A lot of you have so many questions and the answers to them are all over the place, thanks to the many mixed Lyoness reviews on the web.
“Lyoness is a scam”
“Best company ever”
That’s the type of stuff you get when it comes to ANY MLM, so rest assured that you will see the same thing with other companies.
Legit or not.
Through this post, I will get rid of any confusion you may have and you can decide for yourself if this is at least a decent company to get involved with.
I mean, it is supposedly “free” to join, so what could you possibly lose, right?
Well, there’s a lot more to it than you think, so let’s see what you will be getting yourself into if you do decide to give this one a go.
So What is Lyoness?
Lyoness is a multilevel marketing (MLM) company that gives business minded people the opportunity to introduce a lot of flexibility into their life.
For those that don’t know, the world of MLM can be very similar to running your own business as you set your own hours, produce your own sales strategies and generate your own income.
It is exciting, it is full of pressure, and it is also a world that is packed with controversy.
For every good MLM, there are probably five bad ones.
So which category does Lyoness fall into?
Let’s begin to try and answer that by reflecting on what we know about the company’s background.
The company was founded fifteen years ago by an Austrian named Hubert Freidl.
While the age of an MLM can’t tell you too much about it, older is usually better than newer. This is simply for a fact that older companies are less likely to be a scam, as any unethical business practices would have had a chance to come to light.
The fifteen years that Lyoness has operated for are certainly a point in the company’s favor.
The company operates in the cashback niche—a murky market that some people love and others are very skeptical of.
Unlike Ebates that strictly gives you cash back from shopping, Lyoness has a more robust recruiting program attached to it.
We will speak more to what the company sells later on.
Getting Started at Lyoness
Since this is an MLM you don’t need to apply to start working as a sales associate at Lyoness.
Instead, you just pay a fee and start right up but unfortunately, the fee is on the higher side here.
Some of you might have already signed up (because it was free) but things aren’t really that free if you want to start using it as a business.
To get started you are going to need to fork over $300 and In terms of investment opportunities, this figure may strike some people as relatively modest.
However, do keep in mind that when you get started at Lyoness, you won’t be generating any sort of income just for paying a fee.
This means that you are $300 in the hole, and you will need to find a way to live off savings for a while, unless you have a different income stream to take from.
For many people, MLMs with higher entrance fees can prove financially burdensome.
In terms of what is typical, it is worth mentioning that Lyoness is more expensive than most MLMs.
The average seems to be between $50-100.
Companies with higher entrance fees do deserve some scrutiny and you will need to decide for yourself if the opportunity is worth paying the higher fee.
What You Will Be Selling
You are selling a coupon subscription service here.
There is no actual product, just the opportunity to shop from vendors that sell their products at slightly discounted rates.
The savings may account to a matter of $2 per purchase.
The discounts actually do work but most people find that there are serious flaws in the system.
While you can get a discount if you are willing to hunt for it, finding the product that you want at a price you are comfortable with takes time.
Imagine sifting through a website for an hour to find a $5 discount.
Most people would rather pay the premium and save some time.
Of course, it’s not necessarily about how you prefer to shop, but how your potential customers do.
There is definitely a market out there for products of this nature.
In a world where so much shopping is done online, services like Lyoness really do make a lot of sense to people.
Saving 2% on the average purchase can really help buyers on a budget out.
The short of it is that, by approaching the right people, you shouldn’t have too much trouble finding someone interested in buying the subscriptions.
The Compensation Plan
As is the case with all MLMs you make money through two ways: sales and recruiting.
Every dollar that you get is through bonuses and through commission.
This means if you are not bringing new people in, you aren’t going to make much money.
And most people don’t.
An income disclosure form from the company drew lots of attention when it was revealed several years ago. The form indicates that the vast majority of employees there make about $1700 a year.
Many make even less than that.
The unfortunate thing is that, in the world of MLM that isn’t even atypical.
In fact, there are plenty of multi-level marketing companies out there where the income median is closer to the $200 a year range.
Naturally, if you are trying to support yourself and a family, $1700 a year won’t even come close to cutting it.
Do keep in mind though, that you aren’t guaranteed to make this much. If you are good at sales, that number could soar astronomically.
The income disclosure form also revealed that top earners are making six figures a year. Granted, these people are certainly the minority.
However, if you have an aptitude for sales, and the spirit it takes to work hard, there is no reason to think that you can’t find success at Lyoness.
Is Lyoness a Scam?
The question of whether or not an MLM is a scam is always on the table and this is, unfortunately, especially true of Lyoness.
The company has even been federally investigated after complaints about their business practices emerged.
Our opinion of whether or not the company is a scam is in line with the thoughts of the people that investigated the company.
In short, no. Lyoness is not a scam.
However, it is a hard place to earn a living and like we said in the last heading, the majority of people that work there aren’t making enough to pay the bills.
When you couple this with the controversial product line, and the abnormally high entry fee, it becomes clear that Lyoness has its flaws.
If you want to start out with an MLM with less issues, no one would blame you.
However, if you are interested in trying out Lyoness, you can do so comfortable in the fact that it isn’t a scheme at the very least.
If making money is your ultimate goal then multilevel marketing is going to be one heck of a job.
I used to think that MLM was the only way for the little guy to get ahead until I found out that you can actually make money online thanks to things like affiliate marketing.
Not to say that it won’t work but it is really designed for the owners to make money.
With over 95% of all MLM-ers not making more than $100 A YEAR, it is safe to say that it is not for everyone.
It flat out sucks to have a good number of people under you just to have them quit because they aren’t making any money.
That’s just how it is and the biggest reason why I no longer do it.
The work to get even just one person to join you is not easy and to have them quit is heart breaking.
With that being said, please do choose wisely.
You can always checkout my top recommended work from home program and see how I personally make my living online but besides that, MLM will always be MLM.
Thanks for reading and good luck!