Company: Lyoness America
Founder: Hubert Fried
Welcome to my review of Lyoness!
This review may be a little different from some of my others.
During my research of this company, I could not find a positive comment about the company unless it was a paid affiliate.
This was a little disturbing because there is usually a company has at least a few loyal customers that can confirm that the program works.
Since my reviews are 3rd party, I am not affiliated with the companies I review, whatsoever. If you are looking for a legit money making company online then check out this review.
Here is the rub, there is insurmountable evidence that this company has immoral practices.
I cannot however, call it a scam unless a process of due diligence is complete.
Therefore, I will provide background information and review the products and compensation plan as usual.
However, I will spend the final sections of the review proving that the company has had a lot of bad press and conducted itself in a manner that is unacceptable.
Examples include lawsuits, fraud claims & many other accusations that are the exact opposite you are looking for in an online business opportunity.
At any rate, I am sure you waiting to see what I discovered about Lyoness so let’s get started.
You can also check out the step-by-step training that helps me earn over $10,000+ per month working from home.
A Lyoness Overview
Lyoness was founded by Hubert Fried who launched it back in 2003. The company shot out of the gates red hot, becoming very popular.
There is little to no information on this Fried character before this so I can’t tell you much more than that.
4 years ago, the company found its way to the USA where it grew again.
It grew really fast due to this expansion into the USA.
Unfortunately, the company does not have any products to speak for, only memberships for discount purposes.
They are what is called a cash-back company which means if you or your recruits spend money, you get some of the money back.
Check out a few comments from previous customers have said about the program to put things into perspective.
Products & Services
Ok, as I mentioned before, this is a cashback program, which there has been others in the past.
Say you make a purchase from one of the companies that are aligned Lyoness and you get a certain % back.
I have been scanning the website and the highest percentage cash back I have seen is 4%.
This does not seem like a lot of money. So let’s do a simple bit of math here.
If you spend $100, you get $4 dollars cash back.
Since this means you will never make any money buying purchasing products, you have to rely on recruiting; since you get a percentage back on those purchases as well.
This is the part of MLM that I can’t stand.
The vast majority of MLMs require you to become recruitment gods in order to make any money.
Since the vast majority of people fail at this part of the business, there is little to no point of doing an MLM like this.
Unless you can generate dozens of leads a day, you are done before you even start.
Even then, your leads have to translate into recruits or its game over.
I guess what I am trying to say is that you have to know what you are doing in order to stand a chance.
So, newbies stay clear of anything like this now, and in the future.
If you have a look at all 3 of these comments, you can see that there is a disagreement in the public eye.
Most people seem really upset by this so called “pyramid scheme,” and a few comments say that you can earn money.
Either way, the last comment speaks for itself.
When an office closes in the New York, you have serious problems.
According to the comment and from other articles I have read, this is the due to a switch to Lyconet.
It isn’t an MLM unless you get paid commission when you sponsor people into the business.
I have read the compensation plan and it is long and at times confusing with all of the terms and agreements.
I will provide this Lyconet Compensation Plan so you can take a look at it for yourself.
I will go over the nuts and bolts of the plan so you can at least see them without following the link.
However, I strongly encourage you to read the entire plan because all of the information is important in some regard.
Every time you make a purchase at one of the Lyoness Loyalty Merchant stores you can receive up to 5% of the purchase price back.
You can get this money transferred into your bank account or what is know as a Prepaid Lyoness MasterCard.
You also gain Shopping Points (SP) for all purchases as well.
You can spend these points to get deals and really strong discounts on the products sold in the Loyalty Mall online.
If you share Lyoness/Lyconet with your friends and family, you can make money from their purchases as well.
This is part of the team building side of things but it comes with a price in my opinion. More on that in a little bit.
As you can see from the second image, some people have many complaints, including not getting money back and others simply spending money on deluxe packages and seeing little to no return.
Some also say that the deals are never good enough to justify the purchase either.
Now, I’m not making those arguments for the customers so we have to take their word for what they are worth.
This is but a small look into the company, but it is definitely eye opening.
Better Business Bureau (BBB)
As you can see, Lyoness has a good grade from BBB.
This is great news but the company is not accredited with BBB and seems to handle customer complaints well.
The reason I know this is because that is mostly what BBB bases their grading system on.
If a business handles customer issues properly, they get a good grade.
Let’s take a look at the customer complaint breakdown.
CUSTOMER COMPLAINTS SUMMARY
12 Complaints closed in last 3 years, 4 closed in last year.
Advertising/Sales Issues: 3
Delivery Issues: 1
Problems with Product/Services: 8
CUSTOMER REVIEWS SUMMARY
Negative Experiences: 1
I wish I could post a positive comment from BBB or from any other place but it all seems like current members of the company just post angry comments and ad hominem attacks to try and scare people away from telling their story.
This is not a good look for the company, or anyone involved.
Things I Don’t Like About Lyoness
OK, as you could imagine, I have a negative outlook on MLMs in general but this company is has been all over the news and in the court room on and off.
Here are a few articles that you can look at. Now keep in mind that a lawsuit found that Lyoness was not a Pyramid Scheme, but an appeal is happening and in other countries, Lyoness is illegal.
Pissed Consumer Article
To be honest, I could go on and on about the negative aspects of this company but I think I have uncovered enough and told you how this company treats most of its customers.
This is why they are hurting right now and most likely on the outs.
The Final Verdict
Here is the deal.
All of the evidence that I provided you should at the very least make you hesitate.
If it doesn’t then all I can say is good luck because you are going to need it.
There are so many other online business opportunities to choose from, why take a risk.
So if you want to make money why not go for a sure thing.
This is the best advice you are going to get, especially if you are new to the MLM world.
Start out with a company that has been around for a while and has been out of the court room.
Or you could also get involved in a training program that provides you with everything you need to succeed by creating your own business.
Many have done this and many have been happy with the results.
Check out this review. This company has been around for a long time and there is ZERO recruiting required.
The price is also great considering it is free to try out.
All I’m saying is that you can choose a company that chooses to conduct immoral activities that lead to lawsuits or you can find a training program like Wealthy Affiliate.
I leave the choice up to you but I hope you choose the program with that will help with your future well-being rather than a shot in the dark.
If you have any experience with Lyoness, ask a question or leave a comment, feel free to fill out the form below.
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2 thoughts on “Lyoness Review – Scam, Pyramid Or Legit?”
Now BANNED in Italy and Norway!!
Italian Regulators (AGCM) find Cashback World/ Lyoness practices ‘misleading’ and impose €3,200,000 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.
From January, 16, 2019, any activity linked to Lyoness (Cashback World) will be illegal.
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:
Thanks for this info