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European network marketing sensation, Lyoness, is launching in Australia in January 2012.  Lots of excitement has been generated in Australia already.

Lyoness is essentially a cash back discount shopping club.  It was founded in Austria in 2003.  Currently they have more than 2 million members/customers, and 350 employees.  The value of transactions is more than $3 billion a year, with more than 100 million products and services on offer (if you believe it).  The company operates in 22 countries.

Somewhat reminiscent of auction shopping biz, Dubli, Lyoness in a way is like an updated version of Amway in that they have a large catalogue of name brand product and services.  The difference being that Lyoness has a vast range of brand name offerings.

Recently Lyoness opened in the US, but at this point it is too early to say how successful it will be there.  Europe is different to the US and Australia, so it is not possible to predict how successful it will be in Australia.

Lyoness Brand Partners

In Europe Lyoness has forged relationships with a myriad of brand partners such as BMW, Jaguar, Shell, Dell, HP, Panasonic and Ferrari.

The Cash back paid on purchases for members is not huge (it is 1%), but it can be more attractive for big ticket products such as cars.

Making Money With Lyoness

If you plan to review the Lyoness pay plan you will need the following aids:

  • Large note pad
  • Glass of Scotch
  • Pain killers

This is because of the mind numbing complication of the pay plan.  It’s a doozie.  Most people will glaze over after watching the pay plan video.

Bottom line is that the margins are very small which means of course that any business builder will need big numbers of members to make good money.

The type of pay plan is a 2 X 2 matrix which means that a certain number of people have to fill the matrix (35 X 35) before a commission is paid, which initially would be the princely sum of $875.  Matrix plans do not have a great track record so it is good to see a quality company such as Lyoness making it work.

You can start as a business partner for around $3,000 for the coveted founder’s position.  To earn  commissions you will be required to recruit 4 other business partners.

Like this post?  Make a comment and share it if you want more good content

Cheers,

Kim Willis

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