Well after a few date changes, BidiFy has finally officially launched their penny auction house Bidsson. Here at MLM Help Desk we started covering the penny action niche in the 4th quarter of 2011. But it was not until about Feb or Mar of 2012, that we started to see this niche fire up in the network marketing space. Today I know of at least five new network marketing penny auction companies who are funding to launch or already funded and are creating their sites. Today I want to look at BidiFy and Bidsson.
I first want to cover one concern I have with the BidiFy site. All in all they have done a great job, and Kevin Thompson their MLM Attorney has really tweaked and cleaned up their business model from our first review a few months ago. However, there is still one concern I have. I am reaching out to Kevin Thompson and a few other MLM Attorneys to get a better understanding of current laws.
Now when you read the explanation of the BidiFy Mandatory Account, my concern comes from the following:
“20% of all cash rewards earned in Bidify are paid as mandatory funds to your Mandatory Account. Funds in your Mandatory Account cannot be withdrawn as cash, instead it must be spent at the Bidsson site.
Funds in your mandatory account are transferred to Bidsson upon your request, by a single click on a button.
Purchasing Retail Bids to bid at auctions.
- Paying for your won auctions.
- Buying products at retail price directly from the Bidsson site.
- Paying for your monthly administrative fee in Bidify.
NOTE: Mandatory funds used to purchase Retail Products will generate PV and GV, and can also generate retail bonus to your sponsor.”
It is my understanding that when a company doing business in the USA, using a direct sales distribution channel, in this case network marketing, they can not demand that their sales/marketing force purchase or use their services. When a company makes such a demand, they may trigger both IRS rules regarding Independent Distributor status, and could trigger anti-pyramid laws at both a state and federal level.
Again, let me be clear, the laws may have changed, and if so we will be updating this post in the future. But, in years past, it has been very clear, you CAN”T demand independent distributors purchase products and services in order to earn commissions.
Outside of that one issue, things do look pretty standard, and the new penny auction site is a clean launch. I do need to make it clear, the money amounts on the Bidsson site are in Euros and not US Dollars, which may cause some confusion for bidders. So make sure you fully understand the conversion rates before making any form of purchase.