Thinking of registering with Lyconet? Not sure if it’s reliable or is Lyconet a scam. Worry not! Keep reading to learn all about this platform and clear out any confusion you may have.
Lyoness, the parent company of Lyconet, was founded in the year 2003 in Austria by Iwan J. Ackermann, Max Meienberg, and Uwe Proch. Lyoness was split into two trademark companies- Lyconet and Cashback World in 2014.
Lyconet is a network marketing company while the Cashback World segment of the program offers cashback incentives for consumers.
Who is Lyconet?
Lyconet is essentially a platform that connects merchants and customers.
The membership registration is free for all customers – anyone can join in, and you will get access to over 140,000 merchants to choose from. Merchants will have to pay around $449 per year or $39 per month. Currently, there are about 350000 locations in Europe and about 2000 locations in the US for retail shopping.
Friendship Bonus” Program, a model similar to affiliate marketing, is Lyconet’s MLM business model. Under this model, you may earn 0.5% in commission from the purchases made by your recruits and an additional 0.5% from that of the members recruited by your recruits.
Lyconet Product Info
The following are the products and services available with Lyconet:
Cashback World Program
● Cashback: A Cashback World Member receives up to 5% (a bit less in reality) of the purchase price as Cashback. Money is transferred to the member’s account as soon as a certain balance is reached.
● Shopping Points are received by members with every purchase made at a Loyalty Merchant store or online shop and can be exchanged for cash or other benefits.
Lyconet Marketing Program
Members receive weekly and monthly compensation during the Production Week or Month.
● Balance Program: Shopping Points generated by the Marketer’s entire Shopping Network and Shopping Points from one’s own purchases and orders are calculated into the balance program and compensated weekly.
● Career Program: Career Level is determined by the total shopping points each month and compensated on a monthly basis.
● Types of Unit: Customer’s units, Transfer Units, Bonus Units, Marketer’s Units, etc.
Booking in The Balance Program
● Balance Commission
● Balance Categories and the Personal, National, Continental, and International Balance
● Balance Bonus
● Coach & Senior Coach Bonus
● Transfer Units
● Bonus Units
● Career Bonus
● Career Commission
Who is Lyconet for?
Lyoness does not have any product catalog, and it is simply a networking marketing strategy, which is based on recruiting people, who, in turn, recruit people to sell products. In doing so, they receive a certain percentage of the commissions – usually a small percentage.
Like all other MLM products, schemes, and services, Lyconet is usually for experienced people – the top leaders of MLM. The majority of the people at lower levels do not make profits or make very little money out of it. Due to this and other reasons, Lyconet is often dubbed as one of the most controversial pyramid schemes, embroiled in numerous legal troubles in many countries.
Analyzing the legal situation of Lyconet, the following can be understood:
In Austria, where it originated, four independent civil courts have declared Lyoness as a pyramid scheme, despite it being around for more than 16 years. Austrian Economic and Corruption Prosecutor stated that Lyoness operates an illegal pyramid scheme.
European countries like Sweden, Poland, France, Hungary, Lithuania, and Greece allege that Lyoness is a pyramid scheme.
Norwegian Lottery Authority has dubbed Lyoness as an illegal pyramid-based sales system and consequently has boycotted it in Norway.
Some good news: The Federal Court confirmed that Lyoness is NOT a pyramid scheme based on some pieces of evidence, like zero registration fees and a long life span of the parent company. In short, it is an MLM that uses a pyramid structure, if not entirely a pyramid scheme, to defraud you of your earnings – the legal grounds are always blurring, and the definition varies from country to country.
Pros of Lyconet
● Lyconet Academy provides training to the newbies in the network marketing world
● Flexible work timing and ease of working from anywhere around the world
● Free registration – Lifetime membership to one of the world’s largest community
● Group shopping benefits that don’t take away from the business
● Online shopping is easy
● Benefits for both consumers and merchants
● Cashbacks and multiple rewards or compensation schemes
Cons of Lyconet
● Bad publicity for the company
● Boycotted in many countries globally
● Interface and a business plan may be difficult to understand for a lot of users
● Constant recruitments are needed to make profits
● Most of the existing members have made little to no money over a long period- only top-level investors make money
Some of the key skills required for succeeding in MLM companies are public speaking, recruiting power, persuasion power, etc. in addition to skills in communications and administrative tasks. Direct Selling and multilevel network marketing may promise tons of benefits and rewards to the investor, but upon closer inspection, you will notice that it is difficult for an ordinary investor to earn maximum profits from the compensation plans. The only thing you can be assured is that Lyconet has been around for a long time – it is not exactly a scam or sham. However, it is best to practice caution if you’re thinking of joining the company.
Lyconet organizes a 3-day seminar called Elite Seminar which is a spectacular event and you can attend as a visitor to get informed firsthand on how to become a successful Lyconet Marketer. This year´s event has been postponed to 2021.