Crisis ignored, show staged: old patterns instead of new solutions
Crisis management or act of desperation?
Hubert Freidl, founder of Lyconet and myWorld, is back in the spotlight – a remarkable development. Internal sources report that he was actually supposed to withdraw from operational areas. But now he is personally holding Zoom calls as if nothing had happened. This sudden return raises questions, because Freidl is considered to be the central figure behind the company’s current crisis. For months, the negative headlines have not stopped: disappointed marketers are turning their backs on the system, and trust in Lyconet/myWorld has been severely shaken. The exodus of high-ranking leaders is particularly explosive – some for economic reasons, others for fear of possible legal consequences.
While there is talk of financial difficulties internally, a different picture is painted in the current calls: everything is said to be under control. This discrepancy between the internal sense of crisis and the public narrative is likely to cause unease among many observers and those affected.
Heroic staging instead of plain language
The strategy is well known. Even the staging of the calls follows the classic pattern: heroic music at the beginning, a still image with a broadly smiling Hubert Freidl, a perfectly choreographed atmosphere that is supposed to suggest that you are part of a historic moment.
In view of recent developments, one would have expected Freidl to comment on the massive problems. But nothing. Not a word about financial difficulties, disappointed marketers or failed concepts. Instead, he smiles as he presents the next ‘groundbreaking opportunity’ that is supposed to bring the big breakthrough.
It seems almost grotesque how different this appearance is from reality. Apparently they are just waiting for the shock to wear off before they announce the next big vision. The past is ignored, only the supposedly glorious future counts. The choice of words is identical to earlier announcements: ‘unbelievable opportunity’, ‘game changer’, ‘a year of success’. But anyone who knows the history of this company also knows that such promises have been made time and again – and always remained unfulfilled.
Lyconet’s Balance Program and Business Units – an old trick in a new guise?
The Lyconet Balance Program is an internal bonus mechanism, which is based on sales within the network. Marketers receive credit notes for supposed future benefits.
Business Units (BU), on the other hand, are participation points, which are mostly acquired through financial investments. They could potentially lead to payouts, but are designed for the long-term and are associated with financial obligations. Critics have been complaining about the lack of transparency in this model for years.
The main difference between the two mechanisms: while the Balance Program is based on ongoing sales, the Business Units are more like an investment with an uncertain return. But both programmes have one thing in common: they have so far not helped to establish myWorld as a serious shopping platform.
Now, the supposedly once successful Balance Program is to be revived and upgraded. Hubert Freidl once again emphasises that the company wants to focus more on shopping. But why should it work this time? For years, the same promises have been made: exponential growth of the shopping community, a central role in global trade. But the reality is different.
The company is surviving not because of the promised shopping community, but because of constant investment by marketers. Internal sources report that the retailer network is still meagre. A broad-based infrastructure of partner shops that could ensure stable sales has never been built.
The lack of transparency remains. Even after listening to it several times, it is difficult to understand exactly how the system is supposed to work. Is this lack of clarity intentional to distract from the actual weaknesses? The so-called units are supposed to bring enormous financial benefits later on – a familiar promise that has never been kept so far. The central question remains: is it once again just about attracting fresh capital into the system?
Premium Packages – recurring patterns
It is striking that another attempt is being made to sell packages. The so-called Premium Packages are designed to entice marketers to buy supposed advantages. Just as in the past, this system serves one purpose above all: to maintain the flow of money within the company. But why are monthly deposits required for this again?
Just a few weeks ago, calls emphasised that you shouldn’t rely on ‘free incentives’ – now that’s exactly what’s being advertised. The message is clear: first collect balance units to supposedly benefit from them later. But who actually benefits? Are the few euros that come out of it really worth the ongoing financial commitment?
From shock to euphoria – the old trick in a new guise
Now, a wave of euphoria is being whipped up again, as if none of this had ever happened. Internal voices admit that in recent years, the company has moved further and further away from its actual business model. Instead of building a functioning shopping community, the main focus was on getting as many marketers as possible into the system and getting them to make regular payments. It is precisely this principle that is now to be continued unchanged.
Note: And as always, those affected are welcome to comment on this, or if someone has more or different information, they are welcome to share it with us. We are not interested in making false claims and our primary goal remains the provision of complete documentation.
Sources: Lyconet Call
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