Review of the Lyoness
Shopping Cashback Card and Home Based Business By Geoff Morris.
Lyoness Member since 2012.
The Lyoness Members
Cashback Card, which started in Austria in 2003, and now has well
over 4 million members world-wide, combines a ‘money back with every
purchase’ promise, with a very well-defined home business
opportunity. But how easy is it for members to access these savings,
and from that the ability to build a sustainable and expanding
For the purpose of this review,
I am only considering the basic fact that by becoming a Lyoness
member FOR FREE you will immediately be able to save money (in the
form of a cashback of between 1 and 5%), as well as a number of
Shopping Points (explained later) on most shopping that you would
usually do anyway. By recommending the saving you are making to all
of your friends (after all, what are friends for?), you can save
even more! The Lyoness operation is definitely a winwin for shopper
members and merchants alike, but how does it work, and are there any
areas that could possibly be improved?
From the shopper's point of
view, the overall concept could not really be any simpler. Getting
started is free, and there are no ongoing membership fees. All the
shopper has to do is to make sure that he or she makes as many of
their usual purchases as possible from local or online Lyoness
Merchants. By making sure they frequent a Lyoness Merchant to do
their normal shopping, they would be assured that every sale will
generate a cash back of between 1 and 5% of their total spend.
There are also 'Friendship'
bonuses and 'Shopping Point' bonuses that can also be earned for
free on top of these already amazing savings. Introduce these
advantages to a friend and you immediately start earning a '
Friendship Bonus' based on their level of shopping done in Lyoness
Merchants. When these friends introduce the Lyoness card to their
friends (and why shouldn't they?) you will earn this Friendship
Bonus from their spending as well. Imagine if you introduce just 5
friends a month, and they do the same...
There is even a free upgrade to
Lyoness's 'Lyconet' internet marketing package that will enable you
to broaden your reach to friends around the world, with at least
another 8 way of generating a substantial income. There are already
over 40 countries live with Lyoness, with many more to follow. With
Lyoness stated intent to become the biggest company in the world by
2020, it would seem to make sense to get involved now - especially
as it will cost you nothing.
What about the merchant? After
all, nobody in their right mind will offer a 1 - 5% cash discount to
every Lyoness member unless there was something in it for the
Every merchant's business needs
to invest money in identifying new customers, and then making sure
these new shoppers remain loyal to them. In exchange for the
discount offered to the shopper, Lyoness will put into operation a
very powerful marketing support program that will not only drive new
business to the merchants, but also help the merchant to create a
strong loyalty bond with these new and existing customers. This is
done with the help of a very useful online search facility from a
PC, laptop, or smart phone that can identify Lyoness merchants in
the shopper's current locality.
Once a merchant has secured a
new customer, to keep them locked in, there is another incentive, in
the form of 'Shopping Points'. I will not go into the mechanics of
these Shopping Points here, but in brief, every time you spend £90
with a Lyoness Merchant, you achieve one or more Shopping Points.
There is no need for the shopper to spend this much in one visit, so
two or three or many trips a Page 2 month could easily add up to one
or more Shopping Point awarded. Each Shopping Point is worth from
minimum £4.50 in further discounts on already attractively priced
deals from selected Lyoness Merchants. Some merchants will use this
facility to increase a bonus to attract business in certain areas,
and may give more than 1 Shopping Point per £90 spend.
For those of you old enough to
remember Green Shield Stamps, this was a very early 'open' loyalty
scheme (not tied to any one company, unlike say a Tesco Club Card),
where my car did not choose to run on BP, Shell, Texaco, or Jet
Petrol, but on the garage giving away the most Green Shield Stamps.
I would drive miles out of my way for 'Quad Green Shield Stamps',
and that is the effect that Lyoness is beginning to recreate - with
far more benefits.
When you consider that Nectar©
merchants (another common 'open' loyalty card) now have over 90
million regular customers as opposed to Lyoness's total of around 4
million today and their optimistic target 1 Billion by 2020, you can
see that if these targets are to be met, everyone involved today
will be really thankful they did in just a few years' time. But who
gets paid to recommend Nectar Points to their friends?
The levels of savings even when
just considering the free cashback facility, and the Shopping
Points, where you are already spending say £500 every month anyway,
can be really worthwhile. Add to that the 'Friendship Bonus'
earnings you can get from just referring friends to sign up for free
and then save money as well on their 'Anyway Spend' monthly money,
and this can be another money spinner. You can even earn that
'Friendship Bonus' on friends that YOUR friends recommend. Imagine
if you got ten of your friends every month signing up to save money,
and they then do the same to ten of their friends.
Used in conjunction with
existing Customer Loyalty cards, such as Boots, Costa Coffee,
Tesco's, Morrisons, the Lyoness shopper gets the best of all the
special offers and other loyalty schemes. For instance, if a Lyoness
member shops regularly in Morrisons ©, and also holds a Morrisons ©
'Match and More' loyalty card, not only will they get their Lyoness
cashback paid into the bank account, they will also benefit from the
effort this Store makes in comparing their prices with other
In the UK, companies such
as Morrison's, Tesco's, Marks and Spencer, Boots, Argos, Curries PC
World, B&Q, Costa Coffee, Pizza Express, Pizza Hut, BHS, House of
Fraser, Topshop, all the Arcadia Group of clothing stores, Sports
Direct, La Perla, UGG Boots (even Harrods! ) and hundreds of others
are already Lyoness Merchants.
But it is not just the large
chain stores that can become approved Merchants, and Lyoness are
making great efforts to court and encourage small to medium sized
businesses, such as local grocery stores, dentists, hairdressers,
and other local specialist stores to become Lyoness SME Merchants.
It is outside the scope of this review to describe the Lyoness SME
program, but suffice it to say that where a small firm joins the
scheme, not only will they get a massive amount of marketing
support, and if approved, a unique catchment area for their new
customers from Lyoness, but also another massive boost to their
If an SME such as a local
grocery store cum deli has say several hundred existing regular
customers, then where a percentage of these customers sign up for a
unique free Merchant/Lyoness membership, if they spend say £50 every
month in the SME store, but also spend some £500 or more every month
in other Lyoness outlets (see the list above which is growing
daily), every time any one of these customers gets a haircut, has a
pizza, drinks a coffee, or does their monthly shop in Morrisons -
the SME owner gets 1% of the total spend from their loyal customer
base - and an extra Page 3 0.5% from their friends that also sign up
for free Lyoness membership. One of the big failings of other
discounting operations such as Groupon © is that instead of
customers just buying the initial Groupon © discounted offer, there
is nothing to attract these customers back again - unlike the
By getting your friends and
family involved in these savings as well, you actually have the
basis of a very easy word-of-mouth referral business, which could
grow into a powerful home-based business...
If your friends then recommend
their friends to join Lyoness as well, then you will also get the
same level of commission (0.5%) from their spending as well. I know
this may seem small, especially if each friend only spends say £200
per month at Lyoness merchants, you will get just £1 paid in your
bank. But say you introduce 10 friends, and they introduce a further
10 friends, you will then have some 100+ friends earning you in
total the grand sum of £100 every month. Imagine if you introduced
10 new friends every month, and they all spend over £500 every month
on food, petrol and entertaining...
You can accelerate the growth
of this home based business if you wish by upgrading (again for
FREE) to the Lyconet internet marketing solution, and perhaps even
go International with your members. This will enable you to follow
Lyoness's Career Path Program, which, at Level 8, they reckon will
be able to generate in excess of £50,000 every month. I would
recommend though that if this is a route you wish to follow, you
should really invest in at least the Lyconet Starter Pack and
Business Lounge (£120) and even the replicated Lyconet web site,
which comes complete with built-in CRM tools, for a further £189. If
you already have an active email list, this superb tool will pay for
itself in in virtually no time at all.
So this all sounds great, and
perhaps too good to be true - so what about the down side (if any?)
Firstly, to enjoy the
advantages of the free Lyoness shopping cashback card, cash or at
least prepurchased vouchers, become the currency employed. If your
household's current monthly outgoings usually rely on credit cards
rather than debit cards, and your cash flow situation is such that
you would find it difficult to give up your credit card's credit
limits, then I believe Lyoness is not for you.
Secondly, the method by
which the discount is acquired, is currently clunky, and not at all
easy to manipulate. Some of the Loyalty Merchants offer a top-up
gift card, such as Marks & Spencer's, where you initially purchase
on line a physical 'Gift Card' preloaded with some amount (usually
£10 to £500). There is a delay (usually next business day or the
following day) while the top-up card is sent to you by registered
post (at cost), but once you have the card you can upload funds
directly from your Lyoness account again and again.
Unfortunately, many merchants
require you to order pre-paid paper vouchers, which again have to be
sent to you by post causing delay and a low fee of £1.60 for
postage. If you regularly spend say £200 monthly in Morrisons, any
Lyoness voucher order placed over £180 will be sent to you postfree.
However, there is a very simple
to use automated process for getting these vouchers or gift cards
topped up on a regular monthly basis. This means that you will have
to trade say 2 hours of your time every month in return for getting
quite significant levels of reward in the form of cashbacks and more
Shopping Points. I think that these few hours spent each month will
produce far more per hour than any work-related hours.Page 4 Lyoness
have actually accepted that, and are currently beta testing a much
simpler, and far superior solution in the form of a Lyoness-branded
top-up MasterCard. This card will be available early this year
(2015), and will create a quantum leap in the number of Lyoness
members, large merchants, and thousands of small local businesses.
This MasterCard, which will be
the first of its kind in this form, will be a pre-paid MasterCard
that acts like a Debit Card. This will also have a 'Master Pass'
facility, which means you will be able to operate without the
physical card, using your Smart Phone. You can even have your
Lyoness Cashback loaded directly onto your card if you so desire.
The Card will also have benefits such as insurance schemes, travel
(including access to many luxury airport lounges for free), and also
generate Shopping Point bonuses even when you spend in non Lyoness
I think that these
improvements, and some better training videos, will see a massive
increase in membership of this huge free referral marketing business
this year. I am definitely starting to look at this opportunity in
more detail and have already enrolled in Lyoness's marketing
division, the Lyconet internet marketing facility, which is the next
stage in building a successful home based business with Lyoness.
With all of the improvement
that I have now seen in the pipeline, and the imminent release of
the Lyoness-badged prepaid MasterCard, now is the time to get
involved in what is looking like becoming the largest company in the
world by 2020. Better to be on the inside feeling warm and cosy than
on the frozen outside.
Geoff Morris has been
involved in various internet and multilevel marketing solutions for
over10 years, and is also an Expert Author in the internet. You can
get more information here on this world wide free to join guaranteed
cash back and home business opportunity described in this review,
which, in his opinion, is the best he has seen in all of those
years. Or you can contact him at email@example.com