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.
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