vs Federal Court Of Australia

Similar cases are up against Lyoness in other countries such as Poland and even in Austria, the birthplace of the company.

Are The Lyoness Scam Rumors True

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 as the Green Rush.

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.

In one side, 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.

But if you are looking for more than a few bucks of cash backs and shopping points, then you can choose to invest money and become a premium member.

Be careful, though.

There are Lyoness affiliates have spent more than $3,000 for this business opportunity and was all in vain.

Premium Membership Cost

No matter how the company sugarcoats its, making money with Lyoness is not easy. More than 95% of people fail in this business model.

That's the ugly truth with any MLM business.

But what do you think? Is Lyoness a scam or just an innovative platform misunderstood? 

Share your thoughts in the Comment Section below.

My Humble Advice

Although I end up not passing judgment on whether Lyoness is a scam or not, I have some advice that might be helpful for you.

Before you join Lyoness, make sure that the platform is useful to you.

For instances, 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.

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.

But don't get me wrong; you can make money with MLM.

And if you feel that selling products and building a team is your calling, then you should learn Attraction Marketing.

It is a powerful strategy that allowed many network marketers to build their MLM business, find the right people to work with, and eventually became successful.

Start your Attraction Marketing training here.

Lyoness Best Business Alternative

Meanwhile, if you are looking for another way to make money online, I know of an excellent 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 full-time income at home with this business program. It has also allowed me to finally quit my job!

The same thing could happen to you too!

You can read my story here.

But the best part about this business program? You can start today for free!

Final Words

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.

Meanwhile, should a FREE online course that will teach you how to turn your passion into profits interest you, complete the signup form below.

Until here, and I wish you the best in your future endeavors.

Your pal,

Jack

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About the Author

Jack is an experienced online marketer who has the passion to help beginners succeed online.