Lyoness shopping network cashback program initial impressions by ericwelke

Articles from EricWelke.com Lyoness Shopping Network Cashback Program – Initial Impressions by Eric Welke

What is it? Lyoness offers a membership cashback program that includes an opportunity to earn from the purchases of people you’ve referred. Membership is supposed to be free. It’s headed by CEO Hubert Freidl, an Austrian who is also the founder of the company. He started it in 2003. It’s well established in several European countries where a majority of their network’s members reside. They’re also present in select countries in the Middle East, Asia Pacific and South America. They have over 2.8 million members worldwide. How does a Cashback program work? A cashback program gives users monetary rewards when they buy a certain product or service. This could be through an online store or a network of stores. The

cashback company gets a commission for each sale and this is shared with the buyer. Cashback program members are given a card that can be used in member stores. The accumulated rewards are paid back to the card user or store buyer in the form of cash or credit which can be used for future purchases. The Lyoness Shopping Network Lyoness’ slogan is “Cash back with every purchase”. They list 29,000 loyalty merchants in the 44 countries they serve. There are also 3,200 online stores that are associated with Lyoness. The cash back cards and credits can be used for There’s a free 30 day trial membership that is eligible for automatic upgrade at no charge. The upgrade takes effect when a purchase is made with any Lyoness Loyalty Merchant during the 30 day period. There are four ways to shop in the Lyoness Shopping Network: -

Cashback Card

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Mobile Voucher ( Mobile Cashback)

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Vouchers and Gift Cards of Loyalty Merchants

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Online Shopping at Lyoness Cashback Online Stores

It doesn’t matter what type of purchasing method is used, a member will always receive money back with every purchase. On each purchase, a member can earn credit in his cash account equivalent to a maximum of 2% of the purchase value. It’s a straightforward program that is the core product offered by the company. The Lyoness Business Opportunity The simplest way to describe the Lyoness Business model would be; “a cashback program with a tiered incentive plan”. The incentivized referral component of Lyoness is completely optional and can be ignored by consumers who just want to take advantage of the savings. Aside from the cashback benefits, there are two components of the Lyoness Program that works as an incentive for members to recommend others to join: The Friendship Bonus and the Lyoness Loyalty Program. Friendship Bonus A Friendship Bonus that is rewarded to members who recommend Lyoness to other people. This is equal to 0.5% of the earnings generated by the new member. These Recommenders also receive another 0.5% of the earnings generated by the people recommended by the new member. This bonus is called the Indirect Friendship Bonus.

At first glance this looks negligible, and at a certain level it is. Half a percent of the revenue from a purchase seems tiny compared to what other similar programs offer. However, you have to keep in mind that the cashback program encourages regular use. If enough of the people you recommended use the card regularly, you should expect to get a respectable return.

The Lyoness Loyalty Program This is a program offered to merchants who would like to be part of the Lyoness shopping network. There are several benefits to the merchant once they’ve joined the network. Here’s what they can expect: -

Exposure to all members of the shopping community.

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A customer loyalty program.

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Potential increase in sales volume due to more loyal customers.

Opportunity to establish another source of income not connected to the business. -

Potential savings from purchases made with other Loyalty Merchants.

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Direct and Indirect Friendship Bonus from regular customers.

Challenges There are a lot of online buzz about Lyoness, some find it questionable while others strongly recommend it. Due diligence is needed of course in any type of venture. A company that has amassed members numbering in the millions will often generate a high level of discussion and, unfortunately, confusion. Hopefully I’ll be able to shed some light on this. One of the main challenges is going to be from customers who have negative impressions of Lyoness. This could be from people who’ve heard inaccurate information about the company or from people who don’t understand how it works. Clearly explaining the business opportunity to them is the best way to build trust with people you’re trying to recommend. Another challenge is in comprehending the sophisticated incentive system. Only the basics are posted on their website. The cashback program is thoroughly covered

but details about the business side of the loyalty program are inadequate. Youâ&#x20AC;&#x2122;ll need to connect with a seasoned Lyoness loyalty program member to understand the process more thoroughly. Summing up what we have so far; Lyoness uses a proven cashback and loyalty program to encourage shopping activity by its members The number of shops in the network and those that accept the card varies per location. Take this into consideration before joining up or sponsoring someone. Other Cashback programs have a wider network and offer more in terms of discounts and bonuses. Members earn a small percentage of what direct and indirect sponsors earn; this is only up to the 2nd level. The rewards system can be a bit confusing, but itâ&#x20AC;&#x2122;s easier to understand it if you think that each reward triggers separately and just add up. The bottom line is if your direct members spend more, especially within the Lyoness network, you earn more. However, you can earn even more and at a much faster pace if you can build a large team of direct business members. At the time of this writing, Lyoness has well over 2.7 million members. It has proven to be extremely valuable for many people and it definitely worth looking into

If you are interested in joining Lyoness or want more information, Please Contact Me directly.