Is Lyconet a Scam or a Legit Business Opportunity that can Help you Succeed by Saving you Money while Shopping. Let’s Dig in and Find Out
Hi there and welcome to my Lyconet review.
You are probably here to do your research just to learn about the business side of this company and whether it’s worth your time and effort before joining in as a member. Most of these sorts of companies tend to sway either way. Some are great while some are to be totally avoided. Especially those that promise you easy money.
Let’s find out what Lyconet has in store for us, shall we?
- Company Name: Lyconet
- Website: lyconet.com
- Founder: Hubert Freidl
- Cost: Thousands of $$
- Rating: 0.3/10
What is Lyconet?
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. That is because there is nothing.
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 does Lyconet work?
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.
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.
Can you make money with Lyconet?
My question to you is, do you have $6000 lying around, and do you know 50 people who would be willing to join your bandwagon by pouring that kind of money?
Probably not. Unless you have friends with deep 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.
Non. There is not a single thing I can see that would be of benefit to this opportunity.
Definitely not a viable business opportunity. The investment you need to pour in to make any money is insane. Secondly, I can tell you 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 Lyconet’s 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 they changed the name to sound a little fancy pants doesn’t mean they 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.
Most MLMs, also referred to as network marketing operate within legal frameworks. The reason being they have a product or service to provide and so it pretty comes down to willing buyer, willing seller.
Some people call 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.
The whole thing begins to get that nasty pyramid shape in the long run.
When there is no product or service but money changing hands then you don’t have a business going on. 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.
Are there better alternatives to Lyconet?
I would say one of the most effective and long term ways to make money selling products or services is through your own website.
No need to run around chasing after people to join your opportunity. There are billions of people connected on the internet today. You just need to put yourself in front of part of that audience.
To prove it, its not a coincidence that you are reading this page. I had to do a fair bit of work to get you here. Works all the time.
I have learned how to do this through this online education platform.
Great to have you here. If you have a question or a comment on the Lyconet business opportunity, please leave it below. I would love to hear from you.
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