Lyconet Customer Cloud = €1500 unregistered securities?
Lyconet are gearing up to release what they’re calling “Customer Cloud” in Europe.
The basic idea is that “organizations” sign up to Lyoness and in turn sign up shoppers (typically members of the organization).
Through Lyconet’s “Cloud Sponsor” program, shopping points generated by the shopping activity of these members are allocated to Lyconet Premium affiliates.
The Customer Cloud in itself isn’t a problem, but qualification for shares in the Cloud Sponsor program do raise unregistered securities concerns.
Sources for the Lyconet customers attached to the Customer Cloud are mostly advertised as originating from sports clubs:
“Without a recommender” refers to customers signs up without a referring Lyconet affiliate.
That affiliate referral is up for grabs, through Lyconet’s Cloud Sponsor program.
Lyconet claim that potentially hundreds of thousands of shopping points will be generated each month, with those points distributed to qualified Customer Cloud Sponsor affiliates:
So how does a Lyconet affiliate qualify as a Customer Cloud Sponsor?
- You must have a European Lyconet affiliate ID
- You must be a Lyconet Premium Marketer
- You must pay Lyconet between €1500 to €4500 EUR
How wide Lyconet expand the Cloud Sponsor program remains to be seen, but for now it’s limited to Austria, hence the European Lyconet affiliate ID requirement.
Qualification as a Lyconet Premium Marketer is as follows:
A Premium Marketer is a Marketer who has reached one of the Career Levels.
Career levels start at 5000 shopping points a month. These shopping points are generated via an affiliate’s downline (at a 50% rate) or via an affiliate’s own purchases and that of their customers (non-affiliates).
The third qualification criteria is where the question of unregistered securities arises.
Each €1500 Cloud Sponsor payment is attached to a “Limited Edition Discount Voucher”, of which Lyconet affiliates are able to purchase three.
The Limited Edition vouchers themselves don’t generate shopping points, but as per our Lyconet review, quoting the Lyoness website (December 2014):
Vouchers are receive digitally and are particularly convenient, as you can order them while on the move, pay for them using your existing Vouchers and redeem them immediately – and of course you will also receive Cashback and Shopping Points.
So to recap, Cloud Sponsor qualification requires the spending of at least €1500 in these “limited edition” vouchers, which can then be used to purchase regular vouchers to make up the minimum 5000 points qualification.
A Lyconet affiliate can of course spend an additional €5000 in regular vouchers to qualify, but I don’t see why when you can just buy new vouchers to qualify using your limited edition ones.
Once qualified, Lyconet then shower qualified affiliates with an advertised potential “xxx-thousand” (hundreds of thousands) in points each month.
So where’s the money you ask?
Well here’s the thing. Once qualified at Career Level 1 (Junior Consultant), Lyconet pay affiliates a monthly ROI based on the monthly generation of shopping points.
Yes, the points Lyconet affiliates are passively supplying affiliates who pay at least €1500 for, in turn pay out 3.7 to 9.3 cents per point each month.
Naturally how many passive shopping points you get each month is based on how many thousands of EUR you dropped on Limited Edition vouchers:
- €1500 paid to Lyconet = 1 share
- €3000 paid to Lyconet = 2 shares
- €4500 paid to Lyconet = 3 shares
And this on top of the accounting units created, which is another passive ROI Lyconet offer (each Limited Edition Voucher generates three units).
Due to the passive nature of commissions paid out, quite obviously each €1500 payment to Lyconet for a Limited Edition Voucher is a security.
You pay Lyconet €x, on the promise they’ll passively supply you with points, such that you’ll eventually earn a ROI greater than €x.
Lyconet as of yet aren’t offering the Customer Cloud Sponsor scheme in the US, and probably for good reason: That being they’re not registered with the SEC.
Trouble is, as far as I know, Lyconet aren’t registered anywhere in the world such that they can legally offer their affiliates investment positions.
Lyconet are currently advertising the Austrian Customer Cloud Sponsor scheme as having a lifespan of six years:
All you need to know today however is that €4500 paid to Lyconet will maximize your share of monthly passive ROI payouts for six years.