Villasenor

Zeek Rewards admit business model is illegal

Despite all the talk about compliance and reassurances that Zeek Rewards is not an investment scheme, at the end from the day members could purchase VIP bids, give these bids back to the company (effectively serving as an investment) and receive a 90 day return on their points (the expense). This happened regardless of set up company gave bids aside or not and despite the company claiming otherwise, functioned as an expense with Zeek Rewards paying a regular return. The problem was that with members re-investing their returns back to their point balances, it was completely unrealistic to assume that Zeek Rewards would still experience infinite customer growth to give the daily bids being handed back to it to real customers. Indeed it is common knowledge this did not happen within real-time, with the company drowning excessively points it could not hand out, a point queue had been formed with Zeek Rewards offering points as it obtained customers. Despite member's points having not been distributed however, the company continued to pay members a return. With points not given away, this fuelled speculation that the Zeek Rewards daily returns were infact generated through the money being invested by members, rather than via customers using bids in the Zeekler auctions. If your points haven't even been given away, how do they generate revenue to share around? The above has consistently been one of my major criticisms of Zeek Rewards and changing the company model so that bids are in fact given away to real customers before returns are paid was suggested on BehindMLM roughly a month ago now. A month later Zeek Rewards may actually have taken that suggestion aboard and yesterday the company put out a press release acknowledging their business design was illegal.

zeekrewards.com