Lyoness SCAM. STAY AWAY.

Aug 12, 2013
review #438519

I am a gold member of lyoness. Lyoness is a true scam. I can responsibly tell you this. STAY AWAY FROM LYONESS. Do not ever buy gold membership. I am going to tell you why.

First of all, I just spoke with their representative on the phone. They officially confirmed to me that all the discounts that you get in a form of cash back to your account are only redeemable towards purchases through Lyoness. You will never get any real money from them. I called to find out how to withdraw the accumulations in my cash account. They said - only by purchasing vouchers. Period. This means the stories of people making large amounts of money monthly are simple lies. Anyone who states otherwise is either a dreamer or is paid by Lyoness to say so.

Secondly, if you've seen the Lyoness videos, you've noticed that there is a complicated system of units that is very hard to grasp. Why do you think these units were created? Why not just stick with good old numbers - you spend this much, you get this much in cash, this much in bonus, this much in affiliated bonus, whatever else they may offer, everything can be expressed in dollars. No! Lyoness created units for you not to think of numbers. Why? Because if you start thinking numbers, you'll be running away from Lyoness as fast as you can.

Let's translate units into dollars.

When you, being a Lyoness member, make a purchase from a Lyoness merchant, you receive a small discount (0.5% for buying from Coles Express, for example), and a larger loyalty bonus. Of course, knowing that Lyoness charges up to 10% from the merchants, no one would go for 0.5%, so they created a loyalty bonus system. tOn top of 0.5% cash (just discovered that this cash is only redeemable towards purchases from Lyoness merchants), you receive 2-3-5% of loyalty bonus that eventually forms your UNITS. Every time you loyalty bonus accumulates to $75, you get one unit of Accounting Category I (ACI). How much do you have to spend to get an ACI? If you only buy expensive things from merchants Lyoness scammed for a higher discount, you might be able to get a unit by spending $1,500.00. But if you do what Lyoness advertises – “spend money on your everyday needs, just like you always do”, the realistic number will be closer to $2,500.00 You don’t get anything by forming a unit. The first bonus of $675 Lyoness pays you is when that unit “matures”. In order to mature one unit of the Accounting Category I (ACI) and receive $675, your entire lifeline (you, people you subscribed, people they subscribed) has to make purchases for $183,750.00, provided that the your lifeline only loses 5% of the units because of the imbalances. Yes, remember that in order to mature a unit, you have to deliver 70 units under it. 35 above the centreline and 35 below. So, if you have 335 units above the line and only 34 below, your initial unit will not mature until you get one more unit below the centreline. Smart, isn’t it.

Let’s take this number for further calculations. Since you are not allowed to market Lyoness to people you don’t know, and you are only limited to your friends and acquaintances, you can organise them yourself to make large purchases collectively and realise much higher discounts without being a Lyoness member. A 10% discount on total purchases of $183,750.00, which is relatively easy to negotiate these days, is $18,375.00, not $675 generously promised to you by Lyoness.

To mature a unit of the Accounting Category II (ACII), you have to accumulate 60 units of the ACI, so multiply $183,750.00 by 60. You underline will have to spend a total of $11,025,000, to mature one ACII. All for you to receive the most generous bonus of $1,275.00 from Lyoness. When is that going to happen?

To mature an ACIII and proudly receive $2,400.00 from Lyoness. Remember, this is not real money. Only spendable within Lyoness merchant network. So, to mature an ACIII, you lifeline will have to accumulate 50 ACIIs, meaning to spend $11,025,000.00 multiplied by 50 for a total of $551,250,000.00.

To mature an ACIV, your lifeline has to accumulate 25 ACIIIs, so multiply $551,250,000.00 by 25. You lifeline will have to spend $13,781,250,000.00, and you will receive $7,200.00 from Lyoness.

Finally, to mature an ACV and receive $24,000.00 from Lyoness... Wasn't that you goal? Are you ready?... Completely ready? Sitting down, listening to the drum beat, waiting for the number?.........

To mature one ACV, your lifeline will have to accumulate 25 ACIVs, meaning they will have to spend $13,781,250.000.00 multiplied by 25 for a total of $344,531,250,000. Three Hundred Forty Four BILLION, Five Hundred and Thirty One Million, Two Hundred and Fifty thousand dollars spent by your lifeline to receive a generous bonus of $24,000. So, when do you think all your relatives and friends that are *** enough to subscribe for Lyoness membership will spend that much money if they start today?

This is 0.00000007% of a discount. Imagine yourself walking to a local retailer and asking for a 0.00000007% discount on your purchase. (Especially if the purchase is for one third of a trillion dollars) There is no way for you to get that discount without Lyoness, of course.

As internet marketers say, BUT WAIT! THERE IS MORE!

So, if Lyoness negotiates a discount of 10% with the merchants, and you only get 0.00000007%, where does the difference go? Oh, yes, you get a regular discount of about 2% that is given to you in a form of cashback and is, by the way, taxable. We are still missing about 8%. Let’s not count 0.00000007% anymore. You’ve got to be Lyoness to call it money. So, on a $344 billion dollar purchase, Lyoness pockets about 8%, which is somewhere in the vicinity of $30 billion dollars. Not that it’s going to happen. All I’m trying to illustrate is that Lyoness gets you to run around subscribing people for 0,00000007% savings (not real money) and they get 8%. Isn’t it a little bit too fat? And if you have so much free time, wouldn’t you be better off just visiting your local stationary wholesaler, buying $10,000 worth of stationary from him at a 20% discount and selling it to the same relatives and friends? You’d make a solid $2000 profit over a school season, and your relatives and friends wouldn’t call you a scammer.

Another thing Lyoness doesn't tell you is that to use their system, you, all the people you refer and all the people they refer will have to permanently change their shopping habits. Have you seen many people happily changing their good lifelong habits over a 2% discount? Well, these are the people you will have to find and subscribe to earn your pennies from Lyoness. Now, if you want to make a little more pennies from Lyoness, these people will have not only change their shopping habits, they will have to be actively running around finding others alike and subscribing them to Lyoness. What a job! What a pay!

Do you buy from Woolworth? Well, forget it. With Lyoness you only earn your bonuses if you purchase from Coles. You probably know, that in most cases you have to purchase vouchers and gift cards of the merchants you want to use before you can get any benefit from Lyoness. That means, you buy a $300 gift card from Coles, wait for a week or two for it to arrive in the mail, and then, every time you walk by your favourite produce shop that's not a part of Lyoness, you have a dilemma. You can go and buy low priced quality produce from your favourite shop or you can buy Coles *** for about 50% more, but you'll get a 2.5% discount. And you will go and buy from Coles because you've already spent this money. That's right. You've already bought the gift card. Whether you use it or not, it is your problem now. Lyoness has already made their money and Coles too.

One of the few freedoms we have left in the modern society is the freedom to buy what you want and to spend your hard earned money the way you want. You don’t vote for the Prime Minister of this country. You don’t vote on carbon tax, bank deposit levy or cigarette tax. You don’t have those freedoms. Yet you still have a freedom to vote for your favourite shop by going there and spending your money. Lyoness takes this freedom away from you. From the moment you join Lyoness, you'll be buying from merchants that pay Lyoness to be in the system. You will have one freedom less. Form many people this is their last freedom.

This all means that you will be running with your tongue on your shoulder subscribing other people (paying $1.5 for each subscription from your pocket, by the way), convincing your friends and relatives to join Lyoness in a hope to get some retirement passive income for yourself, and at the end your entire lifeline, including yourself, will realise that the system is a pure scam. It takes your freedom away; it pays pennies for major inconveniences; and a little bit more pennies for hard work of selling memberships.

Stay away from Lyoness. Spread the world about this scam.

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meg

Oct 20 Texas, United States

I joined Lyoness in June and July I shopped through Lyoness for a total of $500 and received $30 back. You have to shop to get anything back, but that's what I wanted. Some people think it is a get rich quick, but build your business, friends shopping, over time you will see the return. It takes 3 to 5 years and a lot of hard work to make a profit with most companies, why should Lyoness be different.
Of course, if you just want to get cash back from your shopping, why not Lyoness. It is free to shop and get the cash back.

1 0 Reply
Happy

Oct 16

Lyoness Works and is very Simple !!
The free Cards pays me money back with every purchase and additional shopping benefits.
You have made a mess of a simple and working concept. As a small merchant this is saving my business !

2 3 Reply
Because I Know

Oct 12

Invisible guy will never be anything in life...!!! Show your face, study the most ethical company that we will ever see, get your head out of the sand and embrace the biggest opportunity that I have ever come across in my life.

2 2 Reply
Big Daddy Joe

Oct 07 Rancho Palos Verdes, California

My wife first joined this system when it began in the States number 2000 something here in SO CAL. I joined under her umbrella shortly there after my number is 2000 and something as well. I had a few simple but sound investing minded friends that were delighted to spend a couple bucks that they would just as easily spend going out to dinner to join. EVERYBODY WANTED UNITS.
Everyone has been delighted to buy gift cards to get gas and groceries. We have bought from Major department stores, concert tickets etc. Not only did we get good deals (BETTER THAN ANYWHERE ELSE) but we also got money back. Now MASTERCARD prepaid cards are here. Are you kidding me. WOW. . . I AM SO GLAD THAT WE JOINED WHEN WE DID. Thank you pissed consumer for making me realize what a great opportunity this really is. Time for me and my wife to get busy. THANK YOU LYONESS.

4 2 Reply
agreetotalscam

Sep 30

The ACCC (Australian Competition and Consumer Commission) has taken Lyoness to court because it is set up as Pyramid scheme. It is illegal to make money or be involved in pyramid schemes. The trial began September 16th 2014, and although Lyoness have been investigated in every country they operate in as being a scam, Australia has actually taken action. Fortunately, those merchants who paid the $3000 to Lyoness will not be prosecuted for signing people up.

5 5 Reply
WesternChic

Oct 01

Happy here!
What you say is pure, pure bull's manure!
As a Lyoness member, you cannot lose, if you're smart
you should understand WHY it's not a pyramid.
Funny though, how everything else is a pyramid and that's okay.
I know I have NEVER been paid more than my boss, in any job! Let the Lyon loose, let the Lyon roar!

9 7 Reply
tung

Oct 04 Osseo, Minnesota

The question is, did you ever get money from Lyoness? My cousin and his wife spend over $10,000.00 to become premiums members. It's been 2 months already and they get zero... yeap....0.0 money back. This is what I call, scheme.

8 6 Reply
WesternChic

Oct 05

YES, YES and YES
Have your relatives shopped with their DOWNPAYMENTS for future shopping? I HAVE . . . and I got cash back. That's the first thing I did and it works immediately.
Did the person that THEY registered with, TEACH them anything at all?
It's actually easy to do, if you do it the right way. They need to find someone good to teach them.
Have your relatives actually taken the time to learn about HOW it works? I HAVE, and because of that, I've built a solid, positive group. I help them all the time to make money.
Have they actually done anything? I HAVE . . . and I have been paid. Like anything else, you need learn HOW to do it and then do the work to get paid. Help others, be positive . . . it works. It is NOT a scheme.

5 5
happy-customer

Sep 29 Veneto, Italy

Really? pretty much EVERYTHING this anonymous guy is saying is so wrong!! both on numbers and facts...
Let me help you make things clear:
Lyoness is a shopping community operating all over the world (46 countries) and with over 4millions customers. Once you join it, you start saving money (since lyoness gives you back a % of the amount spent), and you do it FOR FREE (registration and all the services are TOTALLY free). So i dont understand how can anyone be a pissed customer since worst case scenario you are not saving money (there's no/you dont like the lyoness shops in your zone), but you have not paied a single penny to do it!!!
Those are the "normal" members. Then, since Lyoness offers the possibility to save money for free (its strenght), most of them decide to become premium members. In order to do so, you have to deposit 3.000$ into your account (and, pay attention, it is not a cost, you can re-use that money of course), and then Lyoness turns you into a premium member. What for? To try to make a business out of it: besides the cashback on their own purchases, premium members earn the possibility to make money by building their network (register other people). the bigger the netowrk, the bigger the total amount of the purchases, the bigger the rewards lyoness gonna give you will be...
And if you say: yes nice, but i bet 1 out of 1.000.000 will make real money out of it, you couldnt be more wrong! Its ALL about spreading method: I am lucky, I am part of
... Show more

7 6 Reply
Sr

Sep 27 Los Angeles, California

Hey...anonymous guy...why are you invisible..?
These are my short comments as follows, is because I don't want to waste my time as you did write a long paragraph:
1. Collect evidence you possible could and sell your info (if Lyoness is scam) to HomeDepot, OfficeDepot, Arco etc (those big guys as key merchants)....you will be the next millionaire !! Because those big guys will like your evidence / info
2. Question for you .. Do you think MasterCard is crazy enough wanting to be IN relationship with Lyoness???

8 2 Reply
agreetotalscam

Sep 30

why is there no mention of Lyoness within the official Mastercard website? If you're referring to the media release by Lyoness.... that's a prepaid card ... you can organise them through any post office.

4 5 Reply
Jeff

Sep 17

You aren't the sharpest knife in the drawer are you? And you obviously haven't done your own due diligence have you? I'm more than satisfied with Lyoness benefits. As mentioned by others the "fact" that Mastercard is coming on board with Lyoness goes a long way to confirming it's credentials as a loyalty merchant business. It's hard to imagine that a business leader like Mastercard with it's battery of corporate lawyers and accountants have managed to let a "scam' get through its defences. It's obvious that some significant "vested' interests out there see Lyoness as a real threat and are doing what they can to undermine Lyoness's efforts to provide benefits to their merchants and consumers.

12 6 Reply
Steve

Sep 15 Gold Coast, Queensland

Unfortunately you have exposed yourself to knowing very little understanding on Lyoness. I have been a Premium Member since day one (May 2013) and I don't have one complaint. I have received good money for the time I have put in and look forward to the future of Lyoness.
Most people have no idea what a Pyramid scheme is. If they drew out their structure where they work they would see that that resembles a classic Pyramid, yet no-one says anything! You have the CEO at the top, then the "Board", then 'Middle Management', then the 'Supervisor' then the Workers. In that structure the guy at the bottom makes the least and the guy at the top makes the most - what does that remind you of? 'Oh yeah but that is different!' Yeah right!
If you are looking for clarification of your concerns you can call me to discuss (0414 827 204)

15 5 Reply
WesternChic

Sep 15

You are so right about that, Steve. So right.
This is NO SCAM and NO Pyramid.
I've been a member since late 2011 & I just LOVE this company and everything they stand for.
The assistance and help they give it's members is second to none. The teaching I have received from my Recommender has been phenomenal, to say the least!
The money (cashback and bonuses) is real, and it is the best thing I've ever done!
An amazing company, and one amazing man's vision! NO complaints, not one, ever, since the day i joined for FREE as a Member. For those who are sceptical, learn to understand this, IF you are SMART enough!! I was not very good at Maths as a kid, but I GET this, and am learning more and more daily! :D :D :D

10 5 Reply
katjoy

Oct 18

Sorry, but it is YOU who does not understand what a Pyramid scheme is. The basic concept is that in order for the first layer of members to earn money they have to recruit members after them, who do the same in return, while the top layer makes money from each of these recruitments, as do subsequent layers of members, until you hit the bottom layer. A business that has managers, CEOs, laborers, office workers, does not have this type of structure at all. You can have a one person business. You cannot have a one person Lyoness "scheme". Where would you get your money if it were just you? And corporations will allow volume discounts, especially if it is from a business/group/entity that will BRING THEM MONEY. That is what they are in business for.

0 0 Reply
WesternChic

Oct 21

katjoy , YOU are 100% correct about a 'Pyramid scheme' and YES they are illegal.
Lucky, that in Lyoness, NO-ONE makes ANY money by recruiting members. I have NEVER made any money by doing so. It's FREE to become a Member, you aren't EVER pushed to do or buy anything if you don't want to.
Therefore, I know firsthand, and in all honesty, that Lyoness is NOT a pyramid scheme AT ALL. You have absolutely NO idea, katjoy, NO idea AT ALL.
NO IDEA AT ALL ..... Watch ..... Watch and Learn

0 0 Reply
evanderbuilt

Sep 06

The Australian Competition and Consumer Commission has taken court action against Lyoness alleging that the Lyoness Loyalty Program constitutes a pyramid scheme. It looks like you are correct. It is a scam. http://ethanvanderbuilt.com/2014/08/29/lyoness-taken-court-operating-pyramid-scheme/

9 12 Reply
Anonymous

Sep 20

Maaate, did you do any homework yourself. Do you know that it you google investigations by ACCC you'll find a lot of of good respectable companies that gave found themselves in the same boat. All it takes is for some disgruntled person (or competitor) to submit a claim and the ACCC will follow it up.
I actually look forward to the ACCC action as I feel confident that it won't be negative.

8 1 Reply
Ronk

Sep 04 Brigham City, Utah

RK - I have been a member over 1 year - my experiences are all positive.
Lyoness has delivered cash as promised. I double and triple my discounts many times. By doing a little research there are ways to buy nearly everything you want. People need to shop and the purchasing is better than clipping coupons and beets all the bank discount offers. it does not work if you do NOTHING - and your number are way wrong - my first unit paid 930.00 and 300 in bonus units and total shopping was under 20,000.00 NOT close to the 183,000.00 listed

21 7 Reply
CYDesigns

Sep 03 Cypress, Texas

I do not understand why anyone would say such things about a company that has not only helped me save money but created a way to increase my buying power. I am blessed by this program for it has created a way for these companies to give back to those who have actually invested in their products/services. There is allot more than giftcards available with Lyoness, you can also shop online and have your products delivered for free. This is how many individuals shop these days anyway, online. You do have to be smart with it and learn a new way of doing things in some cases. As with many things in life, you have to adapt to changes. Life is Change. I am here for each person that learns about this program through me cydesigns1@gmail.com and assist them in learning this program to benefit them the most.
I have actually recieved my cashback every month and built up my own benefits through shopping and made a few down payments to move my program further as I feel comfortable with. I've met my personal goals so far and see things moving forward as I go. I am interested in meeting more individuals who are tired of being ripped off by companies that do not give back to their community and want to learn a new way of doing things to benefit their personal household budgets.

12 3 Reply

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