Hi there and welcome to my Lyconet review.
You are probably here to do your research and so that you can make an informed decision on the company. Jumping right in is never a wise decision. Most of these companies tend to sway either way. Some are great while some are to be totally avoided. Especially those programs that promise you easy money.
The last thing you want is to spend your hard-earned money and get nothing in return.
So is Lyconet a scam or a legit opportunity? Can you make some good money with the company? Well, let’s find out, shall we?
- Company Name: Lyconet
- Website: lyconet.com
- Owner: Hubert Freidl
- Cost: Thousands of $$
- Rating: 1/10
I have done a fair bit of reviews on multi-level marketing companies on this site but Lyconet takes the gold when it comes to companies that are outright dodgy in every shape and form.
Lyconet is a company that has had a history of legal problems since its inception. The reason why they are still around is that they have gone to great steps to try and cover up their backsides by changing the name of the company and restructuring their business. Somehow they have managed to stay afloat by moving to countries that are easy on them. They are banned in some of the countries that they once operated in.
The company was launched back in 2003 by Hubert Freidl. The concept of the business was that people could shop through the Lyoness marketplace and in return earn a 1% to 2% cashback commission. You can also earn commissions when you refer people into the program. In other words, recruit people to join the same drama you are caught up in.
I bet by now you can tell I don’t have a lot of nice things to say about the business.
In a nutshell, the company is in the business of connecting consumers with merchants. When a consumer buys from the over 90,000 stores that they have partnered with, you get a saving on your purchases also referred to as cashback rewards.
But the real bucks come when you enroll members to become fellow shoppers. When they buy from those same stores you earn a commission.
Sounds all nice and dandy but here is the problem.
Unlike many MLMs that usually have a product line sold by distributors, all you get with Lyconet is a physical card that you can keep track of how many points you earn and then use them to shop.
How do you make money?
Whenever you recruit someone to join Lyconet, you earn 0.5% bonus points on every purchase they make. It gets sweeter. You will also earn 0.5 bonus points on the recruits who come under your recruits and so on. You will always earn bonus points on those who come under your team.
It’s not hard to see that the only way you can make money is by getting as many people under your team as you can. Bonus points can also be cashed out as money.
To become a member of Lyconet you need to pump in some moolah.
A hypothetical example is if you if make an investment st $75 and 70 people decide to make a similar investment you get an $873 return. Obviously that cannot even pay the rent.
To really make some reasonable money you need to do better than that. So if you decide to pump in $6000 and get 50 people to make the same investment you would get a return of $43,800. That is a pretty good income.
Are You Looking For a Way to Earn Passive Income?
My question to you is, do you have 6K lying around, and do you know 50 people who would be willing to join your bandwagon by pouring out 6K?
Probably not. Unless you have friends with big pockets. Still, I doubt your friends would be willing to spend that kind of money. It’s worth noting that even if 50 people joined you into their dream to riches, you will not make money if they are not spending.
We all know how hard it is for people to spend money. A lot of those who join will be looking to do the same thing you have done and that is max out their credit card in the hope of cashing in.
To give this business the benefit of doubt, yes you can make money. But you will need to become a recruiting machine if you want to make it. It’s also great if you have some money prior to joining. As I mentioned the more you pour out towards your reward card the better the returns.
Definitely not a viable business opportunity. The investment you need to pour in to make any money is insane. Secondly, I can tell you here and now that this just nothing more than a cash gifting scheme. You are simply using your money to make money through a dubious scheme. In other words, it’s a big fat pyramid scheme.
To understand why let’s have a look at Lyconets troubled past.
In 2003 when Lyconet was launched it was called Lyoness. Back then they had something called accounting units which were just a fancy name where you earned between 1 and 2% commission when you recruit people under you. Of course, those who came under you would be doing the same thing you did. Remember we don’t have a product here. Just people joining to become part of your network.
10 years later, in 2013 some of the countries they operated in like Sweden, Norway Switzerland, and Greece, among others, began to turn the heat on them because they believed they were operating as a pyramid scheme.
As one would expect, they changed their name to Lyconet, and accounting units were scrapped and replaced with shopping units. Sounds less scammy, right. The problem is just because you have changed your name to sound a little legit doesn’t mean you are.
Their scheme fell through the cracks and in 2015, they were further re-investigated and banned from the countries that they had a hold on like Italy and Norway.
Currently, they are active in Malaysia, Saudi Arabia, and Columbia. It’s just a matter of time before the curtain comes down on them in those countries as well.
The MLM, Pyramid Scheme narrative.
Most MLMs, also referred to as network marketing operates within a legal framework. The reason being they have a product to move and so it pretty comes down to willing buyer, willing seller. Some people called them pyramid schemes because of the nature of the business model where you recruit people and everyone that comes under you earns you commissions. through product sales and hierarchy.
Companies like Amway have been around since 1949 and still going strong. They would have closed shop ages ago if they were a pyramid scheme. That being said, you still get the pyramid vibe with MLMs due to the business structure.
Real pyramids schemes, on the other hand, have nothing to offer but false hope. There is no product or service but money changing hands. Those who join on early in the scheme get to keep all the money, but as the pyramid grows those who come at the bottom lose it all. The entire thing crumbles and then they move on to places where they are unknown or to a new scheme.
One such company that has had a similar history is MMM Global.
This has nothing to do with saving on shopping. You can’t just join a shopping network to save 1 to 2% in savings. They don’t even mention the stores they partner with on their website.
As mentioned the old members end up reaping their profits from the new members. It’s an endless loop of money changing hands. That is a classic example of a pyramid scheme. Your number always comes up in the end.
If we are all paying commissions to each other in monetary form for zero product who will be left to pay out to the other in the end? The system will saturate and will eventually crumble under its own weight. Unfortunately, the casualty rate is severe and people often end up losing entire fortunes.
If this opportunity has been presented to you, please steer clear of it. It’s nothing but hot air.
Can you build a business without recruiting
One of the easiest ways you can make money selling products or services is by having your own website.
You don’t need to own the products to earn commissions with a website. You don’t even need to spend money to own one.
Why run around chasing after people to join your opportunity and yet you can reach the billions of people who are connected on the internet today.
If you belong to the majority of people trying desperately to make money recruiting people as their downlines to their opportunity, how about you check out how I make money online without having to recruit.
MLMs and pyramids like this one are a waste of time. You are more likely bound to fail than to succeed.
Many thanks for reading my review. If you have a question or a comment on the Lyconet business opportunity, please leave it below. I would love to hear from you.