Quote Originally Posted by Wouter Hol View Post
Wich is exactly what Flexkom is about to do.

Then you write a nice story about loyalty programs from a consumers point of view. What you did not understand is that I look at Flexkom from a shop owners point of view.

Grab your calculator. We're going to do some math.

Let's take a look at how the money flows within the Flexkom system:
http://www.realscam.com/f8/flexkom-l...html#post61019

As we know, the same amount as that a shop gives discount to the consumer, has to be paid to the Flexkom system.
So, for 2 dollars discount, this is how the two dollars for Flexkom flow:
0.80$ to Flexkom itself
1.20$ to the sales reps, shops, etc. These dollars get distributed this way:

0.24$ commission to the shop who issiued the card
0.24$ commission to the Global Team Member (also referred to as sales rep, licence holder, franchiser, pimp)
0.06$ commission to City Coordinator (bigger pimp)
0.048$ commission to the Team Coordinator (lesser bigger pimp)
0.36$ commission to Diff Pool. Diff is short for difficult. It is difficult to understand where this money ends up. Refer to pictures of the diffrent Ranks one pimp an achive, depending on how many people he/she signes up with Flexkom.
0.18$ commisson to Leaders Pool. These are de pimps among the pimps.
0.072$ commission to World Pool. The bosses of the pimps among the pimps.

I have highlighted one of these. Those are the sales reps being targeted by Flexkom at this moment. One has to pay 2200$ to get started at that position, right?

We can already confirm that the shops as a whole (all the shops/points of Flexkom acceptance) are losing money on this. Only 12% of the total amount paid to Flexkom, is going back to the shops. In other words, for every dollar received as commission by the shops, the shops have to pay 8.3333$

Now for some real math. There are several diffrent ways of calculating this, all of them shows that Flexkom is failing.

Method 1
Let's say that an average sales rep hooks up 5 shops. Each store has 1000 flexkom customers/month. An average discount given is 2 dollars. No strange figures here, right? These are for about the average numbers mentioned on a Flexkom meeting, I would say. Feel free to adjust these numbers at your own descretion.
With these numbers, this is how it's going to turn out.
Each shop has to pay 1000*2=2000$ to Flexkom. But, the shop receives a so called commission of 1000*0.24=240$. That's a loss of 2000-240=1760$ on the commission. And that is only if the shop serves its own customers. If he servers customers of other shops, then he'd be losing 2 grand a month. No surprise there, we'd already found out that shops would lose money on the commissions. Let's look a bit further.
The nett loss per shop per month is 1760$. Each sales rep signs up 5 shops. How much sales reps are there in each country? Lets say that there are 2000 sales reps. That gives us 2000*5*1760$=17600000$ of monthy costs! 17,6 million! Each month! And remind you, of these 17,6 million is 48% for the sales reps, pimps etc. So that means that at least 8.45 million is going to people who do literally nothing. This is the so-calles passive income. I have highlighed at least, because a fair amount of the 40% going to Flexkom, is spend on rental cars and such stuff.

Another method of calculating;
You start off with the projected monthly passive income you'd like to receive. I think that 2 grand each month is a nice start. One can make a living with 2 grand, right?
So, in order to recieve 2 grand each month, the shopowners have to pay Flexkom 2000/0.12=16666.66$. So your income is costing the shops 16.6 grand.

Again, feel free to adjust the numbers to your own descretion.

Now, lets say that Flexkom is this genius concept they pretent it to be. That would mean that any competitor of Flexkom as already an advantage of at least 8.45 million each month according to method 1, if it simply skips all of the passive income bullshit. Remind you; The shops nor Flexkom itself get anything back for all the dollars they give away to the people who expect to make a passive income. They simply pay and get nothing. Or, in your words, they get ripped off.
You can say what you want, but one can purchase quite some nice things for 17,6 million dollars. For instance, an office filled with quality personnel. Personnel with the ability to cope with critisism on the internet, personnel with the ability to give advice to shops, personnel to sell the Flexkom.. whatever it is that Flexkom sells. Flexkom choses to do not, but instead, promises lifetime passive income to people who sign up a shop. So should the technology of Flexkom work out (at this time, there is no prove whatsoever of a working Flexkom system) than a competitor can easily start up a Flexkom like venture and have a tremendous headstart.

I figure you will tell me about certain patents (Flexkom doesn't have any patents, all patents are listed in the public directories of espacenet) or other arguments why there will not be any competitors of Flexkom. Should you be thinking that, then you'd be wrong. If an idea works out, it gets copied. One way or another. Don't worry about that. First thing for you to worry about, is all the technology Flexkom pretents to have but is unable to show. The app, for instance, is hilarious. It took months afther the initial release for it to even get properly installed and working. And what functions does it carry? VOIP? A Google map with some dots on it? The ability to generate a QR code? And the POS is simply a cheap tablet. No special techonoly whatsoever.

Anyways, more important than that, Flexkom thinks that all the shop owners are willing to pay millions and millions of dollars each month for their system. Nuts.


Well, as you've just witnessed, the shops bring in the commisions. Flexkom is not.
Please reader this is math on a bunch of BS. First of all the math is not considering that the shop owner is already spending on marketing. And it is saying that they shouldn't have a marketing expense. It is also saying that there is no increase in revenue for the shop owner. If FlexKom didn't increase the revenue for the shop owner our system would be value less. And it would then mean the shop owner wouldn't use it. I keep trying to help these bloggers understand how we operate but they don't understand it anyway. The shop owner decides when and how much he gives. It can be $.20 if he choses. On one item if he choses. He can lure the customer with a cash back on one item and then get sales on other items at full price.

The shop owner gives away apps. Lets say he has 25 customers an hour. He offers the customer the loyalty app and an initial cash back for signing up. at 25 customers a day he has 7500 a month. The first month he has 25% join and next month the same. The total customers for a total 3575 customers. He has a standard cash back of say 2% on all items his choice but lets say all FlexKom members (customers) get that. He scraps his old clip card loyalty system where if you buy 6 you get 7th free which was equal to the 2% cash back (which in reality is 4%) Keep in mind that on the back end he is also earning income from the 3575 customers he has signed up when they are shopping in other stores. We have shops in Turkey that are earning more than $1000 a month (the income will depend on how much the cards are used and how many customers the shop owner signs up. and Turkey has an average income of $300 per person. And spend on average $87 a month on their credit card in USA that average is $3500 average income and we spend an Average of $467 on our Visa cards. So here in USA we are expecting higher averages for the shop owners. The shop owner has paid $500 for the terminal. He now has a direct relationship with those customers. These are customers that could chose a competitor at any point. Lets say it's a Sushi place. Monday Tuesday Wednesday his restaurant runs 50% full it's down 35% from the rest of the week. So during those days he runs at break even capacity. These are walk ins and regulars. They could go to any sushi place. Monday Wed Tues are his days where he tries to get more business going. Maybe he will have entertainment Monday night to try to bring a crowd. He pays the band $200 and hopes it will pay for itself but most times it doesn't so he has to eat the loss.

So our FlexKom total customer count has increase through our shops and is now at 500,000 strong locally (this is just an example). We have only been able to get 4 Sushi places to participate out 25. But Monday day our Restaurant owner is at the Fish market and there is amazing Sea Bass there our Restaurant owner takes his Phone and records a Video with a message to his customers Today I am Making a special with this amazing SEA bass IF you come in today He shows what special looks like he can even film while he makes the item. "I will give you 3 flexmoney if you order this special and come in today. Right away 3575 people will get his message on their phone and only if they are in town this is the only store that can reach them that way all other stores on our system can only reach them if they are requesting it. How much did it cost him to reach that many people with the message? Nothing. How much will he spend on this promotion? it depends on how many show up. How much would a flyer place charge to send out 3575 flyers? Each flyer cost maybe $1 to print and you would have less people who read it compared to a video text message.

What about google? How much does it cost a business to reach a customer on google? If you are familiar of Pay Per Click you would know that it's almost like an auction for views. It could cost $10 per click or more just to get one view of your website. So the big post above with all the fancy math is not even dealing with how much a store would spend to reach customers in other ways.

Moving on....In addition to reaching the 3575 as a text message he personally signed up he is also reaching the people in the 500,000 group who wanted to find out about food specials that day. So for example he now has his walk ins and what not who would be there anyway. He also gets the people who come in for the deal. They buy the special and get their Flexmoney and they may bring a friend who wants something else on the menu. They have some Sake and Beer. The bill comes out to $50 and the restaurant owner pays out $6 so the take is $46 He has increased the customer count by 20%. At the end of the night he looks to see how much did it cost him to run the promotion. He can track each sale and how much they spent he knows his alcohol and food cost. He checks his back office to see how many of his customers where paid by other stores and how much money he made in commission outside the store. He checks how much more revenue he had in his store. Cost versus sales. What his Monday looked like before the promotion. He then determines if the promotion was successful or if he needs to adjust for next Monday.

The customer decision could be something like "honey where did we want to take mom for dinner tonight? Not sure but Sushi mon has a cool sea bass special on FlexKOm looks good do you want sushi tonight? Yeah that could work?

The store is not forced to give any deals at all they will manage the system they way they see fit. The amount he offers is up to them we charge matching of what they give back. Part of that goes to the rewards we pay for and send to the customer. These are really attractive prizes Flat screen TV at 1000 points. Vacation at 5000 points Louis Vitton Luggage etc. and much more. Of course it takes time to earn those rewards but people will over time earn them. When those gifts are sent to the customer they are sent on behalf of the store that signed them up. So instead of a free meal or coffee they are giving TV's and vacations. This will make that store a hero to that customer.

As our network expands our customers will have more opportunities to use their cards/apps and the average cash back paid will increase per card, so our shop owner who have out 3575 cards if the average cash back reaches 10 Flexmoney a month it would generate over $4,000 a month to that store. This is unrelated to how much discount the store gives when it runs their promotions.

These bloggers keep saying the money will come from the stores and we keep saying the money comes from an increase in volume as our stores our network will thrive from our system. The stores that do not have the system in place will lose customers to the stores that have our system. a lot of those stores will be the national chains who before had the advantage of being bigger. They could run TV ads and other ads. spending millions in advertisement increasing their reach keeping themselves in the customers mind all the time. With FlexKom the smaller retailer can use the power of the network of small businesses to get that same leverage. Of course there is a cost to do that but not more than other methods they could use that really doesn't work that well. If the small business community doesn't find away to use m-commerce technology many of them will be long gone as we can currently see. We are losing our small shops to e-commrce and bigger chains.

Our access points will be recruiting proactively to the FlexKom system and we will have all the customers on FlexKOm since having an app on a phone is very easy for the customer to do. Getting marketing from one store is no big deal and then allowing marketing from the stores the customer is interested in is just good service. FlexKom knows it's customers so a Male will never get marketing for a female. We are giving the customer what the customer wants so they will favor the participating stores. So in turn our stores will do better. If you can get cash back and you can earn rewards wouldn't you chose the place that is giving it instead of the place that is not? Air line miles. Once one Airline started it all the others had to follow suit or they would have been out of business by now. It is called loyalty. I always try to fly american Airlines because I have the most points on that Airline. Same here but we have no competition. We are a blue Ocean business. "I will try to shop on FlexKom because I am working on getting the vacation for next year." Is your store going to give me a vacation? No? ok I will go across the street then.

So all that nonsense up above comes from a person who is ignorant to what we do. He has no clue how the real world FlexKom operates and yes I say real world. We are currently operating in Turkey and yes it has not been without problems. BUt those are problems that can happen to any start up. Business is about problem solving. Every rep that signed up in Turkey owns a FlexKom Franchise and is allowed to sell our system to any shop they chose. If they are inactive it is their decision not ours.

If they lack sales skills they shouldn't have signed up. It is obvious FlexKom is a service that businesses will buy or we would not have the network of businesses we already have in Turkey and they wouldn't be giving discounts unless they saw that it worked for them. The terminal would be unused. But people keep walking in with cards and asking if they can use it.

What is really backwards with the above post is how much effort the blogger has put trying to convince you that the FlexKom system will hurt the business not that the technology isn't there. Not that we are just lying about having the system. The blogger is contesting wether the technology will benefit the business. And doing a poor job at that sincethe blogger doesn't yet understand how we operate. At first when I got on this board it was all about that FlexKom was a big lie and big scam. Now I am responding to the actual value of the system. So we are drifting towards an new objection and that seems to be how the business owner is going to lose money working with us. And now I have responded to that argument showing you the reader that the business sets it's own parameters on how much they offer back. It is entirely up to them so if they know their numbers wouldn't it be apparent that they can manage their own campaign and would see right away how it works.

The big questions is: Where is the money coming from? Where the money should come from. It comes from the customers spending with them instead of the competitors.