Hubert Freidl founded Lyoness in 2003, launching a multi-level marketing operation that offers cashback rewards and investment opportunities. ScamTelegraph has received several requests for a closer look at the company. This review focuses exclusively on the US division, as the international business model remains largely opaque.
Freidl, sometimes identified as a mathematician, established the company without a clearly documented background in multi-level marketing before 2003. Lyoness does not sell products directly. Instead, members market company memberships to new recruits.
Members receive a "cashback card" after joining. This card grants a percentage back on purchases made from partnered retailers. Lyoness recently overhauled its business presentations and information for its US presence. This change made the US business opportunity more understandable.
The international Lyoness compensation plan is complex. The US version, however, has simplified many of these elements. Lyoness members receive cashback on purchases from selected retail partners. This applies to online and offline transactions, including giftcard purchases. Cashback amounts typically range between 1% and 2%. Payments are issued weekly, with a minimum cashout balance of $15.
Recruiting members also yields a 0.5% cashback. This applies to purchases made by directly recruited individuals and their recruits, extending two levels deep. Accounting Units introduce complexity into the Lyoness compensation plan. A binary compensation system structures member recruitment. Each member recruits others who are placed below them, forming a downline with two initial positions directly underneath.