Thread: FlexKom aka Flexcom aka Weeconomy - legitimate MLM or scam ??

To Tell The Truth

I found this statement on a Georgia Flexkom Promoters youtube video , "Flexkom is a German company founded in August 2010 that has been experiencing phenomenal success in Europe with the Flexkom Customer Loyalty Program. Flexcom has just opened for business in the USA."

Watsco, UGA1, FlexkomGAUSA or any Flexkom Promoter - IS THIS A TRUE STATEMENT? This method of marketing WILL NOT last for long, IMO.

At some point it will be time to start naming names of the Promoters who are NOT TELLING THE TRUTH about the 4 year history of Flexkom in their attempts to SELL THE DEAL to other Investor/promoters.

What did Karl Roller learn about Flexkom that caused him to leave? What caused Lyndon Farrington to leave?

Originally Posted by MLM Broken Model

What did Karl Roller learn about Flexkom that caused him to leave? What caused Lyndon Farrington to leave?

"No honor amongst thieves" comes to mind.

Originally Posted by Char

But Ribshaw,

What happens if other Chattanooga people start promoting Beepxtra and go after the same shops? What will that do to the numbers? Apparently, Beepxtra is taking the globe by storm with a loyalty card reward system using a technilogically advanced pos system.

* * *
And, oh my goodness, what about the lyoness affiliates. Then what?

Originally Posted by watsco

What about competitors? What if this is what we say it is? Then you think the multi billion dollar companies will just wait for us to start recruiting across the world when one market goes well? They would crush our little company, if we can't do it fast they will take over. So we come in under the radar and when it is to late everyone realizes what we have.

Perhaps you missed the memo about "flying under the radar"? You see LyinEyes and CreepNXTdoor are using an "old school model". They would have never dreamt of recruiting as many people as possible at a few grand a pop and then seeing what shakes out. By the time they figure out what F*****M (redacted for secrecy) is doing it will be all over excepty the part where BMs put up their feet and light a fat victory cigar.

This whole scheme reminds me of a discount card I looked at years ago. The set-up was simple, buy these cards for $25 and supposedly turn around and sell them for $50 under the guise of huge discounts at merchants of all sorts. These were the days when you could order a report from BBB, via hard copy, so it was a ways back. Turns out the company had had one owner but used several company names all pushing the same thing. None turned out to be a crowd pleazer.

Fast forward 20-30 years, slap a fancy terminal, some U-Tube videos --still the same scam.

Originally Posted by MLM Broken Model

Currently, 43,000 franchisees and about 2 million loyalty cards (In the test, Turkey)

Originally Posted by watsco

So the system was proven in Turkey. Turkey had issues but is doing great. I know you guys have problem with Turkey but that doesn't change the fact that the math worked.

No telling if these numbers are real, but since they were posted on a F*****M (redacted for secrecy) website lets use them. 2 Million loyalty cards is about 46.5 cards per franchisee. When UGA1 posted his $500 a month BM earning scenario he indicated 500 customers per terminal were needed.

I can't believe Watsco is doing anything other than repeating what his higher ups are telling him. Any way this is sliced there were a shitton of people recruited that are making nada, as has been indicated numerous times during this thread. Someone who has not committed to F*****M should really be demanding hard proof of the pitch, or simply consider a $2200 non-deductible, non refundable, donation to Ribshaw's Home for Wayward Cheerleaders.

According to this Facebook Page, Eric Stinnett is the Georgia State Manager for Flexkom. He should be able to tell who the other guy is who works from his office and posts from his computer.

https://www.facebook.com/cashbackapp...?stream_ref=10

Originally Posted by freighttrain

According to this Facebook Page, Eric Stinnett is the Georgia State Manager for Flexkom. He should be able to tell who the other guy is who works from his office and posts from his computer.

https://www.facebook.com/cashbackapp...?stream_ref=10

@Linkedin
Eric Stinnett
Georgia State Director for FlexKom America
Dalton, Georgia (Chattanooga, Tennessee Area) Marketing and Advertising

Oh my, I hope it's not the same person as below. Of course, this is only the charge and I'm not sure what the outcome was - Just to be fair. I'll certainly try to find out more:)

http://www.daltondailycitizen.com/lo...8/Area-arrests

Local News
Discussion
December 12, 2010
Area arrests
Dalton Daily Citizen

• Eric Matthew Stinnett, 42, 2013 Southcrest Drive, Dalton, was charged Friday by the Whitfield County Sheriff’s Office with felony theft by deception.

Originally Posted by MLM Broken Model

Wow. I did not know that. So, the Flexkom Investor/Recruiter/Promoter pays $2,200 for the right to recruit others and sign up businesses. I believe this is called Pay-to-Play. Then, they have to pay Flexkom another $500 for every merchant they sign up? Did the Flexkom Promoters know about this in the beginning? Then, the Merchant has to Double Up on the discount. Example: In order to give 10% to his customers, he has to give another 10% to Flexkom to run it and pay the pyramid players upline. Oh yeah, this is going to work! :)

The Flexkom Model simply doesn't make sense:

Let's say I own a Pizza Place and agree to add the program (since the Flexkom Rep is paying the $500, the local merchant has no "skin in the deal") and start promoting it as a CUSTOMER LOYALTY PROGRAM.
So, my customer comes in and I say to them, "Hey valued customer......sign up here and then go download the app and then download the QR code thingy and then I will give you 10% off as my way of saying THANKS FOR SHOPPING AT MY STORE." If they don't own a SmartPhone (as 40% DO NOT), then I have to convince them to ADD ANOTHER LOYALTY CARD to their wallet or purse. But for the sake of this discussion, let's assume they have a smartphone and can download the app and will then download the QR Code thingy and enroll into MY Customer Loyalty Program.

I give them 10% off their purchase - say $25 or $2.50, which goes on their FlexMoney Account. Keep in mind, this merchant ALSO give Flexkom an additional 10% or $2.50 to run the program, pay the multi-level uplines. So, before the merchant introduced their NEW Flexkom Loyalty Program, when they made a sale of $25.00, they got to keep ALL OF IT. Now, when they make a sale of $25.00, they have to pay out 20% or $5.00. NICE! (Now you can understand why the Model HAS NEVER WORKED ANYWHERE IN THE WORLD)

But it gets even Better. Remember that guy Watsco (who finally learned his lesson and now ONLY reads the posts)? Well, he is selling the SAME SYSTEM to the other Pizza Parlors in the area. Remember that $2.50 MY CUSTOMER RECEIVED on their $25.00 purchase? MY CUSTOMER can now go to MY COMPETITION and USE THE $2.50 paid by ME to SHOP AT MY COMPETITORS STORE!

I AM NOT MAKING THIS STUFF UP PEOPLE!!

So, how is this going to benefit the Local Merchants again? Oh yeah, part of what they GIVE TO FLEXKOM gets paid BACK TO THEM when their customers USES THEIR LOYALTY REWARDS to shop with THEIR COMPETITION. How long will it take for the Local Merchant (who never paid for the system in the first place) to realize this basic flaw in the system (and there are other flaws too) and OPT OUT? And when this happens to ONE, TWO, THREE merchants in a local community, how long will it take for the entire HOUSE OF CARDS (I mean APPS) to come crashing to the ground?

The Model is Broken. However, that is not going to stop the Promoters (Net Winners) from doing what they do best - selling the hype, the dream and the 6-figure residual income to Others (Net Losers).

Your example is flawed slightly but I can make an argument against flexkom just the same. People usually pick a pizza shop they like and stick with it. People are picky about how their pizza tastes (I ran a pizza shop). Once they find one they like, they are not going to go to joe blow pizza just because he's giving away part of his profit.

My own business is repairing equipment. People come to me because I know what I am doing - so much so that I don't advertise. It's word of mouth. They are not going to leave me and go to some other shlub who has no idea what he's doing just because he's giving a discount. They want their **** fixed and fixed right the first time.

Whip - we pretty much agree. But help me out here - where do you see the "flawed slightly" part of my post? By the way, I have no problem admitting I am wrong about a point of view or opinion. I am here for one reason ONLY - to warn as many people as possible and to encourage them to do their own due diligence.

There is no Customer Loyalty Program on the planet that will help a Pizza Joint (to use this example) with lousy tasting pizza. Agreed. But this was not the point of my illustration.
And, in your type of business, I don't see a lot of loyalty programs initiated either.

However, all of the consumer data is telling us "a properly structured" Customer Loyalty Program with a Mobile Texting communication feature will help bring the existing
customers BACK MORE OFTEN.

Flexkom is not "properly structured" IMO. It does work well with MLMers who like the Sell the Dream model and Quick Money for those early promoters. I think Flexkom offers $1,000,000 bonus to the really
BIG PROMOTERS. And this money is paid out from the $2,200 Pay-to-Play investments too.

Originally Posted by MLM Broken Model

Whip - we pretty much agree. But help me out here - where do you see the "flawed slightly" part of my post?

I guess flawed was a poor choice of word. I was getting at the loyalty based on that's what people like and not because of a discount. If I have the same people coming in every Friday night getting the same order every Friday night (which I did like clockwork), I have no reason to give them a discount. I would give them something extra like an appetizer occasionally anyway but I didn't have to. And they never complained or expected one. They certainly complained once when we couldn't get our regular Bleu cheese though.

Whip - thanks for the clarification. What I like about your post is your use of Real Life experiences and NOT some new technology that forgot one thing: human nature. Your post addresses this area and it's based on actual personal experiences. Since the Flexkom model has NEVER been proven in ANY country, that is where I have a major problem.

Here is my problem with Flexkom, plain and simple: They came to the USA market in August talking about their HUGE success in Turkey. Most of this information turned out to be a LIE. I have a problem with that type of marketing. I also have a problem with the people who are aware of this failed model and knowingly try and profit from it.

Small Businesses always adapt :)

Flex-cocktail.jpg

Other dramatic flaw,
they assume the end shoppers are coupon hunters running around small businesses with the expensive smart-phones , after all those people choose $500+ phone over $50 phone.

They better target grannies with coupon books and offer them free seizers instead of FlexMoney.

Originally Posted by MLM Broken Model

So, how is this going to benefit the Local Merchants again?

If my understanding of Flexmoney is correct, your analysis brought to mind two other potential snafus.

The reward system seems asymmetrical in the way it appears to benefit merchants with higher ticket items at the expense of those with a lower ticket. Assuming for a second there is a tire shop situated next to a restaurant. Both use the Flexkom system, a customer buys a set of tires for $500 and gets $25 in Flexmoney, while waiting for their car, they head next door and get a free lunch. Hard to see the reverse happening with any frequency.

All things are seldom equal, but how long before the restaurant owner says enough is enough?

========================
Similar to above...

I don't know how typical I am as a consumer. All year I save the cash back rewards on my Discover Card until I cash in at Amazon. I can see merchants like a dry cleaner or cobbler giving a FK discount knowing full well the consumers will save their Flexmoney and go out to a "destination" to treat themselves. Without some sort of way to reconcile this disparity my suspicion is destination merchants will grow weary of handling FK redemptions.

Of course in any scenario FK gets paid, even the one where no merchants at all particpate.

Ribshaw, i assume merchant has a direct way to convert FlexMoney to cash, so people spending FlexMoney at restaurant still bring him money.
If merchant has no way to cash out FlexMoney but can only use it to send to others - that would be really retarded.

Or FlexCom leaders can have a shopping spree in alleged 12k stores with FlexMoney balance generated out of thin air,
Oh, wait. We already have seen that done with other Admins of digital currencies :)


In other words FlexMoney is a form of a digital currency or a Money Service Business and a subject of registration by US FinCEN and in every US state of the recipient and sender :)
How many years of jail they give these days to unregistered money transmitters? I think about 2.

In EU, MSB registrations are being simplified now and MSB can just get a license in one of the union's member country to cover all EU, while every member of EU is free
or overrule and declare that MSB as unauthorized to serve its residents.

There is another big flaw in the Flexkom system. I believe it has been pointed out before in this topic, but it does not hurt to repeat that.

Every Flexkom shop has to give discount and double that up with the commission for Flexkom.
Let's say that the discount given is 5%. The shop then has to give away 10% of his income.

First of all, there is nothing that prevents a store from not telling Flexkom about the transaction. This saves the store 5%. Also, the customer keeps the other 5% in dollars in his pocket, in stead of FlexMoneys on his card. That means that the customer can spend his money at not only Flexkom stores, but all other stores as well. Ian Driscoll mentioned in the Mirror that this is true and that Flexkom does not have a solution for this, but he seemed not to care.

Well, let's say that in the future, Flexkom does come up with a solution for this. Every Flexkom store had to pay to Flexkom for every transaction. What would happen next?
Any competitor of the Flexkom store then has a huge advantage. He can offer his product cheaper than the Flexkom store, because he does not have to pay to Flexkom. He could give more discount than any Flexkom store and still keep more money for himself. For intance, he can offer 7% discount. That would mean that he still makes 3% more money than the Flexkom store and the customer pays less than when he shops at the Flexkom store.

For me as a customer, 5% or 10% doesn't get my attention. I look for sales of at least 20% and really get going when I see 50% off or BOGO. I'm not going out of my way for a measly 10%. I might for 20% but that's 40% out of the shops' pockets if they're with Flexkon. Yikes.

Now if I were a real wheeler and dealer and I knew about how Flexkom worked, I'd say to the shop:

I'm on the fence about buying new tires. I'll tell you what, I'll buy your tires today but since I see that you are a Flexkom merchant giving 10% off which means you also are giving 10% to Flexkom, give me 20% off the top and you have a deal. Then I'm going to take the money I saved to my favorite restaurant who isn't a Flexkon merchant and enjoy my lunch.

Elaborating slightly on my above post, the 50% sales are usually at the end of the season. I can't imagine a shop giving 50% off all the time. How would they survive? And 5% isn't going to draw me in on a daily basis. The whole thing is a stupid idea as far as I'm concerned.

Originally Posted by NikSam

Ribshaw, i assume merchant has a direct way to convert FlexMoney to cash, so people spending FlexMoney at restaurant still bring him money.
If merchant has no way to cash out FlexMoney but can only use it to send to others - that would be really retarded.

Forgive me if I am being daft. That makes more sense.

==============================
FlexKom Review: Merchant network and recruitment | BehindMLM

FlexKom claim that 1 FlexMoney is worth 1 EUR


A customer purchases a $10 widget and receives a $2 discount. The widget merchant pays FlexKom an additional $2, of which FlexKom keeps 80c (40%). The remaining $1.20 (60%) is paid out via the comp plan, with the referring merchant receiving 20% of the $1.20 (20% of the 60%).

==============================

In the above the customer receives a $2 immediate cash discount , leaving Flexmoney out. For the other $2, $.80 goes to Flexkom., $.24 goes to the referring merchant, leaving $.96 to create Flexmoney and BM commissions. Easy Peasy.

Originally Posted by Char

Elaborating slightly on my above post, the 50% sales are usually at the end of the season. I can't imagine a shop giving 50% off all the time. How would they survive? And 5% isn't going to draw me in on a daily basis. The whole thing is a stupid idea as far as I'm concerned.

YES!!!

The whole recruiting model is what blows this deal. Well and a product that has yet to perform as promised.

If they had hired a small professional sales force and just signed up merchants this MAY make sense. But the everyone makes a million on burritos and starched shirts makes things impractical very fast. As I was typing, CNBC had an ad that crossed for Livedeal which sounds like it does the same thing +++, LIVE Profile | LiveDeal, Inc. Stock - Yahoo! Finance. Just like Geebo discussed a few pages back which does EVERYTHING FK does +++ And all the other me-too pyramid programs like Lyoness.

It also seems that for the BMs to make any kind of money they either need a ton of terminals, or a ton of recurring traffic. How many businesses meet that model and are willing to discount at double the rate? I love to eat, but as Whip indicated I have my favorites discounts or no. Even there I may hit a place once or twice a month tops. Certainly, if I get a coupon or am in an area I may stop and eat somewhere different, but most of the time I don't frequent them. 50% off clothes, tires, TVs, plumbing, mean zip unless the service is needed, and how many of those businesses are there versus constant traffic businesses?

Originally Posted by freighttrain

There is another big flaw in the Flexkom system. I believe it has been pointed out before in this topic, but it does not hurt to repeat that.

Every Flexkom shop has to give discount and double that up with the commission for Flexkom.
Let's say that the discount given is 5%. The shop then has to give away 10% of his income.

First of all, there is nothing that prevents a store from....

Originally Posted by Char

For me as a customer, 5% or 10% doesn't get my attention. I look for sales of at least 20% ......

The basic underlying point is that when any 3rd agent intervenes between 2 parties doing a trade, it has to be genuinely adding something to the transaction, such as a recruitment agent or estate agent (much as I hate them, they are actually supplying information, and facilitating a trade)

FlexKom are pretending to do this, but actually they are parasitic upon economic activity that is already happening, like taxes.

The entire model is based upon the idea that FlexKom will help the small business reach more customers, and those customers will thereby bring more revenue. This is debatable.

What's also debatable is that more discounted customers is better, when your margins are already so tight.

If FlexKom was offering some kind of "mobile Craigs List", with the discount system as the "advanced membership", I'd be more inclined to find it believable.

Another Flexkom myth busted:

So weird, apparently Chattanooga was a massive success!! They are NOW PLACING POS 4 terminals at merchants in AL.

Strange.jpg
stranger.jpg

POS 4 does not bother me as much as having a FREE room in a restaurant and then a crew not willing or able to shell out a few bucks a head for a couple plates of flapjacks and a thermos of coffee. Exactly the type of people I don't want marketing for my business or my financial well being.


IHOP.jpg

https://www.facebook.com/CashBackAppsAlabamaGulfCoast

Originally Posted by freighttrain

Another Flexkom myth busted:

[VIDEO]

extra devices (printer, RFID reader) for FlexKom Terminal meant to be added by bluetooth as I see here: Drucker on Vimeo

Originally Posted by NikSam

extra devices (printer, RFID reader) for FlexKom Terminal meant to be added by bluetooth as I see here: Drucker on Vimeo

Or via the USB port on the tablet. But what good is a RFID reader when the FlexCards do not have a RFID tag in it?

And what is the use of printing a QR code?