IS FM WORLD LEAVING THE MLM?

IS FM WORLD LEAVING THE MLM?

So I was being pitch on an FM World opportunity from someone I know in the network marketing industry. They wanted me to move over and bring my group with me. So I did some research since I know many people in the industry and have uncovered some interesting inside information. 

Is FM World a Scam?

FM Group Polska was launched in 2004 by Artura Trawinkskiego, but this person goes by the name of Artur Trawinski. While not much historical information exists about Artura Trawinkskiego, his father Andrzej Trawinksi is the owner of Perfand and the supplier of products to FM World. Their strategy is to mimic the brands but sell them for less. And while say they carry their own unique line of fragrances and cosmetics, I was immediately given an FM brochure comparing each bottle to a famous brand. I asked my friend “so the company copies the brands?” He replied, “they let the branches give out the brochures but pretend they don’t know anything about it, apparently that got their hands slapped by the EU for comparative advertising”. Okay. Interesting but okay.

My second inquiry was with one of FM’s European franchise owners with whom we have a mutual acquaintance. Since the products looked good I wanted to meet this owner in person so we set up a dinner. After a couple of glasses of wine and some pleasantries the curtain behind FM was removed. 

Is FM World Polska a Scam? No, but… 

 

It appears that after FM world has attempted to expand its franchise model it was unsuccessful in managing the logistics. My friend said that they have some independently owned locations and some that are owned by Artura. Because of this they are focused on giving their owned operations benefits that the franchisees do not receive and therefore there has been a steady flow of franchise locations closing. “As an independent owner,” he said, “I cannot get products that I order or they are delayed, I’m not really independent. Even thought my contract allows me to set pricing based my market, I get pressured to operate at a loss. I just didn’t make sense. Until our anniversary event in Greece.”

He went on to say that FM World rolled out their “Online Distribution” platform that was meant for countries where there was no franchise.  But soon noticed that Online Distribution was sending product to existing locations and send product that was unavailable to the Franchisee. He said putting 2 and 2 together he sees this as a method to remove the remaining independent owners like him and deliver everything through their online platform. 

I told him “I know this is hard for the franchise owners but the business should be about the members like my friend who is trying to recruit me.” He smiled and said “yes you are correct, but what happens when they convert their online platform to sell to the general public. While they reduce the commissions they pay because they are selling direct, your business as a distributor is dead. You will be competing against the very company that wants to provide you an opportunity. So first the franchise, then the members.”

I’ve reached out to FM World a few times for comment… no reply. I think for this company, I will pass.