Is Lyoness a scam?

[Dave A]

Fortunately I have known Dave - to whom the invitation was addressed - for a number of years ...

To get this sideshow out of the way and for the record

If it's going to be an issue and you need a hand getting that invite part of your post out of the forum area, Ian, you know where to find me.

Here is the best explanation, in easy to follow steps,
Read the comments section too as you will find well reasoned explanations.

1. http://behindmlm.com/companies/lyone...tment-returns/

Thanks Mvubu. That particular link really helped get a better idea of the structure.

It looks like when it comes to down payments and the consequences, we might be in that murky area of plausible deniability then.

Strange ol' world we live in. I'm pretty sure I've mentioned this somewhere on TFSA years ago, but back in the days when I was "doing" MLM, I was surprised to discover just how many people would have knowingly jumped on board a pyramid scheme compared to the number of people who were prepared to build a genuine MLM business.

[mvubu]

To get this sideshow out of the way and for the record

If it's going to be an issue and you need a hand getting that invite part of your post out of the forum area, Ian, you know where to find me.


Thanks Mvubu. That particular link really helped get a better idea of the structure.

It looks like when it comes to down payments and the consequences, we might be in that murky area of plausible deniability then.

Strange ol' world we live in. I'm pretty sure I've mentioned this somewhere on TFSA years ago, but back in the days when I was "doing" MLM, I was surprised to discover just how many people would have knowingly jumped on board a pyramid scheme compared to the number of people who were prepared to build a genuine MLM business.

There is a major difference between "direct selling" and MLM. I have NO issue with direct selling and believe more people should do it. This promotes real entrepreneurship and builds genuine RETAIL customer base.

There is another difference between a genuine MLM, with an actual product/ service that has margin built in to pay distributors and a company that is clearly taking hard cash to buy positions in a pyramid. You can give it fancy names all you like, the core facts remain unchanged. There is no gray area here.
Most MLMs sell overpriced goods to unsuspecting new entrants + charging crazy money for seminars etc. The best expose and explanation of recent times was Ackmans excellent presentation on Herbalife, which can be applied to almost every MLM that I have ever seen. The market is beating him on the head for it, but his points remain.
The takeaway from it for me however that at least Herbalife has a product, regardless of how overpriced it is. That they fall foul of FTC regulations is about to be tested.
The first hour is worth watching http://www.visualwebcaster.com/Pershing/91149/event.asp


If Lyoness was a genuine rewards company, they would completely abandon their "binary matrix", downpayment system or at least make the contract and payment structure CLEAR on their own website. But they cannot, because new money needs to pay old money, and they now shuffle it across multiple countries, using multiple corporate veils. The South African contract is signed with a Swiss company. The Swiss members sign with an Austrian company... weird eh?

[mvubu]

Strange ol' world we live in. I'm pretty sure I've mentioned this somewhere on TFSA years ago, but back in the days when I was "doing" MLM, I was surprised to discover just how many people would have knowingly jumped on board a pyramid scheme compared to the number of people who were prepared to build a genuine MLM business.

Never underestimate the ability to put their ethics on hold when there is an opportunity to make a quick buck, more so when there is a mob mentality and the slightest excuse provided by a 3rd party.
There is basic human psychology at play.