A Unit by any other name
There are units of measurement, currency and time.
Frank Zappa named his daughter Moon Unit and former Major League Baseball pitcher Randy Johnson was called ‘The Big Unit’.
But in the world of finance, Lyoness may be creating the best unit of them all.
The biggest sticking point for a lot of people who look into Lyoness are the Shopping Units that are found in the Back Office. They don’t understand where they come from or how they work, and because the way they operate resembles structures seen in some Multi-Level Marketing (MLM) programs, they shy away without getting any more information.
My goal today is to try and clear up what Shopping Units are and are not in Lyoness and why they operate in a way completely unique to other programs.
The Creation Theory
First, let’s start with where these little buggers come from. Shopping Units are created in one of two ways, the most common being when someone is a Lyoness member and shops with Loyalty Merchants within the program. Each purchase you make gives you 1%-2% cash back, but also gives you another percentage (called a Loyalty Cash) into your back office Loyalty Account. Let’s take a look at a sample of how that might work.
Let’s say you spend $1,000 at Walmart & Sam’s Club in a given month for your family of four, buying food, clothing and gasoline (Sam’s club has great prices on gas, especially here in Las Vegas). Not an unreasonable total for that much stuff. Walmart offers a 1% cash back benefit to Lyoness members, meaning you’d get $10. They also offer a 1% Loyalty Benefit, which would go into your Loyalty Account.
Yep, it’s just that easy.
It is ALIVE!
So now you’ve got $10 in your Loyalty Account. And it will stay there until that account accumulates $75 in value, at which point it becomes a Shopping Unit. Understand, this is not money you’ve put into Lyoness. It’s money that merchants have negotiated with Lyoness to give loyal customers whenever they shop with them.
That $75 Shopping Unit now starts to snake through the first of five Accounting Levels. This is where sharing Lyoness really comes into play. While you will always get the Friendship Bonus from your Direct and Indirect Referrals, they can also play a part in how fast your Shopping Units make their way through the Accounting Levels.
For your $75 Shopping Unit to get through Accounting Level 1 (AC1), you need a total of 70 Shopping Units behind it – 35 on top and 35 on the bottom. Think of it like a family tree. Your mother’s half of the family needs to supply half the units and your father’s the other. Those supporting units, could also be more of your own Shopping Units as well.
It’s important here to understand that the supporting units could come from you, your Direct or Indirect Referrals or anyone that they refer into Lyoness for as far as the eye can see – and even beyond that! So if you’re interested in making Shopping Units work for you, sharing Lyoness becomes kind of important.
When that $75 Shopping Units gets through AC1, it pays you $675. This payment comes as a result of either you doing one heck of a lot of shopping (and I mean a lot) or you having shared the program effectively with a lot of people. Depending on how many people you have shopping with you, that Shopping Unit could pass through AC1 in a decade, a year or two or maybe even a few months.
Many hands make light work, and can do a lot of shopping.
And when it gets through AC1, that Shopping Unit graduates to AC2 and does it all over again at a higher level. And there are levels all the way to AC5.
Get by with a little help from your friends
There are also some bonuses as that Shopping Unit passes through AC1, you can receive bonuses at some checkpoints before the Shopping Unit even makes it to the end.
For example, when you have six total units behind yours (three on top & three on the bottom), Lyoness pays you $12 if you have at least four people that have registered and become members as a result of your referrals (Direct referrals). When you hit five-and-five for a total of 10 units, they pay an another $18. There are three more bonus check points along the way that total $198 when the level is done, making that initial Shopping Unit not worth just $675, but a grand total of $873 – all because you shared Lyoness effectively.
One more thing … As those Shopping Units go through AC1 they create four more Shopping Units that head back into the Accounting Levels to generate more revenue.
To buy or not to buy, that is the question
It would be easier for me to just give a flat answer here and be done, but to complete the above quote, it wouldn’t be nobler to be so flippant. So here goes…
You can purchase additional Shopping Units rather than waiting for them to be generated by your shopping. There are varying amounts that you can spend all the way up to $3,000 (US). At that level, also known as becoming a Premium Member, you would get 13 total Shopping Units. This is called “making a down-payment against future shopping” and is likely the single most misunderstood aspect of Lyoness.
Here’s the one key word you need to remember when thinking about purchasing Shopping Units in Lyoness: OPTIONAL.
There is no obligation to buy them whatsoever. Zip. Zero. Zilch. Nil. None. Nada.
So what would be some good reasons to become a Premium Member with Lyoness? For starters, you are immediately eligible to refer people in other countries. “Big Deal” you may say. Well, we don’t all have a ton of friends residing around the world … Or do we?
Social Media like Facebook and Twitter have changed all that. Heck, just from playing a little online game called Puzzle Pirates, I probably have a two or three dozens friends that I chat with on a semi-regular basis that I could talk to about anything, including Lyoness. A few of them reside in India, a country that Lyoness has not gone into yet and that has a population of around 1.3 billion, almost four times that of the United States. One Direct Referral there when it opens up could mean a lot of people helping my shop later on.
But a more realistic reason would be because your a small/medium business that wants to become a Lyoness Loyalty Merchant. I’ll cover all of the potential benefits of becoming one of those in a future post, but the most immediate is that you get your Lyoness business membership cut in half for as long as that promotion lasts. So you’d get those 13 Shopping Units, the ability to recruit globally and customers seeking you out because you give a great deal to Lyoness members.
And finally, when you share Lyoness the tree of people below you will eventually grow to be very big. And when it does, the Shopping Units they create will help yours find their way through the various Accounting Levels. And that will result in your seeing some nice money come your way – all because you shared.
Somewhere down the road…
I promise, I’m not about to break out in a Barry Manilow song. I like you more than that.
Units also play a part in the long-term income that can be generated within the Lyoness shopping community. As those that you’ve referred branch out and refer more folks into the program, they will eventually start creating or buying Shopping Units of their own. When they do, and they cannot help but create them, everyone below you that creates a Shopping Unit will earn you points in the Lyoness Commission and Volume Bonus Plan. Its a way that pays you for being very, very effective at sharing and encouraging others to do the same.
So that’s pretty much the story of Shopping Units in Lyoness. They can seem a bit intimidating and confusing, but just rest assured that as people shop they will create them. And as they do, they can be a great way to generate some extra income for everyone involved.
Lyoness is a great way to shop. If you’d like more information on how the program or would like to join, please drop me an email below or click the large blue box at the right. I look forward to hearing from you.
As always, the information and the membership is free!