Lyoness and MLM Watchdog Rod Cook

Rod Cook

 

Rod Cook (Photo) from Texas, USA is the MLM watchdog:

Rod Cook:

The Watchdog's aim is to serve, inform & protect you, the distributor, and the MLM community.

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Update: As of 8th March 2012, Rod Cook 

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has pulled back his warning about Lyoness for the USA, Lyoness is in compliance with all USA laws.

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Comments (42)

  1. It's never a good thing for a network marketing opportunity when Rod comes out with a warning! LOL…Why am I suddenly hearing the Dragnet theme in my head? LOL…Rod, do you happen to have a review on the ZEEK program (Zeekler)? I would think you'd have a similar warning on it, but not sure. If so, where can it be found?
    By the way, tell Marcie I said hi!

  2. I will say one thing how come we have licence for all states in USA and the biggest company in the world in food sector Wallmart  is our partner in USA.
    Regards,
    Nikola

  3. One more thing in Europe we have more than 20.000 companies partners operating in 26 countries and more than 2.000.000 members for only 3 1/2 years. Australia is not open yet it is in pre-launch phase.

  4. A very good analysis – thank you Rod !
    In Europe Lyoness doesn't work ! 2 millions members on a cumulated population of more than 520 millions is nothing ! The majority one brands presented as Lyoness partners are in reality based on classical e-commerce affiliations…
    The best thing with Lyoness is really to keep away. But if you really want to try, start with the so called FREE OF CHARGE Lyoness card – a good way to see how the system works, the shops where you can use it, the eventual benefits you ca get out of it.

  5. In the 'real' world, commissions are paid from the difference between retail and wholesale.
    If network marketing is just another way to deliver goods and services, we should beware when the money seems to come from nowhere or from somewhere magical.
    Any time you are considering joining a company/scheme, ask yourself what you are selling, if anyone would buy it downtown and for how much, and what a reasonable commission would be on such a sale.
    If you think of selling your product or service from a storefront, it will put things into perspective.
    We have many articles about this on our blog https://www.togethertothetop.com
    Thanks to Rod for keeping us safe!
    Bob and Anna Bassett

  6.  I think Lyoness company is a very serious, the report says that this behavior does not work on USA business, knowing that I would love for this type of company has innovative idea that has failed? Lyoness in Europe has over 2 million customers (if 2 million with Capital M) as they do a story so irresponsible without further investigation the Company Back Ground? Be that other MLM Companies that are Trembling Lyoness Sweets will eat you without any problem? Business For Home exhorted before sending any negative comment about a company as solid as Lyoness investigate things very well because I removed the confidence of this Website. )

  7. Dear Mr. and Mrs. Basset,
    I don't know how you got the idea that  money in Lyoness are coming from nowhere. They are coming from the discounts agreed with the companies and of course when the card is used in our partner shops. You are paying the full prize and then depends on the agreed discount you get cash back on your bank account.
    Regards,
    Nikola

  8. Rod Cook investigates?? I think not. Lyoness is not in Australia.Not yet anyway, but real soon. Ted you should know better I will have to reconsider my renewing my subscription.

  9. What about : VODAFONE ,CAREFFOUR, OMV, KIKA , LIENER, LUKOIL,  AVIA, TOTAL ,EUROPCAR and ……… Why they are our partners if our System does not functioning?

  10. Well, well, well… I just love these so called watchdog guys.
     
    They all think that they have a mission… to help people to avoid being catch by the scams. It's a good cause, sure, but the problem is that they rarely do the home work. And it's not innocently that they do it like so… because it gets traffic! Oh yeah!
     
    Just imagine if people that investigate and then prosecute in a court for some kind of crime, accuse and condemn just by going to a meeting, ear and see something new, that probably will not be well understand at first, or just by reading something in a blog or somewhere else that it's not official. And in all that they spent no more than 2 hours… Just imagine if justice worked like that?! Well, there was times that it worked exactly like that, and I think we all (the few with brain, off course) agree that it's not good at all.
     
    We all have the right to freely express and to have an opinion for everything. But one thing is an opinion (like or dislike something because of this or that). Something different is to say that this or that is this or that. That need to be facts, and facts must be supported by consistent elements that could prove the thing. Where are those factoid elements in almost those kind of warnings?
     
    I'm a proud Lyoness Business Member, and so I will say something to clarify the process used by Lyoness to start a new market, just because Lyoness has 8 years of full activity in only 2 countries in Europe: Austria (the country of origin) and Hungary. All other countries in the world (+32 and counting with Asia starting this year) are in a kind of pre-launch.
     
    That said, no one could state that Lyoness has few this or that, because the internationalization has stared 3-4 years ago.
    And why it takes so long to get started?
    Because Lyoness business model is very different from let say "traditional" MLMs.
     
    Lyoness uses a 3-phase launch model.
    First stage is for checking compliance with local (country) law.
    This could take several months or even a full year. It depends on the country legislation complexity (like USA and others).
    Only after full clearance from lawyers Lyoness goes forward with a second step in phase one. That is to start a group of local (country) members that will help to fund the Lyoness in that country. Yes, to fund, because this first group will be like co-founders of the company in that new country, and for that they will have to do a pre-payment for future purchases – it's not a starter kit neither an investment. And by doing so, they will have additional benefits from the company when it launches, like participate in the media national campaign for getting simple members (let's say customers). The number of those firstly members is different from country to country and that requires also time. They are called Premium Members.
     
    So, after that accomplished, Lyoness enter in phase two.
    In this phase, besides recruiting more business members (not customers yet), the company opens the local (country) office, recruit staff and start partnership with big companies as well with small companies across the country – this takes time, a lot of time. Also in this phase two Lyoness partnership with online stores, because it's easier to implement that in the community.
     
    Let me ask you something:
    – do you think that brands like Microsoft, Apple, BMW, Shell, McDonald's, Wall Mart, etc. etc. etc. just become Lyoness partners without their lawyers meticulously check everything about Lyoness? And don't you think that it requires a lot of time (negotiate and checking)? Well, I think that those so called experts knows much more than those "bunch of incompetent lawyers"…
     
    And then, when there is a strong community of business members and shops (online and physical) across the country, Lyoness enter in phase three.
    In this phase the company launches a strong media campaign for the masses to get customers (people who will use the cashback card only, they will not do the business – but they could do it if they want at anytime in the future).
     
    And only after that campaign the company is full launched in that new country.
     
    Then we will have many members using the Lyoness cashback card everyday because there is also a large community of partners for people to go shop with benefits from Lyoness business model, a very simple one in fact:
    – Lyoness get a commission from the shoppers for sending them customers;
    – Then Lyoness keep one small part for running the business and distribute the rest to the all members;
    – Then the members could use the benefits to go shop again, and this is a perpetual cycle.
     
    So, Lyoness uses the size of the community to get more partners, to get more members, to become even bigger.
     
    1.800.000 members in August 2011, and 2.000.000 members in January 2012: that's 200.000 new members in five months!
    Or 40.000 new members per month!!
    150.000 points (stores) of acceptance of the Lyoness cashback card and more than 3.500.000 products and services available for all members in 34 not fully open countries!
    Consider that Lyoness is in a pre-launch phase worldwide…
     
    Yes, we already made history in the industry, but that is nothing compared with what will be in the next few years.
     

    I'm sorry Ted but this post had to be a long one, and there are much more things to say about Lyoness that all those fake industry samaritans doesn't know.
     
    Lyoness has no problem at all… but I could imagine already someone who probably will have. I know Lyoness!

  11. Another Guy trying to Bad mouth a Great Company.

    Do your own research and you will find that Lyoness is a honest and ethical company.
    In the current economic climate we are all trying to save money and Lyoness give consumers the opportunity to get CASH BACK into their personal bank account paid every Tuesday on everyday items that they are already purchasing. How many businesses offer you that!
    Then businesses get the advantage of extra marketing to all Lyoness card holders. This gives them an advantage over their competition. – Would you go to a shop and pay full price OR would you rather shop through a Lyoness parther store and get Cash Back – I know what I would rather do! Remember that it costs NOTHING for a consumer to get the Lyoness card.
    You also have the opportunity to join as a Premium Member. You outlay money that is a downpayment against future purchases through the Lyoness system – ITS NOT JUST PAYING $3000 TO JOIN. You get paid back benefits in many different ways. The Lyoness Business has just started in the US and is not open in Australia. If you talk to many members in Europe like I have you will find out that this is a once in a lifetime opportunity to join a fantastic company with a massive expansion plan.
    Don't let this opportunity pass you by!

  12. Guys it really upsets me when bloggers like this one trash something they clearly dont fully understand.
    Lyoness is perhaps the best chance retail has for keeping their doors open over the next few years
    Its really hard to see how you can get 'ripped off' when the cards are FREE.
    Even as a business builder who has been in less than 3 months, i have made vastly more than my $3000 back and stand to make substantially more over the next few years.
    So how it can be a 'scam' is beyond me!!!!
    Posts like this are slander of the highest level. Assumption and speculation are not a basis to destroy peoples future. 
    YOU FORGET – WE ARE BUILDING lyoness. It is NOT a finished customer ready product.  Thats the whole point!
    It is evolving and our job as Business Builders is to put the pieces together globally and be rewarded for doing it
    So it might not have a million stores…….YET…… THATS WHAT WE ARE FOR!!!!!!! to connect local business and be rewarded for it.
    SCAM is often a word people revert to when they cant be bothered  to  understand facts. And of course if enough people buy the label it prevents the business from maturing – Hence the 'scambuster' screams PROOF!!!!  
    You may not GET lyoness. But no one is asking you to do it – It is an entirely unique concept, but it is NOT A SCAM and my bank account doesn't lie. 
    Lyoness vision is a global alternative economy, It is a genuine chance for retail to survive the storm and consumers to generate some much needed additional income.  
    IT ALREADY WORKS!!! even in its global infancy…..So rather than rubbishing it and poisoning what could well be a life saver for many  hard working people, why not do something worthwhile and help it become all it can and is designed to be.

    1. I joined Lyoness in March at the FREE level and have EARNED two Accounting units (positions in the shopping matrix) AND a little over $45 in referral friendship cash back (from their shopping) already. Considering that I really only started in April, and haven’t had time to really do much other than SHOP with it and make a power referral, I’d say the company and product/service membership are stellar. The only cost to me was the $1.50 or whatever it costs to refer. They even ship for free by FedEx. Haven’t had a hangup yet.

      I’ve ordered from Vistaprint, Starbucks, Justice online, Vitamin World, shopped in store at Walmart, Safeway, Lowe’s, and eaten dinner at Outback Steakhouse!! All money I was going to spend anyway. And my online purchases earned cash back from my rewards Visa card too.

      “Begin challenging your own assumptions. Your assumptions are your windows on the world. Scrub them off every once in awhile, or the light won’t come in.” Alan Alda

      You can read my article Why I Quit MLM to see why I think people are so disgruntled with MLMs.

  13. I have just signed up here in Australia as a business builder and it has not even been released to the public yet. So this researcher is clearly misinformed!  These kind of reports are evidence of how scared people are of something different. They want to continue in a society where the banks get all the money and rewards and that way of business seems normal. Why is it not a scam that the banks can make up their own rules, charge whatever fees they want and take our homes from us. On the the radio I heard that they have again sacked another 800 people while they report that they have again made billions this last year and on top they are refusing to pass on a home loan interest rate drop from the reserve bank to the little people who have a house loans. 
    Lyoness is a revolutionary way of living because everyone to do with it, has something to gain. We need change in an unfair world and this company offers it.

  14. I still amazed of how much innocent people we have in this world we live!! Any big retailer call it Walmart, Carrefour, Dish Network, Direct TV, Microsoft, Apple, BMW, Shell, McDonald's etc, welcome any mlm or company or whatever who move traffic and clients = $$$$$$ to their website or warehouse, that`s it call being a affiliate and you can be part of it and put a link in your website and get some benefits (a percentage) of the money they make thru you website refering people there who do a shopping after you send them, mlm`s companies use this in several ways, first to make some money (clever idea) and second because people think when they see this names close to the company, that the company it`s a partner of this companies mentioned there when the thru is that they are not, they are a simple affiliate refering people there and geting a percentage of the money this affiliates companies make, nothing more than that!!. For the innocents out there, YOU CAN BE A AFFILIATE TOO if you build a website and send people there thru advertising, this is not new and companies like Amway and Melaleuca are using this system from many years ago. This is not a scam, but the percentage you can make using this system never get about 2-3% of what you or the people you send spending, what do not justify the inversion of time and money you make in a mlm company.
    ROD COOK IS TOTALLY RIGHT, RUN AWAY FROM THESE COMPANIES.

  15. We already have a Lyoness here in the US, it`s call FHTM or mostly known by some as Fortune mlm company, it`s been outlawed in two states and under scrutiny from the federals in other 16, go figure.

  16. Rod Cook ! Why don`t you investigate more carefuly?
    Lyoness has a complex system but you would find it fascinating, as the owner, Hubert Freidl is a mathematician.
     
    1. The Lyoness cashback card is free of charge. The end user saves with it. In Europe, where there are millions of cardholders, even big companies (like Lukoil, petro chain) install Lyoness terminals. Other companies are internet affiliates (Walmart) where Lyoness members shop by logging into their weboffice, or Lyoness members can get their gift cards from Lyoness on a discount and pay at gift card partner companies (Pizza Hut). The rebate percentages are in between 3 – 51 %. Look up the partners on lyoness.net and choose a country…
    2. The membership can be recommended. Again, it is a free card. Your friends and family will save with it, while you are entitled 0.5 – 0.5 percent after their expenses. But only after your directs` and indirects`. Not after deeper recommendations. So the last person on Earth, or those who do not want to recommend the card, will save with it. But on average, the membership offers you a few thousand dollars per year, while you are making your friends happier: they save on their EVERYDAY expenses, like food, gasoline, clothes…
    3. Lyoness offers a premium package for those who want to make a business (like any network marketing). What everybody forgets to mention and pisses me off is that this is NOT an investment. The money you downpay is called "downpayment for future purchases". That means that this money REMAINS yours and with top up payments you can shop it off. Like buying a car. You downpay 2000 dollars and you pay out the rest in 5 years. Lyoness premium members downpay 3000 dollars that brings back 9 times more, while at the same time, they can shop this money off at thousands of retailers !!!! The premium package gives you benefits from bringing in your small business owner friend as loyalty merchant of Lyoness and install a Lyoness terminal, thus getting new and loyal customers.
     
    So my advice is no no, do not run away from Lyoness. It has already changed my life . Take time to look into it !!!!

  17. I am proud to say I am a Lyoness member and will say with confidence that their business model is legal the world over.
    After conducting my own research into the company prior to joining that their business model is legal the world over. Lyoness is not an MLM company. An MLM company generates its income from the membership fees and auto ships of the members. Lyoness takes 1% on every transaction made my its 2,000,000 and growing customer base who shop with their clients who happen to be some of the largest retails in the world. You have made the mistake thinking that because lyoness has a binary system that it is an MLM, this is not correct……………..1 A binary system is a reliable mathematical equation.

    Lyoness facilitates a relationship between business owners and consumers in a shopping community. The business is happy to take part because it gives them new customer, customer loyalty and better profitability to name a few of the benefits. The business agrees a discount that they will offer to lyoness member only, the lyoness member shops with the said business and pays the full marked price. Lyoness invoices the business for the agreed cash back at the end of the month.

    The cash back is distributed 1% instant 1% in friendship bonuses and the remaining balance goes into a loyalty account, the loyalty account accumulates and when it reaches a desired target amount chosen by the shopper it creates a “UNIT” the unit goes into the binary accounting programmer. The volume of units in the accounting programme then funds the different levels of cashback and commissions to the members. So as you can see money does not come from nowhere it comes from the cashback generated from members shopping with trading partners of lyoness. And as you can also see, as no one has had to “pay” lyoness anything. Lyoness is Unique!!!

    Another thing that makes Lyoness not an MLM is that recruitment is not required to make money. I can go to a local business and offer them a fully functioning, electronic card based customer loyalty programme, that will bring them customer loyalty, customer retention, customer acquisition and the added benefit of additional revenue for their business when their customer shops outside their store at a fraction of the price it would cost them to set it up without lyoness. Everything about this would be tax deductible to the business as a legitimate cost uncured while maintaining a customer loyalty programme. The business owner “gives” a lyoness card to his customer and When the customers shop with other lyoness tradings partners he earns and so do I. Every single purchase follows the same reimbursement model as that shown above so every purchase contributes to the creation of units creates. These units in the accounting programme. And the accounting programme and volume of units pays me.

    Some will raise this so I better address it, when you become a business team member “you don’t pay lyoness aanything, you make a down payment on a voucher with a trading partner of your choice. the value and purchasing power in these units always remains yours and you can shop them away at anytime if you chose to do so. While your down payment is in the hands of lyoness it is converted into units of different categories and placed in the accounting “programmes”( this still equates to free membership ).

    Based on what I have shown here, the company can not fall under MLM law or network marketing law.
    If you wanted to categorize Lyoness it would fall under the following ” A networked opportunity on it way to being a gloabl shopping community where cashback from all member purchases creates a dividend pool that is managed using a “binary matrix” accounting programme.

    It is not in my nature to take the time out of my day to respond to “statements” of no substance!

    No matter what comments come after mine I will not be posting again, as this is disgusting to slam a company to get traffic to your own site where you push your own gigs.

    For the record, the Australian market is not even open yet; that “individual” inaccurate statement puts the accuracy of your entire “statement” in the gutter.

    Do some research into the company and then come back with educated statements instead of those from your “deputies” lol, deputies PLEASE…!

    You are a very foolish man to post slanderous comments about a company you clearly know nothing about. And you are even more foolish to take your “deputies word for it”

    MLM WATCH DOG ? I think you need a new Dog..

    Good Day.

  18. I do appreciate that Rod is a fair player… After his initial article he wrote based on his “watchdogs”, he received the correct information from other sources that Lyoness is not a scam and it is truly a huge opportunity. He allowed the publication of comments, even those against his oppinion so at least he stayed fair.

  19. Hello Mr Ted,
    if it is so that Mr.Cook wrote another article about Lyoness where he is saying that our company is Ok. Then I think is fair from your side to post at least a link to this new comment or the whole article on your web.

    Regards,
    Nikola

  20. Yes, I am a proud member and very happy with Lyoness. I am registered in Europe and now started fresh in Australia too. The market is of course very appealing as the whole Asia will join us. Good luck to everyone! Tibby +61 412 472 869

  21. Hello everybody, i am an owner of two companies in Greece and we?ve been registered in this system for about 2 months. I can only say that we are very pleased to cooperate with them because they did what they promissed.

    About 10 people have used their card to shop from us and some more called for our services and to verify if we are Loyality Partners. So it?s a great marketing tool for merchants and i personally believe that it will go better in the future as the members (especially in Greece) increase in a great rate. At this point in Greece somebody can go and shop in 900 companies so there?s nothing to loose.

    Also somebody said about ?overpriced products and services?. Well i will say that in every market there is expensive and cheap things and services, so by having more and more companies registered, you achieve also competitive prices.

    So in my opinion it?s a very good Loyality program for serious businesses that also expands your companies clientelle and associasions circle.

    By this time there was nothing promissed to us that we didn?t get, so we are satisfied working with them and clients are satisfied having discounts for things that they already did every day.

    For me personally as a member of Lyoness it was a great chance to get to know more people to do business with them. Also i liked the process of getting your own clients registered, because when you register a client you profit out of his purchases even when he leaves your company and that’s great. I neet to certify you that i personally did an extensive search about this company before joining on how well it goes to other business owners or premium members and then i joined. I really wanted to find something that was not done correctly from their part but i haven’t manage to find it yet.

    So to conclude i think it’s a great idea and will get better as more Partners and Companies join the system. Greece is one of the countries that goes very well and has registed quickly a great number of companies, so it actually works for us. Also without any efforts i’ve registered people from allover the world. So If you need anything to ask or if you want me to share my experience i will be glad to do it. mob. +306932711771 skype: mike.mingos / mike_mingos msn: mmingos @ aktoweb.com

  22. Lyonesse is a Ponzi scheme pure and simple….However you have to be pretty damn clever to figure it all out. On the surface it seems like a genius idea, and if it wasnt for the ability to make pre-payments it would be great and legitimate, however because 99.999% of all money paid out comes from recruiting others to make prepayments – and no-one actually shops… it is a PONZI Scheme. The top guys take in 1000’s and 1000’s from everyone convincing others to pay pre payments for product they can never buy! (The real bit to understand is if you want to “get out” and “get your prepayment money back” CAN YOU? — NO– You can get the prepayment money back.. only as long as you spend more money in a lyonesse business. But what this actually means is if you put in a £1000 prepayment – in order to get it back you would have to spend £10000 in a 10% lyonesses business – and the 10% that you would have got back in cashback (which is your money anyway) is considered you getting your prepayment money back!!! LOL… Total PONZI – It will evaporate eventually. Problem is however no-one really understands whats going on. All you need to ask is “WHAT PERCENTAGE OF YOUR INCOME COMES FROM SHOPPING VERSES RECRUITING OTHERS TO MAKE PREPAYMENTS?” — They will never answer that.

    1. 100% of my Lyoness income has been from people’s shopping. I formerly was an MLM leader and what I didn’t like about the business was always selling opportunity. I joined Lyoness because it is a solid product and I insisted on joining at the FREE level to see how it works. So far so good.

      I have earned Between 2-9% on my own shopping and 0.5% on other peoples shopping.

      I didn’t do any Gift Card Down Payments. I had to do some research but the free membership is available with a minimum purchase (no shipping no handling) $350 in brand new, guaranteed Safeway gift cards I ordered and they were FedExed for free. I used them in store in one shopping trip and had to order more.

      Since then I’ve run about $9500 of my business purchases through Lyoness (at their retailers) and have gotten the Cash Back and Loyalty Dollars paid.

      I assure you that you don’t need to make any Payment into the company to use the product. I’m living proof!

      1. Correction on $9500 – it’s about $5400!! I was looking at the wrong figure – my bad

        PS I have family that doesn’t want the hassle of joining but they also support me by buying Walmart and Safeway gift cards 🙂 So they just order through me to help me out. They’re shopping there anyway!

    2. Hi Mr. Bob Smith,
      Once again false info. How can you know if you have not try it. or maybe you try it but you got false info like many others.I have a people in my network which started with free card they have not made anu downpayments and they are doing network with people with free cards. This people are shopping in the lyoness partner companies and making money only from the shopping which are done in their networks. They are climbing gradually thru our levels. Why not to use our Lyoness cashbackcard , the card is free no annual fees and when they recomend they also get percent. Every shopper get cashback on buying gasoline,food, furniture,electronics …..etc.on things that people have to buy it anyway. Now if they do the same thing but in Lyoness partner companies because they get casback.
      As i can see from your comment you got it tottaly wrong If you make 1.000 Pounds downpayment on future purchases in Lyoness companies (which is valid around the whole world) and if this money are 10 % from your shopping of 10.000 pounds you have to pay 9.000 pounds if you want to take out your money and you will receive vouchers for 10.000 pounds. On this 10.000 pounds shopping you will receive your cashback discount plus your loyalty discount, also your recomenders will receive percentage.
      Please do not accuse in public something without arguments
      Regards,
      Nikola Georgievski

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  24. Hi Mr. Bob Smith,
    Once again false info. How can you know if you have not try it. or maybe you try it but you got false info like many others.I have a people in my network which started with free card they have not made anu downpayments and they are doing network with people with free cards. This people are shopping in the lyoness partner companies and making money only from the shopping which are done in their networks. They are climbing gradually thru our levels. Why not to use our Lyoness cashbackcard , the card is free no annual fees and when they recomend they also get percent. Every shopper get cashback on buying gasoline,food, furniture,electronics ?..etc.on things that people have to buy it anyway. Now if they do the same thing but in Lyoness partner companies because they get casback.
    As i can see from your comment you got it tottaly wrong If you make 1.000 Pounds downpayment on future purchases in Lyoness companies (which is valid around the whole world) and if this money are 10 % from your shopping of 10.000 pounds you have to pay 9.000 pounds if you want to take out your money and you will receive vouchers for 10.000 pounds. On this 10.000 pounds shopping you will receive your cashback discount plus your loyalty discount, also your recomenders will receive percentage.
    Please do not accuse in public something without arguments
    Regards,
    Nikola Georgievski

  25. I have been in network marketing for more than 20 years and I discovered Lyoness while residing in Greece. My network marketing was having a lot of setbacks because of the economic situation in that country but on the contrary, the Lyoness operation was exploding, even in one the poorest area of Greece. The answer is quite simple: the Lyoness system is based on necessities and we all need necessities to live. I recognize Lyoness as “common sense” business.

  26. ok everyone, i’m from Bulgaria and i have joined Lyoness more than a year ago as a business partner. Now i’m not going to argue with anybody, but as far as i’m concerned the ?Ponzi Schemes? don’t usually remain active for more than 1-2 years untill the flow of new joiners with fresh cash stops and the pyramid colapses…right?
    Well Lyoness exists and expands for already 10 years all over the world with exactly the same policy and compensation plan. There were some issues with the customers service in US in the begining, but it’s all been taken care of. I know that, because i have members of my team in the states as well as in different countries in Europe. Now speaking about the 3 phases of development, they no longer exists as of April 2012 when the Lyoness Leader convension took place in Makao. In some countries the new rules applied right away in some countries like in US it took few months, but the desire goal was achieved – the whole world is on the same page, same promotional video, same rules, same compensation plan.
    I?ve been reading many posts regarding Lyoness in different forums and 90% is clueless opinions like in any other forum, so i’m gonna focus on few things which seems to be not very clear for the people who know what they are talking about.
    Reading the Lyoness compensation plan with out someone explain it to you won’t give you a very bright idea of what’s going on, but that is on purpose. Lyoness relies only on friend recommendations to build its network and offers 11 different ways of income to encourage its active members, therefore you can not find more than the basic shopping info on the net or anywhere else (posted by Lyoness), cuz if you could than we are losing the whole point, it’s a recommendation marketing, remember?
    Until April 2012 was possible to do a down payment, convince others to do so and make money with out actually shop and there were people doing it, so Lyoness changed that: If you wish to do a down payment – you must buy gift cards for the same amount at the same time (let’s say you want do a down payment for 3 units worth $75 or 50 euro each – you have to buy gift cards for minimum $300 or 200 euro).
    Although the 3 phases are past, i would like to explain you what was the purpose their purpose. When Lyoness approaches a new country they need to atract Trading Partners. Well you cant go to CVS, BP or Wall Mart and tell them: We are Lyoness the shopping community, would you give us $1 000 000 worth in gift cards with 3% discount – in exchange we will advertise you on our web site and pay you back whenevr we sell them to our members, which are 0 at the moment. Like any other business you need starting capital, you need investors, people who see the potential in a particullar idea and willing to support it in one way or another in order to build up the skeleton and of course to make money out of it once is start working, the Pioneers are the ones who makes the most, correct? So here how it was in phase 1, the only option to join Lyoness was to buy a business package $3000 (2000) euro. Once there are 300 business partners,($ 900 000) Lyoness opens an office, attract some online shops for $26 a month, goes to the big chains – Gas stations, Superm markets, Department stores, buys gift cards, stores them in the offices and this particullar chain with all its branches in the country is avaliable for shopping. Then we are entering phase 2. You can still become a business partner, but you also have two other options to join: buy gift cards for $300 (which you get right away, so as your discount and you can spend them any time you want, within 1 year) or make a down payment for $225 and recieve 3 units for that. Mean while the business partners are attracting more small and medium businesses. As the number of Lyoness members increase, the company includes more big chains operating with gift cards. There is no point of having two big gas stations if you only have 5 000 members. I hope you are following me. More members – more options where to shop. Once the big chains generate enough revenue from the gift cards sold to Lyoness, they invest money in card readers and switch to cash back card. When Lyoness reaches certain amount of members (depending on the population) moves on to phase 3. At this moment everyone can join unconditionally and enjoy the benefits. Again the 3 phases no longer exist. There are several countries in Europe who were in phase 3 before the phases were removed and they are doing pretty well trust me. My sponsor is from Hungary, which is one of this countries and the cash back card is a standart there, everyone has it. You can buy any product you can think of, or use any service through Lyoness Partner and get cash back (I?m referring to the big cities). Beleive me everyone is happy with it, it’s the same in Austria, Romania, Slovenia cuz these were the first countries where Lyoness started back in the day. In some other countries there are very few options where to shop right now, but this is because they have recently joined Lyoness, like any other network it takes time, but they will get there, the same will happened with the US beleive me.
    About the gift cards: we do buy them from Lyoness, like i said Lyoness buys them from the Merchant, stores them in the office and we buy them with the discount. There a normal gift cards which the Merchants also sell to other companies with discountbut not to individuals like you and I. For example many companies in Europe with let’s say 1000 employees buys gift cards from a big chain Super markets, gets discount, pays their employess montly bonuses in gift cards and saves money….but the workers don’t get discount, well i do, cuz i’m buying from Lyoness, i mean liturally…i go in the office, pay with cash and they give me the gift cards right there or via bank transfer I get them delivered to my home address.
    About the accounting units:
    When you buy something through Lyoness you get 1-2% cash back which goes to your bank account every tuesday and remaining discount up to 28% depending on the product or service you are buying which goes to your loyalty account until it reaches $75 and creates a unit. You are not able to see the remaining discount unless you are logged in.
    There is an option you can choose to collect all your cash back in to the loyalty account and create units, i personally have created 9 units from my shopping for a bit over an year. Mostly buying gas and food. Besides that i have bought a flight ticket, gift for my girlfriend’s birth day, flowers for Valentines day, AC unit for my home, OIL for my car, booked few hotel rooms. Im getting cash back for all that and generate units, which earns me system comission and im happy with it, cuz i would’ve buy this things anyway. Note: i’m refering to my units generated from shopping. So when i have 10 out of 100 people in my team doing the same thing i make money:)
    Now for example in Bulgaria we have a Chevrolet?s dealer as a Lyoness trading partner and they offer 10% discount on a new car purchase. So if i go there without being part of Lyoness and want to buy a car for $30 000 they will ask me for 10% down payment ($3000) and the rest $27 000 i will lease for let’s say 5 years.
    As a Lyoness member on the same car i will receive 10% cash back ($3000) and for that money i will generate 7 units X $75 in AC 1, 3 units x $225 in AC 2 and 3 units X $600 in AC 3, which is the business package. So i get the car plus all this units after which i can make money if i’m an active Lyoness member. So let’s look at it in reverse. I already have a $3 000 business package as a down payment for future purchases, if i want to buy a Chevy, i will go to Lyoness they will issue me a document and i will pay my 10% ($3 000) down payment which the car dealer requires with the money i have put in to Lyoness, my units still be there and i will make money after them.
    You will say yes but you don’t buy cars everyday. Well you don’t but you may have to renovate your home or something else. Plus you don’t have to complete a top up payment for the entire amount or do it with just one Lyoness trading partner. You can use $200 today if you are buying something for $2 000 from a partner who offers 10% discount and pay $1800, use another $500 next month, another $1000 next year….in other words the money are there and they are yours, you are not f….d. Also there are 2 other options, you can sell your units to some one else or use the Re-cash option: you contact the office, ask them to activate the Re-cash option and from that moment as you shop all the discount goes to your bank account untill you receive whatever you?ve put as a down payment in cash back.
    I don’t know about you guys, but i don’t think there is more secure business you can put your money in, we talking $3 000 not $3 000 000.
    Even If you don?t want to get involved that deep, you can just register for free, order gift cards for your daily spending (gas & food), enjoy the discounts from hundreds of online shops (where your credit card rewards also applies and gives you even better final price). Once you see it works you can recommend it to few friends and get 0.5% from the money they spend through Lyoness and so on.
    Best part is that you can choose the option to collect your cash back and bonuses in your Lyoness account and use it to buy more gift cards which gives you a TAX FREE INCOME.
    There are many people trying to fight the Lyoness, some of you have your reasons i guess, some of you are just bored haters staying in front of the computer and type non sense about things they have no idea about and of course some of you are generating traffic to websites and forums in order to make some money, but Lyoness is the fastest growing network in the world, many people are enjoying the beneffits of the shopping community and that is happening no matter you like it or not.
    TOGETHER WE ARE STRONG

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