Lyconet is preparing to roll out its "Customer Cloud" program across Europe, a new initiative attracting scrutiny for its potential offering of unregistered securities. Affiliates seeking to qualify as "Cloud Sponsors" must pay between €1500 and €4500, a requirement that raises regulatory questions for authorities.
The core concept involves "organizations" enrolling with Lyoness and then signing up their own members as shoppers. These shoppers, often drawn from entities like sports clubs, generate shopping points through their purchase activity. Lyconet's Cloud Sponsor program then allocates these points to specific Lyconet Premium affiliates.
Customers joining Lyconet without a direct affiliate referral are designated as "without a recommender." Their subsequent shopping activity and generated points become part of a pool, which the Cloud Sponsor program then distributes among its qualified participants. Lyconet projects that hundreds of thousands of shopping points could be generated monthly through this system.
To qualify as a Lyconet Customer Cloud Sponsor, an affiliate must hold a European Lyconet ID and possess the status of a Lyconet Premium Marketer. The third and most critical requirement involves a direct payment to Lyconet, ranging from €1500 to €4500. Currently, the Cloud Sponsor program operates exclusively in Austria, necessitating the European affiliate ID.
Becoming a Premium Marketer requires reaching a specific Career Level within Lyconet. These levels begin at 5000 shopping points accumulated monthly. Affiliates generate these points either through their downline's activity, which contributes at a 50% rate, or through their own purchases and those of their non-affiliate customers. This structure creates an incentive for continuous recruitment and spending.
The €1500 payment for Cloud Sponsor qualification is linked to a "Limited Edition Discount Voucher." Lyconet affiliates can purchase up to three such vouchers. While these specific vouchers do not directly generate shopping points, they serve as a prerequisite to unlocking potential future earnings tied to the Customer Cloud.
Affiliates use these Limited Edition vouchers to acquire standard vouchers, which can then be redeemed for purchases. These purchases contribute to the 5000-point monthly qualification needed for Premium Marketer status. Once qualified, Lyconet advertises that affiliates can expect to receive a share of the "xxx-thousand" (hundreds of thousands) points generated by the Customer Cloud each month.
Securities regulators often classify schemes as unregistered securities when participants invest money in a common enterprise with the expectation of profits primarily derived from the efforts of others. The compulsory payment for Limited Edition Discount Vouchers, directly tied to the prospect of substantial shopping point allocations, suggests that participants are buying into a system designed to generate passive returns. Such arrangements typically require formal registration with financial oversight bodies to protect investors.