Is Lyoness a Scam Pyramid Scheme? Exposed!

Are you looking for a Lyoness MLM review? Is Lyoness a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.

There is a good chance that you heard about Lyoness MLM through someone – a friend or family member.

Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through Lyoness MLM.

I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like Lyoness MLM.

To help you make a more informed decision, I have thoroughly researched the Lyoness MLM so I can tell you more about it.

As a disclaimer, I’m not affiliated with Lyoness MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.

At the end of this review, I’ll also tell you the best alternative to Lyoness MLM that has enabled me to make a full-time passive income online.

What is Lyoness MLM?

Lyoness offers a cash-back program as well as a way to earn money online. It is structured similarly to multi-level marketing (MLM), which means you must sell the opportunity and recruit others to join the platform.

It was founded in 2003 by Hubert Freidl, Uwe Proch, Max Meienberg, and Iwan J. Ackermann.

Lyoness is linked to brands such as Cashback World, Cashback Solutions, and Lyconet when searched online. This is due to the fact that the name is a registered trademark for several companies.

Their official cash-back platform is Cashback World. It introduces buyers and sellers to one another. Cashback Solutions, on the other hand, is where merchants can sign up to join Lyoness. Lyconet, on the other hand, is where all network marketing activities are managed.

There are three types of people or groups in this business: consumers, merchants, and entrepreneurs.

  • Consumers take advantage of their cashback opportunity, which means they earn a small percentage (around 1 to 5 percent cashback reward) when they purchase from their partner merchants. They can earn shopping points for every activity, which they can then redeem for discounts or cash bonuses.
  • Merchants, on the other hand, sell their products while also benefiting from their international loyalty program. According to their website, there are approximately 90 merchants.
  • Entrepreneurs, on the other hand, are MLM members who want to profit from their multi-level marketing opportunities.

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What is MLM?

Before we get into Lyoness MLM, I’d like to explain what MLM is and how it differs from traditional business models.

Multilevel marketing companies are also known as direct sales companies or network marketing companies.

An MLM company does not pay you a salary.

You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.

There are several levels to this (hence multi-level).

Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).

You can earn $1100 by recruiting 10 people.

Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.

People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.

The ultimate goal of someone who works for a company like Lyoness MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.

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How Does Lyoness MLM Work?

Lyoness, like Avisae, wants its members to invite more and more people to join. So, in addition to receiving cash back, you can also benefit from promotional activities. 

The entire scheme is a little perplexing, and you’ll get a better understanding if you download the official Lyoness information.

Loyalty Cash

Accounting units are a way to gauge how effective you are as a recruiter. When you reach a certain level, such as 35 accounting units, you will receive Loyalty Cash. One accounting unit is worth $75. So, once you’ve completed 35 accounting units, you’ll be an experienced recruiter.

Friendship Bonus

You will receive cashback on 0.5 percent of what your friends or indirect friends (someone you recruited who was recruited by your friend) receive. Someone you recruited (a friend) or someone your friend recruited (an indirect friend).

Volume Commission

The volume of the pyramid indicates its size (referral chain). Consider a family tree. This is the same concept. When you sell more, you move up the rankings and add a Career Level to your profile.

Loyalty Partner Bonus

This bonus is divided into two levels. Direct recruits earn a primary bonus of 18.75 percent, while indirect recruits earn a secondary bonus of 6.25 percent.

All of these perks are designed to entice more people to join Lyoness. The question now is whether Lyoness can be classified as a pyramid scheme.

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Is Lyoness A Pyramid Scheme?

A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.

A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.

Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.

The directors of the organization receive a portion of these payments (those at the top of the pyramid).

The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.

Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.

Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.

The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.

Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.

People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.

Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.

Is Lyoness, then, a pyramid scheme?

No. Lyoness does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.

They don’t have to make money solely through recruitment.

Watch the short video below to learn more:

What is the Lyoness MLM’s Compensation Plan?

In the “Friendship Bonus” plan, the Lyoness MLM business model is used. However, the Friendship Bonus plan is more akin to affiliate marketing than traditional MLM compensation plans.

Most MLM companies compensate their members for bringing in new members, but Lyoness’ “Friendship Bonus” does not.

However, you must still recruit people to join Lyoness because you will receive a 0.5 percent commission on sales made by people you recruited, and another 0.5 percent commission on sales made by people they recruited.

When you consider how inexpensive it is to be a Lyoness member, these advantages seem even more appealing. You can earn more money, shopping points, and cashback as a premium member. To take full advantage of the Lyoness compensation plan, you must upgrade your membership.

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10 Reasons Why I Don’t Recommend Lyoness MLM

1. The Good Reviews are Written by Lyoness MLM’s Affiliates

You probably have found some other reviews of Lyoness MLM and all of them are saying good words.

But all of them are actually paid to write, meaning they will receive a commission if you join Lyoness MLM via their links. Therefore, their words are often biased and not trustworthy.

Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.

By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!

Therefore, I recommend reading the reviews of those written by the non-affiliates of Lyoness MLM.

2. Very Few People Can Make Money With Lyoness

Success is difficult to achieve with an MLM company like Lyoness.

You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.

The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.

They will not be paid if they do not meet the quota.

As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.

3. Losses From Lyoness MLM Are Reframed As Investments

Lyoness MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom. 

But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.

4. Lyoness MLM is a Cult

Why do people continue to work for Lyoness if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.

Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.

MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.

Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.

Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.

MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.

5. You May Need to Purchase Lyoness Products Yourself

If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.

I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like Lyoness. That’s why in the long term, you are going to lose a lot of money, not to mention making money.

6. Lyoness Products are Overpriced

As with other MLMs, Lyoness offers overpriced products. There are many other brands that offer similar products but at lower prices.

Therefore, you may find it difficult to sell Lyoness products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.

7. Lyoness’s MLM Business Model Has a Bad Reputation

Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.

MLM like Lyoness is fundamentally flawed. The distribution of commissions is skewed toward the top.

The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.

As a result, many people do not consider Lyoness to be a legitimate business opportunity.

8. Exaggerated Claims Of Income

Lyoness, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting Lyoness.

Lyoness’s low retention rate can also be discouraging, as less than 41% of its distributors are active.

According to Lyoness’s payouts to distributors, over 99 percent of Lyoness distributors never make a profit.

9. Lyoness Is Like A Pyramid Scheme In Disguise

If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.

Every system that requires you to recruit people in order to make money eventually looks like this.

Lyoness is not a pyramid scheme in the traditional sense because you can earn money by selling their products.

However, in order to make a living, you will need to hire others in reality.

10. Recruiting is Required to Succeed

I don’t recommend MLMs to people for this reason. MLMs like Lyoness put a lot of effort into recruiting. Eight out of ten ways to earn money with Lyoness require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.

My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this Lyoness review.

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How Much Does It Cost To Join Lyoness MLM?

Lyoness, like GPT sites, offers free online shopping membership. However, as a free member, you will not receive as many benefits as a paid member. More on this will be said later.

If you want to upgrade to a premium membership, Lyoness offers a few paid add-ons.

Some Internet users claim to have paid more than $3,000 to become a premium member of Lyoness in order to receive additional perks, benefits, and privileges.

Is Lyoness MLM a Scam?

I cannot say Lyoness MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary. 

Can you make money selling Lyoness products? We already know that a majority of Lyoness reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from Lyoness is by recruiting aggressively.

Also, Lyoness blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider Lyoness MLM a scam.

My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.

I will tell more about my #1 recommended platform at the end of this review.

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Final Verdict: Lyoness MLM Review

Here comes the conclusion of my Lyoness MLM review. Overall, I don’t recommend joining Lyoness MLM to make money.

You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your Lyoness commission.

The worst part is that you practically have to ask your family and friends to join your Lyoness business opportunity. It’s not fun.

Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.

The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.

People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave. 

Why not consider starting your own online business if you want to earn money and have a flexible schedule? 

Thus, you can choose what you want to promote rather than having someone tell you what you must promote.

Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.

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The Best Alternative of Lyoness MLM To Make Passive Income Online

If you’re beginning your online business journey, you deserve a programme much better than Lyoness MLM.

My #1 recommended platform is called Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch.

When you join Wealthy Affiliate, you can get access to the first-class web hosting service, keyword research tools, community support, comprehensive training, writing tools, and other software to help you build an online business step-by-step.

You can register a free account with Wealthy Affiliate, which enables you to get started with affiliate marketing right away without paying a penny.

If you like the platform, you can then upgrade to the premium membership to get access to everything on the platform. There are no upsells afterwards.

But How Much Can You Earn with Wealthy Affiliate?

A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while applying what is taught inside Wealthy Affiliate.

Lyoness MLM Review

Compared with Authority Hacker, Wealthy Affiliate has a much longer history, which has been established for 15 years and there are many success stories in the past decade. Actually, Wealthy Affiliate has more than a million members so far, so you can see how popular this platform is.

To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

Where to Join Wealthy Affiliate?

Wealthy Affiliate has a very simple pricing scheme. It has a free and premium membership. The premium membership only costs $49/month or $395/year.

If you want to feel about Wealthy Affiliate, you can sign up for the free starter membership here (no credit card required). You can select to be a free member with no time limit.

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