ZeekRewards Closing Down – The MLM Attorney Speaks Out!

  • August 17, 2012
  • By Kevin Thompson
Kevin Thompson - The MLM Attorney

 

+Kevin Thompson – The MLM attorney speaks out about the Zeekrewards situation

The Law Office of Kevin Thompson specializes in providing legal services specializes in providing legal services for startup direct sales organizations.

Named as one of the top 25 most influential people in direct sales, Kevin Thompson has extensive experience and helps entrepreneurs launch their businesses on secure legal footing.

Disclaimer: This article contains my opinions. I’m not stating with certainty that Zeek is fraudulent; however, in my opinion, I believe that to be the case.  I think the investigation is timely and will serve a valuable function.    

It’s official.  Zeek Rewards has recently closed its doors.  Literally.  In fact, the SEC and U.S. Secret Service are now involved. This is what we know: the doors are locked and the website is down.  It’s not looking good.  Was this done voluntarily?  Were they required to do this by the SEC?  This all has occurred recently after the North Carolina AG’s office expressed “concern” over the Zeek model.

I’ve got mixed emotions.

I’m both angry and relieved.

Why am I angry?

  I really think we lost our minds with this model. The MLM community took the bait and walked off a cliff like a herd of lemmings. Do you want to know what happened?  I’m going to be candid:

Zeek exploited the gray.  They took a bath in it.  They skinned it and made a coat out of it.  They hired the right people and adopted the right lexicon.  And who is going to pay the price?  The entire industry.  This is bigger than just the participants.  There’s an ocean of gray separating legitimate network marketing companies from pyramid schemes.  Instead of shrinking the gray, we fight like hell to obfuscate.  As an industry, we’re self-delusional.  It’s true.  We think it’s better to have vague standards.  But now we’re seeing first hand what happens when the inmates take over the asylum.

“Those are not investments, those are ‘samples’ given to ‘customers’ in an effort to entice them into buying more….it’s like Amway distributors giving samples of soap to customers.”

It’s not the same thing! Amway distributors are not spending $50,000 on soap, giving it all away to strangers while dramatically increasing their earning potential. Amway distributors have a direct, real connection with customers.  With Zeek, it’s just a combination of 1s and 0s on a computer screen.  Who in the hell were these customers?  Where were they coming from?  Were they real?  Were they ever asked to verify their accounts? Nobody knew and nobody seemed to care.  People knew the angle.  They read from the script, mastered the narrative and explained with eloquence why Zeek was “just like Amway, but with penny auctions.”  Zeek affiliates were essentially rewarded IMMEDIATELY after they bought the bids, regardless if they were ever used. This is not consistent with traditional MLMs.

I’m angry because they leveraged your credibility. They leveraged the credibility of my colleagues and competitors. They leveraged mine.  And we all look like idiots.

I’m angry because this recent news is going to be devastating for tens of thousands of people.  People that will likely associate this horrible experience with “network marketing.”  These were the people that cashed in on their 401(k)s because they were promised tremendous gains in a short amount of time.  These were the people that “invested” more money than they could afford to lose, hoping that maybe, for once in their life, they could get a decent ROI. If the money ends up being locked away in receivership, which is a possibility, it’s not coming out without a court order. Will everyone get their money out? I’m not sure.

I’m angry because this actually impacted my relationships with clients, current and former.  When I gave my candid advice, I was sometimes met with hostility.  I was considered “out of touch.”  I was told that Zeek was “spending countless dollars to be compliant” and I was just envious to be on the outside.

I’m angry because we allowed the cancer to infiltrate the host and spread.  We opened the door and welcomed it with open arms.  Zeek leadership took on top positions with trade associations, recruited top distributors from reputable companies and networked intelligently with industry influencers.  Have cash?  We’ll dance. We provided them with the semblance of legitimacy, and they ran with it. We empowered them.

Why am I relieved?

I’m relieved because the conversation is finally over.  I’ve been fielding calls at least twice a week with somebody else looking to launch their version of Zeek.  It’s hard to tell someone “no” when there’s someone across the street making a fortune with the exact same model.  Finally, it’s over.  We can resume normal business.

I’m relieved because this should mark the end for companies having to defend themselves from Zeek. Zeek was soaking up a lot of leaders from a lot of different companies, causing a considerable disruption in the space. Companies, trying to hold onto their people, found themselves in the cross hairs between zealous distributors looking for a quick buck and industry pundits, all defending the Zeek model. It put company executives in an awkward spot.

What did we learn?

Money Clouds Judgment

When people have a serious economic position with something, they’ll fight hard to protect it. They’ll go to great lengths to find a mental justification, even if it defies all logic and intuition.  There were a lot of distributors in Zeek that really should have known better.  They were around for the FutureNet, SkyBiz and Equinox cases. They knew better. And despite that experience, they really believed they were in the clear on this one.  I think their belief was genuine. They were just under a spell.  Once they got a taste of the enormous commissions, they were hooked and went to great lengths to defend the business.  Adults under the influence of serious cash are like teenage boys with girls…all logic goes out the door.

Watch Out For Name Dropping

People relied heavily on the credibility of Zeek’s lawyers: Gerald Nehra and Kevin Grimes.  They said “These guys are good; therefore, we’re good.”  I can speak on this first hand: hiring an attorney by itself does not legitimize a program.  At the end of the day, we MLM attorneys explain the boundaries for our clients and provide advice.  It’s on them to follow the advice and stay within the lines. I can guarantee you of one thing with 110% certainty, Zeek is not surprised by recent events. Grimes and Nehra are both good attorneys and good competitors. I’m confident Zeek was fully informed of these potential issues. MLM attorneys can lead horses to water…we can never make them drink.

Commissions Must Be EARNED

If someone promises you easy, run fast!.  We can do better.  Any measure of success in life requires hard work. Really, really hard work.  In the network marketing industry, we need to stand for meritocracy: as you perform, so shall you bonus.  We work hard to ensure the pay plans are fair and that reps are rewarded commensurate with the work they do.  With Zeek, the general tone was that people could make money with minimal effort. There was very little effort involved in reaping the rewards from the penny auction platform (with the exception of buying some customers and placing ads online). I understand that measures were taken to strengthen the program i.e. the compliance course, eliminating the customer co-op, etc; however, rewards were still allocated immediately upon purchases, regardless if the bids were ever used. This was a problem. There must always be a direct connection between the rewards received and work performed.

With modern technology, there seems to be more “make money while sitting on your rear-end.” And as typical Americans, we’re drawn to it! As network marketers, we need to promise VALUE instead of promising EASE.

If It Looks Like a Duck….

Richard Brooke recently said, “If it quacks like a duck, it may not be technically a duck but duck hunters WILL KILL IT!”  Zeek just looked too much like a security. I understand that there are countervailing arguments, but the bottom line is simple: Zeek fought hard to train people to NOT call it an investment opportunity because that’s exactly what it looked like.  People, when they were pitching the program as an investment opportunity, were just following their instincts.  Why?  Because it looked like a duck….

Conclusion

There are a number of issues that will likely come to light during this investigation.  Is it a Ponzi scheme?  Is it a pyramid?  Is it an unregistered security?  Is it all of the above?  Will criminal charges follow?  Who knows…

As an industry, I think it’s time to tighten up the skates.  This should serve as a wake up call. This is embarrassing.  Absolutely embarrassing.  Zeek flew under the banner of protection provided by US, the network marketing community.  They danced in the gray and profited. We need to stop drinking our own kool-aide and shrink the gray. When I first started practicing, I wrote an ebook that has been “read” (according to scribd.com) over 12,000 times). It’s titled, Pyramid Schemes: Saving the network marketing industry by defining the gray. I propose some ideas on ways to make the space better. I think it’s time. Otherwise, this WILL happen again. And at the pace of technology, it will happen soon.

As for my representation of Bidify, which I’m sure will be an issue, they’re paying attention to this situation. Since retaining me, they’ve made a number of difficult decisions. I’m not going to comment further on their business other than to say they’re working hard to stay within the lines. Their recent decision to reduce the max cost to 5,000 euros forever is proof of it. If you want to park a lot of cash, Bidify is not the spot for you.

If you learned something, please hit the +1 or “Like” button above and get it out there. Thanks.

Kevin Thompson - The MLM Attorney About Kevin Thompson:

Kevin Thompson is one of the most sought after attorneys in the country in the direct sales industry. Named as one of the top 25 most influential people in the industry, Kevin Thompson has extensive experience and helps entrepreneurs launch their businesses on secure legal footing.

As a Direct Sales Association supplier member, Kevin Thompson is actively involved on the Ethics Committee and Government Relations Board to help steer the industry into a promising future.

Kevin has published multiple ebooks accruing over 65,000 reads and 2,500 downloads. He has served as a keynote speaker at multiple conferences throughout the world.

Prior to starting his law practice, Kevin gained valuable experience while serving as Chief Counsel for Signature Management Team. Team is one of the largest providers of sales aids for marketers in the direct sales industry.

While at Team, Kevin worked closely with Amway and MonaVie’s compliance departments to ensure all marketing materials passed regulatory review. He has the experience, knowledge, connections and tools necessary to help entrepreneurs launch their businesses on solid legal footing.

Become a Recommended Distributor

Direct Selling Distributors, they are active professionals, who love to team up with you!

Comments (79)

  2. When will people learn “when you get something for nothing””, what do you get? Answer NOTHING!!!! this type of operation damages the Indusrty of Direct Sales/ MLM. The sad fact is that a lot of people get into our Industry and expect to build big cheques without working, It’s called NETWORK marketing, but the g”reedy & the needy are always looking for a quick fix and now you can see the result. I am sorry for all the peoople who have lost their money, but I will give some good advise ” if looks too good to be true, then it usually is. Do yourselves and you families a favour, do your due dilligence pick a good Company then work your B…..lls off.Z3FV

  5. Thanks for speaking up onthis matter. It’s companies like this and persons so eager to not put in time and effort that makes this Industry look bad. We must all come together no matter the company to ensure these shady companies don’t have an audience!

  9. Yes David Grant – Just goes to show you, votes don’t make a company #1 of anything, just shows distributors have time on their hands or have a great computer vote program. Early in my career, I rode to the bottom with a company that I hoped would survive, as a Leader I wanted it to survive for my team, but that did not happen for any of us. Another company, I chose to leave after 17 years (still living) has never been the same once the legal issue (right or wrong) came about. I never felt this one was one for me and I’m sorry for those that it will effect…but at the end of the day…JUST MOVE ON – TOMORROW IS A NEW DAY! I love this industry and couldn’t see myself doing anything thing else.

    Living the Vi-Life and having fun!

    1. I was in a company as well that had a legal issue (right or wrong) that it couldn’t overcome. I moved on as well and am enjoying the Vi-life.

      I love the industry as well. I think every industry has good and bad in it. Not all restaurants are created equal either, some I’ll never go back to and some I’d recommend in a heartbeat. But I wouldn’t condemn all restaurants based on a bad experience.

  10. This should be the start of not allowing anyone to come up with a company that uses the mlm business model. Unless they are truly a valid business . As someone who was in the financial markets for over a decade , expect government regulators to be more involved in mlm.

  11. As an Attorney who i would like to respect as much as Gerald Nehra and Kevin Grimes, Kevin Thompson is entitled to his “non-legitimising” opinion about Zeek and “legitimising” one about Bidify. That’s the finer print. Zeek proved to be much too much of a competitor for lesser apirants and the desperation has somehow made a headway. It’s another matter as to how Zeek will emerge from the smoke and soot emitted by its non-starter unequals in the industry , but the fact remains that it has brought about at least temporary relief to professionals like Kevin that their clients will now see some much-needed spurt in that drooping curve.

    2. I’m not pitching Bidify, Bob. Stick to the facts contained in the article. Also, check out the SEC’s complaint. I’m reporting on a very newsworthy event. We have not seen any regulatory activity in the industry in almost seven years. And we’ve never seen damages this size before. Ever. I’m not endorsing anything.

  13. Kevin your information and insight are greatly appreciated. I enjoyed your commentary. Our economical state has caused many to act in haste and thus cloud the judgment of many. I thank you for keeping us out of the gray area, Alberto

  14. This is percisely what happened to Gold Unlimited in the mid 1990’s. It was a runaway success and was a magnet for all levels of distributors and the compeition began flooding the AG’s with complaints to cause ‘concern’ for investigation. It worked!

    The husband/wife owners couldn’t manage the business and thus their distributors began to do likewise. They were raided by the postal inspectors, taken to trial and found guilty. One of the big 4 accounting firms was a witness for the defese and began to state under oath that the business was legitimiite, they were making a profit but the owners refused a recommendation of change of venue to a larger demographic. As a result, the jury could not understand the explanation by the accounting firm and thought that it must be criminal since they could not understand how anyone or entity could make those amounts of revenues in such a short period of time.

    There is nothing quite like a jealous competitor, especially in a fringe area such as the network industry. If one succeeds above the scale of the normal entity, they surely should have their guns loaded.

  15. As for your comment, “As for my representation of Bidify, which I?m sure will be an issue” I concur. It is an issue. A huge issue. In fact it clouds all you said to varying degrees. Bidify is just a copy cat of Zeek in another country so I do not know how their the US laws apply, but there has to be a difference. A company run by an ex Vacuum cleaner salesman who rose to the top of that company is not, IMO, saying much for the company. Having sold Vaccum Cleaners, Fuller Brusy, and signs to businesses I am aware of the type.
    Besides which putting another company down when representing another with an article such as you have written borders on Sleazy.
    With your standing in this industry I would have thought better of you. Your opinion in a private conversation is one thing, but put on the internet is something else.
    For all of you sucking up thinking this is a great article, well you are wrong. Whether Zeek is right or wrong, this article is wrong.
    I personally hope Zeek comes through with flying colors. even if they make adjustments.

  16. barking dogs, bear move.
    when you’re on top, more suffering, then pass them.
    Now business is the internet, went back when gave 100
    phone to have 10 guests at a marketing plan.
    the future belongs zeekrewards, even if it hurts many.

  17. Hey all of you out there their is no guarantees , in life , with what ever we do , two things are for taxes and death , so as i see it GOD will decide what he will do , so live today enjoy what you are doing believe in yourself , live life and trust in the lord and never forget what you are here to do Love your Family

  18. Kevin’s representation of Bidify notwithstanding, his points are valid and appreciated. It’s time for everyone in our industry to grow up and stop chasing easy money and something for nothing. There is no Success without putting in the Work. Let’s all teach and promote that.

    (By the way, Bidify, Kevin? Really?!)

  19. I was shown Zeek by a former collegue about three weeks ago. After listening to my friend I said H I know that you are new to this venture but if I were in law enforcement you would already be under arrest the way you just explained the program to me. I thought she was just confused that she was just too new and didn’t understand nthe program Well I guess she had a lot to be confused about. Someone tsold her a bill of goods as did and this wwas happening all up and dpwn the line.

    I’m glad I found a great company, Market America|Shop.com where I can build slowly and steadily for a great residual income with great products and services
    John Voice

  20. I believe that Kevin have very good input in the profound knowledge of Network marketing. In this particular case, I trust the experience of the best attorneys involved in this case. Zeek took action to adjust the thin line of what look like “security”, Pyramid Scheme or unregistered security before it was too late. As distributor of any legit MLM, I can buy products and have thirty days to move 70 percent of this inventory. I really like us the public to be open for the opportunity the Internet bring. This is a new era, I don’t have to see a customer to sale him something. People buy every day in the internet what ever they want and profits are distributed.
    Thank you very much Mr. Kevin Thompson for your explanation in this issue. You’re very good.. Bidify should be proud of you.

  21. Another lesson to learn, even those who have no direct connection with the ZeekRewards (my case).
    Work continues always building a better day than the other.
    Have a great weekend friends entrepreneurs.
    The honest opinion of Kevin Thompson… Thanks Kevin!

  22. Let’s wait for the fat lady to sing. When the final verdict is in, then we all can go on and be the experts we believe we are and express our opinions… including the transparent and unbiased lawyer representing “the other Penny auction MLM company”.

  23. From upline close to admin…

    Good morning, All.

    I know many of you have tried contacting me with concerns about our websites being down; and/or, the negative “noise” you’re reading on the Internet. Sorry I didn’t get back to you last evening; but I spent most of the evening (and, early morning) gathering info so I could respond accordingly.

    Here’s what I know…

    The NC Attorney General has initiated a Civil Investigative Demand (CID) with Zeek. The reason? They have received 8 complaints & 7 of those complaints were from folks asking if Zeek is a “good investment?” As we have all been told, this is not an investment and CANNOT be presented as such. That said, these inquiries have prompted the NC atty general to initiate the CID. Oh yeah, the 8th complaint was from a mother who’s daughter is killing it & the mother wanted to find out more about the daughter’s new source of income…LOL.

    Understand that it is the attorney general’s job to protect the consumers in their respective states; and, they are simply trying to learn more about Zeek’s business model since, as their spokeswoman stated, “to date, we have no knowledge of Zeekler’s operations or business model.

    What is a Civil Investigative Demand…

    A CID is the lowest form of investigation by an attorney general’s office. It is basically just information gathering so that the AG can look at business practices, websites, marketing material, etc. to determine if a company is following good and legal business

    practices. I know that’s not the legal definition (for those attorneys in my group…lol).

    Zeekler has shut down their websites during this process so that they won’t take in any more “new” money until they hear back from the attorney general. Zeek has also closed their offices for the time being. These are normal practices; and, Zeek closed their offices on their own…not as a demand set down from an outside agency.

    As point of reference, Duke Energy, the largest electric power holding company in the US & a fortune 250 company based in the state of NC recently went through this process; and, now they are fully operational. Feel free to go to their website to check this info on Duke Energy.

    Bottom line is…many companies go through this process; and, those that do often come out stronger with further validation. I hope this is the experience for Zeek and many of the others I spoke with late last evening & early this morning believe it will be as Zeek has received counsel from the best in the industry regarding their business practices, comp plan, etc.

    Keep an eye on zeekrewardsnews.com as they will update us via that site as more info is available; and, although I’ve given you everything I know at this time, feel free to contact me if you have further questions or just need to talk yourself off the ledge 🙂

    I will update you as I receive additional info.

    Have a great weekend!

    Bidify please don’t be one of those competitors that spread rumors without KNOWING the results… This will turn me off of Bidify…

  24. Kevin is for hire. The person who solicited you for Zeekler is liable for the money they influenced you
    To put in Zeekler. Most of them just took money from there friends. It’s really simple if your not past your 90 days you lost your $109 a month and $10,000! But your friend made all the money.
    Take him to court and sue him! If there is many of you join forces and sue togeAther. I hear a guys in California each made $250-$600k each
    Class action suits. Most attorney will take this contingent.
    You will win and they will pay you your money back. Call your credit card companies and contest the monthly charges . Lawsuits will form quickly and most people will settle and avoid court because it can and will bring legal charges after the civil..

  25. Great analysis, Kevin. Thanks so much. Can I publish also at MLM-theWholeTruth.com?

    And yes . . . Everyone . . . can we strive to improve the industry by moving away from easy-money-deals to companies that only provide real value to their customers and distributors…with integrity in the marketing?

  26. Very uninformed for an attorney to put in print. As least his disclaimer says it’s all opinion. Mr. Thompson is unaware of how Zeek works and what precautions they have taken. They’ll be open and humming in half a dozen days.

  28. I came here after reading johnathan budds Fbook post and wasn’t gonna say anything… Until I read of Paul burks involvement. I knew of him and also met him through a company I formerly worked for over 5 years ago.

    People, if someone or a business entity is claiming to pay out 1.5% or more from using your money to make THEIR OWN investments in HYIP or even LYIP … Why doesn’t that give you a red flag??!!

    It “should” be common logic that if a bank can’t do that, no one else could legally.

    Stop using your emotions to buy into programs thinking you can invest money, do no work and expect a return – just because someone else said so!!! People get scammed because they LET people scam them.

    How much more free and paid-for products do you need to buy or download to GET IT????

    How many more marketers like johnathan budd or attorneys like Kevin Thompson do you need to listen to before you finally understand the most CRITICAL concept in life called “critical thinking”?

    Quit bashing these people to evade the fact that YOU made the mistake – all by yourself – not them?!

    Step 1 – Don’t use your emotions
    Step 2 – Use your intelligent thinking brain
    Step 3 – Make a decision
    Step 4 – Act

    Now quit reading this and DO something FOR your business!

    Scottro

    1. ” It ?should? be common logic that if a bank can?t do that, no one else could legally. ”
      Stupid!
      Why “banks”?
      Banks steal hand in hand with politicians (…you Forgot your this?…)
      Fact: Any system of making money – other than theirs – is “ponzi”!
      Have you heard of the Internet ?

  30. I LOVE IT!!!!!!!!!!!!!

    I fell out with so many People in the past year over Zeekrewards; We lost people from our teams who felt they Would never have to recruit a person again; and even through I told people ‘that’s a job, not a business” – they continued to look at me Fool-Eyed, as if I was the one Missing the boat!!

    There are SO Many quotes in THIS response from you, Mr. Thompson, that I can only HOPE and PRAY – that every Member of our industry gets a chance to read, and digest! applause, applause, applause!!!!

  31. Who does not work with Zeekler should not give opinions. It just does annoy people who continue to believe in this company. Many people did not enter this business and saw others making money, big money, and now because of this administrative matter, and not criminal, are taking advantage to create a climate more unpleasant as possible. This is petty, but part of the human race.

    tuttygualberto
    Salvador, Bahia – BRASIL

  32. Mr Thompson never said he promotes Bidify. He is their legal representation. This is a very sad situation for Zeek affiliates. I know some that sank over 10,000 and have a number of others who put in the same amount. This will be devastating to them. It harms the MLM industry as a whole. People still want the get rich quick. network marketing works when you have a legitimate company and leaders. I am so proud to say that my company just went public and is setting industry standards and paving the way. I am praying for all those who lost a fortune in Zeek.

  33. I wrote an article to address the vulture like mlm rep activity which was occurring literally within the hour of the news. Unreal. While the promotional intent is obvious, Kevin does not try to hide it, and provides a great deal of value in this post to go with it.

  34. Kevin,
    What is 100 lawyers at the bottom of the ocean?
    A good start.
    You are a fake, if you purported to be so upstanding you or
    the other “MLM Attorneys would advise the Management
    to now take monthly subscription fees up to the last minute.
    The Fish stinks from the head, the legal advisors.
    Any warnings from your heart about your current hand feeding
    you?……I thought not.

  35. well internet products in this days are Real like Real Prodcuts
    Bids
    Blogs
    Banners

    This all are Virtual Goods execttly like GDI selling Domins or GVO selling Hosting
    This are elements that we use daily

    I really Hope that is going to be Much Bigger & Better even that the Amway Rule

  36. Here is the Bidify newsletter explaining some of the differences between teh 2 programes, I nearly joined zeek a few months ago. Hope bidify isn’t next. Feel sorry for all the people who must be worried sick at this stage.

    Dear Bidify Affiliates,

    We have recently been informed that ZeekRewards has been temporarily shut down in the USA pending further investigation.

    It?s an unfortunate event for Zeek and its countless affiliates. We consider them to be pioneers in the penny auction / network marketing arena. As with all pioneers, they?re usually the people that get shot with arrows as they?re settling new territory. We certainly think we?ve improved upon some of Zeek?s numerous shortcomings that led to these problems.

    Bidify is a better, safer model.

    Before Bidify opened its doors, we made numerous improvements and enhancements to reduce risk for our affiliates and bring our model into compliance. When we made these policy changes, we were met with much criticism from people in the field. But despite the challenges, we made the tough decisions. Based on these decisions, Bidify was rendered a horrible investment opportunity, to say the least. The bottom line: our focus is on moving bids to customers, period. We have approximately 273,272 registered, verified customers with Bidsson. These are not dummy accounts. These are legitimate customers looking to redeem bids on our amazing platform. Contrast that number with our 13,467 bidify affiliates and you get a clearer pic ture. We?re moving a legitimate product in a safe fashion.

    Bidify is completely built on a meritocracy: no work, no reward. Affiliates only earn commissions based on their own efforts.

    ?All affiliates need to have personal customers
    ?All Customers need to be verified. These customers must verify their identity by way of clicking a unique link sent to their email accounts and creating their own login credentials once online.
    ?Customers need to spend their bids at Bidsson to generate commissions for their sponsors. When affiliates buy sample bids, they ARE NOT PAID until those bids are actually used.
    ?Everything related to the leadership bonuses are related to activities in Bidsson.

    We are sad to learn of the news about ZeekRewards because we understand this will have huge impact on the industry in general.

    As a direct consequence of today?s actions in the US, our legal counsel has advised us to lower the annual sample bid purchase limit to ?5000 for US citizens. This is effective immediately. We?re certainly sensitive to the events with Zeek and we want to go above and beyond to ensure the longevity of your businesses. We certainly believe that people should be free to purchase as many sample bids as they want in an effort to build their own businesses, much like distributors do in other product-based companies; however, we understand that there?s a lack of understanding regarding the penny auction arena, so we want to play it safe. The annual max is now more consistent with the typical costs associated with most other MLM Companies in the industry.

    We will be tightening our compliance, and it?s very important that all of our affiliates are aware of the distinct differences between Bidify and ZeekRewards.

    There are affiliates that seem to believe that their Bonus Points have a par value. They look at their bonus points thinking the amount of points equals a similar amount of cash. This is simply not the case. Bonus points can NEVER be withdrawn as cash.

    Bonus Points are actually earned when bids are used by retail customers. The points have no economic value. It?s just a number that tells our system how much you?ve earned today based on your performance.

    If you have no active verified retail customers, you are not getting paid any bonuses at all.
    More importantly, for every 1000 Bonus Point you have accrued, you need one ACTIVE, VERIFIED Retail customer. This creates a major distinction with Zeek?s model, which basically allocates rewards immediately upon buying bids regardless if they?re ever used.

    Our business model is not about building Bidify, but rather about utilizing Bidify to build Bidsson, our Penny Auction, to become the biggest Penny Auction in the world.

    Best Regards
    Bidify Management

  37. I requested Zeek’s attorney Kevin Grimes in this case and You Kevin Thompson popped up. Why did Keven Grimes not defend Zeek. He was the legal entity ZeekRewards hired to keep it compliant. If I needed an Attorney I would steer clear from you ” Kevin come lately “. Zeek was a people’s company and was helping the economy, especially that little town. The concept of Zeek Rewards need to rise back and clean up a few things and keep and give hope and opportunity again to people. Apparently the laws do not care about others while people were trying to make a good living and not hurting anyone.

  39. Hi, I want to ask You about Zeek Rewards.And I need honest answers. Is it possible for zeek to start working again? If not, is there any chance to get invested money back?
    thank You,
    [15:20:06] edi223: Best regards, I’m looking for Your soon answerbidy

  40. I am a former Zeek affiliate. Yes! I MADE money and am very sad to see it go, but it was fun while it lasted. If there is another co like Zeek, let me know. Amazingly, while reading these posts, many have no idea about the Zeek model, so how can you even say anything. Yes, I knew people who invested 10K plus and MADE alot of money. Some people still take risks….I’m one of them!

  41. Ladies & Gents:
    What appears to be incredible to me is that many pundits like Troy were completely against Zeek initially and then came around and showcased them! I was in Zeek and got hurt like everyone else! However, having had similar experiences in Corporate America and Network Marketing alike, I decided that I will never have less than 3 income streams. So, I work with other long term, time tested NWM companies that are on the NY Stock Exchange and have never missed a paycheck and have had greater legitimate growth than many, many Fortune 500 traditional companies! I have been in NWM for 41 years and a Corporate Executive for 37 at reasonably high levels. Kevin, if you want to help prevent the greatest industry on the planet – NWM from getting “black eyes” then don’t represent companies like Bidify and create a paycheck for yourself!

    If you want to chat with me about my recommendations and why I do them please email me or Skype me: [email protected] or Robert. Marchi1 or call me 321-279-1208. GOD BLESS all of you and don’t lose faith in NWM! It is still the greatest way to Financial Freedom. Worth every sacrifice you need to make for a while!!!!

  42. If you all who complain only knew the tens of thousands of people this company has helped. Plus I have a friend who was able to pay off a boat load of debt because of being in this company. She’s almost debt free. I’m so happy for her. We have awesome lawyers. I stand behind this company and hope everything gets straightened out. Gerald Nehra is one of our lawyers. He helped Amway gain their legitimacy and pave the way for all MLM companies. He’s been with us for a while now. He says it’s legal. I trust him. I realize when a company gets really big like this one did, that it can start to cause problems with people getting paid. But this company is not cheating anyone. All you tongue waggers in other MLM companies should be more supportive. We all should be more positive for each other instead of getting on the band wagon and shredding with our words in forums like this one.

  43. Well, I have been concerned about people incurring unnecessary risk exposure for their participation in these penny auctions due to current laws and what I saw happening with Zeek.

    I hope that those who are doing this style of business will take heed and become educated on WHY what is happening to Zeek could happen in other penny auctions.

    It is horrible to see companies fold and people hurting.

    I 2nd the comments below which say that this is NOT the time to be spam-pitching, being sanctimonious about why you knew Zeek was destined to fail, or pointing fingers. It’s not professional and the fact is that it is bad for EVERYone when things like this happen in our industry.

    And honestly, at the end of the day, we are ALL held accountable for our actions as the adults we are. It is up to each individual to make sound decisions for themselves. If there’s ever a doubt, do what I do, hire a qualified attorney to help you understand the potential implications of the business model and be smart enough to act in ways that will not undermine your purposes.

    That’s it for this Cat…

  44. I would like all of you to know that a lot of the people I know who are involved in Zeek are good, honest, hard working folks with full-time jobs, not lazy, just out to make an easy, fast buck. We’re trying to supplement our over-taxed income to support our families!

  45. Many people do not see the big picture. By some responses I see that you are brainwashed because that is exactly what the government wants you to think. Zeeks was a Rock Solid company! It just wasn’t the governments way of only limiting high profits and success to a very small percentage. Zeeks was one of the most amazing business models ever introduced. If you look at the growth, profits, cash on hand, and financial responsibilities it all makes absolute sense. The company was profiting 2 million a month, all going back into the company, and we were only just getting started! What? That doesn’t happen in the corporate world. Greed doesn’t allow it, Corporate Greed doesn’t allow such fast growth. Zeeks was going to be the most successful company in the world within two years, and millions of people were going to be part of it!!! Millions and millions of people would have been successful, debt free and self sufficient. Well that is not how it works in this world my friend.
    Think about this… if you and I, the little fish, are successful in something like Zeeks, you would not risk your money in the government controlled stock market. You would not be in debt, being able to pay cash for everything and not need lines of credit either. Now this is ok on a small scale but when it goes viral and the 3%’ers start losing control they will shut it down.
    They, the CIA, Secret Service… The New World Order wants us all to struggle and be in debt and DEPEND on them! Because of new technology and brilliant minds who think outside the box the little guy now has a chance to compete with the 3%’ers and THEY ARE SCARED!!! And when they get scared of losing power they use that power to shut it down. If Zeeks was such a scam and Paul Burke was such a crook don’t ya think he would have taken more than 2% profit from a so called Ponzi Scheme? Don’t ya think he would be sipping drinks in some foreign country right now? Anything can be made to look like a Pyramid or Ponzi Scheme and that is what they did. When will everyone realize that the whole world is a damn pyramid… no matter what, it all trickles UP! Whoever starts or runs something will earn more and be a little more successful, that is common sense. Like I said before, Mr. Burke has been made to look like a scammer for obvious reasons. He was given an ultimatum to walk away or be made to look like Madoff and go to prison, and at 65 yrs old what would you do? I don’t care how solid the company was, it will be twisted to look like whatever they want to win. This stinks to high heaven with government conspiracy to keep us all in the palm of their hand begging for a crumb! On top of it all, at the end of the day, THEY do win because now the majority are SCARED (of MLM) and will continue to struggle and slave away at their corporate, government controlled JOB!

  46. Dear Kevin:

    I have long respected you and your credibility in this industry.

    Thank you for posting this message – it is not only timely, but it offers a deep and intelligent insight into this “Zeek mess”.

    Having been associated with the Network Marketing industry for over 30-years, and having seen the good, the bad and the ugly of it – I too, am both ANGRY and RELIEVED with what has happened here with Zeek.

    My heart goes out to those who poured good money after bad into this (including a number of good friends), and thus, may get “hurt” financially because of it.

    Having served on the Network Marketing’s professional association for 4-years, representing Canada (ANMP.org) – I’ve seen far more “good” than bad. And I must confess, I really did not consider ZEEK to be a “Network Marketing” business at all, but something quite different.

    However, when these “Zeek disasters” happen – they still tend to give our great industry (profession) another “black eye” – unfortunately. The truth is that there are many, many fine, reputable, financially stable companies out there who do this industry proud.

    In my profession as a Financial Advisor and a Business Consultant, I try to caution people all the time to do their own due dilligence and carefully research “any” business deal, or home business, or tax shelter, etc. — BEFORE “jumping into” them (there are SO many scams & schemes out there – the history book are full of them)!

    But the MONEY MAGNET is very provocative – it seduces good people into their clutches, over and over again – especially in these tough economic times.

    Let’s hope this sad (Zeek) situation will act to give us all a warning – lesson learned.

    Thanks again for your words above, Kevin.

    Sincerely / Peter A.

    Peter Arnold, CLU, CFC / Founder
    AcademyGroupOnline.com / Canada

  47. Greetings Former Zeekters,

    Please step back and look at the “Big Picture”. By most comments I see that many are brainwashed and believe what the government wants you to think. Zeeks was a Rock Solid company! It just was not along the lines of the government’s way of only limiting high profits and success to a very small percentage. Remember this as you keep reading… The government wants struggling robot workers, not successful leaders!

    Zeeks was one of the most amazing business model ever introduced. If you look at the growth, profits, cash on hand, and financial responsibilities it all makes absolute sense. The company was profiting 2 million a month, all going back in, and we were only just getting started! What? That doesn’t happen in the corporate world. Greed doesn’t allow it, Corporate Greed doesn’t allow such Fast and Widespread growth. Zeeks was going to be the most successful company in the world within a few years, and millions of people were going to be part of it!!! Millions and millions of people would have been successful, debt free and self sufficient. Well sadly that is not how it works in this world my friends.

    Let me break down the BIG PICTURE for everyone… ‘They, the government’ was in fear of this business model because ‘They’ were losing control. Zeeks had grown at an unprecedented rate and already had over One million affiliates in less than two years. Then on top of that we were doubling every two months with a real potential of approximately 15 million within the next year. The government felt pressure because too many people were going to be successful too fast. Overall there would be less interest in government controlled financial institutions. There would have been less interest in the Stock Market/Banking/Etc. With the potential of Zeek’s growth even more people would have been transferring their money out of profit limiting government controlled situations into a successful business model! Zeeksters would have also been starting up even more other small businesses and that is not what ‘They’ want.
    Think about this, If you and I, the little fish (the masses), are successful in something like Zeeks, we would not risk our money in an unpredictable stock market or banking investments. We would also be debt free, having the ability to pay cash for almost everything and not need to depend on ‘Credit’ so much either. We would also be able to shop locally more, and at more expensive smaller establishments because we would all have more money to spend.
    Now this is tolerable on a small scale but when it goes viral (multi-millions) and the 3%’ers (Big Business/Corporate Giants/Media Advertising/Etc) start losing control they will put a stop to it anyway they can.
    The main fact is that ‘They’, the CIA, Secret Service… Ultimately, The New World Order wants us all to struggle, be in debt and DEPEND on them!
    Now in these times, because of new technology and brilliant minds who think outside the box the little guy has a chance to compete with those 3%’ers and THEY ARE SCARED!!! And when they get scared of losing power they use that power to shut it down and hold us back.

    Also let me ask you all these questions, if Zeeks was such a scam and Paul Burke was such a crook don’t you think he would have taken more than a 2% profit from a so called $600 million Ponzi Scheme? Don’t you think he would have “siphoned” more than just one million dollars to his family members? Don’t you think the top people in the company would have off shore accounts setup with enough money for the rest of they’re lives, ready to run and hide because they can’t show their faces to anyone? What about Dawn Wright Olivares, yes she was making the most of any affiliate but do you think she made enough money for the rest of her life? Do you really think this woman can even go out in public? Do you really think any of the Zeeks management have lives anymore? They have been made to look like criminals by our corrupt controlling “New World Order” via the CIA via the Secret Service via the Securities and Exchange Commission (SEC) via the Attorney General (AG)!
    Then there is You and I, we are all made to look like fools to prove a point. To knock down our big dreams, to cage us like animals and to scare the general public out of thinking we can all be financially secure, living better lives and even make it big someday!

    Listen here is the bottom line, anything can be made to look like a Pyramid or Ponzi Scheme and that is what ‘T’hey did. When will everyone realize that the whole world is a pyramid… no matter what, it all trickles UP! Whoever starts or runs something will earn more and be a little more successful then those at the bottom, that is common sense. Mr Burke has been made to look like a scammer because he was thinking outside the greedy corporate American box. He was changing too many lives for the better with his ingenious business ideas. So what it came down to was that Mr Burke was given an ultimatum to give up any chance of a fight and walk away with hefty fines or be labeled and ‘made to look like’, Bernie Madoff and other real crooks when in fact Mr Burke did nothing wrong. And at 65 yrs old what would you do? I don’t care how solid the company was and how many top attorneys you hire, when it comes to battling the government, they will twist things around to look like however they want, to win the power struggle and sustain control over the general public. They will forever continue to “Save Us from Ourselves”.

    Overall, this stinks to high heaven with government conspiracy to keep us all in the palm of their hand begging for a crumb! On top of it all, at the end of the day, THEY do win because now the majority are SCARED (of MLM and Self Employment) and will continue to struggle and slave away at their corporate government controlled JOB!

    To my fellow Entrepreneurs… Do Not let this hold you back.
    Say it with me…
    I WILL FOREVER BE AN ENTREPRENEUR AND WILL ALWAYS FIGHT FOR MY PIECE OF THE PIE!
    WE NEED MORE LOVE AND UNITY, AND I WILL NEVER STOP DREAMING FOR BETTER DAYS TO COME FOR ALL OF HUMANITY!!!
    God Bless 🙂

  48. I’m angry that the government can just come in like goons and just shut down anyone they choose. This is supposed to be a free country where we have the Constitutional right to life, liberty and the pursuit of happiness. Has anybody heard of anyone losing their money with Zeek? We lose money everyday paying high gasoline prices, food prices, and let’s not talk about Wall Street! Why don’t they barge in and arrest those guys?! It’s funny how the regulators don’t seem to notice THEM! But average people like us trying to get ahead and live a better life are only allowed to go so far and then WHAM, the rug is pulled out from under us! The government has way too much power and if we people don’t wake up and really see what’s going on, we will be stripped of even voicing our opinions like I am now! Just 2 days ago a 71 year old friend of mine whose son was arrested, was bombarded by 15 bullet proofed federal agents that just came into her house, no warrant, and tore her place apart. She hadn’t seen her son in 2 years and yet they did this to a God-fearing Christian woman! We have got to wake up and stop siding with the government who’s slowing taking our freedom and rights!

  49. Obviously, there are two camps here, those for and those against Zeekrewards. Though I got involved in Zeekrewards for 2 months with a small investment of $1000, I want to be state my opinion in a neutral manner, and I understand why there are two camps in the argument :
    1. Is Zeek a legitimate business ?
    2. Is Zeek mlm business model a bad model for mlm industry?

    1. Is Zeek a legitimate business ?
    Let’s not jump to conclusion at this stage, as we all know, any one is innocent before the law until proven with unreasonable doubt that Zeek is guilty. It is not wise for anyone to make a judgement at this moment, as there is no verdict in this case, and I agree with some comment in the blog post that law enforcement agents and the Government don’t care about the financial well being of you and me; they are just people who use tax payers money and use their power to control people in their own Country as well as others, especially for power Governments all around the world. I dont think we have any good Government in the world, just self serving politicians maximizing their own profit, power and ego to the detriment of ordinary people, which is what happening in the past 2 decades, making life very hard and miserable for most working people. My personal all time favorite song is John Lennon’s Imagine. The idea of Country and patriotism is dividing people .. Well I am a bit off track here

    2 About zeek business model and MLM : I have analyzed Zeek business model and it’s global site ranking, which is so successful in the way it leverage on the Internet and it’s affiliates that it’s internet traffic and site ranking is higher than publicly listed Groupon (which burns hundred millions of investors money – meaning they legitimately burned and lost money for many people, but because they are “legitimate”, they could continue to “raise funds” from the public and continue to hurt people with the blessing of SEC and the Government
    Zeek is a successful model, and with all it’s imperfection as a pioneer and innovator of something new, there are bound to be copy cats who will improve upon it. If Zeek sticks to it’s stated policy of distributing only 50% of it’s daily profit e armed from it’s penny site, it’s income stream will surely be sustainable to payout commission to it’s affiliates who have to do work daily to post an online ad daily for entitlement to receive their share of profit, not as so say in the blog, Zeek is encouraging money for not working… Zeek just designed a smart way to market a service (penny auction, Internet marketing) on a scale that no one has seen before, and many people still not aware or understand it fully yet, of course, including SEC and law enforcement agents.

    Personally, I pray that Zeek, bidfy and all mlm companies are doing business legitimately, and help ordinary people become debt free and live fully and happily.

    God Bless.

    .

  50. Whether anyone involved in all this is Right or Wrong, I think the key factor to focus on is what Alexander Graham Bell said;
    “When one door closes another door opens; but we so often look so long and so regretfully upon the closed door, that we do not see the ones which open for us.”

Write a comment

Connect with