Lyconet Review Archives

Lyconet Compensation Program- Explaining the Balance Program – Part 1

Q: I Signed on to Lyconet; What Does This Mean?
A: This means you have agreed to the Lyoness GTCs and the Independent Lyconet Marketer (ILM) Agreement and are now a Lyoness Member AND an Independent Lyconet Marketer, or simply, Marketer. You are now able to market the Lyoness Loyalty Program to others for greater compensation eligibility.

Q: What is the Lyconet Marketing Program?
A: The Lyconet Marketing Program is a way for Lyoness Members to become Lyconet Marketers to enable them to market the Lyoness Loyalty Program to others as a business for greater compensation eligibility other than what the Lyoness Loyalty Program itself provides. The Marketing Program is made up of the Balance Program and the Career Program which enables the Marketer to receive weekly and monthly compensation respectively in accordance with the ILM Agreement and its compensation eligibility requirements.

Q: Are There Different Types of Lyconet Marketers?
A: Yes, the first type is a Lyconet Shopping Advisor. This is a Marketer who has yet to achieve a Career Level. The second type is a Lyconet Premium Marketer. This is a Marketer who has reached a Career Level. Once you become a Premium Marketer, this status will remain for the duration of the Lyconet Agreement; even if you no longer meet the requirements for a Career Level.

Q: What is the Balance Program?
A: The Balance Program is where Shopping Points generated by a Marketer’s entire Lifeline are converted into Units. Shopping Points are generated every time you or someone in your Lifeline shops with a Lyoness Loyalty Merchant; whether online or at an SME location or by purchasing Lyoness Vouchers. Once Units have been generated, the Marketer may receive compensation on a weekly basis depending on their compensation eligibility. The Balance Program consists of 4 Balance Programs each having 5 Balance Categories.

Q: What Are the 4 Balance Programs?
A: The four Balance Programs are the Personal, National, Continental, and International Balance Programs.

1. Personal Balance: Consists of Personal Units, Customer Units, Bonus Units, and Units from all of the Marketer’s Coaching Levels in their Lifeline and Transfer Units which are booked in the Personal Balance Program.

2. National Balance: The National Bonus Units for all of the Marketers in the respective country and the Transfer Units will be booked here. By working together on a national scale, Marketers can benefit from all the Loyalty Program purchases made in their country.

3. Continental Balance: The Continental Bonus Units for all of the Marketers in one continent and the Transfer Units will be booked here. By working with other Marketers from the same continent, Marketers can benefit from all of the Loyalty Program purchases made in their continent.

4. International Balance: The International Bonus Units for all of the Marketers in all countries and the Transfer Units will be booked here. By working together on an international scale, Marketers can benefit from all of the Loyalty Program purchases made around the world.

Q: What Are the Balance Categories?
A: Unit values vary based on the five Balance Categories (BC) as follows:

1 Unit in BC 1 = 50 Shopping Points
1 Unit in BC 2 = 150 Shopping Points
1 Unit in BC 3 = 400 Shopping Points
1 Unit in BC 4 = 1,200 Shopping Points
1 Unit in BC 5 = 4,000 Shopping Points

Q: How Do My Shopping Points Contribute to the Balance Program?
A: For the Balance Program, credited Shopping Points generated by the Marketer’s entire Shopping Network or Lifeline – which includes Lyoness Customers, Lyconet Shopping Advisors, Lyconet Premium Marketers, as well as their own purchases and/or orders – will be converted into Units. These Units are placed by you into the Balance Program of your choice and into the Balance Category of your choice. These Units generate multiple weekly compensations depending on your eligibility status.

Q: How Do I Generate Units with My Shopping Points?

A: You have the choice to default your online office settings to automatically create a Unit once enough Shopping Points are accumulated or you can also manually choose an amount of Shopping Points to be used for the Balance Categories.

Q: What Are the Different Weekly Compensations That I May be Eligible For?
A: There are multiple Weekly Compensations that you can be eligible for; Balance Commission, Balance Bonus, Coach Bonus and Senior Coach Bonus. Please see the Lyconet Compensation Plan located in the Downloads section of your Online Office for more details.

Q: How Do I Achieve Compensation Eligibility Status?
A: The Marketer must achieve Compensation Eligibility status every year in order to receive all Compensations, Bonus Units and Transfer Units within the Balance Program. The Balance Program recognizes when you are eligible. There are two ways to achieve this status:

1. The Marketer must obtain 350 Shopping Points within the Balance Program. This includes all Shopping Points collected by the Marketer’s Lifeline including their own fully paid purchases and/or orders.

2. OR: If the Marketer has a minimum of 5 direct lines, each of the lines must have collected a minimum of 150 Shopping Points within the Balance Program. This does include Partially Paid Gift Card Orders.

Q: When Do I Receive Compensation?

A: Once the Marketer has achieved Compensation Eligibility status, they will receive any compensation generated from Units up to that point, excluding Coach and Senior Coach Bonuses (please refer to the Compensation Plan). Also, the resulting Bonus Units and Transfer Units will be booked and credited in the same week the compensation eligibility is achieved. This means that the Balance Commission and the Balance Bonus resulting from the booked Units will be paid out in the Production Week in which the Marketer achieves Compensation Eligibility status. Coach and Senior Coach Bonuses will not be paid out retroactively. To be eligible to receive Coach and Senior Coach Bonuses, the Marketer must achieve Compensation Eligibility status for those bonuses, which is explained in the Compensation Program.

Q: Where Can I Find More Information About the Balance Program?
A: You can find more information about all aspects of the Balance Program in the Compensation Plan located in the Downloads section of your online office. Additional information will also be presented in future Lyconet Resource Guide Newsletters.

This is a Lyconet Resource Guide that teaches about Discount Vouchers…it also applies to Lyoness.

Q: What is a Discount Voucher?
A: Discount Vouchers are vouchers issued by Lyoness redeemable towards the purchase of Loyalty Merchant Gift Cards. These vouchers are used as a deduction towards the purchase of Gift Cards. Vouchers can be used for marketing purposes. Discount vouchers cannot be applied to direct purchases made at Loyalty Merchants nor can they be refunded or redeemed for cash in whole or in part. They have no cash value except where applied towards the purchase of Gift Cards.

Q: Who can purchase a Discount Voucher?
A: An Independent Lyconet Marketer (ILM) may purchase Discount Vouchers from their online office. To become an ILM, a Lyoness Member must first accept the ILM Agreement, Lyconet Policies and Procedures, complete Lyoness Business Academy, Compliance Training, “All About Lyconet” tutorial and the Compensation Plan coursework. Upon completion of your “All About Lyconet” tutorial and Compensation Plan coursework, the option to purchase Discount Vouchers will appear as a selection in the Gift Card section of your online office dashboard. Click on Lyoness Gift Cards, select Discount Voucher from the dropdown menu, select the dollar amount of the voucher you wish to purchase, and then follow the steps to checkout. Before completion of the transaction, the Member must agree to Additional Terms and Conditions for Discount Vouchers and a Discount Voucher checklist which state the guidelines of use for the vouchers. Upon completion of your transaction, you will receive a digital code for immediate delivery and your Discount Vouchers are available for instant redemption.

Q: How do I redeem a Discount Voucher?
A: You may apply Discount Vouchers towards the purchase of any Lyoness Loyalty Merchant Gift Card. The percentage of the Loyalty Benefit offered by the Loyalty Merchant will determine the amount of the Discount Voucher you may apply. For example: if a Merchant offers 1% Cashback and 1 Shopping Point, this equals a 2% total benefit. If the purchase value of the Gift Cards is $150.00, you would take 2% of $150.00, or $3.00 and this is the amount of the Discount Voucher you may deduct from the total purchase price. The Gift Cards would then cost $147.00.

Q: Do I have to use the whole DV with a purchase?
A: No, a Discount Voucher can be used proportionally for each purchase. For example, if you purchase a Discount Voucher for $10, and the amount of the applicable discount is $2.00, the $2.00 is deducted from the $10 Discount Voucher and an $8.00 balance will remain for your next purchases.

Q: Are Discount Vouchers eligible for Cashback?
A: The purchasing of or redeeming of a Discount Voucher will not be eligible for Cashback which supersedes Section 8.1.1 of the Lyoness GTCs

Q: May I share a Discount Voucher with another Lyconet Marketer, Lyoness Shopper, Lyoness SME?
A: Yes, in fact, Discount Vouchers are the perfect marketing tool for you to use to incentivize and reward your team, or to use when you register a new Shopper to excite them and start them shopping right away. You must print the Voucher and hand it to the Member. In the future, we have plans for you to be able to do a digital transfer.

Q. Do Discount Vouchers expire?
A: Discount Vouchers are valid for 5 years from purchase date.

Q: Are Discount Vouchers eligible for Shopping Points?
A: Yes, when you purchase the Discount Voucher you receive Shopping Points which apply to your Balance Program and Career Program only. When you redeem a Discount Voucher, you will receive Shopping Points for Shopping Deals on future purchases. When redeeming a Discount Voucher, no additional Shopping Points will accrue in the Balance Program or in the Career Program. The Friendship Bonus will accrue upon redemption of the Discount Voucher as detailed in Section 8.1.3 of the Lyoness GTCs.

Q: May I use a Discount Voucher when purchasing Lyconet Marketing Products?
A: No, Discount Vouchers can only be applied to the purchase of Lyoness Loyalty Merchant Gift Cards.

Q: How much do Discount Vouchers cost?
A: Discount Vouchers are purchased for the same denomination as the Voucher is allotted. Discount Vouchers are purchased in any amount you choose, from $15.00 up to $3,600. Once an ILM has purchased Discount Vouchers and has successfully gifted them to their Members who have in turn successfully redeemed them, then the amount of the Discount Voucher can be increased. The increase (which can be up to $10,000) will be shown automatically in the Member’s online office at the sole discretion of Lyoness.

Q: Can I use a Discount Voucher for Commission Eligibility?
A: Yes and No. There are three ways to become commission eligible, two of which the Discount Voucher can be used:
1. If the Marketer has a minimum of 5 direct lines, each of the lines must have collected a minimum of 150 Shopping Points within the Balance Program. Discount Vouchers and Partial Payments do apply to this option.*
2. Fast Start – taking into account the 50% rule (see Lyconet Compensation Plan), if you and your entire Shopping Network achieve 2,400 Shopping Points within 90 days, you will achieve “Fast Start”. This makes it possible for you to receive Career Level 1, Compensation Eligibility, and Premium Marketer Status Activated.
3. The Marketer must have obtained 350 Shopping Points within the Balance Program. This includes all Shopping Points collected by the Marketer’s Lyoness Customers as well as all Shopping Points collected by the Marketer from his fully paid purchases and/or orders. Discount Vouchers and Partial Payments do not apply to this option.

Lyconet is for a majority of the business (making money) aspect of the program now.

Lyoness has a smaller business aspect to it , but it mainly is the shopping part of the program now.

THE GOOD:

Lyconet.com and Lyoness.com are Free to Join and Free to recommend.

Both do not have a FORCED AUTOSHIP the way most others in the industry do.

The Lyconet membership now has some options that cost money when getting started to help prepare someone who wants to excel. I still do not know if any of these business options will be forced in  the future. {so this may have to be moved to the “The Ugly” part of the review in the future :) }

Taking everything into consideration that you will read below in THE BAD and THE UGLY…it is still the best company in the home based industry in that it has a simple way to make money without selling potions & lotions, juices or other services that can be a harder one time sale, and a way harder upkeep.

Some shoppers never want to be bothered with the heavier business piece to the company that Lyconet gives them, and now they will never have to become a part of that. The Lyoness compensation program will most likely be condensed down to a simple referral of .5% cashback back on a friendship bonus and cashback received when you shop.

THE BAD:

Some people wish that Lyconet was never added. They preferred Lyoness compensation plan over Lyconets.

THE UGLY:

The company had a very hard transition moving from Lyoness to now including the Lyconet aspect of the business. They were not able to initially keep growing at the same rate as Lyoness was growing.

  
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