You are doing research on Lyconet because someone approached you about it and you want to know if this company is legit or a scam. That’s what we’re about to find out.
If you have been here before, welcome back!
Thank you for taking the time to check out my Lyconet review!
One of the common questions I get asked often is if Lyconet a scam or not.
We’re going to take the next few minutes to take a look and get some answers.
The main concern I have for people who are researching this opportunity is that I don’t want them to get burned. In the profession of network marketing, anything could happen.
A company ends up shutting down in a few months due to bad business decisions for being non-compliant, compensation plan change, or the company not paying it’s distributors.
Even worst, your direct sponsor or upline leaves the company. Leaving you hanging to dry.
I understand that many of you are new. Sometimes we are not in a position to make a solid business assessment due to inexperience.
Additionally, I am going to offer you a way for you to escape the ‘9 to 5’ if you decide that this company is not for you.
More information about this program will be at the end of this post.
You landed on this blog because you are thinking about joining Lyconet because someone approached you about it or you just want to try out their products.
Unlike all the other Lyconet reviews on the internet, this is completely third party unbiased. I have no relationship with this company what so ever so when you read this blog post all the way through and pay attention, I can assure you that I am not going to ask you to join or buy.
By the time you have read this unbiased review, you will be able to decide if Lyconet is a fit or not. I do not promote, nor I am affiliated with Lyconet. I stand neutral in the current development of the Lyconet business.
With that said, let’s dive in!
What is Lyconet?
Lyconet is an MLM company that has established its uniqueness to deliver cashback incentives for consumers.
Founded back in 2003, with more than 10 years of experience, they have established themselves a name and reputation within the cashback consumers market. Lyconet was founded by Hubert Fried.
The company is similar to DubLi which is another cashback MLM company.
Cashback World is a platform that makes online partnerships with various merchants. This website attempts to refer visitors to their partner’s products. When a Lyconet visitor confirms a purchase, then Cashback World rewards you. Lyconet itself receives a certain percentage from the corresponding merchant.
The Lyconet brand offers those who are interested in the opportunity to establish one’s own shopping network as an independent entrepreneur, to enthuse consumers across the world with the benefits of Cashback World and to sell the Cashback Solutions’ customer loyalty programs. As a network marketing specialist, Lyconet provides a wide range of professional training, services, and tools, in order to offer its sales partners (Lyconet Marketers) the best possible support in their business activities. Lyconet thereby ensures that the network is continuously expanded in terms of Members, Loyalty Merchants, and Lyconet Marketers.
Need To Generate More Leads ASAP? Check out My #1 Recommendation Here!Birth of Lyconet
Lyconet (Lyoness) grew and a lot of people began investing money into the “accounting units.” The problem here is almost everyone who gets involved in a pyramid scheme ends up losing money.
As more and more people lose money the scheme will begin to get scrutinized. In the last 10 years, Lyoness was investigated by:
- Norway
- Sweden
- Switzerland
- Lithuania
- Austria
- Italy
- Greece
Lyconet changed the name of “accounting units” to “shopping units.” There were some changes to the compensation plan but the premise is pretty much the same – invest money and get people to do the same.
Again, this scheme relies on investment and recruitment meaning most people lose money.
However, because of the name change and breaking up of the cashback program from the investment portion, many regulators and investigators were fooled and Lyoness (now Lyconet and Cashback World) skated justice.. for a little while.
How does the Lyconet business model work?
They are 3 main targeting groups:
- Consumers who want to save money with Lyconet while shopping
- Merchants who want to benefit from an international loyalty program
- Entrepreneurs who want to make money through their network marketing opportunity
For consumers, there are 2 ways for them to save money while shopping:
- Cashback – When shopping at a store which is a partner of Lyconet (both offline & online), you can enjoy a 1-5% cashback reward by using your Cashback Card
- Shopping points – With every purchase at partnered stores, you can collect shopping points which can be used to redeem cash bonus or discounts that Lyconet offers
On the other hand, small-medium enterprises can join as merchants by paying an up-front fee to cover administration and equipment expenses, as well as 1-2 percent per transaction.
Before that, here’s a full video explanation on how Lyconet works:
The Lyconet product line
Lyconet does not have any product because it’s just a platform connecting customers and merchants.
The only “product” it has is the Cashback Card for you to collect your cashback and shopping points:
As for partnered merchants, they claimed that they have more than 90 merchants waiting for you.
My recommendation for you is to find out what are the merchants partnering with them and whether you are a regular consumer for some of them.
Lyconet Cash Back
One thing which I don’t like about Lyconet is the misleading claim that the buyer receives a 5% cashback. After going through all the calculations during my research, I realized that the actual cashback amount generally doesn’t exceed 2%.
The Lyconet homepage claims the company’s partnership with 90k + merchants across the globe & aside from the website you can also use Lyconet Cash Back by downloading their mobile application. You’ll get a Lyconet Cash Back Card to receive discounts on your shopping.
Lyconet Shopping Points
This is another variation of Lyconet rewards. The Shopping Points are convertible into cash. As far as the legitimacy is concerned, most of the cashback platforms are real and they do offer discounts. And there is a logic behind this practice. The platform brings customers to the merchants and there is nothing strange if the merchant offers discounts, it happens all over the world and it is a conventional practice.
The Lyconet compensation plan
Recommended: What are the pros and cons of Lyconet?
Here are the pros:
- Free, lifetime membership to the world’s largest shopping community
- Benefit from group shopping that does not take away from the business, but rather helps business, unlike Groupon
- The company was started in Austria in 2003. Longevity matters.
- Your rewards include cashback and then some
- Does not require that you spend much outside, if at all, of your personal norm
- Helps both the merchant and the consumer benefit (win-win)
- Online shopping is easy
Here are the cons:
- Complicated business implementation
- Have to recruit to make serious money
- 95% of all Lyconet members do not make money
The Dragon Den show
The Dragon Den is a popular show in the UK where people bring their ideas to wealthy investors and the investors try to negotiate a deal to become a part of the business.
In America, this show is called Shark Tank.
A Lyoness rep came in trying to convince the “Dragons” to invest in his Lyoness pyramid scheme.
The guy invested $10,000 into Lyoness and years later hadn’t made a single dollar. The Dragons are all millionaires and they’ve probably seen scams like this before.
Watch what happens when the Dragons hear the pitch:
My Final Thoughts
Before you decide to join Lyconet. I would recommend that you try out the products first. See if it’s a fit for what you’re looking for.
If you don’t believe in the products that you are selling, chances are others wouldn’t. Makes sense, right?
If you’ve decided that you want to join Lyconet, you must have the following if you want to succeed:
- A support team and system that will help build your business.
- A mentor that will take you by the hand and help you reach your dreams and goals.
- A constant flow of new leads and prospects that want to join your business.
It is not easy to be successful in the Lyconet business and which is why more than 95% fail.
If you feel the person you are going to sign up with is not going to be able to give you the necessary tools to help you succeed…
You might want to check this out by clicking here! 😊
Lyconet Is Not A Fit For You?
Now, if you feel that Lyconet isn’t for you. But determined to find a home-based business so that you can create a legacy for you and your family.
I would suggest that you check out my number #1 recommended program.
This program is the reason why so many people are having success with a ‘work from home business’.
Last but not least (drum roll please)…
I would love to hear from you if you are looking to join Lyconet or if you were an affiliate.
Please share your experiences by leaving your feedback below.
The feedback will help out those who are doing research on the company.
P.S. Want to make money online?
This is one of the better articles with a very critical perspective. Which is important without getting emotional. This scheme has just been recognized as a financial pyramid and sued in Norway, Italy, and then in Austria. It has been carefully considered in Poland, Germany, more in several countries.
Thank you for your comments!
I feel totally scammed by Lyoness.
I have a fairly low member number and was told by all the leaders that there was nothing I had to do by doing a “downpayment” in helping to grow the new countries.
Now they have changed their comp plan.. What a joke and a bunch of hype!
Unless you are are marketer with a bunch of people following you, don’t bother to join, it is more work than it worth and the big “merchants” eventually drop off anyway.
I’m sorry to hear your story. Hope you are able to find something else in the future!
This opportunity is not worth it at all. Don’t waste your time. I didn’t have a good experience.
I got scammed and made no money. THere are other opportunities that are better.