May 21, 2013 19:52

Breaking MLM News: Zeek Rewards Officially Parts Ways With Dr Keith Laggos After Recorded Call Goes Public

Jul 31 2012 in Dr. Keith Laggos, Lyoness USA, MLM News, Zeek Rewards News, Zeekler, ZeekRewards by Troy Dooly

On July 21st I received an email asking me “how can Dr. Keith Laggos dis Zeekler as a paid consultant, while promoting Lyoness?” This question took me by surprise because I have known Dr. Keith Laggos for years. And although we do not always agree, and he has made mistakes just like me, I have found him to always take care of his clients. Then I listened to the call…

Home Business Radio Network Economic Freedom Contest

I asked Greg Caldwell the new COO of Rex Venture Grou, LLC., if he could give me the exclusive story on the seperation of RVG and Dr. Keith Laggos, and the following is the only statement RVG or anyone at Zeek Rewards will make.

“Keith Laggos and Rex Venture Group have agreed to part company, effective immediately. We wish him luck in his future endeavors”.

Dr. Keith Laggos

I also contacted Dr. Keith Laggos, and asked him if he would go on the record on a recorded call, he refused but did give me the following statement.

“There is no side. I did not know they were recording or how many Zeekler people would be on it. It is no surprise with customer service, checks and complaints. I do conference calls for all my clients including Zeekler. They had distributors from other companies too. Of course Zeekler had more than most.

The problem for Zeekler is everything I said is true. I am still supporting Zeek. I am telling people to build their B business independently. You and I know every full time network should have a plan B. I don;t think another recording will help.”

In listening to the recording I see where an ethical issue exists because Dr. Laggos is acting both as a paid consultant and as an independent Zeek Rewards affiliate. Trying to wear two hats, can sometimes cause some huge issues when a professional such as Dr. Laggos is distracted. All through the call you hear distractions and I do believe this may be the reason Dr. Laggos uses out of compliance terms, such as “money in and money out”, and a couple of others.

At the end of the day, I have not been able to find any evidence of what Dr. Keith Laggos claims the FTC is doing.

From searching the internet it seems at least one of the largest and oldest banks in the USA, Wells Fargo is handling QuiBid’s banking and credit card processing, and that the several States including Nevada, Delaware (already legal) and New Jersey are moving forward with legalizing online gambling.

I also found where the U.S. Congress is leaning towards regulating and legalizing online gambling (games of skill), and that two of the major companies they hit in April, they just allowed to merge, so one of them will be ready to re-enter the USA when the new legislation is passed.

Legalizing Internet poker gets push from Harry Reid in lame-duck session

With states readying for online gambling, tribes want stake, protection of sovereignty

This still means all Penny Auction prospects should be well aware of the pros and cons, so you might want to read all we have written here, and study the FTC Alert by clicking here.

Do I think Penny Auction regulation is coming? YEP! But I also think the States where the Penny Auctions are located, will be the first to regulate them and draw a hefty revenue stream of income from them, before the federal regulators have a chance to do anything.

An Empirical Study of Online Penny Auctions

Troy Dooly

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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85 Comments »

  • An Ind. Zeek Affilia

    This is sad, Keith Lagos is supposed to be a mentor and leader in our industry.

    This is what happens when people get greedy.

    Stay focused with your Zeek business and do not listen to these negative & non-compliant opinions.

    • Todd

      It is a little silly to picture a person or a family loosing "the rent money" by becoming "addicted" to Penny Auctions.

      The auctions like almost all GAMES produce only ONE winner per game.

      The thought of winning one's fortune playing a penny auction is laughable. Or turning $20 worth of bids into a retirement opportunity is equally obsurd.

      Penny Auctions are fun for some people and offer an exciting and entertaining opportunity. They should be played often and with a winning stradegy that one learns by using their common sense and instincts. They should be played with a "reasonable expetations" of winning or why play at all.

      I don't think we will read about families going broke or desolving because a spouse is addicted to the penny auction with a blind desire to win a blender.

      I hope the government, in the face of what THEY are doing to entertain it's citizens, will let us have a little fun and maybe succeed in skillfully winning that elusive IPad without meddling in our industry.

      If they do, we should meddle in Washington and outlaw some of their forays into GAMBLING with our money and with a 100% loosing record to brag upon.

      I hope they are less concerned on how we EARN our money and concentrate on how it is SPENT. Unlike there job creating record, we on the other hand are spending in the malls and helping our families and neighbors thereby creating a job or two.

      I hate to think that Washington is jealous of the Power Of Zeek!

      If furthering the lives of the American people is their desire, they should learn a thing or two and let the ZEEKSTERS SPREAD OUR WEALTH! the way nature intended it to be spread…..not through an expensive, unqualified, governmental third party.

      Our Social Security Program is one of earning the love and respect of the people we love and can HELP.

      Theirs is one of mathamatical calculations that by their own admission is failing.

      I'll spread my own wealth.. thank you..not because you tell me to but because it's the RIGHT THING TO DO!

      • Patrick Babcock

        'Great thoughtful response Todd.

  • Chris

    Typical knock something then sell something else, then says no selling no recruting no sales calls and he is doing a sales call to get people to sign up….seriously…! Zeek is plan A

    • Dan.M.

      Wow!!…24hrs is a long time in network marketing. This is the most bizarre thing I have ever seen!! Smells like Mr. Laggos is bitter about something (or running for cover), either way, surely this guy should be black listed in the industry for this performance..so wrong on very level.

      Troy I feel for your fingers. This thread is set to break the record for comments.

  • Matt McCormick

    Hey Troy,

    Is there anywhere where we can listen to the actual call too?

  • Matt McCormick

    Nevermind, stupid question lol

  • Tough Questions

    Troy,

    Pardon the anonymous comment but I don't want to get sued. :)

    I have some questions/comments about your video on this topic.

    1. Shouldn't Keith Laggos be terminated as an affiliate? In your radio interview with Dawn on ACES Radio Live, Dawn was adamant that she would terminate a non-compliant immediately. Hasn't Keith violated MULTIPLE compliance rules, including enticement with sharing that he was earning $40k/month income without providing an Income Disclosure Statement?

    2. Your video says that Keith wasn't paying attention and should not have described Zeek as an investment, nor Lioness as “no selling and no recruiting” with the subtle implication that Zeek operated similarly. But couldn't one argue that the reality is that Zeek *is* an investment just dressed up in virtual expiring points (one of the key criticisms from the critics). Perhaps instead of saying "Keith should have known better," I would suggest that the way in which Keith describes, sells, and promotes Zeek & Lioness on that call is representative of the way ALL affiliates promote Zeek. They will wink, nudge and pretend it's not an investment and requires "work," but the truth from everyone I have to talked to is that people join Zeek for the passive income with no real work (ad placement and upcoming qualifiers are not real work, and income from said work is negligible).

    3. Could you speak to the conflict of interest that all the Zeek employees and insiders have with regards to knowing when to switch their repurchase amount to 0%? There was a question on the call at the 27:30 mark in our video where a caller asked if he should set cash out from Zeek completely. Should there be headwinds or other risks coming, wouldn't the "insiders" and people like Dawn and Daryl Douglas and other employees be able to get out, while putting on a cheerful charade on the daily/weekly calls? I find even that possibility disgusting.

    Sincerely,

    A long-time reader

    • Troy Dooly

      @Tough Questions,

      I fully understand where you are coming from. :)

      1. All companies should hold their affiliates accountable. And when an affiliate is a well known and respected leader, then I feel those affiliates (in any company) should be held to a hire standard, then someone fresh and new to our community of network marketing.

      With that said, with Zeek being so quite on this issue, and Keith refusing to say anything else publicly, I would take a calculated guess, that when Greg, Paul or whoever talked with Keith in Lexington some mutual agreement was worked out. But only time will tell. I was informed that I might be contacted in the future by Zeek's investigator on this issues.

      2. One can argue anything :) As we have seen for months this is the exact question that has been raised about the MLM Penny Auctions, with Zeek leading the way in the conversation. And I will gladly state publicly, that some affiliates (well respected affiliates in network marketing) are still out of compliance and promoting the network marketing opportunity incorrectly and out of compliance. Which brings up some additional questions.

      a. Should the compliance course be mandatory prior to marketing the income opportunity?

      b. Should the compliance course be mandatory prior to earning any commissions from the compensation plan?

      c. Should the compliance course be mandatory prior to recruiting any new affiliate?

      You do bring up a solid question on how Keith presented the two businesses. I have been presented the ZR network marketing opportunity in just about every way known to man. NOt all ZR affiliates do it wrong. But that raises a new question…

      Since Keith has made it clear he is the most knowledgeable and respected compensation expert (and that is arguably correct). And he is the one which tweaked and designed the current Zeek compensation plan, shouldn't he of all people know how to present it correctly? And if your argument is valid, (which it does have legs), then a second question might be… did he knowingly wrap a compliment looking compensation plan around an investment scheme?

      I am not sure what the regulators might say, but it would seem that if your argument is ever brought before a regulatory agency, Keith may be knee deep in the same pile of crap as the executives of Rex Venture Group as the expert who created the compensation plan.

      And from the very beginning I have made it clear Lioness has major issues in North America. I have also told folks Grimes & Reese are now on board, and if they do for Lioness what they did for DubLi then things should get fix. But Lioness is far from a traditional clean network marketing company. Even Oz, at BMLM could not figure out the complex compensation plan.

      Now one issue I might not agree. Keith never called Zeek passive. But he did say that Lioness was a passive income opportunity. If any income opportunity is passive, then it is not a legal network marketing business in North America. And in folks read the P&Ps at Zeek, and Lioness after Grimes and Reese update the P&Ps, neither opportunity is passive. And if folks read the P&Ps, there is more to both companies than just placing ads, and having to find and attract retail customers who have to make a payment for a service or product, is hard work when you have to do it monthly. Both companies take personal action and training the organization. But I do get your point!!!

      3. You bring up a great point of interest. If "all employees" also hold positions in the compensation plan (some companies do allow this, and most of the top legacy companies have been built with the owners and key employees holding positions), then they have a fiduciary responsibility to wait until everyone else has been notified of any issues before deciding to convert their points to "cash available". This was one of the major issues we saw regulators raise with Enron and Stanford Financial.

      Same thing would ring true with any consultants who held positions in the compensation plan. If they come into information which could have an adverse effect on the point pool or any part of the compensation, then the fiduciary responsibility to tell Zeek, give them plenty of time to report it first, then if the info is not reported, they should make it public. However, they should not convert their points until the general affiliate base has the opportunity to convert theirs first.

      Greed, can do strange things to the average person. When folks join a company "plan A" or "plan B" anf their main focus in just the income opportunity and the network marketing opportunity is not acting as a vehicle to help them promote their true passion and mission in life, we see this type of mindset.

      For decades, I have taught folks to find one company that has the products or services to help them promote their true passion in life, then join and give it your all.

      Great questions and insights my friend.

      Living An Epic Adventure,
      Troy

  • http:///www.ultimatepowerprofits.com/joinpage Patrick

    SMH I just thought he should have had his zeek opinion for zeek not while promoting another company. it sends mixed signals, I do agree that no one should have all there eggs in one basket and should have a plan B company. But if your in the position to talk to the leaders of the company and they do nothing and you KNOW for sure the FTC is outside then YELL it out to help the affiliates. But don't say things is may all change in 6 months (with penny auction) then say you are making 40k a month and still staying in. I really don't even understand how you can work for a company and also be an affiliate anyway. if I work at a casino I can't gamble there its a conflict in interest. and holding a paid position AND getting paid from a RPP (1000's) a day crazy. well its real late I barely have my eyes open but I can say a good PLAN A would be .http://www.ultimatepowerprofits.com/joinpage in prelaunch and the response is crazy. May open founder position up again only for short period but atleast become an affiliate incase they do check it out * great blog
    http://www.ultimatepowerprofits.com/joinpage

  • http:///www.ultimatepowerprofits.com/joinpage Patrick

    Troy should they cancel Keith Laggos account for saying he makes 40k a month without using an IDS and basically having a public meeting about the company?

    • Troy Dooly

      @Patrick,

      This is a very good question. When any affiliate operates outside of the legal compliance of any company then the company should apply the policies and procedures to protect the company and the whole affiliate base.

      When an affiliate who is well known and is accepted as an authority in the niche or industry, then it's hard to make excuses for that affiliate or to just slap their hand.

      With that said, I think the issue surrounding Keith is a prime example at what can happen when any affiliate gets caught up in the hype of the moment or is distracted. Regulators can be on any call or meeting.

  • Zeekinsidedoubter

    Troy:

    Thanks again for staying on top of the news.

    Federal and State investigative agencies tend to operate behind the scenes until such time as they swoop in and take action. There may or may not be a pending action against Zeekler's penny auction business as well as their MLM side. Hard to say and only time will tell. However, sometimes regulators will send a notice to businesses under investigation requesting further information, requesting meetings, etc., in advance of further action.

    Considering all the "software" issues Zeek is having, with no end in sight, many Zeek affiliates are unhappy, aside, of course, from the Pollyanna-types who view Zeek as their financial savior, and who are willing to blindly go forth with little consideration of any potential down-side. And, who I might add criticize another affiliate who brings up legitimate issues as being "negative."

    With unhappiness comes complaints; first to the company which, unfortunately is failing miserably in addressing them, and second to the various regulatory bodies, i.e., the States' Attorneys General, the FTC, and non-regulatory entities such as the Better Business Bureau. The company has stated it has hired several new people in management but has never stepped up to the plate and expressly assumed blame for mismanaging just about everything, which in my mind would be the mark of a true leader.

    If/when Zeek goes down or the Feds restrict Zeekler the blame will rest squarely on the shoulders of Paul Burke and Dawn Olivares for not addressing the software issues sooner and preventing/mitigating the complaints before they came to the attention of the authorities.

    My interpretation of Keith Laggos' talk is that he is promoting a different MLM company as "Plan B" in case of issues for Zeek, and these issues may be real or imaginary. It is a scare tactic to tell someone to use business B as a back-up in case company A has issues, and then bring up the thought that there may be some forthcoming issues for company A without providing independent data.

    I think it is unethical for a consultant of one company to market for another company. I also think it is unethical for a consultant to an MLM company have a position as an affiliate as I believe he does in both Zeek and Lioness. Totally unethical and if true shows his true stripes.

    It is hard to tell if Mr. Laggos' comments were a scare tactic of sorts trying to generate business for his new business or were a genuine warning to Zeek affiliates that some serious issues may be coming down the pike. Considering he was a paid affiliate of Zeek, and I assume he probably was hanging around Zeek's back office, he may have seen/overheard issues of concern to the longevity of Zeek, specifically correspondence Zeek may have received from the regulators.

    In spite of Zeek's Terms and Condition and Purchasing Agreement, considering this is an online business, this is an "Income opportunity for marketing professionals" and this is "The Rewards Program of a Lifetime!” Zeek has a fiduciary responsibility to its affiliates to keep up its end of the bargain and to make absolutely certain that every piece of their software works as expected, period! To do otherwise places them in grave legal jeopardy and in this day and age of software expertise there is no excuse.

    Paul and Dawn need to step up to the plate once and for all, to directly apologize to all of their affiliates for doing a lousy job in their management of Zeek, and not blame the rapid growth at Zeek for their issues. Second, they need to list all of the software problems, customer support issues, and financial transaction issues they are having one by one and give us a drop-dead date as to when the issues will be solved once and for all.

    Finally, and most importantly, they have a responsibility to operate this business completely within legal parameters set by state and federal laws and if in violation of any such laws bring the company immediately into complete legal compliance.

    In this regard they MUST keep their affiliates informed of any communications they receive from any/all state and federal authorities that may jeopardize the affiliate's business, and Zeek's subsequent plans for remediation.

    To do otherwise and keep their affiliates in the dark is both disrespectful to say the least, as well as criminal.

    Sincerely,

    Zeekinsidedoubter

    • Troy Dooly

      @Zeek Inside Doubter,

      As always you seem to bring some solid insights and perspectives we all should think about.

      You are correct that when any regulatory agency is looking into criminal activity they do not show their cards. ASD is a prime example of what happens when regulators feel there is an issue. MPB Today a more current situation is another example. The regulators swoop in, take the records and stop all flow of activity.

      When regulators are investigating civil issues they accumulate the complaints, review them, then send some form of CID (Civil Investigative Demand) letter to the company requesting an appointment and answers. N.C. AG just did this to the billion dollar energy company Duke Energy. The FTC has done it so many times to the top companies it is hard to keep count.

      The FDA is a little different, they will send an investigator to the place of business, to sample different lots of products. If they find anything out of order based on the labels they will quarantine the products until it is fixed. Had this happen to me in the 90's when our M&A firm owned a feed mill.

      In Zeek or any penny auction business, I still stand firm that the first action will be a CID from the NC AG's office. I do not believe any federal regulator will have an issue with Zeek or any penny auction individually. I do think, they will and more than likely are looking at how to regulate the niche, because it can be a real income generator for taxes.

      I do believe there have been major issues surrounding the software, servers, bandwidth, general business issues etc., and I am glad to see that once Greg Caldwell was brought on board as COO, he did not let any dust settle under his feet. He quickly brought in a respected team of experts to get each area under control. (I will be reporting on this later this week.)

      I agree with you that many ZR affiliates are unhappy and frustrated. I talked to many at all levels last week, who vented their frustrations, and have even sent me issues, they still feel need to be addressed.

      I am a firm believer, you address the issues, explain what has taken place, and face the music. Starbucks, Tylenol, COKE and Disney have all faced major PR issues over the years and never backed down from the issues. Instead they address them. apologize when needs, stand firm when they feel it is warranted, and always seem willing to engage both their critics and customers. Starbucks (which I own a nice piece of equity) even launched a stand alone website just for people to write in their concerns.

      Although network marketing is a little different, it is always the best business model to address the issues head on. With the new communication direcor coming on board, I hope he will get the communication out and keep it current.

      I also agree with your deduction that Keith is backing a new company. And that is his Right! And, as we all know "fear" is a great motivator to move us into action. If folks fear the unknown about penny auctions, Zeek in this case, then Lioness might benefit from the fear.

      However, a question that might not have been thought about before the call… does this type of call leave Lioness open for a lawsuit from Rex. Amway had a similar situation a few years ago, when Brig Heart left and moved to MonaVie… The lawsuit lasted for years.

      Also, Lioness has not had the most stable start in the USA. Grimes & Reese are now on board and are tweaking things out. ANd with the purchase of the new 15K SqFt office in Miami it does seem Lioness is here for a while.

      But, if their affiliates are ONLY promoting the income opportunity (profit centers) as the product, we may quickly have the same issues raised on Lioness as we have on the penny auction front.

      You are right, consultants should not promote one client over another. They should give their all to help those clients become the best company they can become. If consultants focus on best practices, collaboration and protecting reputation of the network marketing community as a whole, then we will see less lawsuits, shell games, and questionable ethics.

      Lord knows I make my share of mistakes daily, and this community, my clients, accountability partners, and most of all my family remind me of this fact. :)

      If we all live by the following and are willing to whole each other up using the Golden Rule, then we can become the greatest community in the world.

      - Act Justly

      - Walk Humbly

      - Love Mercy

      I know I fall short in these areas regularly. It is my goal and I feel should be everyone's goal to do out best to live by these three small but powerful phrases.

      Thank you for sharing what others may just be thinking.

      Living An Epic Adventure,
      Troy

    • Gwen

      Well said, I couldn't agree more and for someone like me who has finally found a way to make a tremendously good income, it is very scary to hear of any possible problems (real or imagined).

      And, YES, Paul Burks and Dawn Oliveras should have come out long ago with the answers to the questions that affiliates have had about all their problems with payment processors, ewallets, banking, servers, etc.

  • Ad

    Troy, do you think the FTC is going to hit zeek real soon or its all bs??

    • Troy Dooly

      @Ad,

      I do not think any federal regulating organization is going to hit Zeek individually. I do feel that the unique bid auction niche will be regulated at a State and/or Federal level.

      But since it is an election year, and I keep hearing that millions of people have joined Zeek, I do not think either political party will want to do much regulating until after the election. I do feel that the NC AG will issue a CID (Civil Investigivative Demand) letter sometime before the election to make it clear his office is protecting the citizens of NC. He just did this to the billion dollar energy company Duke Energy, and it would be a great move for him and for Zeek. Once and for all some of the questions the critics have brought forth would be answered.

      We are pretty sure that the SEC and the FTC have been watching all the penny auctions. And if any specific company might be in the radar, it could be the new penny auction promoting giving to charity by bidding in the auctions. Regulators do not like to see income opportunities tied to charity at all.

  • Jeff B.

    The MOST frustrating thing for most affiliates now that have been with Zeek for a while (myself since Dec. 2011) is the new qualifiers. I have done everything by the book and now fear that I will not earn daily rewards. We hear all these requirements about PRC's and ZeeBates yet its just so much speculation. First, I hear you need 2-8 ZeeBate customers that create a free account to earn the daily rewards. Then, I hear you need 2-8 paying ZeeBate customers…meaning 2-8 people need to buy something EVERY month in order to qualify. Then, I hear you need 2 PRC's and 2-8 ZeeBate customers. This is extremely concerning because WE have no control over whether people buy stuff. Even more upsetting is that if Zeek is doing so well, being debt free, having extreme growth etc….why are they putting qualifiers out there to make it harder for affiliates earn daily rewards when we are the ones making them so successful? If anything, we should be rewarded more don't you think?

    • Troy Dooly

      @Jeff B,

      I can totally see your point. And since not very much has been published it just causes more concerns. Here are a few thoughts on this.

      1. How many people have you mentioned ZR or Zeekler to who were not interested? These are your first potential group of folks to show how they can save money and get cash back from expenses they are already making. All they have to do is use your portal.

      2. Anyone who has less than 10001K points nothing changes. For those who have over these points then yes, they will have some qualifiers.

      3. My understanding is that you will have now banners you will be able to use along with marketing videos to help you attract these customers just like you attract auction bidders.

      4. Historical stats, show the majority of folks return daily, weekly and monthly to get more deals. As the customer transactions grow, so does the point pool. And since the ZeeBates site is being launched right in time for back to school and the holiday season, there is a great possibility the growth will be steady.

      5. The qualifiers are not to make it harder for the affiliates, it is to make sure they are always well within the compliance guidelines of having more revenue from outside the affiliate base, then from within. This is also one of the reasons they just bought a whole network marketing company.

      6. Not sure what you mean by rewarded more. TO me that sounds like an entitlement mentality, and I would strongly disagree. YOu should be rewarded in proportion to the work you and your team put in to building your business.

      Living An Epic Adventure,
      Troy

      • Jeff B.

        Thanks for your response Troy.

        I don't have any doubt that I'll be able to have many signups for the ZeeBates portal.

        I myself, am part of a couple where I earn rewards. My concern is that I'm going to have to just "hope" these people buy something on a monthly basis so that I receive my RPP.

        Even if I get 100 people signed up using ZeeBates, I will have no control over whether 2, 4, 6, or 8 people make an online purcase through the portal. I think ZeeBates is a great idea, however, if the rumors about the qualifier are as they seem, I feel that its unreasonable to hold back RPP if someone doesn't purchase a product through the portal.

        I place many ads each day and give bids to hundreds of free customers which I thought meets all the compliance issues that Zeek resolved. Is there yet another new law that states Zeek needs its affiliates to have customer purchases through ZeeBates to earn daily rewards?

        I've read through all the regulatory documentation that has been provided by Zeek and you and don't see any statements that make it so Zeek has to implement another qualifier. The 5cc was removed — fine. Having 2 PRC's or free customers to give bids to along with placing your ad everyday is sufficient, at least thats what us affiliates feel.

        Can you please provide some evidence/facts as to why 2 PRC's, free customers, and ad placement is not enough to be compliant? Thanks.

        • Troy Dooly

          @Jeff B,

          Welcome to my world :)

          The issue is that there is no regulation or clarification of what a "customer" truly is. The lack of clarification has created many issues. What we do know is that in the Burn Lounge case, 3% of revenue classified above and outside the compensation structure was not enough to keep a judge from ruling them a pyramid.

          Since most folks feel that the 300 or so auctions, plus the other eCommerce stores do not generate enough revenue outside the compensation structure, I am others have suggested Zeek needs to beef up their retail customer base to ensure full compliance. One former consultant stated 1% was enough, and after the Burn Lounge case was made public, it was clear his advice would not work and Zeek went back to the drawing board.

          In each meeting I have sat in, Paul has made it clear, he wants to be fully compliant, but he wants to do it, as close to his dream of the EMM "Exact Marketing Method" as possible.

          I will continue to seek information for all.

  • e

    Troy,

    Brig Hart didn't leave Amway to join MonaVie. When Brig left Amway, MonaVie wasn't even a thought. Brig was out of Amway for 7+ years before he decided to get back into network marketing with MonaVie.

    As for the other topics…I don't think a network marketing leader should promote having a plan b. The average distributor has an insurmountable task of trying to build and maintain 1 business, let alone 2.

    Pure example of using people and loving money vs. loving people and using money.

    • Troy Dooly

      @e,

      Thank you for the clarification. But, help me out here. Wasn't Brig mentioned along with others in the Amway suit, and wan't Brig still collecting income from his Amway organization even though he had retired?

      I want the facts correct. And if I am wrong, I know you can help me in this case.

      I agree 100% with you on the plan b and the money issue.

  • zeekman

    Troy was partially correct. While FTC does not regulate online gambling, it did issue this warning in 2002.
    http://www.ftc.gov/opa/2002/06/onlinegambling.sht…
    Just as it did with the entire genre of penny auctions.

    Also, FTC says “The FTC enforces the (anti-Internet Gambling) Act and regulations with respect to payment systems and financial transaction providers not specifically assigned to other agencies under GLB or the Commodities Exchange Act.”
    http://www.ftc.gov/ogc/stat3.shtm
    So they *are* in control of the payment processors.

    • Troy Dooly

      @Zeekman,

      Thank you for the additional information and clarifying where I was off.

      And although the FTC does enforce, it is the DOJ which would have to prosecute and decide if charges were warranted on any charges the FTC were to make.

      And I have never known anyone from the FTC to make private phone calls. I would question the Constitutionality of that very act.

  • Lars

    This thing has SCAM written all over it!!! Zeek will probably GO DOWN!!! Keith has real points, but in promoting a sideline or alternative….it's fallen slightly on deaf ears.

    MLM is a Great industry….when a deal goes down, it affects ALL of us!

    • Chris

      I would not go as far to say Zeek is a scam. If you do your Due diligent research into the Penny Auctions , how they work , as well as the HUGE income these companies are making. It's very logical to see that the company can compensate there Affiliates @ their current Daily Profit Sharing Platform.

      However if people, ( Societies Instinct)Is to JUMP to conclusions, and be brainwashed with only promoting negativity, instead of searching for truthful possibilities, or FACTS. I am not saying to be nieve, however Paul Burk's has a good reputation, as far as we all know, he has revolution-ised the MLM industry.

      I believe the Zeek Administration is well capable of following advice by there Legal Compliance, and MLM ATTY, Kevin Grimes, and Gerald Nehra & Richard Waak, whom they have hired to Steer them from any harm's way. For Zeek their clients, as well as Affiliates whom's faith I would presume lyes with their best interest @ hand.

      I would like to ad the fact of the Huge Web traffic to their Website, and Huge gains in just recent months, should support why their compensation plan is quite Rewarding.

      Troy, What are your views on this note? And please correct me if i am wrong.

      • Troy Dooly

        @Chris,

        You bring up some great points.

        1. Legit penny auctions are very profitable, and the resent document I shared from Brown University, shows the business model profitable when run correctly.

        2. Sadly many folks pro and con on penny auctions in general or specific companies can be so biased because of their desired outcome "brainwashed" to seeing things only through their worldview. I have over the years found myself falling into this trap, and is now why I allow critics to post and comment conflicting views to mine. It helps everyone to keep a more level head, and provides a more balanced view on any company.

        3. The company grew 30% last month, so it would seem that the company is still moving forward. The Zeekler site saw a 42% spike in traffic with the average unique visitor sticking around for 6 minutes or so, leading one to believe, folks are starting use the sample bids or are paying for additional bids for the paid auctions.

        And I would add that starting next week Super Tuesday auctions will be back, with a 2012 Mustang, Rolex Watch, Family vacation for four, etc., which will drive even more traffic and revenue to these auctions.

        • Chris

          WoW, Thanks for the great response Troy.

  • Manny Reggal

    Troy what are they doing about support???

    i mean its impossible to get someone on the phone.

    I will say i like the new mobile app I have seen in appstore

    At least i have been able to get someone to talk to me from there.

    When do you think support will be up right, So i dont have to use an app and can just call

    • Troy Dooly

      @Manny,

      Great question. They have 100 CS reps in Atlanta and another 30 at last count internationally. They also use top affiliates in the field to help handle the online support.

      I have been told they have 3000 incoming contacts per day, with some reps opening 51 tickets daily which backlogs the system.

      With the new CTO in place, I would say we will see many changes in the next few months.

      I will ask Greg Caldwell the new COO what his plans are in the areas of support.

  • http:///www.ultimatepowerprofits.com/joinpage Patrick

    What I am trying to understand is that Penny Auction have been around for years on the internet at least since 2005 with Squidoo. I have never heard of penny auction being considered gambling. I have never heard someone say the lost the rent money because of a penny auction site. PA did not seem to bother anyone until it got merged with MLM and started to give back. But I do believe that zeeks poor customer service mixed with a major explosion of new affiliates is the cause for this huge spotlight on the PA industry. Money problems really draws attention. McDonald's can be the best/most populars burger place in the world but if a lot of the employees stop getting paid on time or have HR issues that are not being handled in a timely manner they will be looked at with a microscope too. I believe that its not a PA issue but more of a "How is the company working" issue. I think people loose more money on Facebook coins than on a penny auction site.

  • Gwen

    Troy, I see where you are coming from with this reply about the qualifiers; however, the old saying "you can lead a horse to water, but you can't make him drink" fills the bill on this issue. If these qualifiers are needed to be compliant, I would hope the company will be able explain the hows and whys of the issue so that affiliates can understand why things are changing and shifting under them. Nobody minds change IF it is required, IF it is explained cohesively AND is a good thing for everyone involved.

    Most of us see these qualifiers as being a detriment to our earning ability. Just something else we have to "sell" in order to earn on the RPP; when the best part about this whole zeekrewards opportunity was the fact that we did NOT have to SELL anything to our friends, neighbors and family in order to earn a decent income.

    Maybe this is not selling in the broad sense of the word but it is the selling of a concept and someone has to be SOLD on the idea in order for anyone (me) to benefit from it in the long run.

    • Troy Dooly

      @Gwen,

      If I were in your shoes, I can see where I might see the qualifiers as a detriment. Especially when very little communication.

      But again, you are not selling anything to my knowledge. But, I can sure see where it could feel that way at this stage of the game.

      I will do my best to get some solid answers, or see if we can get them to start sharing on Zeek Rewards News.

  • Shirley Crawford

    Troy,

    I steadily find customers to use the auction site, most of them enjoy it, a few have won products, some have bought an item or two at a discount. None of them want to commit to a monthly Subscription where they purchase a set amount of bids to use.

    I agree with them, I wouldn't do it either. Especially since their items are not what I would say are top notch desirable products. If they had some better product there it might be a different story.

    With that being said, I personally am not selling or acquiring any PRC's and don't expect that I will until after we KNOW what we are SELLING. At this point we don't have a clue.

    I do actively and will continue to actively build my customer base, giving away the free sample bids – I have given bids away to over 200 customers so far.

    People love FREE stuff and this is probably the easiest business to promote I have ever been a part of. Not to mention it's a ton of fun.

    Maybe you could drop a suggestion to them, that I am sure all affiliates would agree with me on, Please give us at least 30 days to market the products or services once they have been released before they penalize us. I cannot promote something I know nothing about, not to mention I am fearful to sell something I may present wrong – Heck I'm not even sure what I will be promoting entirely.

    Thanks again for everything you do for our community

    Shirley Crawford

  • Shirley Crawford

    I also want to add that I am very excited about these enhancements that are coming.

    I know that with the changes will come the ability to promote and sell the PRC's. I have many who are just waiting to see what it's about before they jump in and become PRCs – people who just have no interest in the business what so ever as an affiliate.

    So when I say that I am not selling or PRC's it's only because I'm not entirely sure what I am selling – I have a good idea – enough to peak the interest of many – just not enough to get them to commit – YET :)

    Shirley Crawford

  • Dan.M.

    Regardless of his qualifications, this Laggos character has just demonstrated loud and clear that he is a first class clown. One of the biggest concerns for me is that his literature is being taught in over 200 universities (apparently). Regardless of the content of his book, it is the knowledge that the man behind the book is unethical. This is a massive blight on the mlm industry in my opinion.

    Unfortunatlely, i don't think we will see Laggos' zeek

    account terminated…but if the house of cards comes tumbling down we will see Laggos buried at the bottom. He may be an academic, but he is far from smart.

  • Eddie

    @Zeekinsidedoubter, I totally agree with everything you said.

    @Troy

    The issues with Zeek has been going on for months now and they still have not come out to address not one issue. Now the RPP is running like a snail, meaning that we are not earning everyday. It is calculating but it is not being added to our VIP Point Balance. I've never seen a company have so many IT problems and never bother to fix them. And a lot of people are wondering if this is done on purpose. Now I'm starting to wonder.

    We are still having issues with customer service. Someone in my down-line purchased sample bids over a month ago and never received credit. She has been sending support tickets, calling Zeek, talking on the chat line, using Get Satisfaction to no avail. How do you think she feels. That's an entire month she should have been earning on her points. Now the RPP has slowed down so much we're only making money every 2 or 3 days. And this is not an isolated issue and this is simply not right.

    We have issues with people getting error messages trying to sign up with NXPay, double billing, money stuck in useless e-wallet systems, getting commission VERY late, if at all.

    Affiliates being frustrated is an understatement. I could see if this had been going on for short while, but we're talking months of incompetency and just down right not running a company they way it should be ran.

    If people are leaving and want to leave Zeek, I totally understand because we have no idea what's going on with Zeek, and God knows, they never bother to tell us anything. This hinges on being just plain ridiculous.

    We never even learn anything on the calls. They're just ra-ra fest. They go on and on about nothing. I don't have time for that.

    The way they handled how the new marketing and compliance course would be paid for was just unbelievable. First you can pay from commission, take that away, now you can or should I say silver members can, gold and diamonds have to use credit cards…who knows.

    I don't know Dawn or Paul and they might have a lot of integrity, but at this point that's even questionable. They sure don't know anything about running a company and seems like they could care less about customer service or their affiliates. That's why they have so many issues and tickets because they never resolve any problems.

    We've heard about qualifiers, debit cards, etc. Why can't the leaders of the company can't come out and let the affiliates know what's going on.

    Seems they never think through anything before putting it out there, then it turns into a disaster and then they get more tickets, calls,etc. What do they expect.

    It's a daily chore trying to help people I sponsored get support and I have a lot of energy. But I'm plain worn out from this crap.

    Sorry Troy, but this really needs some attention and I mean fast. If they don't get it together, I'd be surprised if they lasted another 6 months.

    With no help from Zeek, where can we turn to Troy?

    Thanks for all you do!

    • Troy Dooly

      @Eddie,

      You bring up some very valid points. Communication is key to the success of all companies. However, at times it is easier to be criticize from the outside, because we do not see what is happening on the inside. And the criticism has been warranted so I am not defending, just using some deductive thinking on this.

      When leaders are in crisis mode… Banking issues, processor issues, customer service issues, software issues, at times when you are under staffed, then you focus on getting the issues fixed, and communication can take a backseat.

      Now, with the new executives and Clifton Jolly coming on for communication and PR, I do feel the communication will get steady and more detailed.

      Several times over the last few months the RPP has run slow. Each time folks have received the points that were due, and now that Josh Calloway is on board at CTO, he and his team are working to update the code, move to the new server farms and get the database stable. But known of this happens overnight.

      I do understand the customer service issues, which is why several times here in the community I have made it clear, when folks have tried all resources and still can't get satisfaction (there are 3000 connections daily with customer service, and one affiliate sent 51 tickets in one day) it does cause a backlog. And if they over hire agents to man the phone, then the net revenue of the company will fall, as will the RPP.

      But, if you have an affiliate with an issue, have then use the contact form here on the site and include the open tickets and their ZR id.

      Although the eWallet issues are not directly Zeek's issue, one thing we all need to keep in mind. If the growth of Zeek has caused issues internally I would guess the same issues happened at the eWallets. I hate the eWallet system and have from the very beginning of their launch several years ago. Zeek is working to finalize their new relationship as they announced at the Red Carpet Day last week, and it will include the ability for you to load your own personal debit card from your bank with your commissions or to pay for bids, subscriptions etc.

      I am sure there is some attrition, based on the new penny auctions launching, but the company still grew by 30% last month, so there is no negative attrition.

      Well Dawn, has been moved back into her long standing role as CMO and Greg Caldwell is not the COO of the company. I believe you and all the affiliates will see some major changes to the good. Greg hit the ground running with the hiring of Angie Fiebernitz as CFO, and the rest of the team. From what I was told at the RCD last week, most if not all of the changes will be rolled out on or before August 22, 2012 the next RCD.

      And, I will defend Paul on one issue, that has not been made overly public either. Paul's wife, Miss Susan has had major health issues this year, and just a few weeks ago, took a nasty spill which has caused some concern with a brain issue. Paul has done what all leaders should do, he has been taking care of his wife while keeping an eye on the company. His move to hire Greg Caldwell his eyes and ears in the home office was the best move I think he could have made.

      I know my response will not satisfy and remove the anger and frustration.

      I just want you and others to know, I will continue to work with the new team to get as many answers as I can to keep you informed.

      Living An Epic Adventure,
      Troy

    • Chris

      Eddie,

      "Now the RPP is running like a snail, meaning that we are not earning everyday. It is calculating but it is not being added to our VIP Point Balance"

      Really? So the extra 1 min it takes for you to Manually give them away is an issue?? Stop your nonesense, if you cannot take an extra minute in the morning to give away bids, then thats a shame!

      You and anybody else who have issues and complaints about Zeek, turn your RPP to 0, dont pay your subscription and find something else, stop complaining.

      • KB

        Ditto Chris!

      • Eddie

        @Chris,

        Chris, I notice that you always say people are complaining when you don't know the facts. Everyone has the right to state the facts about their situation without you saying they are complaining.

        Regardless of what you say, Zeek has many problems, and since I've been involved they have not bothered to correct most of them. The biggest problem is customer service. Maybe if we could get some CS, I think a lot of these problems would disappear.

        FYI, most of us can't give our bids away, because they are greyed out. Zeek has a Skype room and this is not an isolated incident. A lot of people are having this problem. According to the Zeek Complaince Mod, it's the never ending software issue.

        And yes, we have many customers, but simply can't give them away because the system is not letting us!

        So before you say people are complaining, it would be a good idea to think to yourself that maybe that person is having issues even if you aren't.

        What I think is ashame is for Zeek to keep coming out with incoherent news that most people have no clue what they're talking about, very poor customer service, shoty payment processors, affiliates not being credited for sample bids they purchased, constant IT problems, people being paid slowly if at all, ..the list is long. The growing pains excuse is getting old.

        I've built a great organization in Zeek, but if they don't change what their doing, I'm sure a lot of affiliates will turn their RPP to 0 and find something else.

    • gen3benz

      From zeekrewards – legal disclaimer:

      "The company does not offer any guarantee of income to any Affiliate"

      "Cash Reward projections are based on expected revenues. Affiliates are strongly advised to only make purchases that they can afford without creating a financial hardship for themselves or their families"

      Every penny you receive from zeekrewards is a reward and you're not guaranteed a thing.

      As for your downline:

      "Rex Venture Group, LLC guarantees to deliver any and all products or services sold to each purchaser in a timely manner."

      "timely manner" is pretty vague, so who knows how long that is.

      • Troy Dooly

        @Gen3Ben,

        You took a part of the disclaimer out of context when you said "Every penny you receive from zeekrewards is a reward and you’re not guaranteed a thing."

        The legal disclaimer is talking about "cash rewards" At no time does it mention to fully compensation plan, such as the personal sales of 20%, the matrix overrides, etc.

        I will agree there are no guarantees, and that everything is based on the amount of work an affiliates puts into their Zeek Rewards business.

        For clarity here is the full legal disclaimer.

        "Important Legal Stuff!
        No specific level of income is guaranteed. Any reference to specific levels of earning on this web site are for the purpose of explaining the compensation plan only and are not projections. Your actual income will depend upon the success of your marketing efforts and of those you introduce to the program and on the overall profitability of the company. Income is derived solely from the sale of products and/or services to end users. There is no compensation for recruiting. Affiliates may qualify to participate in the compensation plan without making a product purchase by making a sale to a customer. Customers may buy our products without participating in the compensation plan.

        To qualify for cash awards compensation you must have a Premium Business Center subscription (Silver, Gold, or Diamond level) and you must have made at least a minimum 10 VIP bidpack purchase. You must also place a qualifying advertisement daily for Zeekler.com and submit it as proof to the company to qualify for Retail Profit Pool awards for that day. Commissions that would have been earned on purchases made by your personally referred affiliates are forfeited if they make their purchases prior to your becoming commission qualified.

        VIP ProfitPoints are paid by the company based on your Personal Volume (VIP Bid sales and purchases). From time to time the company may add Bonus Points to your totals during special incentive offers. Bonus Points are also provided to new affiliates so that they can experience the process without the necessity of making a sale or purchase. Bonus Points are tracked separately from VIP ProfitPoints. Bonus Point awards cannot be withdrawn as cash. Once you have received additional Bonus Points equaling the number you were given then the original amount drops off and the remainder becomes VIP ProfitPoints. You may then begin withdrawing cash commissions on the future daily VIP ProfitPoints if you choose.

        The company does not offer any guarantee of income to any Affiliate. Income is earned through the dedicated efforts of Affiliates making sales and good old fashioned hard work. Rex Venture Group, LLC guarantees to deliver any and all products or services sold to each purchaser in a timely manner. Cash Reward projections are based on expected revenues. Affiliates are strongly advised to only make purchases that they can afford without creating a financial hardship for themselves or their families.

        IMPORTANT: The following paragraph MUST BE READ ALOUD whenever the ZeekRewards compensation plan is presented verbally or by telephone, or included in it's entirety when communicating in writing:

        "If you make a purchase from ZeekRewards you are purchasing a Premium eCommerce subscription or you are purchasing bids to give away as samples. You are NOT purchasing stock or any other form of "investment" or equity. You MUST actually use the bids that you purchase or give them away as samples to help grow your business. Affiliates who present our products to others in a misleading manner or in a way that leads the buyer to believe he or she is making an investment or purchasing equities will be terminated and all commissions and awards will be forfeited. Buyers MUST read the entire How It Works and Get Paid pages on the ZeekRewards website and the Legal Disclaimers."

        Automatic translations by Google Translate are provided for your convenience, however, the English Terms and Conditions are authorative and binding. If there's ever a conflict in meaning between languages, the English version shall be considered authoritative."

        • gen3benz

          "The legal disclaimer is talking about “cash rewards” At no time does it mention to fully compensation plan, such as the personal sales of 20%, the matrix overrides, etc. "

          You're right I was referring to the "cash rewards".

          You dont hear many people having problems getting commission checks. I think zeek has to word it like that so if the RPP were to fall they are liable.

          • gen3benz

            "aren't" liable…..what i meant to type.

            Im interested to see if zeek can hold together and stay strong with all the upcoming qualifiers. Maybe one day i'll actually take the plunge and try MLM. But probably just as a hobby.

            Thank again Troy

          • Troy Dooly

            @gen3benz,

            Gotcha… Thank you for clarifying.

  • Eddie

    @ Troy

    Thanks for the info! Sorry to hear about Paul's wife. I do realize family is more important than anything. But, it does sound like maybe we will be getting a breath of fresh air very soon. I sure do hope so.

    I will also have my friend send you her info and ticket#.

    Again, thanks for all you do!

  • Gwen

    I agree with Eddie. I know Zeekler/Zeekrewards has grown beyond anybody's realm of belief in the last five/six months.

    Both Zeekler and Zeekrewards have FB fan pages and most of us frequent those pages looking for answers. How hard or expensive would it be to have some one "in the know" at Zeekrewards, be in charge of letting affiliates know the problems and solutions on those FB pages everyday? They are posting other stuff every day already, so why not some answers; then they wouldn't have all the support problems they are having now.

    AND, if/when they are having so many problems that need fixing shouldn't most of their resources be funneled to keeping their affiliates happy versus promoting and hosting Red Carpet events? I mean, after all, those events could come when everything is running smoothly and they have something to brag about.

  • http://www.buykindlefiretabletonline.com/ KB

    Sad that it was worth his integrity and reputation to do what he did..I can't think of any other motivator than greed for blatantly cross recruiting out from under a company who's payroll you are on. It's professional suicide and dishonorable beyond measure.

    I do feel that Zeek should also strip him of his paid affiliate position for his blatant non-compliance. This could also set the example that it does not matter to Zeek who breaks the rules.. especially when it is an affiliate who is well known and is accepted as an authority in the niche or industry.

    Cut him off.

  • Brad

    My e-mail to the North Carolina State Employees' Credit Union – I have had a few Zeek Reward affiliates approach me to join their lucrative company. However, I have had some other friends tell me that the North Carolina State Employees’ Credit Union, and possibly other financial intermediaries, believe that Zeek Rewards is fraudulent. Is that the NC SECU position on Zeek Rewards or are the people who told me this misinformed? Is Zeek Rewards a fraudulent company? I cannot afford to lose money and impact my securities licenses if it is. Thank you for any assistance.

    The response – Zeek Rewards is indeed a fraudulent company. Please refrain from entering into any type of business with this company as there have been several claims of fraudulent activity reported with Zeek Rewards. Numerous reports of fraud have been given to the Better Business Bureau and other reports of fraud are listed on scam reporting websites. Thank you for your inquiry and have a great day!

    Jeremy j. pittman

    801 E TEAM LEADER/AO

    mlo# 784404

    801 Contact Center

    Phone: 919-857-3579

    Jeremy.Pittman@ncsecu.org

    • Troy Dooly

      @Brad,

      I find this very interesting since it seem to be 100% opposite to what they told Oz at Behind MLM. Are you telling us you are the one who talked to the bank employee listed above?

      Below is from the comment thread at BMLM http://behindmlm.com/companies/zeek-rewards/keith…

      "Update from the Zeek Rewards affiliate who originally published the news on Facebook:
      Oz#43

      August 2nd, 2012 at 10:51 pm (Quote)
      I just got this reply back from the NCSECU media liason officer:
      No – we have not advised our members that Rex Venture Group is fraudulent. We do, however, recommend to members that they always practice due diligence in investor education.
      Hope this helps.
      A totally different response. Note that I didn’t mention anything about investing… he mentioned “investor education” on his own.

      Oz#44
      August 2nd, 2012 at 11:44 pm (Quote)
      Received the following followup (I mentioned the call to Cory in my followup email):
      Our Risk Management Group did have a call this morning. Again, SECU has not indicated the Rex Ventures is fraudulent. SECU is simply asking its members to be vigilant in their due diligence of Rex Ventures.

      Now I’m not really sure what to make of all this. Are they singling out Rex Ventures or do they explicitly advise their members to be vigilant in their due diligence on all the companies they have dealings with."

    • Troy Dooly

      Brad just sent updated info from the bank!!! Thank you Brad for keeping it real!

      "It has come to our attention that our responses about Zeek Rewards are being used to present arguments concerning the company.

      We have officially taken the position that NCSECU is not confirming our denying fraud, but that we’ve received several reports of fraud.

      One of our internal departments has conducted research on the company and received several negative findings.

      It is the credit union’s stance that we should always try to keep our members’ best interests at heart.

      The information is not to bash or incriminate Zeek Rewards, but merely to inform our membership of the potential dangers of investing in their company.

      One of our Senior Vice Presidents had the following to say about the company:

      “SECU has not indicated that Rex Venture Group is fraudulent. SECU recommends to members that they always conduct due diligence in investor education, and we are advising members to conduct due diligence of Rex Venture Group.

      Additionally, SECU recommends that members contact the NC Attorney General’s office with consumer complaints or the NC Secretary of State’s office with any investor concerns. ”

      Jeremy j. pittman

      801 E TEAM LEADER/AO

      mlo# 784404

      801 Contact Center

  • Brad

    I know. I called the NC SECU and then I e-mailed them for hard copy documentation. I would be more than happy to supply those e-mails to you for your records and to know I did not make this up. Also, the contact information was provided for the person I e-mailed. Please let me know.

    • Troy Dooly

      @Brad,

      I would like to see the emails, troydooly@mlmhelpdesk.com would be a good email.

      • Brad

        I sent the e-mails, please let me know if you received them.

        • Brad

          I meant "the" vs "this" e-mails. Please correct. Thank you.

        • Troy Dooly

          Got it

          • Mark

            I will be interested to hear how this turns out. In my profession, we are told to never use the word "fraud" or any form of it in our reports. The reason is, it's a legal term that the lawyers would have a field day with if we had to be put on stand to defend it and justify it.

            Thanks for all your reporting Troy. I know there are a lot of us that are glad you are doing what you do.

    • Dan M

      @ Brad

      I cant see how a company can be labelled as fraudulent without having been found guilty of that by a court.

      • Brad

        Fraud – deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage.

        A person or company can make this claim as an opinion and be right or wrong. However, the real bite is when the government authorities and/or a court say so.

        • Troy Dooly

          @Brad,

          You are correct. At the end of the day, when a Court of Law reviews the evidence presented by the regulators (if the regulators find anything), and rule then and only then do we know for sure.

  • gen3benz

    Troy

    Regarding the qualifiers, 2-8 active zeebate customers will be needed to qualify for the RPP,

    1. Is there a minimum $ amount?

    2. Does the total customers required change with rank? silver/gold/diamond

    3.Does the total $ amount change with rank?

    Thanks for answering these questions, you dont have to but you always do. That and you always keep a positive attitude, which IMO is amazing.

    Thanks Troy

    • Troy Dooly

      @gen3Benz,

      1. Yes there will be a minimum per transaction which will be used to classify a retail customer a real customer. I do not know yet what that amount is. In reviewing other companies some were $5 and the max was $25. Not sure what Zeek is looking at yet.

      2. It is my understanding that rank will not have anything to do with the qualifiers, it is all surrounding the RPP point totals. The first qualifiers start at 10001 points. In the past I believe I have mistakenly placed a $ sign in front of the points But all the revnue is being used for the RPP bonus pool, not for the standard compensation plan.

      3. No, the qualifiers rise as the affiliates RPP point total rises.

      Again, this is not set in stone yet, or at least I have not seen the final document.

      Thank you, like you there are days when the attitude may not be as positive as it should be, but I do my best to provide the information and respect all who hang out in and around the community.

      Living An Epic Adventure,
      Troy

  • Greg

    The sites that are run by Oz and K.Chang are eating this NCSECU thing up along with Laggos. I see a lot of speculation on their sites over the viability of Zeek, that it passes the HOWE test for securities.

    I have been on the calls, webinars, took the compliance course, and attended a RCD event in June. Saying all that, I still have some unanswered questions because I really want to believe the best about this opportunity since I am being rewarded for my participation and teamwork from my downline, with all the flubbed calls by Dawn, God help her to only take a few minutes on a call and really mean it.

    I can see why some of the mlm blogs pick on this company, one for the fast growth, and two for the non-guaranteed "returns" or revenue sharing. I believe that most people "tune out" when it comes to the calls and refrain from "negative" thinking. I have run a business now for almost 10 yrs and I feel compelled to do things "first class" so that people see my transparency as a real item, not a cover up.

    I don't seek to waste people's time with useless meetings, I believe it is my job to educate my sales force, empower my downline so that they succeed even more than me. Every time a "leader" or company executive comes on a call to explain things and answer questions, they never take questions, they sound so fake and full of ***t. I leave the calls with more questions than when I got on.

    I wish that Dawn would do something other than "build up" these other execs, like for instance actually help us market! Most people that are at a "certain" level don't even bother reading this or any other blogs, because they don't want to spread negative downline.

    Troy thanks for all your help, I really respect what you say and truly believe that you have the independent affiliate/distributor's best interest at heart. I will continue to monitor the other guy's blogs and most importantly yours! You are a true blessing, a great mentor/leader.

    But please inform the leadership? at Zeek to take a few minutes and write down what they are going to say before the calls in order for them to sound more professional on the call. Lets go sponsor some people who want to be financially set, who aren't afraid of some risk, but who are willing to get out of their comfort zones.

  • Frightened Affiliate

    Troy or Brad,

    Can you please post those full emails from the North Carolina Credit Union so we all can see them?

    Thanks

    • Troy Dooly

      @Frightened Affiliate,

      Here is the email Brad sent. (I did edit out Brad's personal info.) My opinion on this situation is the same as when I called Randy Schroeder out for calling Zeek a ponzi. This could lose the bank employee their job, and/or put the bank is a very shaky legal situation. Heck, at this rate, Rex Venture Group may own a bank from this lawsuit. In reality, I expect to see a public statement from the bank later today retracting or at the very least making it clear this is the employees opinion, and not the banks.

      "I have had a few Zeek Reward affiliates approach me to join their lucrative company. However, I have had some other friends tell me that the North Carolina State Employees’ Credit Union, and possibly other financial intermediaries, believe that Zeek Rewards is fraudulent. Is that the NC SECU position on Zeek Rewards or are the people who told me this misinformed? Is Zeek Rewards a fraudulent company? I cannot afford to lose money and impact my securities licenses if it is. Thank you for any assistance."

      Here is the response from the bank

      "Zeek Rewards is indeed a fraudulent company. Please refrain from entering into any type of business with this company as there have been several claims of fraudulent activity reported with Zeek Rewards. Numerous reports of fraud have been given to the Better Business Bureau and other reports of fraud are listed on scam reporting websites. Please visit the links below to familiarize yourself with the company and some of the things that have been said about them. Thank you for your inquiry and have a great day!
      http://www.zeekrewards.com
      http://www.ripoffreport.com/organized-crime/rex-v…

      Jeremy j. pittman
      801 E TEAM LEADER/AO
      mlo# 784404
      801 Contact Center
      Phone: 919-857-3579"

      • Mark

        @Troy,

        I agree with you Troy. I would expect a written retraction from the bank very soon. The employee used a rumor mill web site to provide some "proof". He also used complaints to the BBB (which after the 20/20 episode is not near as reputable as it use to be) as proof.

        Man, if I wrote such a thing in my reports, I would be in big trouble with my clients even if what I wrote was true! I hope the guy keeps his job but there will have to be a retraction. I will be shocked if one isn't coming and coming with a few days. As soon as the credit union's corporate lawyers hear about this, they will be all over it.

      • Brad

        I know you do not want to cause a panic among the Zeek affiliates that visit this website, but maybe the NC SECEU has information we are not privy to. At this point we do not know and the story will continue to unfold. I would not assume the bank will retract what they said or that the employee could lose their job or put the bank on very shaky legal ground. Those words are pretty big and they sound like you are trying to comfort Zeek affiliates and the perpetrator is the NC SECU, not Zeek. I know you think it balances the critics but it also fuels unwavering allegiance to Zeek Rewards no matter how negative the story.

        What will it take to question Zeek Rewards in a negative light? I personally think it will take the government to come in and shut them down. Then the courts will have to come down with a final verdict. Am I correct on this assessment? I am trying to find out what type of actions need to occur for you and others to step back and question if something is wrong with Zeek. I thought what Dr. Keith Laggos and Randy said would make an impact, but it is still full steam ahead. Can you give a few realistic hypothetical examples of events that would cause you concern about Zeek.

        I e-mailed the NC SECU employee again as to why he said the company is fraudulent. What was his source for making that claim? I will let you know what I find out. Also, there have been a few NC SECU employees' that have made a negative claim about Zeek Rewards. Those comments can be found on Oz's website.

        • Troy Dooly

          @Brad,

          You bring up a great point. If the NC SECEU had information of illegal activity, and they did not share it with the authorities, then they could be held criminal liable by the regulators. However if the employee is using subjective information, which seems to be the case, because he directed you to scam sites, then they can be held civilly libel to RVG.

          And, if they have turned over information to a regulatory organization, then that regulator would not want the bank to say a word, so they could gather more evidence of a purported financial crime against unsuspected victims.

          If he had directed you to the FTC site or any other regulatory site, then they could not be held liable because they would be providing information presented by a regulatory body. But to call out a specific company which has at this point not have any regulatory action taken against it, does leave the employee and financial institution open for legal issues.

          As someone who has been both the investigator and partners in a M&A firm changed with financial criminal activities (I was not involved, my partners served federal time), I do have a little insight as to how these situations work. And I would say there is going to be some fallout at the bank one way or another. Especially knowing that their phones have to be ringing off the hook right now.

          If I were trying to comfort affiliates, I would write a post on this issue, instead of just answering comments. Nope, in this case, Brad, made the right move in seeking additional information, but the bank message is convoluted, because on one level the bank states they do not know Rex is a ponzi, and on another level an employee sends folks to scam sites. Nothing to comfort from my side of things. Oz reported in a straightforward manner, and gave all the info needed.

          Perpetrator doesn't work in this case, because I do not think the bank employee tried to commit any crime or deception. I just think he used some very bad judgement and has left his financial institution open for a civil issue, and possibility put his job in reported. Some folks will still think Rex is a perpetrator of running a ponzi, but I am not sure anything will change the way either side feels about that.

          Now I know you are busy, and may not have had the time to watch earch video and read every word I have written. If you had the time you would know, I have never backed away from the critical issues facing RVG. And in a few cases have been a leading voice inside the network marketing community for them to make changes.

          So negative light, probably never, critical light… everyday!

          Even if some regulator comes in to investigate the unique bid auctions or Zeek specifically, I will still not see any of this through a negative light. I will continue to report all sides of the issues just like I do now.

          But since I have already said many times what I feel will happen, you should already have an idea of which regulator I feel will move first, and which regulator I feel will implement the rightest regulations.

          Why would what Randy or Keith said make a difference. Randy is protecting the MonaVie database, which is his responsibility, and Keith is building his plan B, Lyoness, which is his right. So both have some pretty biased reasons for making public statements.

          Now, Len Clements, has not skin in the game or personal agenda, so when he comes out with his review, then I am sure he will bring some new insight that some of us may not have realized, or thought of.

          Brad, truly it seems you just have not had a chance to really step back and fully understand all that I have said and written. There have been concerns from day one. And each time I bring up a concern to the leadership, they check with their legal and compliance counsel and changes have been implemented, or are being implemented.

          I have never turned a blinds eye, I am just willing to dig a little behind the scenes to find out what is happening and communicate it the best I can. That is why when an affiliate asks to see the emails I post them. When the hard questions are asked I try to find the answers. So, the reality is my reporting will not change at all.

          Now, if I learn Paul Burks, has disappeared and Greg Caldwell found that the bank accounts had been emptied before he left town and all the cash converted into Bearer bonds, then I will become concerned. If my bank contact calls and tells me, Paul just closed all the accounts, I will be concerned.

          But as long as Greg Caldwell is in change, and is hiring the right people to finish cleaning up the loose ends, I will not be concerned, even if and when a regulator coming to investigate the business model.

          My concerns are never about a regulatory changing a company with anything, it is if there is enough evidence for a conviction of an infraction or crime. Many great folks and companies have been charged by regulators, and are found not guilty. I still beleive in our justice system in the USA, even though it is not perfect.

          Brad, please keep us updated, and when I heard back from RVG, I will post their information.

          How do we know those are real employees from the bank at Ozs site?

  • Jeff B.

    Troy,

    Correct me if I'm wrong but isn't the FTC treading on thin water with over-regulation and hints at shutting down penny auctions? If they were to say "penny auctions are now illegal" wouldn't that make all auctions illegal? There are thousands of auctions held throughout the country where you have to pay thousands of dollars just to have a seat and participate in.

    Shoot, if I want to put my name in a raffle at the state fair I have to pay $20 to get the fair first to even be able to play. Would that be illegal also? We have a silent auction at my work at times…would that be considered illegal? The list could go on and on and on.

    The FTC could actually be sued if they were to do something like this in my opinion. Plus, if the FTC is "secretly" sending memos out to banks to say "don't do business with penny auction companie" that I feel is a serious infringement on the rights of a private company.

    In addition, if banks are just saying "xyz" company is fraudelant and they will not do business with them then don't they, by law, need to state exactly how they determined a business was fraudelant? Its scary to think that a bank could potentially put a business out of business because they just don't like you.

    It boogles my mind why the FTC would behave in such a manner, especially since the tax revenue generated from affiliates would be significant. This Big Brother crap has got to stop at some point.

    Just because the internet makes it hard to determine what a real customer is because you can't physically see them doesn't mean they are not real. Plus, this whole crap about being a Ponzi scheme is irratating to say the least.

    There is a $10,000 cap for lifetime that an affiliate can put into the business. I've never heard of a Ponzi scheme that had a monetary cap. One of the big reasons that a Ponzi scheme is a scheme is that the people who put the biggest amounts of money in, get the most in return and wipe out the little people.

    I don't know if its possible but Zeek should consider opening up its own bank if the credit unions and big banks are playing hardball. Then many issues would be resolved.

    • Troy Dooly

      @Jeff B,

      I personally feel the SEC and the FTC are reviewing the whole unique bid auction niche to determine the best way to suggest to Congress how to regulate it. As you stated there are thousands of auctions going on and huge income being earned at both the company level and the individual level. So instead of outlawing the auctions, it makes far more sense to figure out regulation to bring in tax revenue, without raising taxes. I think the first regulation will come from the states where each auction house is located. In the case of Zeek, I figure North Carolina will issue a CID (Civil Investigative Demand) Letter, like they just did to the billion dollar energy company Duke Energy. Once their investigation is over, they will fine RVG, and then present regulations to the State Legislator to regulation the penny auctions in their state. Oklahoma will more than likely also follow this direction.

      With State AGs looking for ways to protect their citizens, and the State Legislators looking for ways to generate tax revenues without taxing the citizens, it makes sense to me. Plus, if what we have heard is correct about the size of penny auctions, Zeek especially, then it would seem that someone close to a regulator or legislator is already enjoying penny auctions or Zeekler specifically and would be sharing why it would be a political nightmare to outlaw them.

      Since we know Federal Legislators like Harry Reed and others have made it clear they are pushing to approve State Regulations on online Gaming instead of outlawing them because of the huge tax revenues they will bring in, it makes since all unique bid auctions will follow suit.

      You brought up some great points an insight to think about.

      Livng An Epic Adventure,
      Troy

    • Chris

      Jeff, I agree with you a 100% its a very lucrative business, why would the State, and Federal would ever have an issue with Millions, maybe Billions, in Revenue to the industry here in the U.S, that would be "INSANE".

      Majority of the actual Penny Auction participants are from other countries. So we will lose the Business, Revenue here in the U.S to other countries whom will only benefit from our Countries Businesses huge success, and former Revenue. Not only that, we will be shooting ourselves in our own Feet for a chance of a recovery towards our countries recovery.

      I also agree that having a cap @ $10,000. also reveals that NO Way Can this be a Ponzi, Nor a Pyramid Scheme. A Ponzi never has a Cap, they cant last @ all with a Cap as low as low as that , and a profit sharing salary of what we have been rewarded. It's just not sustainable. Troy, what are your views on this topic?

      • Chris Bailey

        @ Chris

        How many ponzis have you observed and studied?

        The majority of the online HYIP/ponzi world isn't targeting Madoff type clients with millions to gamble.

        Ponzis like the one Madoff ran rely on a few hundred huge investors.

        The online HYIP/ponzi world relies on thousands to hundreds of thousands of little spenders.

        Having a cap on what people can spend does not prove anything either way.

        Nor does a cap prevent ponzi owners from making exceptions behind the scenes, letting people spend over and above the stated cap.

  • http://ValSmyth.com Greg

    Troy,

    How long do you think it will take before the FTC and other government bodies come in and truly investigate Zeek. As I have heard that its not a matter of if but a matter of when.

    I love Zeek but it seems that something is about to go down in Zeek town soon instead of later per Randy (unprofessional) Schroeder.

    • Troy Dooly

      @Greg,

      As I have said all along, I do not think this is a Zeek issue, or that the FTC or any other Federal agencies will investigate them specifically. So far, the FTC and SEC seem to have sent the few complaints they have received to the NC AG office.

      It is my opinion, that the NC AG will be the first regulatory agency to do any investigation. I feel they will do as they did last month to billion dollar energy company Duke Energy. They will issue a CID (Civil Investigative Demand) letter asking RVG to give them answers to specific questions. Once those answers have been returned, then the AG will determine if a hearing or site inspection is warranted or if they are satisfied with RVG answers. If the AG fines anything they do not like they will give RVG a specific amount of days to correct those issues. Once all is good, then the AG will fine RVG an administrative fine and finally the world will see if there was anything the AG thought should be changed.

      Now, back to the Feds. I do believe after the election, the SEC and FTC will present their finding of the Unique Bid Auction niche to congress to show that there is plenty of money flowing through the auctions to warrant regulation. There is a possibility that congress could place unique bid auctions inside the online gambling bill that will also be passed to generate a tax from all transactions.

      Now, there is also the possibility the Feds, will make stand along regulation also. And no matter what happens, there will based on the current Online Sales Tax Bill a good possibility that the states and the feds will also be able to tax each transaction which will also generate additional revenues for the states and Fed Gov.

      So, based on studying the current Bills, the latest moves the DOJ and watching the movement inside of the AG office, this is a professional guess as to what might happen. :)

      Living An Epic Adventure,
      Troy

  • Brad

    ZeekRewards News – Fanning the Flames

    http://zeekrewardsnews.com/2012/08/fanning-the-fl…

    • Troy Dooly

      Just took this live myself :)

  • Brad

    Is Zeek Rewards also going after Dr. Keith Laggos or is he just terminated?

    [14:06] The FTC has been taking action against all 32 penny auction sites. They put out letters to the top big four banks asking them not to, to encourage them not to open up accounts for penny auctions.

    They call them illegal gambling. Their idea is that you buy bids, you place bets with those bids and only the winner gets the pot or the prize, and the rest of the people lose their chips or bids.

    So they (the FTC) consider it to be illegal gambling online and they’re trying to stop it.

    They (the FTC) sent notices to all the major (payment) processors in the US (telling them) that they do not want them to process a penny auction site as of July 5th. And most of them quit processing, if not all of them, on July 5th for penny auctions. Won’t do them, closed the doors – the rest of them will go offshore.

    [24:52] I can’t stop the FTC but I can have plan B for Zeekler in place when the FTC does take action.

    I don’t want to be alarmist but I know what’s happening, I know what’s coming down the pipeline, we’re taking action to defend ourselves, to protect ourselves and our families.

    I’ve been teaching this for over forty years…and if you’ve been in the industry for long you know what I’m talking about and won’t fault me for saying that, ’cause you know I’m right.

    • Troy Dooly

      @Brad,

      It is my understanding that an investigation is going on, and that legal is still gathering information.

      Outside of that I have no clue, because Greg Caldwell will not talk about the situation.

      I was contacted by Ken Kelby that he would like to interview me in the near future.

      Living An Epic Adventure,
      Troy

    • Dan M

      Yeah good on you Brad. Why not just quote the whole recording again.

      • Brad

        I just find it interesting the Zeek commented on NC SECU but Dr. Keith Laggos did not receive the same type of treatment. He made some pretty big claims and he obviously has inside information on the Zeek and has significant industry experience. Don't you find that a little odd?

        • Troy Dooly

          @Brad,

          Interesting question, which does cause one to pause and give it some thought.

          1. It is easy to get to the bottom of a situation where there is a trail to follow. In this case an email thread seems to have been presented back to financial institution and the VP made a quick call on what had happened and corrected the situation.

          2. In the Dr. Laggos situation there are two specific situations going on. First is the acquisations that a federal agency (FTC) is going to make some move on Penny Auctions. Keith was very clear his info came from 3rd party sources who owned another unique bid auction company. It had not come from any regulator or the agency itself.

          3. Keith was clear he had presented his claims to Zeek corporate (and to many of us back in June prior to the first date of July 5th he spread around). I know that in my specific case (I can't speak for RVG) I followed up with the person Keith told me he had learned the information from and found that the individual had not made those claims, nor had they changed any of their business model. And they are growing even faster today than they were in June.

          4. Keith alleged that some FTC regulator called the four biggest banks in the US and told them (or strongly suggested) they stop doing business with penny auctions. Wells Fargo which is one of the largest banks in the USA, is currently the main banking partner for QuiBids and also does some of their credit card processing based on the information I have gathered online.

          5. So since Dr. Laggos's allegations are all 3rd party or verbal in nature, it is much harder to verify and validate. SO it does not surprise me that RVG would take far more time to investigate his claims, and what possible violations might have taken place, if any before they make any statements period.

          6. If I were a betting man :) , I would bet that sometime in the near future more will come out on the Dr. Laggos issue, as well as moves from the NC AG, and the Feds will move to regulate penny auctions individually or under some current Bill like the Internet Gaming Bill or the Online Sales Tax Bill.

          All the moves I predict will strengthen the niche, and give more protection to the Bidders from any company who might not operate legal. And it will provide some rock solid revenue to the cash strapped States and Federal Government without either level of Government having to tax people directly.

  • Brad

    It seems like Oz, K Chang, and Len Clements are worried that Lyoness could be a pyramid scam and unregistered security. On September 21st Len wrote, “This invokes the same concern we had about Zeek. I wonder how many US reps in Lyoness understand this, and how many are going to have a “WTF!” moment come next January.”

    Do you have any thoughts about Lyoness?

    • http://Beachsideceo.com Troy Dooly

      @Brad,

      I was strongly critical on Lyoness when they first entered the USA because they were 100% illegal. However, since that time, they have made several changes to the compensation structure in the USA. I still feel there are many red flags, due to the fact the business model in and of itself could be questioned by regulators. I am not sure that regulators would shut them down, but the negative publicity could cause so much trouble, they would not gain the same momentum they have had.

      I can say they do not fit the US model of a direct sales or network marketing company, and that in and of itself, does cause issues. When a foreign company comes to the USA to do business, and do not fit a known or defined business model, it causes issues. They hired Grimes & Reese to help clean up the issues, so we will see where they go.

      I do think the compensation plan is a bit cumbersome and that the average distributor, and maybe even the most competent networker might have issues explaining it to regulators in a way that it would be seen as compliant.

      I can say I do not think a company commits to a long-term lease on an office building, if they are not committed to building a long-term business in the US. I will be watching them in 2013 to see how things go.

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