There’s a new business opportunity from Europe that has recently expanded into North and South America called Lyoness. This Lyoness Review is written by someone who is an experienced networker BUT is not a distributor or member of the company. I want to provide you with just the facts, Ma’am (any Sgt. Joe Friday fans?) so you can make an informed decision for yourself whether or not to get involved.
This Lyoness Review will cover the company, the compensation plan, the cost to get involved as a “distributor” or promoter, and how to build your Lyoness business.
Lyoness Review: The Company
Lyoness is basically a cash back rewards company that was formed in Austria back in 2003. In Europe, people have Lyoness cards that they can shop with and receive cash back at participating merchants. These cards are not yet available in North or South America. Instead, people in these new markets will need to purchase gift cards from their Lyoness back office to receive their cash back and use the gift cards to shop. Lyoness does seem to have a good marketing plan, that has proven to be successful in Europe, and the plan is to get cash machines into participating retailers in North and South America during Phase 3 of their launch. They are in Phase 2 currently.
Lyoness is not an MLM, yet compensates marketers like one sort of. It’s a “shopping volume” compensation plan. You’ll accrue income when the people who you sell the Lyoness concept to and who become members shop. It stands to reason that the more people you’ve introduced to Lyoness, the greater your team’s overall sales volume. The company makes their money from the 1% cash back they receive from the participating merchants and then share a portion of that money with the field.
People do not have to be a distributor if they have no interest in the home business opportunity but just want to save money when they shop. It’s free to become a member and you can still earn some when you refer your friends. BUT…
For those of you who are looking to make the BIG money with Lyoness, you’ll want to join as a distributor. To start your Lyoness business, you’ll need to purchase some gift cards. The amount you purchase will determine how much of the compensation plan you will participate in. Basically, the start up cost ranges from $225 – $3,000, with the $3,000 gift card purchase maxing you out in the comp plan. That’s pretty hefty for an MLM type compensation plan, particularly since there are no fast start bonuses. Your sponsor receives none of that $3,000 but you’ll want to bring people in at that level if you’re serious about making a LOT of money with this business.
The Lyoness Review business model has proven to be very successful in Europe. A major advantage is that once someone is a member, they are a member for life so you don’t need to worry about people dropping out, like with traditional MLMs. Of course, you need your members and recruits to shop using the gift cards because that’s how you get paid.
There are many top line retailers already onboard in the US including Walmart, Safeway, Arco/BP Gas and many others.
“Cash Rebate” programs aren’t new or unique, but Lyoness is a bit different and has a track record of success in Europe. Will it translate to the rest of the world? Only time will tell!
Lyoness Review Summary
From everything I’ve seen, I do not believe there is some sort of Lyoness scam at play here. The company has a very real business plan and has actual offices. The US office is in NYC. You can definitely build this business off-line getting your friends and family to sign up for the discounts but you’ll need to recruit entrepreneurs and marketers if you hope to reach make a few thousand a month or even a 5-figure monthly income. How do you do this?
The internet offers you a world-wide prospect pool that can be reached virtually at the push of a button. You need to know and understand marketing strategy, though, to be able to build your business effectively online.