pm-international ag · pm-international ag simple. successful. i would be happy to take time to...
TRANSCRIPT
It is innovation that drives the Net-work Marketing and Multi-Level Marketing industry forward. Our industry has never been a follower, but an innovator, trailblazing avant-garde ideas in an otherwise mun-dane world. Visionary ideas can be extremely lucrative and can have the power to change the world, pro-viding the potential of the idea is understood!
In our cover story this issue join us as we delve into the world of one of
the newest ‘innovators’ on the MLM scene, FlexKom. Founded two years ago in Turkey, FlexKom has already gained over 50,000 partners and over three million customers for its e-commerce related business op-portunity. But it has no intentions of stopping there, read how the com-pany plans to revolutionize e-com-merce, with a new form of electronic commerce, m-commerce!
Our insightful columns, exciting features, and thought-provoking
news articles will provide you with food for thought over the coming weeks, but don’t forget to also vis-it our portal for your daily dose of MLM news!
OBTAINER is where the global world of Direct Selling connects.
Get Premium, get ahead!
Best wishes,
Michael ‘Michi’ Sander
EDITORIAL
Dear readers,
PM-International AG
Simple. Successful.
I would be happy to take time to talk to you.
Simple. Successful.
PM-International AG
Sascha GamperAn der Hofweide 17 PM-International AG67346 Speyer, GermanyTelephone: + 49 6232 296 - [email protected]
Become successful with PM!
II_PM_Anzeige_Obtainer_3512D1.indd 1 30.08.12 14:57
4 OBTAINER WORLDWIDE 03/2013
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CONTENT
8 OBTAINER WORLDWIDE 03/2013
Precisely at this moment, you have per-haps made yourself comfortable in your
favorite chair, have your notebook on your lap, are enjoying a cup of co!ee and are
delving into our current cover story. Do you realize it? Whether you believe it or not,
you are now a witness to a revolution that will fundamentally change the world. You
don’t believe it? Just wait.
a Visionary Company Is Conquering Europe and the WorldFlexKom
a Visionary Company Is Conquering Europe and the World10 OBTAINER WORLDWIDE 3/2013 3/2013 OBTAINER WORLDWIDE 11
INSIGHT
Precisely at this moment, you have
perhaps made yourself comfortable
in your favorite chair, have your
notebook on your lap, are enjoying a cup
of coffee and are delving into our current
cover story. Do you realize it? Whether you
believe it or not, you are now a witness to
a revolution that will fundamentally change
the world. You don't believe it? Just wait.
12 OBTAINER WORLDWIDE 3/2013 3/2013 OBTAINER WORLDWIDE 13
INSIGHT
Your day yesterday will not differ greatly
from today's, which is why it is prob-
ably hard to believe that exactly in this
moment a development is taking place
that may have previously unimagined
consequences. If we look back to the
invention of the combustion engine, the
steam engine or the telephone, we are
sure to all agree that these inventions
changed the entire world and all of our
lives extremely. Or could you still imag-
ine reading by petroleum lighting today?
Carrying your business correspondence
exclusively by written letter (or carrier
pigeon)? Taking care of your errands in
the city with the horse and cart? Surely
not! Behind the so-called "conveniences
RI�RXU�PRGHUQ�OLIH��DUH�WHUUL¿F�LQYHQWRUV��
people who were far ahead of their time
and who changed the entire world with
their visionary ideas. And they also didn't
do too badly for themselves either!
But you do not have to look back too far to
draw on examples such as Thomas Edison,
Alexander Graham Bell or the motorist
duo Daimler and Benz. Steve Jobs and the
LQYHQWLRQ�RI�WKH�¿UVW�PDLQVWUHDP�FRPSXWHU�
is a perfect example of a visionary idea that
changed the entire world and our lives. In
1976, Steve Jobs and his colleagues paved
the way for a technological development
that is seen as a matter of course today,
but at the time was rather ridiculed and
dismissed as a gadget. In the late 1970s,
no one could have imagined that a PC,
notebook or tablet would be indispensable
today, that we would basically do everything
potential to change the world, but are also
XQEHOLHYDEO\�OXFUDWLYH�DQG�SUR¿WDEOH��7KH�
problem is that most people only recog-
nize them once they have long been in the
mainstream.
You might be wondering what all of this
has to do with you. Very simple: What
if you could benefit from a visionary
idea that has the potential to, let's say,
fundamentally change our shopping and
consumer behavior? What if you were
among those who are already sitting
comfortably in the proverbial train and
are there from the outset instead of like
PDQ\�RWKHUV�ZKR�¿UVW�MXPS�RQ�RQFH�WKH�
train is already going, once the visionary
forward-looking idea has already become
mainstream?
In recent weeks, we at OBTAINER have
been reporting on a new form of online
commerce, known as m-commerce.
M-commerce (mobile commerce) is basi-
cally the advancement of e-commerce
(electronic commerce) and has the poten-
tial to revolutionize our shopping and
business behavior.
Already today, the Internet, only an
incredibly short time after its mass avail-
ability, is called one of the most important
developments of mankind - and rightly so.
For the Internet has not only changed our
communication behavior and shopping
habits greatly, but entire economic sectors
have arisen that could not exist without
the Internet. When Apple introduced the
¿UVW�L3KRQH�RQ�WKH�PDUNHW�LQ������DQG�
WKH�¿UVW�L3DG�LQ�������WKH�FRPSDQ\�UHYR-
lutionized our potential uses of the Inter-
net. The (real) mobile availability of the
Internet ushered in a new era and now,
after e-commerce, is putting forth a new
form of online commerce: m-commerce.
M-commerce is still a very new concept,
which is why there are only a few sophis-
ticated and practical usage possibilities
from shopping to carrying out business with
this "gadget." The "toy" became an integral
part of our lives, without which we could no
longer make do. At that time, hardly anyone
knew what potential was in the invention
of Steve Jobs, Steve Wozniak and Ronald
Wayne. The small company Apple, which
began in a garage with a starting capital
of just USD 1,750 (the amount that Steve
Wozniak mustered up the table by selling
his old VW bus), grew into a billion-dollar
corporation less than 30 years later. Hardly
anyone could have guessed that – perhaps
not even Jobs and co.
Nevertheless, they stuck with their idea
– a visionary, forward-looking idea. And
that paid off in the truest sense of the
word. Visionary ideas not only have the
compared to e-commerce. Of course, most
of us no longer only check our e-mails on
the home desktop PC, but also naturally on
the go. Facebook has also already arrived
in the mobile age. But so far no convenient
and effective m-commerce concept that is
suitable for the masses exists either in the
conventional economy or in sales.
And that is exactly what could change now.
7KH�FRPSDQ\�WKDW�LV�RQH�RI�WKH�¿UVW�WR�VWDUW�
a functional m-commerce concept is a
European sales company. It is no surprise,
as the network marketing industry has
DOZD\V�EHHQ�SDUWLFXODUO\�ÀH[LEOH�DQG�IXWXUH�
oriented. While conventional companies are
often still unable to cope with a respectable
social media presence, a sales company from
Europe is already ushering in the next era.
We are talking about FlexKom, which
started with an innovative and visionary
EXVLQHVV�PRGHO�LQ������DQG�VLQFH�WKHQ�KDV�
been able to record tremendous growth.
The forward-looking core of the busi-
ness model is the combination of local
retail and online commerce. Now this
model is being expanded by a functional
m-commerce model.
We are talking
about FlexKom,
which started with
an innovative and
visionary business
model in 2010
and since then
has been able to
record tremendous
growth. The
forward-looking
core of the
business model is
the combination
of local retail and
online commerce.
Now this model is
being expanded
by a functional
m-commerce
model.
14 OBTAINER WORLDWIDE 3/2013 3/2013 OBTAINER WORLDWIDE 15
INSIGHT
A visionAryideA tAkes
shApe
Flexkom international AG & Flexkom holding AG5HJLVWHUHG�RɚFH� Istanbul and Switzerland,
FlexKom Europe GmbH
5HJLVWHUHG�RɚFH� Munich
2SHUDWLQJ�EXVLQHVV� Germany, Austria, Switzerland, the Neth-
erlands, Great Britain, Belgium, France, Turkey and Macedonia
experienced internAtionAl mAnAGement teAm At the top oF the compAny
Member of the German-Austrian Chamber of Commerce and German-Swiss Chamber of Commerce
7DUJHW�ȴJXUHV for 2013 40 million customers in Germany, 3 million customers in Austria, 2.5 million customers in Switzer-land, 30 million customers in Great Britain, each with EUR 100 monthly turnover
Top managers: Renze Delstrat (the Netherlands), Erwin Falley (Belgium), Ian Driscall (Great Britain), Alexander Eisenegger (Germany), Josef Fischbacher (Germany), Carlos Plogner (Austria)
&RQWDFW��FRQWDFW#ȵH[NRP�FRP
Flexkom )DFWV�DQG�ȴJXUHV
cengiz ehliz, Founder
Asker sakinmaz, CEO
0LFKDHO�6FKHLEH� Marketing Manager
FlexKom officially began its business
RSHUDWLRQV�RQ�$XJXVW���������LQ�7XUNH\�
and was able to record stunning growth
in the past two years. According to their
information, FlexKom established more
than 50,000 business partners, thousands
of outlets and over 3 million customers
(including many professional clubs from
the Turkish football league) during this
very short period of time. After a three-
month pre-launch phase, FlexKom Europe
GmbH was founded in Holzgerlingen near
Stuttgart (now in Munich), thereby usher-
LQJ�LQ�WKH�RI¿FLDO�(XURSHDQ�H[SDQVLRQ�
Behind FlexKom stands Cengiz Ehliz,
who as founder of the company was able
WR�EHQH¿W�JUHDWO\�IURP�KLV�PRUH�WKDQ����
years of experience in network marketing.
During the course of his very successful
career, Cengiz Ehliz built up an organiza-
tion with over 63,000 partners and more
than 1.5 million customers. Cengiz Ehliz
GLG�QRW�ZDQW�WR�¿QG�D�WUDGLWLRQDO�QHWZRUN�
marketing company, but rather establish
one that stands out and that, above all,
delivers on its promises. Ehliz learned
something essential from his own career
as a sales partner: "A system is important,
but the product is even more important. A
real passive income can only be established
when I offer a product that the customer
uses and in particular wants to use. Only
when the customer purchases the product
without me having to chase after him can
a passive income be achieved."
Cengiz Ehliz had the proverbial enlight-
enment nine years ago. If it sometimes
VHHPV�VR�GLI¿FXOW�WR�ZLQ�RYHU�FXVWRP-
ers as a networker, why not then turn
to retailers and use them as multipliers?
Because retailers already have one thing:
customers!
7KH� LGHD�DQG� V\VWHP�RI�)OH[.RP�¿UVW�
took shape with this thought and led
to the company's founding in the year
������The Turkish market was selected
due to the low cost for product develop-
ment and the sales establishment started
successfully. It was possible to gain two
top sales professionals for the pan-
European structure who have a wealth
of experience in the traditional corporate
structure and in sales – Asker Sakinmaz
and Michael Scheibe.
Turkey was deliberately chosen as the start-
ing point of the company, because not only
was the product development there associ-
ated with low costs, but also the diverse and
fascinating country on the border between
Europe and Asia Minor is considered one
of the current hot spots for e-commerce. In
Turkey alone, e-commerce has an annual
YROXPH�RI�RYHU����ELOOLRQ�86�GROODUV��7KLV�
also has to do with the fact that, compared
to Europe, the Turkish population is dispro-
portionately young and practically grew up
with the Internet. Young Turks use the
Internet and e-commerce as an everyday
matter of course. Another important factor
is that the Turkish economy is booming,
despite the global crisis.
16 OBTAINER WORLDWIDE 3/2013 3/2013 OBTAINER WORLDWIDE 17
INSIGHT
FlexKom does not offer any physical prod-
ucts – one focus of the business model is
WKH�¿YH�RQOLQH�SRUWDOV��)OH[6KRS��)OH[2XW-
let, FlexDeal, FlexHoliday and FlexCall).
Here, consumers can purchase products
for daily use, household and health prod-
ucts, communication gadgets, travel,
personal care products and much more at
very favorable prices. The products offered
are absolutely among the most popular,
not just in Turkey.
What is revolutionary or forward-looking
about an online shopping portal, you
might ask yourself. Very simple: The
FlexKom portals are only one aspect of
the business model.
The second focus that FlexKom brings
forward in full is the combination of online
DQG�RIÀLQH�FRPPHUFH�WKURXJK�WKH�DI¿OLDWLRQ�
of local retailers. This takes place in the form
of loyalty cards, which customers can use at
DI¿OLDWHG�UHWDLOHUV�WR�SRFNHW�ODUJH�GLVFRXQWV��
This produces a four-fold win-win-win-win
situation for all groups involved. Custom-
ers receive discounts for their purchases at
DI¿OLDWHG�UHWDLOHUV��5HWDLOHUV�EHQH¿W�IURP�
acquiring new customers. (What argument
would be better than buying from a retailer
who guarantees discounts on the products
offered?) And the FlexKom sales partners
DOVR�EHQH¿W��EHFDXVH�WKH\�EXLOG�XS�D�OXFUD-
WLYH�DQG�SUR¿WDEOH�EXVLQHVV�WKURXJK�WKH�
FlexKom system with a real passive income.
Most of us today at least have one loyalty
or payback card in our wallets, which is
of course presented with every purchase
in order to receive discounts or take
advantage of bonus promotions. Buy
rolls from the baker around the corner
nine times and the tenth bag of rolls is
free. Collect points and receive awards.
Or receive a discount upon purchase
that is immediately deducted at the cash
register. That is how loyalty and payback
cards work – and quite excellently.
For a few years now, discounts and awards
have been a successful sales tool and
are simply now a part of business. Such
discounts and awards can namely encour-
age customers to make additional purchases
or can better retain new customers.
$FFRUGLQJ�WR�D������VWXG\�FDUULHG�RXW�E\�
the Swiss KPMG International Cooperative
(global network of independent companies
from the business and management consul-
tancy sector) with the title “Price portals,
couponing, social networks – the impact of
current online trends on buying behavior,”
over 41% of the respondents regularly take
advantage of online discounts. Providers
of such discount and award promotions
promise stronger customer retention and
greater market penetration through online
coupons, which can often also be redeemed
the Flexkom systemthe Flexcard
RIÀLQH��/R\DOW\�FDUGV�LQ�WUDGLWLRQDO�UHWDLO�DUH�
also enjoying greater popularity. According
to a TNS Emnid study, an average of 4.4
loyalty cards are hidden in the wallets of
every German.
And FlexKom is capitalizing on this with
its business model. If a local retailer
becomes a contract partner of FlexKom
(these are referred to as FlexKobi), the
customer receives percentage discounts
on his purchase in the form of so-called
FlexMoney when he uses the Flex-
Card that he is issued. If the customer
purchases on the FlexKom portals, he
receives a discount of the same amount.
The discounts are then transferred to the
customer’s online account and in turn can
then be redeemed at all outlets for the next
purchase. The FlexMoney corresponds 1:1
to the respective national currency.
Unlike most discount card providers on
the market, FlexKom combines local retail
and online shopping in an innovative
way. In addition, FlexKom also vertically
permeates all product segments: from
the very popular consumer electronics, to
attractive vacation packages to car rent-
als. Theoretically, all product segments are
conceivable, provided the corresponding
individual retailer has joined the FlexKom
retailer network.
In particular for retailers, there are several
good reasons to become a FlexKobi. Discount
and loyalty cards increase customer loyalty
and can generate greater sales, because
customers are encouraged to make addi-
tional purchases. The real growth multiplier
at FlexKom, however, lies in the fact that
card-issuing FlexKobi are involved in sales
for all of their customer purchases, regard-
less of which point of acceptance around the
world they are currently shopping at, online
RU�RIÀLQH��,W�LV�DQ�HQRUPRXVO\�DWWUDFWLYH�DGGL-
tional business for every retailer.
With the FlexCard, customers also receive
GLVFRXQWV�RQ�WKHLU�SXUFKDVHV�DW�DI¿OLDWHG�
online and offline retailers. Affiliated
UHWDLOHUV�EHQH¿W�IURP�LQFUHDVHG�FXVWRPHU�
retention and an additional share in the
turnover of their customers.
+ additional sales without spending for advertising
+ timely doubling RI�FXVWRPHUV�(starting in phase 3) and therefore a doubling in sales
���SDUWLFLSDWLRQ�LQ�online market volumes (starting in phase 3)
���1RWLȴFDWLRQ�RQ�WKH�RQOLQH�FXVWRPHU�side and through the Flexkom app (starting from phase 3)
���3DUWLFLSDWLRQ�LQ�FXVWRPHU�VDOHV�in other outlets (starting from phase 3)
���%DFNRɚFH���606��YLGHR�PDLO�V\VWHP�ZLWK�ZKLFK�FXVWRPHUV�FDQ�be forwarded information in VHFRQGV
+ Advertising for retailers through the Flexkom system (starting from phase 3)
+ Flexkom app (starting from phase 3)
EHQHȴWV�for retailers
18 OBTAINER WORLDWIDE 3/2013 3/2013 OBTAINER WORLDWIDE 19
INSIGHT
But that's not all. FlexKom is using large
scale advertising campaigns for their
RZQ�SRUWDOV�$1'�IRU�DI¿OLDWHG�UHWDLOHUV��
In Turkey for example, advertisements
DUH�EHLQJ�VKRZQ�RQ�¿YH�PDMRU�WHOHYLVLRQ�
channels. In addition, the Turkish football
superstar and winner of the golden foot-
ball shoe, Tanju Çolak, appears as a brand
ambassador of FlexKom. In Europe,
discussions are currently being held with
some former football world champions
and professional athletes that will be
active in the future as brand ambassadors
for FlexKom.
FlexKom therefore has several unique
features from which franchise partners
EHQH¿W� HQRUPRXVO\�� 2Q� WKH� RQH� KDQG��
the company itself is actively taking on
advertising, which is no matter of course,
because in most network companies, sales
partners are only provided with brochures
and the like. One of the most prominent
advantages, however, is the clear focus on
a passive income. As the franchise part-
QHUV� EHQH¿W� GLUHFWO\� IURP� WKH� JURZLQJ�
FXVWRPHU�EDVH�RI�DI¿OLDWHG�UHWDLOHUV�DQG�
therefore do not necessarily have to build
up their own organization, a true passive
income is possible.
The franchise partners of FlexKom can
also enjoy additional advantages. Based
on the franchise idea, every FlexKom busi-
ness partner receives a turnkey concept for
a small franchise fee.
(YHU\�DI¿OLDWHG�UHWDLOHU�LV�HTXLSSHG�ZLWK�WKH�
FlexCard POS device (starting in stage 3) as
well as 1,000 FlexCards that are customized
to the retailer's own branding if desired.
The sales potential or reimbursement for
WKH�UHWDLOHU�LV�XS�WR�����RI�WKH�GLVFRXQW�
- regardless of whether these are gener-
DWHG�RQOLQH�RU�RIÀLQH��$V�)OH[&DUG�XVHUV�RI�
course prefer to shop at the FlexCard outlets
(so they can utilize their discount options to
the maximum), the market and competitive
situation of the respective retailer will also
be strengthened.
What does this mean for the FlexKom
partner? The FlexKom business model
DOORZV�WKLV�SDUWQHU�WR�EHQH¿W�ERWK�IURP�
%�&�DV�ZHOO�DV�%�%�EXVLQHVV��,Q�WKH�¿UVW�
FDVH��KH�FDQ�DFTXLUH�D�¿QLVKHG�ZHE�VKRS��
LQFOXGLQJ�D�EDFN�RI¿FH��IRU�D�FHUWDLQ�IUDQ-
FKLVH�IHH�DQG�WKHUHIRUH�EHQH¿W�IURP�GLUHFW�
customer purchases in his online shop.
The really big potential, however, lies in
WKH�%�%�VHFWRU��7KH�VDOHV�SDUWQHU�DWWUDFWV�
online and offline retailers and earns
along with the retailer's customer sales
and discounts.
As a sales company, FlexKom offers its
sales partners (naturally just like any other
0/0�FRPSDQ\��WKH�SRVVLELOLW\�WR�SUR¿W�
from the sales of its acquired partners, the
downline and the customers. Every part-
ner can build his own sales team here and
thereby participate in their sales according
to the compensation plan.
The multi-channel approach has made
FlexKom into the top achiever in the Turkish
direct sales industry. 43,000 business part-
ners who put the FlexCard into circulation
in Turkey as well as thousands of outlets and
three million customers in just six months
- a clear sign of well above average success.
In order to more strongly encourage Turk-
ish customers to use FlexCards, an incen-
tive program was launched that distributes
special awards for collected FlexMoney. For
just 1,000 FlexMoneys there is a free LCD
TV. For 50,000 FlexMoneys there is a free
BMW 5-series or a Mercedes Benz and for
100,000 there is even a house. Customers in
other European countries may even be able
to look forward to similar incentives soon.
It is impossible to miss the fact that there
is a great demand for loyalty cards and
��RU�GLVFRXQWV��7KLV�LV�QRW�OHDVW�UHÀHFWHG�
in the thousands of FlexCard accep-
tance points in Turkey. The demand for
GLVFRXQWV�RU�OR\DOW\�DQG�UHWDLOHU�EHQH¿WV�
does not need to be awakened, for it has
long been there.
(YHU\�DɚOLDWHG�UHWDLOHU�is equipped with the
FlexCard POS device
(starting in stage 3) as
well as 1,000 FlexCards
that are customized
to the retailer's own
branding if desired.
The sales potential or
reimbursement for the
retailer is up to 20% of
the discount - regardless
of whether these are
generated online or
RɛLQH�
20 OBTAINER WORLDWIDE 3/2013 3/2013 OBTAINER WORLDWIDE 21
INSIGHTINSIGHT
phase. We do this through our business
distributors, junior team and business
team members. Starting in phase 3, the
city coordinators then start the association,
hotel and company customer concept.
We are currently in phase 1 in Europe and
are now starting to establish pilot accep-
tance points. This gives our partners the
capability to present the functionality of
the FlexKom success concept directly on
site, i.e. at each retailer. This increases
trust in our concept - both on the part
of the partners as well as on the part of
retailers.
Overall, however, hardly any time can
SDVV�EHWZHHQ�SKDVH���DQG���DQG�LW�WDNHV�
truly active sales professionals and a
perfect infrastructure to be able to commit
thousands of retailers nationwide to our
company in a few weeks! This is exactly
why only select consultants can bring
retailers into the network. For this, they
must have already built up a large team
of consultants in advance. What is then
correspondingly important in phase 3 is
QDPHO\�ZKHQ�RXU�FRQVXOWDQWV�DQG�WKH�DI¿O-
iated retailers bring millions of customers
into the system!"
threephAses
Forsuccess
The selection of these active sales profes-
sionals takes place according to simple
and understandable criteria. Whoever has
reached certain career levels in a region
qualifies for the partner and retailer
programs in phase 3. It is therefore quite
a competition for growth and activity
among the franchise partners, which of
course contributes considerably to the
high level of motivation. And the prior
success in Turkey shows what fantastic
success can be achieved.
"In order to cover the German market, we
do not need 100,000 consultants or even
500,000 consultants. We just need 4,000
consultants who each set up 10 retailers.
We then already have 40,000 retailers
and 40,000 retailers each establish 1,000
customers. This means there are 40
million customers. And we have therefore
covered the entire German market – with
only 4,000 partners," calculates Cengiz
Ehliz impressively.
At the same time, this also means that
those who can be particularly very happy
are those franchise partners and global
team members for FlexKom who are
underway. Every franchise partner has
the exclusive marketing right for a certain
region. Only he may pass the FlexCards on
to retailers there and get them into busi-
ness - and therefore establish a passive
income. The individual regions are coor-
dinated by the so-called city coordinators.
They receive another 5% commission on
all sales in their region.
In Turkey, FlexKom has already success-
IXOO\�FRPSOHWHG�WKH�¿UVW�WZR�SKDVHV��2Q�
6HSWHPEHU� ��� ������ )OH[.RP� XVKHUHG�
in the third phase for Turkish FlexKom
partners as a part of a meeting in Konya.
Within a few weeks, more than 1,000
retailers and acceptance points were
established in Turkey alone with many
corresponding customers.
At the same time, the resounding success
in Turkey gave FlexKom the opportunity
to review the company's technical foun-
dation for potential growth and stability
– and the result was more than positive.
The Turkish market therefore crossed over
LQWR�WKH�WKLUG�SKDVH�DW�WKH�HQG�RI������DQG�
the ultimate goal was to establish 30,000
acceptance points in Turkey in the follow-
ing months. Assuming that each outlet
RU�DI¿OLDWHG�UHWDLOHU�RQ�DYHUDJH�EULQJV�LQ�
1,000 customers, this would mean for
FlexKom that 30 million customers in
7XUNH\�DORQH�FRXOG�EHQH¿W�IURP�GLVFRXQW�
opportunities by linking retailers with
the online shopping opportunities of
FlexKom.
The meeting in Konya was also the start-
ing signal for partners outside of Turkey.
The goal was for each of the 500 invited
VIP Gold partners to acquire ten new
Gold partners within the next eight to
ten weeks (phase 1). This would expand
the network to 5,000 partners. Then in
the second phase, it was to be called for
that the partners establish local retailers
as cooperation partners. If each partner
only acquires 10 retailers, this would mean
D�WRWDO�RI��������DI¿OLDWHG�UHWDLOHUV��$QG�
judging by the sample calculation from
Turkey, 50 million new customers would
be acquired this way. Assuming that each
customer on average only spends 100
euros each month, this corresponds to a
monthly turnover of 5 billion euros. That's
how easy the FlexKom system works.
The idea of incorporating online and
RIÀLQH�UHWDLOHUV�DV�PXOWLSOLHUV�SURYHV�WR�
be as simple as it is brilliant.
members (acceptance point facilitators) in
the various cities and regions."
,I�VXI¿FLHQW�SDUWQHUV�DUH�DFTXLUHG��WKHQ�
the second phase is initiated during which
UHWDLOHUV�EHFRPH�DI¿OLDWHG��&HQJL]�(KOL]�
explains the procedure in this phase as
follows: "In the second phase, we are
securing individual retailers for our sales
network. Retailers are of course inter-
HVWHG�LQ�JLYLQJ�EHQH¿WV�WR�D�ODUJH�JURXS�
of customers. In addition, we are already
HVWDEOLVKLQJ� RXU� ¿UVW� FXVWRPHUV� LQ� WKLV�
The market development and penetration
takes place at FlexKom in three phases,
which occur sequentially.
"The first phase is used for the pure
construction of a sales infrastructure," says
Ehliz as he explains the FlexKom phase
model. "We need experienced and active
sales professionals as city coordinators in
all major cities in a country. It is not about
ZKR�LV�¿UVW��EXW�YHU\�PXFK�DERXW�ZKR�LV�
the fastest. The city coordinators take on
the entire coordination of the global team
22 OBTAINER WORLDWIDE 3/2013 3/2013 OBTAINER WORLDWIDE 23
INSIGHT
the First AcceptAnce
points in GermAny
326�GHYLFH�IURP�)OH[.RP
$IWHU� WKH�¿UVW�SKDVH� LV�FRPSOHWHG�VRRQ�
in the German-speaking markets, i.e. the
sales infrastructures and correspondingly
large number of partners have been estab-
lished, the second phase of expansion of
FlexKom will be set up: the establishment
RI�RQOLQH�DQG�RIÀLQH�FXVWRPHUV��
Select franchise partners are now being
provided with POS devices and loyalty
cards for this purpose. Recently, each of
WKH�¿UVW����TXDOL¿HG�JOREDO�WHDP�PHPEHUV�
from Germany, Austria and Switzerland
received 100 registered cards and POS
devices, which are now being distributed
to retailers in a pilot phase. These pilot
DFFHSWDQFH�SRLQWV�ZLOO�EH�WKH�¿UVW�LQ�WKH�
German-speaking regions that can utilize
and offer the innovative FlexKom system.
The pilot phase also serves as a test phase
LQ�ZKLFK�DQ\�H[LVWLQJ�GLI¿FXOWLHV�FDQ�EH�
WDNHQ�FDUH�RI�VR�WKDW�WKH�RI¿FLDO�ODXQFK�RI�
the second phase will be just as big, if not
bigger, of a success as is already the case
in Turkey. The pilot acceptance points can
use the issued POS units to their entirety,
but at FlexKom, attention must be paid
that a broad regional market coverage is
guaranteed - that is why not all partners
can acquire retailers at this current stage.
"In order to show the Germans, Austrians
and Swiss that our system works, we are
now issuing so-called test or demo units.
This allows our partners to show new
partners that they have a fully functional
device available to them," explains market-
ing manager Michael Scheibe. "But it is still
not yet the case that all of our partners are
going out, because in Munich, for example,
we have many partners, but in Hamburg
we have fewer, and then we would not have
the desired market coverage.
The previously distributed 500 POS units
make business in real-time possible. The
PDJLF�QXPEHU�KHUH� LV������)RU� MXVW�����
seconds after the corresponding retailer
has slid the loyalty card through the POS
device with the purchase amount, he sees
what share of sales he himself has earned
and what discount the customer receives.
The franchise partner who has gained the
UHWDLOHU�DOVR�¿QGV�RXW�MXVW�����VHFRQGV�ODWHU�
via text message what commission he has
earned on the customer's purchase –
passive income in its purest form.
The rollout is in full swing in Germany and
PRUH�FRXQWULHV�ZLOO�IROORZ�VRRQ��7KH�¿UVW�
major meeting with British leaders already
took place in Birmingham. Michael
Scheibe and Asker Sakinmaz got together
with 300 highly motivated top leaders and
prepared the rollout for the United King-
dom, which has meanwhile also gotten
started. After the meeting, more than
100 new applications were submitted to
FlexKom within just four days – and the
"sales are incredibly good," says Michael
Scheibe excitedly. The European expan-
sion of FlexKom is making headway –
steady and precise like clockwork.
24 OBTAINER WORLDWIDE 3/2013 3/2013 OBTAINER WORLDWIDE 25
INSIGHT
7KH�)OH[.RP�45�FRGH
"The foundation must be right and solid for
a functional m-commerce concept," says
Cengiz Ehliz. And at FlexKom, the founda-
WLRQ�LV�WKHUH�WR�FRQQHFW�RQOLQH�DQG�RIÀLQH�
trade through loyalty cards and POS devices
via the superbly functioning system.
As a new feature, FlexKom is now offering
LWV�FXVWRPHUV��SDUWQHUV�DQG�DI¿OLDWHG�UHWDLO-
ers an expansion of the system. With the
FlexKom app, it is possible for customers to
also pay for their purchases via their smart-
phone. For this purpose, the corresponding
function is activated with the downloaded
app and an entered number. The POS
Flexkom And 0�&200(5&(
devices positioned at retailers have a touch
screen that generates a QR code within split
seconds, which the customer can scan with
his smartphone. So it is possible to collect
the corresponding bonuses or FlexMoney
via smartphone. This is actually a true
m-commerce concept.
The FlexKom app not only allows for
paying and collecting bonuses via the
smartphone, but also has a tracking
feature that, if desired, can display all
RWKHU�DI¿OLDWHG�UHWDLOHUV�LQ�WKH�DUHD�DV�ZHOO�
as their discount offers. The FlexKom app
also functions as a kind of autopilot that
alerts the user of FlexKom acceptance
points, thereby allowing him to save
money by taking advantage of cashback
offers. Given the fact that around 94%
of all Germans regularly look for special
promotions, discounts and coupons in
their region, the FlexKom app meets a real
existing need and therefore is absolutely at
the cutting edge.
"Keep up with the times and time won't
pass you by. We offer the retailer a system
that allows him to keep up with the times
and take advantage of innovations. This
allows him to bring more customers
into his business," says Cengiz Ehliz as
he summarizes the advantages of the
FlexKom app.
As a part of the new m-commerce aspect,
FlexKom is also carrying out a paradigm
shift: away from the E-N-D-F concept
to the M-N-D-F concept. The original
business idea remains essentially unaf-
fected. It will, however, be expanded
through m-commerce and therefore
carried over into a new era. This is now
DOVR�UHÀHFWHG�LQ�WKH�PLVVLRQ�VWDWHPHQW��
which was previously summarized as
a E-N-D-F concept. E-N-D-F stood
for e-commerce - network marketing -
direct sales - franchise. As e-commerce
will change into m-commerce in the
near future and FlexKom will be one of
WKH�¿UVW�FRPSDQLHV�WR�RIIHU�D�IXQFWLRQDO�
m-commerce concept, this will also now
EH�UHÀHFWHG�LQ�WKH�PLVVLRQ�VWDWHPHQW��
which is now summarized as an M-N-
D-F concept. The M of course stands for
m-commerce.
See saw with innovation and forward-
looking trends - but you may argue that
Another impressive advantage is of course
in the context that no one has to sell a
product. Loyalty cards are ultimately fast-
selling items, because who does not want
to save money when making purchases
that you have to make everyday anyway?
Another unbeatable benefit of the
FlexKom system is as follows: Once the
loyalty cards are distributed and enough
UHWDLOHUV�DUH�DI¿OLDWHG��WKHQ�D�WUXH��UHDOO\�
true, passive income is possible.
Without being directly involved, a fran-
FKLVH�SDUWQHU�FDQ�SUR¿W�IURP�WKH�VDOHV�RI�
RQH�RI�KLV�DI¿OLDWHG�UHWDLOHUV��7KLV�PD\�
be the bakery, butcher, hairdresser or
greengrocer around the corner where
you do your errands every day anyway.
Let us assume that every partner only
acquires 10 retailers and each of these
retailers gives out 1,000 loyalty cards. The
franchise partner could therefore take
part in the sales from a total of 10,000
customers. And let us assume that every
customer spends 100 euros per month at
WKH�DI¿OLDWHG�UHWDLOHU���WKH�UHVXOW��D�WUXH�
passive income
this approach is too simple and too techni-
cal for some. FlexKom does not offer any
physical product that can be explained or
demonstrated. FlexKom does not offer
any product for daily use that everyone
uses anyways, but rather a system that
is relatively new and unknown still. But
every visionary idea was either ridiculed
initially, dismissed as useless nonsense or
simply not understood.
When asked how he would enthuse less
tech-savvy partners of his system, Cengiz
Ehliz answered confidently: "We are
not the traditional network marketing
company. We have a system that is not
suitable for everyone. Our target group
consists of nearly 90% of entrepreneurs.
2XU�V\VWHP�GH¿QLWHO\�DWWUDFWV�HQWUHSUH-
neurs and they are exactly who we need,
because entrepreneurs know other entre-
preneurs - and they have customers. We're
not the classic Network, where you can get
everyone in the business. We focus on the
category and not the masses. Nevertheless,
we also need traditional networkers who,
for example, distribute loyalty cards and
reach the masses."
26 OBTAINER WORLDWIDE 3/2013 3/2013 OBTAINER WORLDWIDE 27
INSIGHT
FlexKom has grand claims and the lofty
objectives, in terms of the innovative
business model (the lucrative combina-
WLRQ�RI�RQOLQH�DQG�RIÀLQH�WUDGH��DUH�ZHOO�
within the bounds of the probable, if not
the certain.
%\�WKH�\HDU�������)OH[.RP�ZDQWV�WR�KDYH�
established 500 million customers world-
ZLGH�LQ����FRXQWULHV��%\�WKH�\HDU�������WKH�
company wants to already be active in 170
countries. In order to further drive expan-
sion and to carry over into the global stan-
GDUGV��VWDUWLQJ�$SULO����������)OH[.RP�
will offer all global team members the
possibility to register new sales partners
RXWVLGH�RI�WKH�RI¿FLDOO\�GHYHORSHG�FRXQ-
tries in advance, free of charge. Once 500
pre-registrations are reached in one coun-
WU\��)OH[.RP�ZLOO�FKHFN�WKH�OHJDO�DQG�RI¿-
cial requirements for the commencement
of operations in the respective country and
then begin phase 1 in the new market.
In Turkey, you can already see how
successful the FlexKom concept is and
what potential it has. For in some cities
in the country the FlexCard is already the
only loyalty card in the wallets of people.
This scenario is unbelievable. If only the
FlexCard exists in the city, customers can
then take advantage of discounts in almost
every retail business – especially when
shopping for everyday items. Every time you
make a purchase at the baker or butcher,
every time when you go to the hairdresser,
money can be saved and FlexMoney is
In addition, FlexKom has been develop-
ing a cross-shopping model for the last
year, which "will revolutionize the adver-
WLVLQJ�DQG�¿QDQFLDO�LQGXVWU\���VD\V�$VNHU�
Sakinmaz, CEO of FlexKom.
People with visionary ideas, whether
Thomas Edison or Steve Jobs, were
always ahead of their time. And they were
often ridiculed for their visions or simply
considered crazy dreamers who were not
grounded in reality. Time, however, has
proven them right.
The trouble with visionary ideas is that
most of them are only recognized as such
in retrospect. And then it is usually too late
WR�EHQH¿W�IURP�WKHP�PDWHULDOO\��:RXOG�
you have guessed in 1976 that Apple
would become a global, multi-billion
dollar group? Would you have purchased
company shares at the time? Probably not,
right? Today on the other hand...
E-commerce has developed into one of the
largest economic sectors there is within a
very short period of time. And few would
have guessed it when the Internet was
¿UVW�PDNLQJ�LWV�ZD\�LQWR�RXU�RZQ�KRPHV��
Today, it is a matter of course to shop on
eBay or Amazon.
E-commerce will change to m-commerce.
This can be said with certainty, given the
technological development to smart-
phones and tablets. And one thing is also
FHUWDLQ��7KH�FRPSDQ\�WKDW�LV�WKH�¿UVW�WR�
launch an effective m-commerce concept
that is suitable for the masses will create
an immense competitive advantage for
themselves that is worth real money -
more than you can imagine now. The
company that launches such a concept
on the market could draw level with the
e-commerce giants like eBay and Amazon
- and even surpass them.
What if this company already exists? What
if it is a European start-up that in just two
years has recorded incredible success
stories with a simple and yet distinctive
business idea? What if you recognize and
take advantage of a visionary idea that is
just beginning to sprout?
You can obtain more information here:
FRQWDFW#ÀH[NRP�FRP
Future prospects
earned. FlexMoney can then be used to, for
example, invest in a Turkish vacation (free
of charge, thanks to the earned and credited
discounts throughout the year). You can
also save a great deal of money there with
the FlexCard – and as a highlight, bonuses
beckon for earned FlexMoney.
)OH[.RP�KDV� GH¿QLWHO\� UHFRJQL]HG� WKH�
signs of our times and is increasingly
focusing on m-commerce. The equation
is simple: FlexKom + m-commerce =
FlexCommerce = success. M-commerce
will lend the business of FlexKom an addi-
tional boost, but that is not the end of it.
Currently, the launch of the World Wide
Mega Mall is being prepared, which is the
largest online shopping mall in the world.
28 OBTAINER WORLDWIDE 3/2013 3/2013 OBTAINER WORLDWIDE 29
INSIGHT