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

So, is Flexkom legitimate or a scam? There is strong evidence of the latter but the only opinion that really matters will not come from this board. I do believe in helping Local Merchants with a viable Mobile program and loyalty system. The basic problem I have with Flexkom is how they have gone about rolling out their program so far. They go from country-to-country WITHOUT TESTING AND PROVING THEIR SYSTEM. Each time, they tout the success in PRIOR COUNTRIES as a ploy to entice INVESTORS AND MLM'ers in the new country to invest. I DO NOT LIKE THIS METHOD and do not believe the regulators will either.

Here is a point that I have tried to get Watsco, UGA1 and FlexkomGAUSA (Flexkom's State of Georgia Sales Coordinator - I believe is his title) to address, without success:

Flexkom has sold tens of thousands of investors, franchisees and MLM'ers on the IDEA of Mobile Marketing for Local Merchants. You see it on their Facebook pages "Mobile - the Future of Commerce" "We ARE the future of Mobile Commerce" "Flexkom - Join the Mobile Revolution, etc.

Flexkom entered the USA market back in August of 2013 and the CEO told everyone they would probably close the country to NEW INVESTORS before the end of the year. Fast forward to March 5th, 2014 and they are STILL selling the dream to anyone that can fork over $2,200 (with the exception of a few local markets which can still sign up and pay the $2,200 and recruit elsewhere).

We now know (from what Watsco, UGA1 and FlexKomGAUSA have posted here) the Flexkom Model has not even been proven. They are converting from a Card-based system to an App-based system. Plus, their software is still in TESTING MODE and is not ready to roll out nationwide. Instead, they have a few merchants using the system in "beta" mode.

So, just to confirm, they are selling the opportunity at $2,200 upfront and don't even have a PROVEN SYSTEM yet!!?? And, we have asked the Promoters of the Flexkom that visit this site to provide us with documentation of registration by Flexkom in the states that require it. To date, they have not provided this information. Why?

There are reports that some of their Top Promoters have been paid $100,000 or more. Watsco, UGA1 or FlexkomGAUSA can you confirm or deny that there are Promoters of Flexkom in the USA that have already been paid $100,000 (NET WINNERS) for SELLING the $2,200 DEAL to others (most of whom are NET LOSERS)? (Note: It appears that some of these same Top Promoters in Flexkom were also part of the Zeek Rewards Scam) If the State of Georgia forbids the selling of an OPPORTUNITY in an MLM scheme (see the post of State Laws earlier) how did the Top Promoters of Flexkom rake in so much money ALREADY when they HAVE NO PRODUCT and the SERVICE has not been fully tested. WHAT AM I MISSING HERE? It appears Flexkom is paying INVESTORS to bring in more INVESTORS. Flexkom has brought in $100 million plus (an estimate based on their reports) and basically have LITTLE TO NOTHING to show for it in terms of a viable platform/system, hence the "beta testing" in Chattanooga, TN.

With all of that being said, it is reasonable to ask the obvious question at this point. From a regulatory point of view, what is the difference between what happened at Zeek Rewards and what is taking place at Flexkom? The members of this board have tried to bring up legitimate issues (any reasonable person would have) with Watsco, UGA1, FlexKomGAUSA and others. To date, for whatever reason, they continue to "dance around" the issues and post the same tired responses which mostly fall into the following category: "We recruited more people this week so how can it be a scam?" Yes, it has been frustrating dealing with them, to say the least. Why are they not responding? I would also like to pose this same questions to the other members of this board like :EagleOne, freighttrain, Stewart, Joe Shmoe, Whip, Nourjan, Char and ribshaw. What is the difference between the two companies in terms of regulatory compliance?

Headline from yesterday: Clawbacks filed against Zeek insiders & winners

the Receiver has gone after Zeek’s top net-winner affiliates.
In addition to “baiting the hook” by creating a number of net winners, the Insiders operated the scheme with the knowing, reckless or at least negligent assistance and encouragement of a number of managers and advisors that greatly enhanced the perceived legitimacy and resulting success of the scheme.

Source: Clawbacks filed against Zeek insiders & winners | BehindMLM
BehindMLM: Unbiased MLM news, blog commentary and reviews also covers Flexkom for those who are interested in doing their due diligence
FlexKom Review: Merchant network and recruitment | BehindMLM

Originally Posted by MLM Broken Model

So, is Flexkom legitimate or a scam? There is strong evidence of the latter but the only opinion that really matters will not come from this board.

Why are they not responding?

What is the difference between the two companies in terms of regulatory compliance?

SCAM is a good catchall for things that ultimately will cost people money. Personally it is my opinion due to all the things you and others have uncovered that this is a recruiting scam pure and simple. Even if the product did 100% of what they claim there are still way too many folks being brought in as BMs. I would have liked to see one of the Flexkom supporters provide some hard data on revenue and users per terminal. But nothing? There can only be ONE reason for this. As with all the other questions that went unanswered and were replaced with happy talk and sales copy.

They are responding, just not with anything that would prove to potential investors that Flexkom provides an opportunity beyond recruiting other members.

Zeek was with a few outliers a straight up Ponzi scheme, I would classify Flexkom as more of a Pyramid at this point since they have a "product" but have not proven any significant retail revenue. Certainly there are some red flags raised by the SEC that have also been raised by the folks at Real Scam.

This is an interesting take on Flexkom's kissin cousin. Lyoness America Violating Pyramid, Ponzi, Business Opportunity & Security Regulations? | MLM Help Desk

My suspicion is this will end up falling under state franchise laws, but as we have all seen these things can limp along for years in the shadows. And even if an agency does finally move, chance of investors getting a clawback, usually not so good. Would be investors should demand real answers from the Flexkom people, whether here, or at their kitchen tables.

When considering joining an MLM program, beware of these hallmarks of a pyramid scheme: (Underlining mine, not a slam dunk, but would any of these be present if someone was buying a car wash or dog groomer?)

No genuine product or service. MLM programs involve selling a genuine product or service to people who are not in the program. Exercise caution if there is no underlying product or service being sold to others, or if what is being sold is speculative or appears inappropriately priced.

Promises of high returns in a short time period. Be leery of pitches for exponential returns and "get rich quick" claims. High returns and fast cash in an MLM program may suggest that commissions are being paid out of money from new recruits rather than revenue generated by product sales. (Like $100,000 commission checks perhaps?)

Easy money or passive income. Be wary if you are offered compensation in exchange for little work such as making payments, recruiting others, and placing advertisements.
No demonstrated revenue from retail sales. Ask to see documents, such as financial statements audited by a certified public accountant (CPA), showing that the MLM company generates revenue from selling its products or services to people outside the program.

Buy-in required. The goal of an MLM program is to sell products. Be careful if you are required to pay a buy-in to participate in the program, even if the buy-in is a nominal one-time or recurring fee (e.g., $10 or $10/month).

Complex commission structure. Be concerned unless commissions are based on products or services that you or your recruits sell to people outside the program. If you do not understand how you will be compensated, be cautious.

Emphasis on recruiting. If a program primarily focuses on recruiting others to join the program for a fee, it is likely a pyramid scheme. Be skeptical if you will receive more compensation for recruiting others than for product sales.
Investor Alert:*Beware of Pyramid Schemes Posing as Multi-Level Marketing Programs

Originally Posted by MLM Broken Model

There are reports that some of their Top Promoters have been paid $100,000 or more. Watsco, UGA1 or FlexkomGAUSA can you confirm or deny that there are Promoters of Flexkom in the USA that have already been paid $100,000 (NET WINNERS) for SELLING the $2,200 DEAL to others (most of whom are NET LOSERS)?

Do you think Dr. Joey Bird is getting compensated for his time to promote Flexkom?

If he is, let's hope he remembers to claim that money on his income tax return.
(See post #681 for tax fraud conviction)

Here he is pimping Boresha MLM in 2011 which has a thread of its own. http://www.realscam.com/f9/how-they-...s-boresha-744/