Lyoness: financial freedom is a fraudulent fairy tale

Earlier, this blog reported how little money is to be made by using the Lyoness discount system ('Cashback card', vouchers, etc.). However, we all knew from the very beginning that Lyoness has nothing to do with shopping, but that the money is to be made by making down-payments to acquire positions in the position system and then recruiting friends and family to do the same.

Exactly how much money is to be made with this 'opportunity'?, one might ask. The answer is simple: not that much. Most of the illicit earnings made through Lyoness disappear into the pockets of its instigators. With the great help of David Brear, the Lyoness Complaint Centre has managed to lay its hands on significant evidence that should be an eye-opener for everyone involved with, or planning to get involved with Lyoness.

According to an income disclosure statement published by Lyoness America, nearly no-one makes any money through Lyoness America. As a matter of fact, 46% of all members have made zero income. Yes, that is 0 dollars!! More than 86% of the American members makes on average less than 13 dollars per year with Lyoness. That is 1 dollar per month!!

Altogether, Lyoness members make about 23 dollars per month, yet it should be noted that the extremely low median value of $0.38 (monthly) indicates that the vast, vast majority of all members makes way and way less. The average is so 'high' (23 dollars per month) because of a very select group of riches in the top of the scheme. Only 0.12% of the members makes more than $2000 per month, and note that this is gross - expenses and possible taxes still need to be deducted from this.

Conclusion: given the extremely low average incomes of Lyoness victims, it is safe to say that by far most of the participants will lose money, instead of making any. In fact, it is very very doubtful that more than 1% of the American participants in Lyoness will ever make their initial down-payments back. Indeed, 86% of the victims would require more than 230 years (!) to compensate the 3000 dollar sign-up fee.

And that is a best-case scenario, i.e. in case of zero additional costs, which is highly unrealistic as you pay at least 3 dollars (3 month salaries for 86% of the participants) to sign a free member up, fees for meetings, etc. Or, as Lyoness puts it:

"Note that these figures do not represent an IBR's profit, as they do not consider expenses incurred by an IBR in operation or promotion of his/her business. The figures above refer to gross income (total income before any expenses are deducted). The expenses an IBR incurs vary widely. Expenses for IBRs can be several hundreds or thousands of dollars annually. You should factor in estimated expenses when projecting potential profits. Such operating expenses could include advertising and promotional expenses, training, travel, telephone and Internet costs, business equipment and miscellaneous expenses. Based on a survey conducted by Lyoness in 2012, the average annual expenses an IBR incurs are $1,294.44"

Thus, depending on the definition used, this means an average annual loss ranging from $769.79 to $1,281.44. And that is without considering the costs of the purchase of business-packages or down-payments.

Lyoness adherents have often told us that we do not grasp their amazing system because we have never visited one of their amazing meetings. There, everything is perfectly explained and much easier to understand, because everything is visually presented through videos or presentation slides. To make sure they understand what has just been discussed here - and to do them a favour in these tough days - we have drawn-up a visual representation of everything we have just discussed.

And of course, after taking the average expenses into consideration, every participant (except for the top 0.35-0.55%) loses a considerable amount of money each year, even if the down-payments are not taken into consideration.

http://cdnlarge.lyoness.net/downloads/pdf/us/download/infos/lyo-ids-us.pdf

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