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: and 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.


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


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.

Is the Compensation Plan for Lyoness a scam?  Lyoness, whether you call it an affiliate program (it is not), MLM, network marketing company, income opportunity, that doesn’t matter so much, what really matters is… How does the Lyoness compensation plan work compared to other similar companies in the industry?  90% of all companies are not scams in my opinion.  So, if you are one of those peeps who thinks the whole industry is one huge scam… nothing here is gonna change your mind.  I am only going to be referring to Lyoness in USA because that is what I am familiar with.  Other countries may or may not be different according those countries rules in Lyoness.

First, I am going to compare Lyoness to an affiliate program. Becoming a Lyoness cashback member is Free to the new member and all members are allowed to refer new members.   Lyoness is different then for example a credit card company affiliate program because a credit card company affiliate may earn a one time cash reward for referring someone to a credit card company.  Also, these type of affiliate programs that pay affiliates for referrals do not  have any fees to refer their products to buyers.  In Lyoness there is a $1.50 fee when you register new members. Although, some Lyoness members who use paid for Lyoness tools can register new cashback members for free.

An AWESOME thing about Lyoness is there is no monthly admin fees, no membership fees, no annual fees, and NO forced AUTOSHIP.  So I guess I can stop here and say that 95% of all other companies have one or more of these types of forced fees somewhere in the company for people who want to become involved.  Lyoness has succeeded in eliminating all of these fees in so far as anything being forced.  They have an optional marketing package for people who want business websites and communication set up etc (Lyoness tools), but this is an option, not forced.

So how can the Lyoness business model (compensation plan) not have most of the regular fees that pretty much all of the other companies have,  and at the same time be so successful?  Especially how is this done without having the biggest fee “THE FORCED AUTOSHIP” (a product or service one may or may not use but has to pay monthly for to earn money in their company) that almost all of the other similar companies have? ( FYI I am not talking about top tier programs [large one time payments] or funded proposals [free entrance, then little payments, then larger payments, all leading to a primary program(residual)]).  The answer is simple, the Lyoness compensation plan has enough CASHBACK to go around… Cashback here, Cashback there, Cashback everywhere… lol … it’s really that simple.  For a little more nuts and bolts on the compensation plan… here is an example of one of the types of ways you can get paid from Lyoness.  Lyoness members receive .5% friendship bonus from all the shopping the people they directly refer to Lyoness do.  When the new shopper buys anything from groceries to gas, or shops in their community, maybe shops online at all the places Lyoness has a relationship with, or even buys gift cards from Lyoness after Lyoness has received a bulk discount…  the new shopper receives 1 to 2% cashback on their own shopping.  Also, who ever referred the person who referred the new shopper also gets .5% friendship bonus.  There are a lot of other compensations from Lyoness that I will not go into ( I have corporate approved videos done by Lyoness I can refer you to for that and they include the Income Disclosure Statement), but the .5% friendship bonus and the 1 to 2% cashback is literally the tip of the iceberg as far as the compensation plan goes.

So if you put gas in your car today, the odds are that it might be a place that Lyoness has gotten a bulk discount from, which allows you to get cashback.  As a matter of fact, did you do any of these things today? get an oil change, go out to eat at a trendy (chain store, which may be a key account) or new local (non-chain store, which may be a Small to Medium Entreprise-SME) restaurant, get your hair done, buy toiletries, buy household stuff, buy food from a grocery store, buy furniture, buy clothes, buy appliances from a department store, buy a new or used car… I could go on, but I just wanted to make a point… In a nutshell, when you and others shop… you and others get paid… the Lyoness motto is “Together We Are Strong”…it has a multiple meanings as you can see.

Now I am going to explain Loyalty Benefits.  In the following examples lets say person A refers person B, person B refers person C.  In this example let’s say person B is me and person C is you.

Ex 1.

A Lyoness member (person C= you) shops at a Loyalty Merchant (a business that has a relationship with Lyoness) who is giving a 8% Total Benefit  (note: there are small fees that come out that are not included in the 8% Total Benefit, examples are small Lyoness admin fees & charity fees etc).  If person C (you) spends $1200 on a couch at a Loyalty Merchant with a 2% cashback (cashback can be 1 or 2%), then 2% ($24) goes back to you as cashback, .5% ($6) goes to person B as a Friendship Bonus (that’s me since I am the person who referred you), .5% ($6) goes to person A as a Friendship Bonus (the person who referred me), and 5% ($60) goes to your Loyalty Account.  2% + .5% + .5% + 5% = 8% Total Benefit.

Ex 2.

A Lyoness member (person C= you) shops at a Loyalty Merchant who is giving a 6% Total Benefit with 2% cashback.  If C spends $750 at a Loyalty Merchant, then 2% ($15) goes back to you, .5% ($3.75) goes to person B (me since I am the person who referred you), .5% ($3.75) goes to person A (the person who referred me), and 3% ($22.5) goes to your Loyalty Account. 2% + .5% + .%5 + 3% = 6% Total Benefit.

Get a thorough explanation and all the complete details straight from corporate, which has an income disclosure and a visual here –>>>

lyoness scam

Fully explaining  a Loyalty Account  is an in-depth explanation and I will not cover this here, but I will say that a loyalty account builds.  Also, I do not want to leave you in the dark about this so I can refer you to the official videos and compensation plan that is from corporate so you are very clear on this topic.  But basically, every time you get $75 in your Loyalty Account, it is equivalent to 1 unit. 1 unit can grow into $675 as your lifeline (and previous members) keep shopping.

Keep in mind when I say you are shopping and getting cashback, this is at places you already are going to for the most part. Remember, one of the most important things that I have said thus far is there is NO FORCED MONTHLY AUTOSHIP in the Lyoness compensation plan.  Lyoness may have a bunch of corporate advertising products like business cards, pens, clothes with logos, memorabilia and etc, but that is not even relevant relatively speaking because you don’t have to buy any of that in a forced autoship setting.  Now, I would be wrong by saying any company that has a forced autoship is a scam, but I can tell you this… I am sure glad to say “LYONESS DOES NOT HAVE A FORCED AUTOSHIP PROGRAM”. Also, Lyoness has an optional type of autoship called “easy shop” for people who want to set it and forget it, for those who shop at specific stores on a monthly basis and want to have gift cards for these places on them at all times because they may go to these places for services or products on an almost weekly basis.

Have you ever had an autoship that you that you have to buy monthly to be called “active” that whether you use the product or service or not you needed to buy it or else you would not qualify to earn money in your company?…. THAT DOES NOT EXIST IN LYONESS.  Lyoness offers a service, it is a cashback discount on your shopping and those that you refer and they refer that Lyoness provides (as well as other things), but they do not charge you to get the cashback… “It’s Free”.  The business’s that get involved with Lyoness are also offered others services from Lyoness, but that is not relevant to this post, it has to do with acquiring new repeat loyal customers.

I have reviewed Lyoness here to a tiny degree, but the best way you can find the complete answers is to view a thorough presentation with an income disclosure statement & ask questions, go here->

What is really crazy about Lyoness is that if you can for 1 second imagine it is possible to get cashback on most of the shopping you do daily at the places your already going to…why on earth would you not sign up for a free Lyoness cashback membership?


This Lyoness review will answer the hard questions about the worldwide cashback company!

This review will 1st give you a brief introduction of what Lyoness is, then I’ll cover the best arguments against Lyoness.  Keep in mind I have read and researched all over the Internet…. and to tell you the truth… some arguments against Lyoness are really awful, but there are some good ones… that I actually sort of agree with to some extent.

If someone tells you “All people not in Lyoness will tell you honest truth about the company because they are not trying to recruit you”, they are wrong.  On the same token if someone tells you “All people in the company will only say good things about the company because they are trying to recruit you”, they are wrong too.  You ultimately have to decide what you think about Lyoness after doing your own research.

Introduction of Lyoness

Lyoness Company started in 2003 in Austria by Hubert Friedl.  Lyoness provides it’s members (group of people) an ability to earn cashback on their shopping.  I am only going to be referring to Lyoness in USA because that is what I am familiar with.  Other countries may or may not be different according those countries rules in Lyoness.

"Cashback Lyoness Review"

Cashback Lyoness Review

Lyoness is free to join. You have 4 different ways to use and get cashback with Lyoness.  #1 Purchase big name gift cards through Lyoness in your web office. #2 Shop online through the Lyoness with all the companies we have an agreement with.  #3 Use Lyoness app to buy a mobile gift card for a certain dollar amount.  #4 Pay your bill/tab at a business with cash or your debit/credit card etc after handing the Lyoness cashback card to the business.

You can sometimes even double dip “earn cashback from both your credit card and Lyoness” at the same time.

When you refer others who shop, you get a friendship bonus on their purchases.  So for example, 2 people (you and your referrer) get a .5% friendship bonus each time someone you refer into Lyoness shops.

Best Arguments against Lyoness

“Given that you can entirely bypass the purchasing of products from retailers and cashback side of Lyoness and just focus on purchasing accounting units with your own money and encouraging others to do the same, it’s hard to not look at it as an investment scheme.”

Response: Accounting units acquired are always accompanied by purchases of products and/or services from the following:  for example Key Accounts (large companies) (which for example could be gift cards for gas or groceries),  or goods and/or services through Lyoness Merchants (Small to Medium Enterprises SME’s) or online etc .  So in acquiring units you do not bypass either the purchasing of products and/or services. Also, you do not ever bypass the  Cashback or Friendship Bonus (and more, which I will not go into) part of it either.

“Starting with you, every member you recruit is placed below you and forms your downline, along with any members your recruited members recruit and so on and so forth.

The question above and below are very similar, so I will handle them at the same time in my response further down.

“For the purposes of accounting units, Lyoness use a binary compensation plan system. This means that directly underneath you are two member positions, underneath those positions are another two member positions and so on and so forth.  Starting off with the initial two member positions under you, each of these sides is a separate team.”

Response:  Lyoness does not use a traditional binary compensation plan (I specifically mean from the top down type of traditional binary… you know the one that looks like a pyramid… lol), this may seem like a small correction, but it is important.  Every member you recruit is never placed below you in regards to units. People’s units from your lifeline do follow their recommender’s units though (also people who were involved before units may be placed here as well).  When a unit is developed at any point from anyone in your lifeline (not downline), then the unit will be placed somewhere after your unit(s), in your lifeline, horizontally.  For example, if you recommend 10 people and 6 of those 10 people start shopping and each of those 6 people earn one unit from the amount of shopping they do, then those units will be placed into your lifeline horizontally.  The other 4 people who did not shop enough to receive one unit yet, will not be able to earn off that passed activity.  Those 4 will still receive Cashback off their own purchases and Friendship Bonuses from the people they have referred as well.  In general you do want to balance your units in your lifeline… so I do understand that point.  But really, for a corporate in-depth approved explanation with an income disclosure and to truly understand Lyoness go here

Why the heck does it cost more to be a premium?

Response: Well, just like when you fly, there is first class and coach, everyone still gets there right.  On first class there are more options for the flyer, if you care about more options first class is offering, then great, but if you do not care, then that’s great as well, but saying it is unfair or wrong in some way is a little off base.  Also, some people know they are gonna do a lot of shopping and they would rather have the units upfront and get paid loyalty credit instead of loyalty cash after future shopping because they know they are going to use the credit to pay for the gas, groceries, and shopping they’re already doing.  Also, some premium members have international contacts and therefore may want a premium membership and more options.

The compensation plan is too confusing, complex, and unfair.

Response: Is the compensation plan confusing? Yeah, but after you have experienced anything after a while it starts to make more sense. Yes, the Lyoness’s compensation is confusing…I totally agree…lol.  Sooooo what! I can see how someone would say the accounting units are complex.  Guess what? Again… I TOTALLY agree.  You know what is not complex, getting paid $9 an hour without benefits.   Just because something is complicated does not mean it is not worthy.  It is pretty simple to understand getting paid $9 an hour right…so go for it, it make sense right?   Does that sound good? Lol…I’m just teasing.   FYI… I am not saying uncomplicated things are bad either.  Getting paid $300 an hour is not bad at all and it is simple to understand.  Fair is definitely getting paid on activity in your lifeline that you had a hand in creating.

Lyoness is a pyramid (this is not a good point but I had to answer it for fun!)

Response: If your really thinking this then I have no answer for you, but I have a comment… keep assuming some of your jobs are not kind of like a pyramid, you ever get passed up on a promotion simply because the other person was there longer even though you were way better.  Also, I know people in Lyoness who have not made anything worthy of mentioning and they were in early,  I guess the pyramid is not working very good ehh.  If you hate potential walk away income, then you don’t like residual income, and maybe therefore you don’t like Lyoness.  It would take hard work to set this up but that’s cool, maybe your boss understands this concept a little better than you,  send him/her my way please.  You know that type of owner that has everyone else handling most of the business and he/she just comes and collects his/her profits because they spent years putting it all together.  Ok, your saying “what about that person who brought in 2 powerhouse network marketers and then quits the next day”… great you focus on that less than .0001% chance that would ever happen.  That’s kind of like a lottery mentality, and great people (powerhouse networkers) don’t join lottery mentality type people.  Leaders join leaders!

I have reviewed Lyoness here to a tiny degree, but the best way you can find the complete answers is to view a thorough presentation with an income disclosure statement & ask questions, go here

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