FlexKom operates in the e-commerce multilevel marketing sector, registered as "FlexKom Europe GmbH" in Germany. However, the company's domain, flexkom.com, lists owner Cengiz Ehliz at an Ankara, Turkey address. Several affiliates also claim Turkish headquarters.
Cengiz Ehliz established FlexKom in 2010. He leads the company with CEO Asker Sakinmaz. Ehliz states he began his network marketing career in 1993 but does not name specific past companies. Turkey served as the initial test market for FlexKom's business model. The company now seeks international expansion.
FlexKom itself offers no direct retail products or services. Instead, the company sells "FlexCards" to its affiliates and participating store owners. These cards are then distributed to consumers. Each FlexCard contains 20 EUR worth of "FlexMoney," a virtual currency. FlexMoney can be exchanged for cash or used to buy items online through FlexKom's shopping portals, which feature products from third-party merchants in the FlexKom network. FlexKom claims one FlexMoney unit equals one Euro. Consumers also use FlexCards to receive discounts on goods and services within the merchant network and to track customer cashbacks.
The FlexKom compensation plan centers on affiliates and merchants buying FlexCards from the company. It also pays out based on purchases made within the FlexKom merchant network.
Merchants earn money each time they give a FlexCard to a customer. Merchants join FlexKom for a 330 EUR fee. This fee provides them with a set number of FlexCards for distribution. Merchants can order more FlexCards if they run out. When a customer receives a discount from any FlexKom merchant, the merchant providing the discount pays an equivalent fee to FlexKom. For example, a merchant offering a 2 EUR discount must also pay an additional 2 EUR fee to FlexKom.
FlexKom retains 40% of this fee. The remaining 60% enters the compensation plan. From this 60%, merchants receive a 20% commission. This commission applies each time a customer they originally provided a card to gets a discount from a different FlexKom merchant, which then generates a fee for FlexKom. If a customer buys a $10 item and receives a $2 discount, the item merchant pays FlexKom an additional $2. FlexKom keeps $0.80, representing its 40% share. The remaining amount from this fee is distributed.
The specifics of the remaining fee distribution after FlexKom's 40% share and the original merchant's 20% commission are not detailed in the available compensation materials.