Lyoness acknolwedge investment scheme with “deposits”?
The thorn in the side of Lyoness’ claims to be a shopping portal has always been affiliate’s depositing funds directly with the company.
Lyoness store these funds, with cash ROIs paid out (by Lyoness) once enough new deposits have been made.
In a move that appears to finally acknowledge the shortcomings of claiming to be a shopping portal, Lyoness recently announced a payment portal.
Launched on January 4th, the payment portal isn’t anything of note in and of itself – as affiliates have been depositing funds directly with Lyoness for years.
Rather it’s how Lyoness have chosen to advertise the portal:
The logic of Lyoness being a shopping portal falls apart upon consideration of why would a shopper deposit funds with Lyoness in the first place.
Lyoness themselves don’t sell anything, with the company providing free access to a portal populated with third-party merchants.
A legitimate shopping portal with free membership would only solicit fees from participating merchants, however in Lyoness this is not so.
Affiliates participating in the MLM opportunity “deposit” funds with Lyoness and then wait for subsequently recruited affiliates to do the same.
This sees them paid a cash ROI larger than what they deposited, with the idea that some of those funds are re-deposited back into the scheme (to fund other affiliate’s ROIs).
Lyoness haven’t quite yet acknowledged the investment nature of the scheme, but at least they’ve finally dropped the whole shopping facade.