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03 • 13 Enjoy the Benefits of FibreFit QNET Independent Representatives Changes Lives in Namibia Mangosteen Juice The Direct Selling Industry: Time for an Image Makeover? Against All Odds With NHT Global’s “Walks the Talk” at Unicity International A New Star in the Product Range Fanning the Flames of Xango Ignite CIS Dan Catto Aaron Webber Forever L. a Visionary Company Is Conquering Europe and the World

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Page 1: 03 • 13...03 • 13 Enjoy the Benefits of FibreFit QNET Independent Representatives Changes Lives in Namibia Mangosteen Juice The Direct Selling Industry: Time for an Image Makeover?

03 •

13

Enjoy the Benefits of FibreFit

QNET Independent Representatives

Changes Lives in Namibia

Mangosteen

JuiceThe Direct

Selling Industry:

Time for an Image

Makeover?

Against All Odds With

NHT Global’s

“Walks the Talk” at Unicity

International

A New Star in the Product

Range

Fanning the Flames

of Xango Ignite CIS

Dan Catto Aaron Webber Forever L.

a Visionary Company Is Conquering Europe and the World

Page 2: 03 • 13...03 • 13 Enjoy the Benefits of FibreFit QNET Independent Representatives Changes Lives in Namibia Mangosteen Juice The Direct Selling Industry: Time for an Image Makeover?

remarkable5Years

Page 3: 03 • 13...03 • 13 Enjoy the Benefits of FibreFit QNET Independent Representatives Changes Lives in Namibia Mangosteen Juice The Direct Selling Industry: Time for an Image Makeover?

OBTAINER

remarkable

Stay informed! Get the latest news from around the world wherever you are, whenever you want.

Today a reader,tomorrow a leader.

Page 4: 03 • 13...03 • 13 Enjoy the Benefits of FibreFit QNET Independent Representatives Changes Lives in Namibia Mangosteen Juice The Direct Selling Industry: Time for an Image Makeover?

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,

4 OBTAINER WORLDWIDE 03/2013

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2012

4 EDITOR´S NOTE

INSIGHT10 FlExKOm a Visionary Company Is Conquering

Europe and the World

INDUSTRY INSIDE32 AvON Shows Early Signs of Recovery34 HERbAlIFE Stock Rose As Icahn Reached Agreement With Herbalife35 mARy KAy AND mIcHAEl KORS Battle Over Infringement Rights in Dallas Courtroom36 INDIA DIREcT SEllINg ASSOcIATION Pushes Government to Enact Law Differentiating the Industry From Pyramid Schemes38 cOSmETIcS gIANTS AvON & NATuRA

Commemorate International Women’s Day42 mANNATEcH Hires Roy Truett as Chief Operating Officer44 QNET Marussia Announced It‘s Newest

Formula One Driver46 uNIcITy INTERNATIONAl

Takes the Right Stride as 2013 Beginnings48 bANNERS bROKER

Services Withdraws MasterCard Services 49 FAlKITO Andy Weickinger Appointed International Head of Sales

QNET: Marussia Announced It‘s Newest Formula One Driver

Avon & Natura: Commemorate International Women’s Day

CONTENT

6 OBTAINER WORLDWIDE 03/2013

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a Visionary Company Is Conquering Europe and the World10 OBTAINER WORLDWIDE 3/2013

INSIGHT

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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 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.

a Visionary Company Is Conquering Europe and the WorldFlexKom

a Visionary Company Is Conquering Europe and the World3/2013 OBTAINER WORLDWIDE 11

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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

INSIGHT

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3/2013 OBTAINER WORLDWIDE 13

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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

of our modern life" are terrific inventors,

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

invention of the first mainstream computer

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

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

14 OBTAINER WORLDWIDE 3/2013

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potential to change the world, but are also

unbelievably lucrative and profitable. The

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

many others who first jump on once the

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

first iPhone on the market in 2007 and

the first iPad in 2010, the company revo-

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

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.

The company that is one of the first to start

a functional m-commerce concept is a

European sales company. It is no surprise,

as the network marketing industry has

always been particularly flexible and future-

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

business model in 2010 and since then has

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.

3/2013 OBTAINER WORLDWIDE 15

INSIGHT

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A visionAryideA tAkes

shApeFlexKom officially began its business

operations on August 8, 2012 in Turkey

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-

ing in the official European expansion.

Behind FlexKom stands Cengiz Ehliz,

who as founder of the company was able

to benefit greatly from his more than 20

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

did not want to find a traditional network

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

seems so difficult to win over custom-

ers as a networker, why not then turn

to retailers and use them as multipliers?

Because retailers already have one thing:

customers!

16 OBTAINER WORLDWIDE 3/2013

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Flexkom international AG & Flexkom holding AGRegistered office: Istanbul and Switzerland,

FlexKom Europe GmbH

Registered office: Munich

Operating business: 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

Target figures 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)

Contact: [email protected]

Flexkom Facts and figures

cengiz ehliz, Founder

Asker sakinmaz, CEO

Michael Scheibe, Marketing Manager

The idea and system of FlexKom first

took shape with this thought and led

to the company's founding in the year

2010. 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

volume of over 12 billion US dollars. This

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.

3/2013 OBTAINER WORLDWIDE 17

INSIGHT

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FlexKom does not offer any physical prod-

ucts – one focus of the business model is

the five online portals (FlexShop, FlexOut-

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

and offline commerce through the affiliation

of local retailers. This takes place in the form

of loyalty cards, which customers can use at

affiliated retailers to pocket large discounts.

This produces a four-fold win-win-win-win

situation for all groups involved. Custom-

ers receive discounts for their purchases at

affiliated retailers. Retailers benefit from

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

also benefit, because they build up a lucra-

tive and profitable business through the

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.

According to a 2011 study carried out by

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

18 OBTAINER WORLDWIDE 3/2013

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offline. Loyalty cards in traditional retail are

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

or offline. It is an enormously attractive addi-

tional business for every retailer.

With the FlexCard, customers also receive

discounts on their purchases at affiliated

online and offline retailers. Affiliated

retailers benefit from increased customer

retention and an additional share in the

turnover of their customers.

+ additional sales without spending for advertising

+ timely doubling of customers (starting in phase 3) and therefore a doubling in sales

+ participation in online market volumes (starting in phase 3)

+ Notification on the online customer-side and through the Flexkom app (starting from phase 3)

+ Participation in customer sales in other outlets (starting from phase 3)

+ Backoffice+ SMS & video-mail

system with which customers can be forwarded information in seconds

+ Advertising for retailers through the Flexkom system (starting from phase 3)

+ Flexkom app (starting from phase 3)

benefits for retailers

3/2013 OBTAINER WORLDWIDE 19

INSIGHT

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But that's not all. FlexKom is using large

scale advertising campaigns for their

own portals AND for affiliated retailers.

In Turkey for example, advertisements

are being shown on five major television

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

benefit enormously. On the one hand,

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-

ners benefit directly from the growing

customer base of affiliated retailers and

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.

Every affiliated retailer 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 gener-

ated online or offline. As FlexCard users of

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

allows this partner to benefit both from

B2C as well as B2B business. In the first

case, he can acquire a finished web shop,

including a back office, for a certain fran-

chise fee and therefore benefit from direct

customer purchases in his online shop.

The really big potential, however, lies in

the B2B sector. The sales partner attracts

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

MLM company) the possibility to profit

from the sales of its acquired partners, the

Every affiliated retailer 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

offline.

20 OBTAINER WORLDWIDE 3/2013

INSIGHT

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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

/ or discounts. This is not least reflected

in the thousands of FlexCard accep-

tance points in Turkey. The demand for

discounts or loyalty and retailer benefits

does not need to be awakened, for it has

long been there.

3/2013 OBTAINER WORLDWIDE 21

INSIGHT

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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

pass between phase 2 and 3 and it takes

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

namely when our consultants and the affil-

iated retailers bring millions of customers

into the system!"

threephAses

Forsuccess

members (acceptance point facilitators) in

the various cities and regions."

If sufficient partners are acquired, then

the second phase is initiated during which

retailers become affiliated. Cengiz Ehliz

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-

ested in giving benefits to a large group

of customers. In addition, we are already

establishing our first customers in this

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

who is first, but very much about who is

the fastest. The city coordinators take on

the entire coordination of the global team

22 OBTAINER WORLDWIDE 3/2013

INSIGHT

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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-

fully completed the first two phases. On

September 8, 2012, FlexKom ushered

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

into the third phase at the end of 2012 and

the ultimate goal was to establish 30,000

acceptance points in Turkey in the follow-

ing months. Assuming that each outlet

or affiliated retailer on average brings in

1,000 customers, this would mean for

FlexKom that 30 million customers in

Turkey alone could benefit from discount

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

a total of 50,000 affiliated retailers. And

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

offline retailers as multipliers proves to

be as simple as it is brilliant.

3/2013 OBTAINER WORLDWIDE 23

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the First AcceptAnce

points in GermAny

After the first phase is completed soon

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

of online and offline customers.

Select franchise partners are now being

provided with POS devices and loyalty

cards for this purpose. Recently, each of

the first 52 qualified global team members

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

acceptance points will be the first in the

German-speaking regions that can utilize

and offer the innovative FlexKom system.

The pilot phase also serves as a test phase

in which any existing difficulties can be

taken care of so that the official launch of

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

magic number here is 0.2. For just 0.2

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

retailer also finds out just 0.2 seconds later

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

more countries will follow soon. The first

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

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POS device from FlexKom

3/2013 OBTAINER WORLDWIDE 25

INSIGHT

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"The foundation must be right and solid for

a functional m-commerce concept," says

Cengiz Ehliz. And at FlexKom, the founda-

tion is there to connect online and offline

trade through loyalty cards and POS devices

via the superbly functioning system.

As a new feature, FlexKom is now offering

its customers, partners and affiliated retail-

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 M-COMMeRCe

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

other affiliated retailers in the area as well

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

26 OBTAINER WORLDWIDE 3/2013

INSIGHT

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The FlexKom QR code

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

also reflected in the mission statement,

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

the first companies to offer a functional

m-commerce concept, this will also now

be reflected in the mission statement,

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

retailers are affiliated, then a true, really

true, passive income is possible.

Without being directly involved, a fran-

chise partner can profit from the sales of

one of his affiliated retailers. This may

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

the affiliated retailer...the result: a true

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.

Our system definitely attracts entrepre-

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."

3/2013 OBTAINER WORLDWIDE 27

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FlexKom has grand claims and the lofty

objectives, in terms of the innovative

business model (the lucrative combina-

tion of online and offline trade) are well

within the bounds of the probable, if not

the certain.

By the year 2015, FlexKom wants to have

established 500 million customers world-

wide in 50 countries. By the year 2020, the

company wants to already be active in 170

countries. In order to further drive expan-

sion and to carry over into the global stan-

dards, starting April 26, 2013 FlexKom

will offer all global team members the

possibility to register new sales partners

outside of the officially developed coun-

tries in advance, free of charge. Once 500

pre-registrations are reached in one coun-

try, FlexKom will check the legal and offi-

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

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.

FlexKom has definitely recognized the

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

INSIGHT

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In addition, FlexKom has been develop-

ing a cross-shopping model for the last

year, which "will revolutionize the adver-

tising and financial industry," says Asker

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

to benefit from them materially. Would

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

first making its way into our own homes.

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

certain: The company that is the first to

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:

[email protected]

3/2013 OBTAINER WORLDWIDE 29

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