Is Lyconet a Scam or legit MLM company? Can you fully trust them and build your success?
If you are new to Multi-Level Marketing, I can help you out with some essential tips.
First of all, be sure you are an excellent marketing executive and have good orator capabilities. These two skills are necessary for direct selling, as you will be selling face-to-face all the time. The second significant thing is to find a legitimate company with legitimate products. To sell low-quality products for a company with a bad reputation will be tough as well, it will lead to failure.
It's an undeniable fact in MLM that you try to impose your strategy on others, either by selling the products or recruiting them in your team.
Let me ask you one thing? Is this the reason why you are on this page now? Were you recently invited by a friend, relative, or any executive to be a part of them and to have some super earnings?
Would you like to do the same as your friend earn money on other friends? Well, it's not always wrong to enter MLM's, even though if it has limited opportunities to earn. If you search online, my god, surprisingly, people are so benefited in this business, especially those on the top. However, the reality is different. Unfortunately, promotions and promises are, in real, exaggerated.
My congratulations that you decided to have a clear understanding of this Lyconet company and its business opportunities. Many lack this discretion, which in turn leads them to failure. Similarly, we attend an exam without learning. Good that you are one among few, who cares to know everything about the business before a start. It's always better to stay away from wrong rather than step-in and quit.
In this comprehensive review, you can find answers to all your questions. So stay on tuned and see the whole operations scenario of Lyconet company.
Name: Lyconet (Parent company: Lyoness)
Address: 350 Fifth Ave, 27th Floor, New York, NY 10118-0110
Founders: Mr. Iwan J Ackermann, Mr. Max Meienberg, Mr. Owe Proch
Price: Basic membership free, then $75 to $6000 for Premium members
What is Lyconet about?
Lyconet, a Multi-Level Marketing company, started in the name of Lyoness in 2003, in Austria. Since established, they have rebranded their names to different companies as Cashback world, My word, Lyconet, and again in several sub names.
They market themselves as the safe home of entrepreneurs and business newbies. Lyconet operates as an international shopping community where customers can generate income from Cashback discounts and Customer loyalty.
The founders of Lyoness are Mr. Iwan J Ackermann, Mr. Max Meienberg & Mr. Owe Proch. They established the company in 2003. Later renamed and started as Lyconet in 2014.
The key roles of Lyconet were known to be Mr. Hubert Freidl (President of Board of directors), Mr. Marko Sedovnik (Delegate of the board of directors), Mr. Karl Heinz Feddermann and Dr. Hubert Reif(Members of the board of directors).
I think I have to speak more about company Lyoness if you want to know about Lyconet.
As I've mentioned already above, its a very confusing company with different names in different countries. Unfortunately, all searches of Lyconet company would direct you to the information of Lyoness, as it is not only the reason Lyoness is the parent company but more because nothing more is defined anywhere about Lyconet.
They have no BBB accreditation, and they don't deserve to have one. At this point, I hesitate and doubt the option of joining them and trying to make money. But still, it's too early to make any conclusions and judge them. BBB accreditation doesn't mean the company is genuine.
One thing I point out is that they hardly have any information on their website apart from self-exaggeration and self-praising. Nowhere anything mentioned on their products or compensation plans, it's merely a website to show that we have a website. Then you research deep to know about their history and find out it's complicated and confusing.
After my research, I can say it's evident that they have no products to sell, and it's a Pyramid scheme in disguise.
The single opportunity for you to make money is recruitment. Recruit and persuade all added ones to follow you.
Let's take a detailed study on them to understand how good they to start a business or to produce an income are?
Lyconet Product Line
There is not much to discuss their products, as they have no reliable products to sell. All they sell is the membership cards, which can be used to purchase from online or retail shops. It is attractive to join free for the base membership, and this offers 5% cashback discounts for all your purchases.
So this is essentially a Pyramid scheme in disguise, where you are only benefiting in business by recruiting people under you and nothing other.
Of course, you can avail purchase discounts, but this needs no company memberships as online sellers like Amazon, Flipkart, and Etsy can give you better discounts if you deal with.
See this video, how someone tried hard to convince Lyoness (Lyconet) as Lucrative business in front of investors, then sadly fails to conclude as a pyramid scheme in disguise.
It's a fact that many existing network marketing companies are Pyramid schemes. But they dress up and market them so beautiful as an MLM.
At this point, I would suggest a different business called affiliate marketing, so cool and benefiting. Compare to MLM; you don't have to sell or recruit. As well you are the one who chooses the products or services.
How to make money with Lyconet?
Lyconet company, being a shopping community, offer bonus cards to their members to purchase products from the respective merchant outlets and online as well to avail discounts.
They have three ways of earning possibilities. Let's have a look into it.
It gives up to 5% cashback discount to all Lyconet members on all purchases. This amount will be shortly refunded to member personal account or pre-paid membership card.
#2 Friendship Bonus
Friendship Bonus can be availed when you introduce Lyconet to your friends, relatives, and know ones. When they are members and start making purchases, you can earn a 0.5% commission from all those member purchases.
#3. Shopping points
The Lyconet Marketing Program offers you the shopping points you earn directly and indirectly. This program has two options, Career Program & Balance Program.
Earnings of balance program are calculated weekly, whereas Career programs monthly.
The Balance program provides you with earning entitlement in two ways. The first one qualifies you when you and your team make at least 350 shopping points in the last 12 months. Only fully paid purchases are calculated on these points and not valid for any discount voucher. The next and second way is by five of your recruited first-line members to individually earn 150 points each (calculated in the latest 12 months achievements).
With the career program, you also earn based on the shopping points your whole team managed to score. At its core, it has different stages, and you would achieve positions and earnings according to points.
Again this will be categorized on Career commission and Career bonus. Have a loot at their compensation plan.
Lyconet & Lyoness Lawsuit!
Now we are at the crux of our judgment, how good a company holds its reputation throughout the business span?
How bright or dark are they? Writing about the Lyconet lawsuit reminds me of essay writing in my school exams. Honestly, there are quite more against this company, and they are in a very dark shade. Let have scrutiny into it.
One year after Lyoness was found (in 2004), the Austrian police in the organization's magazine wrote about the scam pyramids companies existing. Have to say, Lyoness managed to stick their name in this list with their operation strategies. Isn't it too early to get involved in such an allegation?
Very shortly in 2005, Mr. Johann Maeir (an Austrian Parliament member) questioned the Ministry of Justice for the reports of the petitions filed against all pyramid schemes. Well, Lyoness again found to have a crucial role among the files.
It continued, and in 2008, they were again alleged by the Austrian labor chamber for the misinterpreting advertising, Privacy violations, and false benefit offerings.
In 2010, a swiss magazine wrote an article that strictly warned customers to stay away from Lyonesse and their scams.
If I take the whole list of allegations, it won't end up writing some words. The Lyonesse company has been criticized and banned in many countries for their deceptive pyramid scheme, why to say more, it's stamped as a Scam in their homeland Austria.
Also, Lyoness has been declared as a Pyramid scheme in more than three civil courts in Austria.
A recent allegation in January 2019, Italy's competition authority (AGCM) stated and proved that Lyoness Cashback strategy that guarantees to reverse a percentage back to the consumers is unfair and a fraud commercial practice. Well, this was judged correct and imposed a penalty of € 3,200,000 on Lyoness.
Gosh, you will be stunned! They are a lot of examples of How a company can gain a bad name and allegations. At this point, it's not about judging or hesitating, but to conclude it's not a fair deal.
Is Lyconet a Pyramid Scheme?
Is Lyconet a Pyramid scheme? At this point, whether we are talking about Lyoness or Lyconet is the same thing because those two companies are actually one.
It's very clear from the above research that Lyconet company is a Pyramid scheme disguised. And because it is a pyramid scheme, it is a SCAM.
Like all pyramid schemes, Lyconet as well has no products to sell. Rewards are entirely base on recruitment. Do you think you can involve someone in this business without providing any tangible thing?
Compare to other network marketing companies where you have at least some products to show and to taste out here, your hands are empty. This fact makes it harder to promote and sell invisible services. There is no chance to make a single dollar. You will end up losing time, money, and efforts.
Evaluating their compensation plans is not impressive or different, just a spoof of a legit MLM company. If considering Lyconet lawsuits, no one would dare to be a member of such a company, do you think you will?
There are far better MLM companies with products, but don't forget about the success rate in network marketing. Only 1% to 5% of all network marketers are earning money. The failure rate is 95% up to 99%.
Is Lyconet a Scam? Conclusion
I am more then sure you already know the answer, but if you are still wondering whether Lyconet is a SCAM, I will say YES. At the same time, I would say a very big 'NO' to everyone who still wants to become a Lyconet member.
Instead of wasting your time, you can efficiently invest your time in your own business.
I tell you something, MLM business is kind of outdated in this new era when everything is online. If you don't have your business online within the next ten years, you won't have any business.
Is it so necessary to sell things, make parties, and shows to recruit people? Although MLM operates so, there are many other options to make legit money.
Alternative Earning Method
So if you are serious and want to start something or to earn extra money, you should start with affiliate marketing. It is entirely different and safe compared to an MLM business, nothing related to selling, marketing, or adding members.
It is one of the most lucrative businesses nowadays.
You choose the companies and the products you like.
You don't have to purchase or sell anything
There is no need for investment unless you want to take a course and learn how to do affiliate marketing from A to Z.
There is a possibility to create a passive income
Also, you will be independent and no need to recruit friends and family.
The best place to get started is a platform called Wealthy Affiliate. Over one and a half million people have already joined them. So what are you waiting for? You can join them for FREE and check it out whether this is something you will like to do.