LUKOIL is a Russian petroleum company that yielded a stock market value of $ 60 billion in 2018. But more on that later.
Time and again, we receive reports on how use- and senseless the Cashback World Card actually is. There are very few shops which accept the card and the discounts are meagre. Furthermore, one was bound to overpriced and nameless products, the card was nothing for smart spenders.
The Latvian entrepreneur Vrigis M. was introduced to the loyalty programme of Lyoness by a friend who had asserted that it could be very useful for his company. Virgis himself liked the concept of network marketing.
After having attended several trainings, he decided to participate in the Lyconet network marketing programme and bought the starter package for EUR 350. These EUR 350.- were spent to buy units within the Latvian programme. Further, he had immediately activated the Easy Shop Function that costs EUR 50 to 150 per month. With paying EUR 50 per month, he would gain access to all functions of the Lyconet partner profiles.
First, he thought it was an excellent business idea – a customer card for all everyday purchases. By linking the website with his own Facebook advertisements, he managed to add hundreds of users to his downline. Of course, he had also carried out classic network marketing activities in order to introduce the business model to others.
“Overall, I have got 19 units – 4 in the Latvian Balance Programme and 15 in Balance Programmes of other countries. Also, I have attended several seminars in Italy, Prague etc…” Besides fun and empty promises, nothing else had been there, he adds shaking his head.
Virgis tried to build up a dream, mainly on the basis of card users but after he had distributed more than 700 cards, “his income” hardly had reached EUR 10. People told him that neither in shops and restaurants nor at the petrol station, it was worth using the Cashback Card, provided it was accepted at all.
“It is a fact, that, in reality, people are not using this card. Due to the lack of area wide and established retail chains, the products needed in everyday life can not be bought with the card. The ones that use the card the most are participants who really are convinced of the Lyconet programme, who are changing their commutes just for getting the 1 or 2% of their daily purchases back. In my opinion, the saving this card offers is simply too little.”, the 29-year-old says.
The partnership with LUKOIL petrol stations (popular petrol stations in the Baltic states), Lyoness had promoted with great fanfare, were a good example. With the LUKOIL card, customers get a discount of 4 to 6 cents per litre, with the Cashback Card, the discount is just 1% at a purchase of more than EUR 100! Additionally, the discount will be transferred to the Lyoness account within a month or even after a longer time, when using the LUKOIL Card, the discounts of 4 to 6 cents per litre are received immediately. Everyone who uses the Cashback Card at a LUKOIL petrol station made a fool of oneself.
Most recently, Virgis attended the Elite Seminar at Veltins Arena in Gelsenkirchen, Germany. He travelled there together with four “even more” enthusiastic new marketers. In the meantime, he had read about the convictions as a snowball system and the prohibition in Norway. At the Elite Seminar, questions concerning these matters were downplayed with harsh words and diminished as “paid sabotage by enviers”, he explains.
Meanwhile, he had found again common sense and conscience, he tells with a smile and concludes: “I am sure. In this company, money can only be made by making other people become participants of the Lyconet Network Marketing. If you ever have attended a Lyconet training, you will have heard that it you can make money with this programme in a number of ways. And at the seminars, they always tell you, that “real money” can only be made if you recruit as many people as possible.”