We’re going to review Lyoness to decide if it really is the best MLM Company out there.
Many people have called Lyoness a scam in recent years, and it hasn’t stopped.
However, there appear to be a large number of people who are very happy and satisfied with Lyoness. They’re out there, whether they’re paid Lyoness affiliates or genuine people making money with the company.
Lyoness is not a scam, in my opinion. One of the benefits of working for this company is that you can get shopping discounts and earn some extra money. However, in some cases, many people are tricked and lose money as a result.
I’m not expecting you to believe me without further research. So, before making any final decisions, read on to see if this MLM business is right for you.
In this section, I will go into detail about how much money you can expect to make with Lyoness and how to avoid losing money with this company.
And at the end, you’ll find answers some of the most frequently asked questions regarding Lyoness and MLM in general.
But most importantly, you’ll see the exact system many others have used to build their own internet marketing business to over $40,000 a month in mostly passive income.
This system made them swear off MLM for good, because it uses some of the same skills but in a much more powerful and profitable way!”
What Is Lyoness
Lyoness is an online shopping platform that operates on a multi-level marketing model. It is similar to the other MLM company called Shopping Sherlock.
Hubert Freidl, Max Meienberg, Iwan J. Ackermann, and Uwe Proch founded Lyoness in Austria in 2003.
Before we go any further, please understand that Lyoness is a trademark for a group of companies and corporations.
The Lyoness is associated with and manages several brands, including Cashback World, Cashback Solutions, and Lyconet.
How Does Lyoness Work
Lyoness provides several advantages to both consumers (online shoppers) and merchants. However, I will focus on the Consumer’s side for this Lyoness review.
As a Lyoness member, you can get a 1% to 5% cashback reward when you shop online at one of Lyoness’ affiliated brands and merchants.
You will also earn “Shopping Points” when you buy something from one of their partner stores. These Shopping Points can be redeemed for deals available only to Lyoness members, such as cash bonuses or discounts.
Aside from personal discounts, you can also earn money when your recruits and their recruits shop online. But I’ll get to that in a moment.
Lyoness claims to have over 130K partner merchants worldwide as I write this Lyoness review.
Cost To Join Lyoness
Lyoness, like GPT sites, provides free membership to online shoppers. However, as a free member, you will only receive a limited set of benefits, which I will discuss further below.
Lyoness offers a couple of upsells if you want to become a premium member, and yes, you must pay money.
Some people on the Internet claim to have spent more than $3,000 to obtain a premium member status with Lyoness in the hopes of receiving better perks, bonuses, and privileges.
Lyoness Compensation Plan
The Lyoness MLM business model is used in the “Friendship Bonus” program.
However, the Friendship Bonus program reflects affiliate marketing rather than traditional MLM compensation plans.
While most MLM companies pay their members when they recruit new members, Lyoness’ Friendship Bonus does not pay you when you recruit someone.
However, recruitment is still required because you will receive a 0.5% commission on purchases made by people you referred to Lyoness, as well as another 0.5% commission on purchases made by people they brought in.
Let’s be honest: this doesn’t seem so bad, does it?
These benefits are even more impressive when you consider that becoming a Lyoness member is completely free. You will have the possibility to make more money if you are a premium member.
But don’t get too excited because I’m about to reveal why many people consider Lyoness to be a scam.
Is Lyoness Illegal In Other Countries
While Lyoness proudly claims to operate in more than 40 countries, I am confident that this number will soon be reduced as legal cases against Lyoness have been filed all over the world.
Italy
Italy’s Competition Authority (AGCM) ruled in January 2019 that the Lyoness cashback formula is an unfair and deceptive commercial practice.
The AGCM further described that this thing constitutes a pyramid scheme according to the Italian Consumer Code. A €3.2M ($3.6M) fine was charged against the company.
Germany
In August of 2018, the Cologne Public Prosecutor’s Office opened a preliminary investigation into Lyoness Germany.
Norway
Lyoness is an illegal pyramid-based conversion system, according to the (Norwegian) Lottery Authority as of June 2018.
Lyoness operations are now illegal in Norway.
Australia
Lyoness has also been accused of being a pyramid scheme in Australia in 2015. But the case was later dismissed.
Similar cases have been filed against Lyoness in other countries, including Poland and Austria, the company’s birthplace.
Is Lyoness Really a Pyramid Scheme?
We can’t easily take a firm stand when determining whether a platform is a pyramid scheme or not. The company is not a pyramid scheme solely because the Lyoness business model offers compensation for recruitments. It is not a pyramid scheme if the emphasis is primarily on the sales side. But, if the primary focus is on recruitment, it is likely to be referred as an illegal pyramid scheme.
The definition also differs by state, depending on local laws. Yes, if we consider the legalities, Lyoness could be a pyramid scheme! The reason for this is that the website has been labeled as a pyramid scheme in Norway. But, as time has passed, the website has gone global and is now operating legally in a number of countries.
Taking a look at the website itself suggests that the entire thing is more focused on recruiting. After considering these factors, I believe Lyoness is possibly a pyramid scheme.
If you want to join Lyoness, you should know that it caters to two types of people: promoters and members. After reviewing various promotion plans, bonuses, and incentives, it appears that anyone who joins Lyoness and brings in more people has a lot of potentials. The truth is that not everyone achieves their desired career level. Only a small percentage of Lyoness members have ever managed to obtain the lavish sums they bragged about.
According to statistics, 97% of Lyoness members earn an average of $72 per year. Only 3% of its members earn more than $72 per year. Now it’s up to you to make a choice!
Is Lyoness A Scam
For quite some time, the claim that Lyoness is a scam has been the subject of numerous debates, both offline and online.
There are clearly different views on whether Lyoness is a scam or not. I believe the answer to this question is dependent on your definition of a scam.
You can look at it in the same way that you did the Green Rush. While hemp consumption is legal in the United States, Canada, and other countries, it is still illegal in some territories.
In my opinion, the same holds true for Lyoness.
While many countries have already prohibited Lyoness from operating, the company continues to operate freely in the United States and Canada. While Lyoness is widely regarded as a pyramid scheme in other countries, some authorities disagree.
Lyoness, for example, was ruled not to be a pyramid scheme by the Federal Court of Australia.
How Not To Lose Money With Lyoness
Learn about the business opportunity you’re about to take part on.
Remember, becoming a Lyoness member is free, so if you stick with the free membership, you can continue to reap the benefits without risking anything. You can only expect to make a few dollars if you trade.
To make a significant income with Lyoness, you must upgrade your membership to premium and persuade your recruits to do the same.
People who call Lyoness a scam are those who want to earn more than a few dollars in cash back and shopping points, so they choose to invest money and become a premium member. If that is the path you intend to take, be extra careful!
More than 3,000 dollars have been spent by Lyoness affiliates on this business opportunity, but it was all for nothing.
Making money with Lyoness is not easy, no matter how sweet the company makes it sound.
And investing in a company with a MLM business model or any network marketing business but no products is a risky bet because you are likely getting involved in a pyramiding scheme.
Based on everything I’ve just told you, do you think Lyoness is a scam or just an innovative platform that has been misunderstood?
My Final Thoughts on Lyoness
I’m not in the position to tell you what to do with your time and money, but if you’d listen to me, I have some suggestions.
Make sure Lyoness is a good fit for you before signing up. To begin, look into which merchants are collaborating with Lyoness and whether you are a regular customer of those. As a result, even as a free member, you can maximize your cashback and shopping points.
If you like to become a premium member of Lyoness, keep in mind that the majority of people do not make money with Lyoness. Some even lose money in the process.
But if you think it is still worth the try, go ahead and try it!
If not, I would recommend something else.
What Is Our Top Recommendation For Making Money Online?
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Where Lyoness falls short is in scalability.
There’s only so much time in a day and there’s only so many people you can reach to sell by yourself.
MLM companies know this! Which is why they push so hard for you to recruit for your downline…you can’t get rich with it as a one man/woman show.
But what if you could make even more money from small local websites without spending hundreds of dollars on overpriced products and a lot of time recruiting individuals to sell under you?
With this digital real estate program, you can make recurring monthly income without constant sales to your friends and constant recruitment!
Sound too good to be true? Of course it does! But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a LOCAL website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business, tree service, plumbing, towing, etc.
How and how much do you get paid?
Just says, when you forward the jobs to a business owner and he gets some money off of them, you simply ask to make the deal mutually beneficial.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 10 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $500 a month!
See why they call it digital real estate now? That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to worry about:
- Your upline getting paid before you
- Begging your friends and family to buy from you
- Recruiting people all the time
Remember Lyoness? You only get what’s left of the pie if you meet a monthly quota…
The course we recommend actually allows you to collect HUGE FLAT RATE DEALS. Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group much better than the Lyoness group in our opinion. This group is much more active.
Unlike Lyoness, where you’re getting maybe $10 per sale, you could be getting 10-20X THAT.
A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding digital real estate.
Unlike Lyoness, more people have been able to leave their 9-5 jobs.
Digital real estate allows you to have total passive income with most of your day being spent WITH your friends, NOT selling to them.
Now, I know you probably have tons of questions…