In this post I`m going to review good and not so good things about Lyoness / Lyconet Multi level marketing company. I have spent there few months as a Marketer, so I have some insights to share with you.
Everybody should know by now what Lyoness loyalty program is. However if You do not, then:
What is Lyoness loyalty program?
Lyoness loyalty program is the largest shopping community in the world. It is used by over 8 million people in 49 countries in the world. Lyoness loyalty card is free of charge. Its users do not undertake any shopping liabilities, but they get possibility to shop with better conditions. Lyoness loyalty program participants can shop in both conventional stores, and online in any of the member states.
How I was introduced to Lyconet?
I have been active for a while in Lyconet program and I will gladly share with You my experience with this network marketing company. Currently due to various reasons I am not active Lyconet program participant, but I know that there are many people who would like to hear a story of real experience.
Currently I have 400 direct and indirect people in my recommendation line, but the total number of people in the recommendation line definitely exceeds 500 people which I cannot say precisely because I am not paying 50 euros monthly.
Yes, in order to have access to all the information about Your team, You are going to spare 50 euros a month for which You are going to have one Unit reserved in the ‘Balance’ program of a different state.
And here I am, just at the beginning of my story when some terms kick in, of which there is a bunch in this marketing company.
So, how did I become Lyconet member, how much money I have invested in this network marketing company and how much money I have earned?
I got introduced to Lyoness loyalty program when one good person came to the company I was working at back then and told that this loyalty program could be useful to a company. I have to say though that I did not see how to integrate this program in the company, but I liked the concept of the network marketing. Until in two months time I came to the first training session.
After having visited a few training sessions I decided to join Lyconet network marketing program and bought the starter pack for 350 euros. These 350 euros were spent in order to buy Units in the Latvian Balance program which is not currently ringing a bell for You, does it? I instantly activated Easy shop function which costs from 50-150 euros a month. By paying 50 euros a month You gain access to all Lyconet partner profile functions.
In total I have 16 units – 7 in the Latvian Balance program and 9 in Balance programs of other countries. It means that I have invested about 800 euros in this system. I could also count training session visits as expenses, seminar in Italy and other costs.
Why Lyconet network business seems attractive to me?
First of all, this business idea is quite excellent – one loyalty card for all Your everyday purchases. Secondly, I saw a possibility to approach this business differently than it is done by everybody else – with online marketing tools. Already during the first days I created a page atgrieznaudu.lv (“cash back” in Latvian), where I talked about Lyoness advantages. By linking the website to Facebook ads I managed to get several hundreds of new users under me. Of course I performed classic network marketing activities too – meeting and explaining this business opportunity to others.
And now it is time for the most interesting part of this article – reasons why I did not continue my activities in Lyconet network marketing company. I am telling right away that this is my subjective opinion which formed through understanding of this program and by observing the results.
Why I discontinued activities in Lyconet network marketing program?
1. As the first reason I can mention the fact that people in reality are not using this card. The most active users of this card are the participants of Lyconet program who are changing their everyday commute just to get this 1-2% cashback from daily purchases. In my opinion the return offered by this card is just too low for people to really change their routine, and simply get 1-2% back. And what is the strangest? In many places buying with this card is even more disadvantageous than with other discount cards! A great example would
be Lukoil (popular gas station in Latvia) petrol station. By using Lukoil loyalty card You can receive 4-6 cent discount for each litre You fill in Your vehicle, but with Lyoness, the discount is 1% from 100 euro purchase. Additionally, Your 1% cashback is returned to Lyoness account in a month or even after a longer period of time, but Lukoil’s 4-6 cent discount is received at the moment of purchase. I hope You got the idea how unprofitable it actually is to use this card.
2. This card is disadvantageous for companies and with the benefits offered it is difficult to attract new visitors to Your company. I will remind however that this is my subjective opinion, but me being marketing specialist, I do believe that their loyalty system is a little bit inappropriate. The company for their client activities will have to give up 8-12% of the purchase sum, but the clients receive 1-3% as a cashback. The rest goes to the company, to the person who gave You the Lyoness card, to the Lyconet network marketing program.
In my opinion this ration must be the other way round, and thus people would have way more reasons to use this card, as well as with turnover increase network marketing participants would receive a similar amount of money.
Personally to me 1-2% is very low, so I am not motivated to use the card, but if it were 6-10% I would be willing to change my habits.
3. Money can be earned (almost) exclusively by making other people become Lyconet network marketing participants. If You have ever visited any of the Lyconet trainings, You definitely will have heard that You can earn in 18 different ways with this program (or more, I cannot recall). And it is not lie, but the situation in reality is also that real money is earned only when You recruit as many people as possible. The more purchases they make in Lyconet system, the larger Your profit. And if You find people who manage to do the same, Your profit increases even more.
I tried building my team, mostly based on the card users, but after having given away cards to more than 300 people my earnings barely reached 10 euros. This fact made me reconsider and I understood that people are simply not using this card.
4. Gradually it began to become difficult to find new participants to Lyconet. Have Your friend or acquaintance ever tried to tell You about Lyoness loyalty program? Or have You ever received an invitation to come to Lyoness presentation? I know people who have received 4-5 such invitations. By the way currently over 100 000 people in Latvia currently hold Lyoness cards! Looking at demographics data of Latvia, You can calculate that every 20th person in Latvia has one. And if somebody receives their card then there is nobody else who can give one to them anymore. But I am convinced that several times more people have been addressed, and if You decide to try Your luck and make Your business in this network marketing company, You are going to face a great distrust from people – most of them will have been talked to already about this, and another big part will tell you to get lost with Your pyramid scheme.
5. Network marketing systems are being changed without prior notice. Starting off network marketing business in Lyconet company there was an article about purchases by Your referred program participants, for which You will be paid 0.5% of the sum of the purchase. By deciding that You can create business based on those 0.5%, in a while this condition is cancelled or the sum reduced. Not sure if it is good news.
I guess I have covered it all – everything I had about Lyoness loyalty program and Lyconet network marketing BUT! I have not had any regrets that I got involved in this network marketing business, that’s why I will mention also a couple of positive points.
Positive points about Lyoness / Lyconet program
1. Opportunity to meet great people. Yes, in this and in other network marketing businesses there is a possibility to meet super determined, smart, outgoing people from whom there is so much You can learn. And I also had an honour to familiarize with a few such people, gain useful knowledge from them and find out about their view on things.
2. Network marketing makes You learn and facilitates self-growth! If You decide seriously to get involved in the business of network marketing, then You will definitely need to learn new things, You will have to read books and step beyond the boundaries of Your capabilities.
At the time when I was active Lyconet participant, I managed unbelievable things every day. I made myself wake up at 6:00 every morning just to go exercise, I dared to approach tens of people a day, I read at least a book a week and I understood that only huge efforts are leading to significant results.
3. In order to reach Your goals You have to work thoroughly and be smart. If previously I was only scratching the surface, looking for the easiest and quickest ways, after joining network marketing business I understood that a key to success if intelligence and determination. An excellent example of how I use the obtained knowledge is this portal. I nurtured the idea about the portal for 6 years, but by the beginning of 2018 I was constantly trying to find some other super-efficient and super-fast way how to make this portal popular without devoting time to it. Needless to say that it did not work, until I started to be extra determined regarding the content, investing time and money into the development of the project.
Here are my conclusions about Lyoness loyalty program, Lyconet network marketing and about network marketing in general. Actually I advise everyone to try their luck in network marketing just to benefit – materially or in some other way like, self-development, but hopefully in both!