Lyconet is a brand-new MLM company that recently entered the market with the claim that it will help independent entrepreneurs to create successful businesses.
In this post, we will review this company and suggest whether you should invest in it or not.
|Head Office||United kingdom|
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What is Lyconet?
Lyconet is an MLM-based international marketing agency, that operates together with its subsidiary company Myworld International Limited.
MyWorld is an online booking and shopping site, which provides cashback when transactions are made through their website.
The founder of Lyconet is Hubert Freidl. The headquarters of Lyconet is situated at 40 bank street, London E4 5NR, United Kingdom.
According to SimilarWeb, the total number of visits on its website is 260k+ with top countries reaching the Czech Republic (32%) and (16%). Its domain was registered on May 2013, as per WHOIS.
Lyconet Joining Process
To join, you simply have to go to Lyconet’s website, click on “register,” and you’ll be redirected to the MyWorld login page.
Your joining will be complete once you finish signing up through your email address.
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Lyconet Compensation Plan
Myworld launched a Benefit Program that includes a variety of products and services.
Myworld works with Lyconet to advertise and distribute the items of the Benefit Program, while Lyconet employs its marketers to market the pros of the Benefit Program.
The Lyconet marketers, also known as Lyconet merchants, add new members to their downline. The marketers then build their organization, which consists of two teams: the Personal Customers Team and the Business Team.
- Personal Customers: Members of the Benefit Program who are hired solely by a Marketer under his downline are considered his Personal Customers.
- Business Team: All marketers and loyalty merchants within an organization are included in a marketer’s Business Team.
There are two ways to earn money as a marketer in Lyconet, let’s take a look at them:
1. Customer Purchase Volume
A Marketer receives a monthly bonus for all purchases and orders that his downline customers make at MyWorld and Loyalty Merchants. This Marketing Bonus generally amounts to up to 1% of the customer’s purchasing volume.
2. Career Points
Each marketer earns compensation based on the total number of purchases made by his organization. These earnings are based on Career Points, however, the procedure for determining Career Points is undefined.
After earning the necessary number of Career Points as stated, you will attain ranks and a fixed amount of career bonuses and career commissions per career point will be awarded:
|Career Levels||Career Points||Career Bonus||Commission Per Career Point|
After investigating Lyconet’s business model and compensation plan we found some insight about this opportunity. Let’s take a look at it:
Vagueness with Products
The primary red flag in this business is the lack of descriptions about the products and services that Myworld and Lyconet offer through its Benefit program. For its marketers, understanding what they are pushing and selling is crucial.
Companies using the MLM concept need consumables retail products to sell, but Lyconet is vague here.
Cashback and online discounts are saturated markets and various websites provide these services for free without any complications. Hence there is no obvious reason to choose Lyconet only for cashback rewards.
No Contact Supports
A corporation that promises to deliver rewards and bonuses to the general public needs to have a support system in place so that customers may voice concerns with withdrawal processes or any other issue.
They highlighted some fraudulent Lyconet accounts and warned users not to fall for them under the pretext of support and services on their website. There is no way to reach them by phone or email, which is a big warning sign to look for in a company.
Lack of Information
Its website’s interface lacks all of the features that a large organization’s website typically has, including links, CTAs, navigational elements, and blogs. It only has a few graphics.
The fact that login and registration links on websites direct users to the myWorld login page raises questions because they don’t even have a separate login area on their website.
Furthermore, its domain was registered in 2013, which makes it strange for a company with such bold claims to have stopped working on it. Typically, every reputable business continually works to improve the user experience on their website.
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Complex Compensation Plan
There are many uncertainties in this company’s compensation plan, including how the corporation determines the career points for its marketers and other issues.
Before becoming a marketer, you should be aware of these issues because a company may try to defraud you using this type of compensation structure.
Money Circulation Fraud
They have used some sophisticated terms in their income plan to make themselves appear as a multinational corporation, supporting their claims that they are an international marketing company.
But after looking into their compensation plan, we conclude that they are nothing more than a money circulation scheme.
In these types of schemes, money circulation happens inside the company in a huge volume, with the founders and senior executives reaping significant profits while the general public receives nothing.
Should I invest in Lyconet?
Lyconet as an MLM lacks to provide decent products to end customers. Morever their compensation plan is complicated to understand and manipulate using different kinds of points.
We will recommend understanding their business strategy more concisely. As there are many companies on the internet that provides free cashback without using complicated money circulation plan.
So make a choice after thorough research and don’t get lured by false claims and fake motivations.
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