I only have the cashback from my own spend which is at the places I already shop and so far have had $40 in cashback and no accounting units accrued. I have only got 1 person underneath me but talking with a few others.
Please note I’ve only signed on 2 months ago and had a 3 week holiday in the middle of it.
Push shift+4?
…
There’s a few places upthread that talk of dues/initiation/whatever that people pay to join the programme. Or are you saying that blue card members, members who get an additional discount not available to the general public, can obtain this card and all the blue-card benefits you talk of without sending a single penny to the people running the programme?
Your hypothetical 780 people who each recruit … who each recruit … who each recruit
780
4,992
31,948
204,472
1,308,622
8,375,186
53,601,191
343,047,627
So if only your original 780 start the pyramid, the 7th level exceeds the current population of the USA. Go to level 8 and you include the population of China and most of India. Can you see a problem?
Yup, I asked yourmate to tell us how much money they’ve made, no stories, no “in three months” or “when I recruit 5 people” or “when I recover my fees” just press Shift+4 and type a number. I was trying to keep it as simple as possible. What I was hoping for was a post that would consist of nothing but:
$____
He/she added a bit more, but I’ll give him/her that it wasn’t terribly defensive. I was expecting more beating around the bush. Besides, as I said in the ATMB thread, I haven’t really been paying much attention to this thread anyways I just saw a new member and figured I’d just ask them an easy question and hope for an easy answer.
Hey mate,
Yeah I can see a problem and that is that you only get benefits from 2 levels below you when looking at the cashbacks. Direct referral and indirect referrals. so I couldn’t give 2 sh**ts about the numbers after that.
Obviously with these things the earlier you get in the better, but that is only like anything else. Anyone first to market with a viable product/service stands to make some money, and its always going to be more difficult in highly competitive markets. I’ve been in business for 10 years so am not a complete knob head.
That being said im not running around thinking I’m going to make $250k a year out of this thing, but the system is plausable and its early days for it. I can see the possibilities with it an for me $3k investment isn’t a problem.
There is 2 major areas where this thing can fail and thats the quality of the retailers that come on board, and if the buying process becomes to complicated. It’s hard to change peoples habits or routines and they wouldn’t use it if only crappy retailers were on board. At this stage the buying of store cards and having to recharge them on the lyoness website, or the buying of vouchers is a bit of a pain in the ass but I believe as the mobile app technology gets a bit better like ‘google wallet’ this should revolutionize this part of the process. For the meantime I just have a gift card in my wallet that i do my shopping on with those particular retailers with and i monitor the balance of it so there is always enough on it for fuel / groceries / booze etc.
In terms of retailers I’m based in Australia - and most of the major retailers.. Woolworths, Hervey Norman, Amart Allsports etc. are all now Lyoness merchants.
The blue cards cost $1 or something. You can hand them out for free or charge people $1 and if they sign on, they can use the card, or their membership number to receive cashback from the participating retailers.
You can become a distributor or gold card member with $225, which buys you 3 $75 units in the accounting program. But you basically need to fill the accounting program with $3000 worth of units before you start seeing the real benefits. This is why people just pay the $3k and then they start receiving the loyalty credit outputs immediately after they have progressed some units. The guy that indtroduced me is a very good friend of mine, has around 25 distributors in his group now (in 3 months) and is starting to make an income out of it.
I’ve been lazy and unfocussed on it, but there is money to be made and its not quite as hard as trawling around a boot full of product and doing demos with people and then getting them to do demos with other people. I’m happy handing out cards and showing people that they could build an income from it if they wanted to and leaving the decision to them.
so to answer your question, yes if you receive a card, you have to fill out your details like bank account, address, phone number to register it and then when you use it it will accrue the discount and pay it out into your bank account. It entitles you to the 2% cashback only and the friendship bonuses if you want to refer others. It doesn’t entitle you to the further 3% or whatever that accrues in the ‘accounting program’.
Some retailers you swipe the card. Some of the big retailers haven’t wanted to roll swiping machines out into their 800+ stores, so with those retailers you buy a store card through the lyoness website and recharge the store card via the lyoness website and every time you recharge you earn the discount but still get to spend the full amount at the store.
When the mobile app vouchers etc. (similar to google wallet) is up and running and the technology is widely accepted the buying process will be much easier.
We have another live one. :rolleyes:
[quote=“yourmate, post:187, topic:611746”]
Some retailers you swipe the card. Some of the big retailers haven’t wanted to roll swiping machines out into their 800+ stores…QUOTE]
[pedantic hijack]I work for a medium sized UK chain. We have around 3000 stores.
Actually - Turble posted a few pages ago how they get the big retailers “on-board” - they sign up as an affiliate, and get a small discount selling cards for those big retailers through the Lyoness website. So Walmart & the like have no idea that the card holder is in some kind of 3rd party discount group - they just sell cards & purchases through an affiliate. His explanation:
Not sure affiliate marketing is how they are getting a discount. You are talking about 2 different things. Affiliate marketing is generating commissions for referal sales to a website.
What you say about the gift cards is true though. In Australia we buy the gift cards for the big retailers FROM LYONESS.
So lyoness is purchasing say, $2m worth of gift cards at a 4% discount and passing their discount on to the members. Would they have had to negotiate this discount with the bigger retailers - yes!
That is the whole Lyoness philosophy… its why being involved gets you cash back and loyalty bonuses because you are using the buying power of a collective group. Whether you are scanning your card to get the cashback, or buying a gift card and making your purchases on that - it makes you part of a group that is negotiating discounts based on the volume of people in the buying group.
if you want to distribute cards en-masse there is a distribution margin to be made based on a % of the spend in the cards you get out
ym
The point we’re trying to make is that the retailers are not partners in Lyoness’s venture in any sense of the word. They are merely suppliers that take no risk, assuming Lyoness pays up front. It’s clear that Lyoness is trying to buy legitimacy by having their shills claim that these gift card suppliers are familiar with their business model and have signed off on it.
Lyoness uses a number of pricing policies and operating schemes. It is not one simple discount plan, it is an amalgam of methods. Each of these methods may be completely legal.
However, the cummulative effect is to misrepresent the status of Lyoness and give it undue credibility. The reason Lyoness uses multiple methods appears to be to obfuscate their organization.
Just doing a google search on “____ bulk gift card discounts” I get the following:
So, depending upon the company, anyone can buy bulk purchases of gift cards and get a discounted rate. In other words, by $5000 in face value of cards for a discounted rate, say 4%, = $4800.
So Lyoness can obtain cards for a 4% discount and then sell those cards to their members at that same discounted rate. Or more likely, Lyoness can obtain a 6% discounted rate, then sell the cards to their members for a 4% discounted value, and make 2% of that face value for themselves.
Lyoness then calls itself “partners” with those companies. That is a loose word that probably does not have a legal definition that they are violating, but conveys some extra sense of legitimacy to Lyoness that it does not merit.
You misunderstand. This has nothing to do with how many layers down you get benefits from. The point of showing the number scales is to show that if you go 7 layers deep, there are more people than the current US population. This demonstrates that unless you get in on the top two or three levels, you are more likely to run into people that are already members than to new customers for you to enroll, and thus you are not able to get them to sign up as your subordinate to contribute to your indirect sales. The lower you are on the pyramid, the less effective this will be to you.
So far, their greatest strength lies in recruiting patsies to spam threads like this one.
Ha ha, a moderator caught the last one pretending to be some average joe stumbling across this thread and volunteering to try out Lyoness and share his experience.
(it was his only post here at SMDB, he lasted about 10 minutes before it got pulled)
This was started as a General Question. It’s degenerated into “he said/she said” with obvious posters who are from the organization. It no longer belongs in GQ.
If anyone wished to continue it in IMHO, to solicit opinions, I have no objection.
Closed in this forum.
samclem, MOderator