People who have been reading the content of this Blog may be aware that the memberships and investments peddled by Lyoness are effectively valueless and constitute nothing more than the right of participation in - and handing over money to - an obviously fraudulent racket, as well as the right to dupe others into doing the same.
It is also known that Lyoness has been using obvious, unoriginal methods of deception to give its racket a legitimate air, designed to switch off the critical and evaluative faculties of the people considering to participate in the racket, as well as any casual observer (including government regulators, politicians, media and certification agencies), and to make them believe that Lyoness is a legitimate company, hosting a mutually beneficial shopping community.
Although the majority of these lies have already been demolished and are no longer maintainable by the Lyoness racketeers and the deluded adherents, it has been hard for the Lyoness sceptics and opponents to effectively destroy the delusion that Lyoness is a successful, growing enterprise, for the financial administration of the mystifying labyrinth of corporate structures active under the collective noun 'Lyoness' has shown nothing but a growing number of members, partner companies and, consequentially, turnover.
Of course, it has been reported that Lyoness has been filing the investments made by its members as debt, mainly for tax purposes. What has been glanced over largely is that these investments do indeed constitute a liability for the Lyoness racket. Indeed, the members have been promised incredible returns on their investments, which are supposed to stay within a system and could never disappear for they officially constitute a down payment on the future purchase of gift vouchers. Therefore, next to the growth in participation and turnover, the amount of future financial obligations (i.e. debt) grows at an equal pace.
Additionally, what the overall financial figures do not tell, is that when looking at local markets (and Lyoness branches) individually, participation and turnover do not grow everywhere, but just in countries where Lyoness is newly introduced to the general public. As soon as it has been introduced in a country, the amount of members increases rapidly, and so does the turnover. However, when the market becomes saturated (i.e. no more people are interested in handing over their money to Lyoness) and, consequentially, criticism starts to appear on local forums and Blogs, the growth rate stagnates and eventually declines entirely.
Since most 'developed' countries have been entered by Lyoness, this pattern starts to show in the overall picture of the 'company' too. In an attempt to avert the inevitable disastrous collapse of Lyoness (and there with, the dreams of 3,000,000 members), Freidl has therefore moved his racket into countries where people often own insufficient funds to buy proper food. It is doubtful whether those countries will produce a sufficient amount of investors to keep the Lyoness racket up and running for much longer, unless Freidl has found a devious way to benefit from developmental aid, much like Herbalife has been pulling off in recent years.
In early entered countries like Switzerland, the turnover has already been reported to decrease, resulting in a situation in which the turnover (and/or assets) of (for instance) Lyoness Switzerland does no longer cover the incredible amount of debt that Lyoness Switzerland has built up in earlier years. So far, such gaps have been filled up with illicit earnings from newly entered countries, where the membership rates and turnover grow immensely. However, this system will no longer offer a way out when the Lyoness racket runs out of countries to expand to, and therefore, looses its source of revenue. Unless Freidl thinks of a way to considerably increase the inflow money into Lyoness (which he could do by starting a new racket, having his current followers put in additional investments, or maybe by convincing at least some of his members to go shopping once in a while), the Lyoness racket will soon fully collapse - for now it remains effectively bankrupt.