- Report: #1096436
Report - Rebuttal - Arbitrate
Complaint Review: FlexKom
FlexKomBurgstr. 8 Nationwide Switzerland
FlexKom International, Asker Sakinmaz, Cengiz Ehliz, MLM pyramid scheme. Tells you that you get residual income when you pay them big money for so called M-commerce system, wich does not exist at all. Kreuzelingen and Munich, Nationwide
*Consumer Comment: Learn German first, then make conclusions
*UPDATE Employee ..inside information: Proof is in the pudding
*UPDATE EX-employee responds: Flexkom is a scam
*General Comment: Flexkom Rebuttal
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Flexkom is a multi-level markting company. They are currently recruiting sales reps all over the world, but mainly in the USA, UK, Germany, France, Netherlands, Belgium, Russia, Kenya and in Trinidad Tobago.
Flexkom claims to be a M-commerce company, or as they say it: M-NDF, which stands for M-commerce Networking Directsales Franchise. They say that they have this patented, new and revolutionary way of getting more customers for the small stores in town. Consumers download an app and with that app they get discount in the stores. The customer pays the full price but then gets the discount in Flexkom's own currency, called FlexMoney, added to their app. The stores should get more customers this way because they could target the consumers with ads on their phone. But there's more. A store can hand out these apps to consumers. This way, a consumer becomes his customer. When this customer shops in another Flexkom shop, the shop who owns this customer, gets commission. [continued below]....
In order to get all the stores hooked up with the Flexkom System, they are recruiting sales reps. These sales reps have to purchase a licence. Prices for this licence range from 1500 to 3000 dollars. If the sales rap has purchased his licence, then the main goal is to recruit as much other sales reps as possible. That is because a sales rep gets commission of the turnover of these other sales reps he has in his so called team. Then, somewhere in de future, all these sales reps are going to hook up the stores to the Flexkom system. A sales rep gets commission for each transaction done in a store that he has recruited for Flexkom. Watch a youtube presentation on Flexkom, if you'd like to know what is being told by Flexkom. There are plenty of presentations out there. The presentation I link is somewhat older, when Flexkom was still an E-NDF company. Nothing much has changed, they only added an app to it, in addition to the cards.
Well now, several things are going wrong here and that is why Flexkom is ripping people off. Now bear with me, this is going to be quite a list:
First of all, the fact that you have to pay first in order to make money off it and that the only way of making money is to recruit other people yourselves, makes it that Flexkom is a MLM company. Flexkom sometimes likes to deny being a MLM company as MLM does not have a good reputation at all. But, by default, Flexkom is a MLM company. Being MLM does not make your company fraudulent by default, but it is common knowledge that MLM is bad business. Here's another article on why MLM is bad. Sometimes Flexkom says that it is a franchise or some sort, but that is a poor MLM analogy. So, the fact that you are about to deal with a MLM company should raise your suspicion.
Second, there is no evidence of Flexkom having any working technology. The only proof that they give is an demonstration of an Android app showing a QR code. If you scan this QR code with your phone, the two devices communicate with eachother and execute some sort of program.. Nice, but no proof in my opinion. At some presenations I've attended, they claimed to have a patented system. Unfortunally, no patent of Flexkom is anywhere to be found. Furthermore, the app that they have for Apple and Android devices is not working. Primary features are to include VOIP. Not sure what VOIP has to do with customer loyalty programs. This maybe has something to to with the megalomaniacal plans Flexkom has. As you can see on their official site, they also claim to have products called FlexHotel, FlexHoliday, FlexCall. Searching on the internet also reveals plans of FlexTrain, FlexTV, FlexEnergy. Flexkom clearly wants to have it all! Calling a random hotel listed on the site of Flexkom reveals that the hotels are unaware of the existence of Flexkom. None of the hotels knows anything of Flexkom.
In the youtube presentation I've linked earlier in this article, you can see how the money is divided among shops and sales reps. A shop has to give a discount which the customer receives as FlexMoney on his card or app. The same amount as the shop has given discount, has to be paid to Flexkom. So if a shop gives 10 dollars discount, the shop also has to pay 10 dollars to Flexkom. In total, 20 dollars of turnover is lost to the Flexkom system.
This gives a few things to think about. First of all, the maximum amount of discount a shop can give to a Flexkom customer, is limited to 50%. Then the shop has lost 100% of this transaction. Second, the customer receives his discount in FlexMoneys. FlexMoneys can only be spent at Flexkom stores. That makes it not really a discount. Lets say that the Flexkom system is working and is giving a shop more customers. What if the storeowner decide to skip the Flexkom transaction altogether. He can give the customer discount in real $$ and he keeps the Flexkom commission for himself. He could even give the customer a bit more discount and still make more profit than with the Flexkom system!
As told, Flexkom thinks that a shopowner makes profit if his customers shop elsewhere. This thought is based upon the fact that a portion of the Flexkom commision is issued to the person or shop who gave the app or card to the customer. But this commission is paid by the shops themselves. That could in no way mean that shops make extra income off their customers, because they pay this extra income themselves. It's just a redistribution of money.
Then let's take a look at how things are going in Turkey. Not so good, according to one of Turkeys largest newspapers, Zaman. You'd have to use Google translate as the newspaper is Turkish. They tell that over 30.000 people in Turkye are ripped off by Flexkom. Also, they tell that there are lawsuits going on by the Turkish government against Flexkom management.
As we need more than one source to verify if it really is that bad in Turkey, lets use another globally known source, Google. Google Trends tells you how many times people search on a particular keyword. This is how many times people have searched for Flexkom in Turkey. Needs no explanation, I think. All most no one is searching for Flexkom anymore thus you can safely assume that Flexkom has faded away in Turkey.
Flexkom has been around in Europe for a few years. In 2011, they told everyone they were opening somewhere in 2012. In 2012, they told people it would be before Christmas 2012. By 2013, it was by the 26th of October. As you can guess; nothing happened that day. Now they are telling everyone that the sales reps need more training and that they want to roll out pilot stores in certain cities first, before they go live. That's odd, because they told you that their system was already tested and proven successful in Turkey??
There's more. A Flexkom sales rep gets paid if he signes up another sales rep. They actually give hundreds of dollars per person you sign up. If you sign up for about 10 other people, you already have made a profit. Sign up even more people and you get a free luxury car, tens of thousands of dollars bonus and more. Flexkom calls this incentives. This, ofcouse, is somewhat of a public secret. Should everyone knows that the real way of making money is by recruiting others, then everyone would know that we are really dealing with a pyramid scheme here. As you know, pyramid schemes are illegal in most countries.
And for the people behind this evil masterplan. For some part, they seemed not to have existed before Flexkom. Their CEO, Asker Sakinmaz, has a small trail in Unicity but that's it. He seems to have been cloned just to push Flexkom. Their president, Cengiz Ehliz, has a slightly worse reputation. He has had several scams similar to Flexkom. One of them being IQ-Concept, leaving thousands of people ripped off. The country manager of the UK is Ian Driscoll. He has been with ponzi scheme Banners Broker before he entered into Flexkom. The USA country manager (who has already jumped ship by the way, because Flexkom did not open in Europe at 26th of October) was Karl Roller. He used to sell some phony health drink.
More and more people are realizing that they have been ripped off by Flexkom. For example, this guy was with Flexkom for 12 months. He now warns everyone to stay away from flexkom.
There are lots of blogs and forums out there who have also investigated Flexkom. Here are a few:
realscam.com/f8/flexkom-legitimate-mlm-scam-1862/ (Look at how Flexkom people are responding in that thread!)
There are also a lot of fake, positive reviews out there, in an attempt to block the negative reviews out of Google. You can easily recognize them as they are all made by Flexkom people trying to recruit you.
There is way more to tell about Flexkom to why it is a scam, but I think this will be enough for now. Stay away from Flexkom!
This report was posted on Ripoff Report on 11/02/2013 03:36 AM and is a permanent record located here: http://www.ripoffreport.com/r/FlexKom/nationwide/FlexKom-International-Asker-Sakinmaz-Cengiz-Ehliz-MLM-pyramid-scheme-Tells-you-that-1096436. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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