Lyoness Cashback Scam Review: Just Another Pyramid Scheme?

By | March 25, 2015

Name: LyonessLyoness Scam Review 2015


Owner: Hubert Fried

Rank: 15/100 – Scam!

What Is It?


Lyoness is an online company founded in 2003 by CEO Hubert Fried and has grown increasingly popular in Europe, most especially in this past year alone. The company however, does not offer any retail products and is very similar in nature to DubLi, offering individuals cash back on their daily shopping.

However, despite Lyoness’ increasingly popular cash back services, the most significant item to be mentioned with this company is their growing MLM opportunity.

Whether or not, this can be claimed as a complete pyramid scheme is thus, the primary purpose and intention of the following Lyoness scam review.

How Lyoness Works?


The way their cash-back system works is fairly simple and operates based on giving you a percentage of your cash back to you on specific qualifiable purchases only, which must additionally be made online. Thus, it is not for every product or service purchase you make, you can instantly gain cash back. But depends on certain redeemable products.

More importantly, paying Lyoness membership members are eligible to join Lyoness’ income-earning opportunity, based on the merits of recruiting other individuals into the company. By doing so, you have the ability to increase the amount of cash-back on certain purchases, as well as qualifying for additional income bonuses. All purchases must be made using the Lyoness shopping network.

Thus, for those interested in becoming a Lyoness member, and are looking into its opportunity must know that this primarily based upon proper networking.

How Lyoness MLM Works?


Whether or not you have heard of MLM marketing, you will fully understand how this works by reading the rest of this Lyoness review. MLM is the abbreviation for Multi-Level Marketing and operates based on any one individual’s ability to attain another individual into the same exact opportunity that in exchange provides you with some type of reward or payment in return, which is exactly what has spurred the growth of Lyoness.

The majority of today’s MLM companies however, have further been objectivied as either a scam or pyramid scheme and usually requires a monthly paying membership to join.

Its biggest attraction furthermore, deals with the falsely over-exaggerated income claims, and the typical hype, and buzz we see surrounding today’s mlm opportunities. Ultimately, as a Lyoness member, you can expect cash-back in the low minimal range of just 1 to 2% from your online made purchases. You will be required to make atleast $15 before you can withdraw any funds.

The Lyoness Business Opportunity


In regards to its business opportunity, you will truly come to notice that they purposely make things much more complex than they actually need to be, in order to seem as legitimate as possible, and to make them look attractive. In addition, to hide their true and ultimate purpose… That is, to rake in as much profits as possible. By obtaining more money from as many individuals as they can, the more cash-back they can begin to payout by use of this profit. At the same time, you can expect to never get paid more than a couple percent in cash back returns.

Lyoness Business Services Can Be Summarized As:

-> 1% Cashback of the purchase price to the Lyoness / Business Member.

-> 0.5% Friendship bonus.

-> Four types of shopping.

-> One cashback card for Lyoness loyalty members.

Unfortunately, the average Lyoness individual member is known to only be able to sponsor just one and a half people on average into the business side of things. At that rate, it would take hundreds and hundreds of years for any one person to qualify for a legitimate full-time income.

Lyoness Compensation Plan


If you are looking for a legitimate way to make money online, Lyoness may seem to be a qualifiable opportunity at first sight, but is one I believe will cause more trouble than necessary.

For one, they are just another MLM company with an overly complex payment scheme. You could find thousands of other MLM companies to join, but the fact will remain, you’ll need the proper coaching, tools, and resources to get started appropriately. In addition you will need a ton of everyday traffic to get yourself up to a full-time income, something that is not offered nor covered within Lyoness.

Nonetheless, Lyoness utilizes a very intricate compensation plan, that is made up of “Accounting Units.” I will go over what they consist of briefly:

A Lyoness Accounting Unit is created by shopping or using the “Down-Payment Method.” Because lyoness operates as MLM, you also become credited not just for your personally direct referrals, but your indirect referrals as well. This makes the Lyoness Company & Compensation Plan that much more attractive, giving leverage to its opportunity. Lyoness bonuses, will thus vary, and depend on the number of Accounting Units you have generated.

Remember that an Accounting Unit is generated by the recruitment of others and can be made eligible through using a Down Payment to becoming a founding Lyoness Member, or through daily shopping.

Lyoness Down Payment = $225 to $3,000

In addition, there are FIVE Lyoness Accounting Unit Categories:

Accounting Unit #1: 

Loyalty Cash/Credit – Once you have generated your first 70 accounting units by referring 35 members above, and 35 below, you will be credited in ‘Loyalty Cash.’ Loyalty cash is different than typical money, and can be redeemed as:

– Gift Cards

– Mobile Cashback

– Lyoness Shopping

Accounting Unit #2:

Loyalty Commission – Paid in cash or credit once you have recruited units in Accounting Categories two, three, four, or five.

To Summarize..

Accounting Category 1:

Units – 70 Members Recruited.

Total Compensation – $675

Pay OutLoyalty Cash

Accounting Category 2:

Units – 60 Additional Recruited Members.

Total Compensation – $1,275

Pay Out- Loyalty Commission

Accounting Category 3:

Units – 50 Additional Recruited Members.

Total Compensation – $2,400

Pay OutLoyalty Commission

Accounting Category 4:

Units – 50 Additional Recruited Members.

Total Compensation – $7,200

Pay OutLoyalty Commission

Accounting Category 5:

Units – 50 Additional Recruited Members.

Total Compensation – $24,000

Pay OutLoyalty Commission

Accounting Unit #3:

Loyalty Commission Bonus – Eligible to receive an 18.75% bonus on all Loyalty Commissions that your Directly Referred Lyoness Members have earned.Lyoness Scam Review 2015

In addition, you are eligible to receive a 6.25% bonus on all loyalty commissions that your Indirect Referred Lyoness Members have earned.

Accounting Unit #4:

Volume Commission – These are Career Points that you earn every time a new accounting unit is created from your downline. Depending on your career level, each point has a certain monetary exchange value attached.

Accounting Category 1 $75 Unit = 1 Point ; Accounting Category 2 $225 Unit = 3 Career Points ; Accounting Category 3 $600 Unit = 8 Career Points ; Accounting Category 4 $1,800 Unit = 24 Career Points ; Accounting category 5 $6,000 Unit = 80 Career Points.

Accounting Unit #5:

Volume Bonus – For those in Career Level 2 and above you are eligible to receive a volume bonus

Career Level 1 = 0 Volume Bonus

Career Level 2 = $300 Volume Bonus

Career Level 3 = $750 Volume Bonus

Career Level 4 = $1,800 Volume Bonus

Career Level 5= $4,500 Volume Bonus

Career Level 6 = $12,000 Volume Bonus

Career Level 7 = $30,000 Volume Bonus

Career Level 8 = $75,000 Volume Bonus

To really get started with Lyoness, you’ll need a couple things. The first requires an average hefty investment somewhere in the range of 2,000 pounds (or $2,900) to 25,000 pounds (or $36,000), qualifying you as a Lyoness founder position.

The second is, in order to become qualified for Lyoness commissions, you will need to find 4 other business partners. Therefore, not only must you attempt to recruit others into the Lyoness cashback shopping company to become qualified, but also into its business opportunity, requiring an additional 2,000 pound minimum investment!

This happens to be the membership price to join the program, and will qualify you for different earning levels within the MLM matrix while allowing you to become a premium Lyoness member.. Normally, the case is you’ll need a down-payment of 2,000 in euro’s on future discounts. Thus, they do not consist of saved up residual discounts saved by shopping at Lyoness, and is something I find to be nearly outrageous.

Lyoness Legality

So Is Lyoness even legal?

Not so much actually, and is just one reason of many, I would advise stayinglyoness compensation plan & legality away from this cash-back program. In regards to legality, individuals have been sued worldwide, and is a company attaining a pretty terrible name and reputation, which I believe will become the end of this company. The day that happens, the day every premium member of Lyoness will lose out completely. Certain countries as a whole have gone as far into claiming the company to be “Ponzi-Scheme-Like,” and has recently been confirmed to be illegal causing the suing of individuals around the world..

Lyoness Company Overview

Well, now that we have reached the very end of this review, I’d like to point out that Lyoness is truly a rapidly growing company. It’s possibly become one of the biggest shopping cashback programs of the century, but is still in its infancy, and is still only available in 3 of the 7 continents.

It’s been particularly popular in Austria and Italy, but possibly because that is where it was actually founded! Nevertheless, the company has devised for a variety and number of methods of becoming compensated. A very important note to state here is that the company seems to have put in a ton of work into coming up with this, almost more effort into its compensating plans than actual training on how to become successful with Lyoness. This is a problem I see almost all the time with MLM companies, and with one big as Lyoness, I would think that they would have come up with something better!

Personal Opinion..

The mere fact they are using its compensation as a ploy for gaining more traction and attention, also tends to result in great compensation or zero to nothing in compensation. The point here is, to become truly successful with Lyoness, you will definitely need to be referring and recruiting hundreds and hundreds of people, into the company. That is the only way to get yourself eligible in its 5 different forms of accounting units.. Thus, by doing so, you will be able to receive loyalty credits, loyalty cash, loyalty commissions, and loyalty bonuses. Otherwise, you won’t be seeing any of it, anytime soon. Last, but not least, one of the most important facts you must know and be aware of is you will only be getting paid out in loyalty cash, for your first 70 recruited members. Therefore, I believe it is safe to say, this is not an opportunity to jump in expecting for “fast cash riches,” but one that will take a lot of time, hard-work, effort, and even investment. Thus, you’ll be required 2,000 pounds just to join this opportunity.. In my opinion, along with all the legality issues, the initial leg-work required in recruiting for compensation, and the investment, I find this opportunity to be a complete scam! In addition, lack of training, resources, mentorship, and tools, will really make this even more of a problem.

The reason why it is a pyramid scheme is because you are essentially engaging in the selling of actual people down many different levels and because you are not selling the actual cash-back opportunity. What you are actually getting paid to do, is obtaining paying members to recruit additional paying members, and so on. Thus, because you are getting paid down many different levels, additionally makes this a pyramid scam. Becoming compensated for selling people into a certain idea and profiting off them and their actions, is both unethical, illegal, and rarely ever properly works. But to sell someone a product or service of substance and value, is in other words, a legal method of making money and income, which is why you should check out this top #1 recommended product!

Category: Online Scams Product Reviews

About Peter G.

Hi I'm Peter. I'm 27 years old and I'm a Uconn graduate who finally found his way through life by becoming a full-time affiliate marketer. I enjoy trying out new things and believe there's no greater satisfaction than being able to make money on your own time!

15 thoughts on “Lyoness Cashback Scam Review: Just Another Pyramid Scheme?

  1. Jen

    I’m a 20-year-old girl. A friend of mine took me to a presentation Lyoness held in Steinkjer, Norway today. They basically said that if I joined, paid around 900 Norwegian kr and got some more people to join, that i could make a ton of money every month (like 400.000 Norwegian kr a month). One of the guys who was at “level5” also said that it was stupid to want to go to college instead of making money when I mentioned I was skeptical and that it seemed better to get an education and stable job. He said I should just join them and work hard within their company instead of starting college in august. My friend and her brother had already bought into this stuff, but it seemed too good to be true for me so luckily I didn’t. This article also helped me confirmed my gut feeling. Im glad I didn’t trust them :)

  2. jsveen

    I was contacted by a Susan Monk, a compliance officer with Lyoness. I was told to remove my “review” from pissed consumer, and then she would help me get my money back from Lyoness. I could not remove it but I did mark it RESOLVED but this was a grave mistake.

    I waited for calls from this Susan Monk, but never got a call back from her. I had to call all the time to ask how things are progressing, but now she will not answer anything at all. At least have the decency to call me and inform me ether way. Susan Monk was the one contacting me, I did not contact her.

    In other words Lyoness doesn’t care HOW they get their money, just as long as they get it. Now I have no choice but to go all out. How can they in Lyoness accept this? Don’t they have any compassion at all. How can these guys go to sleep at night knowing they are all part of this. I find this unconscionable.

    They could have solved this by buying whatever position I have, OR at least giving me an offer. But they’d rather screw an old man, that is trying to put something together for retirement. No, I am not giving up, Lyoness got my money by deceipt. I have been taken for $ 26,400. They will not refund. I have found a law firm who will finance a class action at no cost up front. They will take anywhere from 26% to 36% depending.

    If anyone’s interested please give me a note. I hope that you all are seeing this and be warned, DO NOT JOIN LYONESS.

    This was my letter to Lyoness: “I was introduced to Lyoness in January 2013, by a good friend, who like me, was not a member yet. We went to meetings, and that is where I met Mr. Dennis Sweetnam. He represented Lyoness, and I was impressed by his presentation.

    I told Mr. Sweetnam, I was very sorry, but I just can not sell and don’t have time to sign up others. I am a Goldminer and I do lots of exploration and mining during the year, so for that reason I could not join. Mr. Sweetnam then suggested that I become a member, and then buy into Asia and India ( he told me that I had to make a decision soon, because it was closing the next day ).

    He advised me that I did not have to sign up anyone at all, I just had to sit back and wait till Asia and / or India opens up. I thanked him for this advice, and put up $ 30600.- I was told it would take a year or two, which sounded good to me. It was a retirement investment to me. I had been told that the returns would be in the thousands to tens of thousand dollars a month. I hope that someone can advise me on my situation, and when I can expect some returns.

  3. Chris

    Federal Court finds Lyoness scheme NOT pyramid

    The Federal Court today found that Lyoness is NOT a pyramid scheme, as previously alleged by the ACCC.

    This link will take you to the ACCC Media Release, issued today.

    The Lyoness ‘News Release’ can be found at this website link:

  4. F.M

    I do need your comments on my concept :
    I am the founder of a very unique multi sectoral management concept where we do offer :
    1-managing and increasing the cash flow for any legal Small /mid sized company from any legal sector without any upfront fees.
    2 – offering our unique software and hardware to any company interested in increasing its 3 yearly turnover by up to 100% without any upfront fees .
    3 – offering our unique terminals , network and hardware to any company from any sector /country interested in being managed by our experts without any upfront fees .

    1. Peter G. Post author

      Hi FM, it’s great that you have your own business in place designed to help other companies. But I’m afraid I need more information to evaluate the effectiveness of your program.

      1 – What steps do you take to increase cash flow?
      2 – What kind of software/hardware are you referring to.. What are its functions?
      3 – What terminals are these..?

      One thing I can tell you is this.. If you’re looking to get more business and exposure out your business, take a look at Wealthy Affiliate (read my review here). This is the go to product I recommend to everyone and can’t tell you how effective this will be in helping you to leverage your business. Feel free to respond to my questions, and I appreciate you asking for my opinion :)

  5. Manuel Caria

    “and has recently been confirmed to be illegal causing the suing of individuals around the world..”
    I know a lot has changed, at least in the EU Lyconet programme, but still…
    Could you please state some reliable sources on that? I am having a hard time finding one.
    Great article by the way :)

  6. M

    Good article. I was dupped into Lyoness. I gave them $3,000 to become a “premium member.” When that didn’t work out, I asked for my money back. They said “no.” I did however buy their gift cards and that was legit.
    I am looking for others to file a class-action suit in regards to getting my $3,000 back.

      1. Peter G. Post author

        Nice find Jon. That’s very helpful especially for those who have been considering joining the opportunity.

    1. Febian

      I was duped also and will not get my $3000 back. Lyoness is a fraud.

      1. Peter G. Post author

        Sorry to hear you got duped into Lyoness Febian. I hope you and the many others here find a way to get your money back. If not, don’t worry, we all mistakes and I’m sure you can make it back through other online marketing ventures. Best of luck and if you need anything, just let me know.

      2. Chris

        Please explain more. Are you a Premium reseller? When did you pay your money? Why do you say you’ll never get the money back? Would be great to hear some more details, before inversting myself.


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