Breaking MLM Penny Auction Update: Randy Jeffers Launches Bids That Give To Support Underprivileged Children

Randy Jeffers is not new to Network Mareketing. As one of the most colorful founders in current MLM history, he has experienced both ups and downs. Randy rose to fame by launching one of the fastest growing network marketing companies in history Destiny TelCom, just to see it fall when regulators came busting through the doors.

Randy Jeffers Official Website

After fighting off regulators on every front, all that was left was Randy’s drive to build another company. Liberty International was born, and for years Randy run under the radar, creating a very successful company, with thousands of networkers earning their products and services for free, and several hundred became financially independent.

In 2009 – 2010 during the MLM Wireless Wars (you can read more on this site), Randy Jeffers and his team launched WOW Mobile, quickly taking on all the other pre-paid MLM wireless companies and dominating… for a short period of time. Soon, it was exposed that WOW Mobile through no fault of their own (except Randy didn’t see something in the fine print of his agreement between T-Mobile and himself), that both he and his LLC were responsible for all international calls maded by customers and reps of WOW Mobile. Long story short, Randy bankrupted the company, and distributors purport they are still owed missions in back commissions.

Randy, went on to help launch Liberty International network, and went back to creating a solid program, where thousands get their products/services for free, while a few long time leaders are still enjoying financial freedom.

Which brings up to the current MLM trend Unique Bid Auctions aka Penny Auctions aka Reverse Auctions. DubLi Network is the first such company to launch in the USA back in 2009 – 2010. DubLi slowed down to correct some of their early issues, and then focused on international expansion.

In 2010 Rex Venture Group, launched their penny auction house Zeekler, and in 2011 added Zeek Rewards, their Network Marketing affiliate organization to help market and advertise Zeekler. In nine short months, they quickly became the fastest growing, and largest MLM organization of any first year startup (source Network Marketing Business Journal) in modern history.

BidiFy launched in 2012, to become the first competitor of Zeek Rewards and is quickly coming on strong internationally. They have just launched their new penny auction house Bidsson.com and are growing steady in the USA as well as worldwide.

Today, July 4th, 2012, Randy Jeffers has opened for prelaunch his “Bids That Give” penny auction house and MLM Income opportunity (although Randy Jeffers is stating Bids That Give is NOT mlm).

Next week I will be doing a deeper investigation into the whole business model. But I do caution anyone who is looking at Bids That Give to fully understand a couple of concerns I have.

1. Although I personally do not think penny auctions fall under the U.S. Code of what is defined as a direct selling company, at this time that is the only reference point the regulators have to work with, and if any penny auction house is stating “we are not MLM” that is a red flag to be concerned with.

2. History has proven that when a for profit company (with a compensation plan) leads off with “giving to the needy” the SEC, FTC and State AGs feel the hair on the back of the neck’s start to prickle. Several very successful networker marketers have tried this in the past just to have regulators get involved. Randy is a smart businessman and has access to great legal minds, so only time will tell, but this is a red flag concern.

If you love the unique bid auction niche, and you are reviewing Bids That Give, just realize this is a young niche and is still very vulnerable to regulatory actions.

I have always enjoyed speaking with Randy Jeffers and have found he doesn’t back down from the hard questions. I look forward to chatting with him in the near future on this new venture.

Plus in seeing some of the growing pains the other auction houses have or are going through, just be very careful.

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35 thoughts on “Breaking MLM Penny Auction Update: Randy Jeffers Launches Bids That Give To Support Underprivileged Children”

  1. While helping poor people and especially children is an admirable trait, it is morally reprehensible to operate a web site with the words: THIS WEBSITE IS Presented BY (the person’s name). In this case on the BIDS THAT GIVES website in question on this blog, a website was claimed to have been presented by a relative of mine who has been deceased many many years. In no way could this relative have engaged in the ploy of said website. This Randy claims to be a Christian, yet he is the very one using deceased names for his personal gain. He has himself and his lies and moral scruples to live with and is definitely not trustworthy.

  2. This was a great eye opener and also food for thought.

    I am not sure how the business model is classified as a Ponzi. I hear you loud and clear when you state that the potential decrease in ROI can lead a company down the road to collapse. This is true for all business, no income coming true the door and doom and failure are potential options.

    I am sure that you are aware that many companies have there doors open and pay bank notes and are in outrageous debt and yet their doors are left open. In fact not only companies but also countries. I truly believe that certain companies are being isolated for various reasons and opinions held by persons or groups. I think all companies should be upfront with their books.

    However what I think does not matter much, this is not what occurs for many companies who don’t provide or share all relevant information. In fact many are so good they have all the paper work ( fraudulent of course ) to make a believer out of the hardest and most diligent users / investors etc. When you look at multiple facts eg, Banking , Housing, The Ernon’s of the world, the great wealth created and lost on the stock markets, and countless other areas / stories. We have situation where multitudes have made money and have been paid to follow basically the job you are given, while the policy etc set up to ensure that the ROI decline never occurs, seems to fail. I personally can’t discredit or blast anyone until I at least have access to all or a great deal of the facts involved.

    However from what I was told and shown by various zeek affiliates, they earned income to provide for their families with a legal company that disclosed all that it was doing and the decision was left up to the individual. I had not seen anyone put in their money and not get paid, that is until the shut down. Now I have heard it said it would collapse, did not see the facts or data to show this, But to pay out so much and to have so much cash on hand did not strike me like a Ponzi. Sad to say many companies that are around now should also collapse, they have great debt and liability, yet run daily. I would love to hear from you and have you share your views. Also a few other industry I would love to look at are casinos, lottery, alcohol, the stock market , and housing and also get your views on these industries as a whole and also specifics. Your post got me thinking many questions and opinions ,thanks for the great info on your post.

  3. This is what's wrong with Randy Jeffers Troy. He did the same thing with Destiny. He's constantly shutting companies down and then starting up again with a new name (same comp plan though). But he leaves the reps in the lurch all the while claiming, "It wasn't my fault – it was the feds." "It wasn't my fault – it was T-Mobile."

    I appreciate you wanting to see the best in people by my Lord, how blind are you becoming Troy?

  4. @Troy

    Fine, let me be the first one to question his charity work. The charity is very little transparent.

    Charity foundations is a very commonly method used to enrich the founders themselves, while a small percentage goes to charity. They are also commonly used for tax evasion purposes, and as a method for transferring money around the world with very little control from authorities in the countries involved.

    Since his charity was very little transparent, I'll be happy to be the first one to question it.

    What I expect to find of transparency in a charity is registration details and financial details, to show people who have decided to donate money for the first time how their money will be used, and the percentage of the donations that goes to administrative purposes, building up funds, investments — and the percentage that will reach the children directly.

    Good charities are very transparent about details like that, if people asks about them. Bad charities will instead focus on emotions, and will have very little other factual information to offer other than how important their work is. They won't provide you with details or financial data.

    And LibertyKidz clearly belongs to the last group when it comes to transparency.

    So, now you can forget your "nobody has ever questioned" statement, since I have done it. So in the next review you can write "at least one person has asked critical questions abouit his charity work, and pointed out the lack of transparency to be a huge red flag".

  5. When the hundreds of people in my old down line are paid the money owed to them then I will believe in the new venture. I am no longer with the company. They chose to terminate me. I chose not to fight it because I no longer respected them enough to work with them.

  6. @Aaron,

    I can try. I have not talked with him in a year or so. Catching up could be fun.

  7. Do you think you can get ahold of Randy and do an interview with him Troy?It may clear some of this up.Maybe let Ben interview him,lol.

  8. Why is it that all of this bad stuff happened to Randy and yet you don't hold him accountable? With all of these bad things happening throughout his "career" there is always one person at the scene of every crime – Randy.

    No, Destiny Telecom was not a success. No, Liberty International, WOW Mobile was not a success. A lot of people were hurt by his lies. You say he wasn't lying, I disagree. I specifically told people that WOW Mobile had contracts in place to resell wireless service. They did not. In the process he mislead a lot of people into thinking WOW was something it wasn't. That cast a negative shadow of the niche of the MLM profession that I am proud to represent.

    And just to clarify, it wasn't WOW mobile that started the wireless craze. Lightyear launched in July of 2008. WOW mobile jumped on the bandwagon a good year or two later. And let's not forget that Randy wasn't able to follow through on any of the promises made by WOW mobile. It's just too bad people didn't take the time to do some homework first. They could have saved themselves a lot of time and money.

    And I listened in on some of his company calls when he was building WOW and there were many references to God. The fact that he's now using children to gain people's trust is just disgusting.

    There is nothing wrong at all with helping children. My wife and I are HUGE supporters of St. Jude's. But we don't use that in our business presentations or marketing materials. Here's my suggestion for Randy: Create a company based on a quality product and make it your mission to help people be successful, period. Don't use children as your pitch. Don't make promises you can't deliver on. If you want to create a fundraiser where team members can give on their own behalf then great, go for it, but don't use it as a sales pitch.

  9. Wow – alot of anger out there, sounds like a "presidential campaign" Has anyone visited
    http://www.LibertyKidz.org and seen all the work and money Randy and his family have done to build orphanges and schools for kids that have "nothing", no mom, dad or roof over their head or food in their belly.

    Reps at Liberty were given the opportunity to fill out a form when their phone service was cut off to get their money back, most reps could not be bothered.

    Ask the people that indicate they lost money when wow mobile was cut off by another carrier, how much money they made before wow mobile problems,,,,,,alot.

    We have a large team in Liberty and continue to get cheques every month, and we can cash them.

    Yes I agree——–do your homework.

  10. Hey Guys, there are many established ethical charities for children already here's just a few:

    Shriners Hospitals for Children http://www.shrinershq.org

    St. Jude Children’s Research Hospital http://www.stjude.org

    Toys for Tots http://www.toysfortots.org

    Make-a-Wish Foundation http://www.wish.org

    March of Dimes http://www.marchofdimes.com

    I don't think any of these charities have a penny auction, but I'm sure they would appreciate any support you could give them.

  11. Ben

    It is funny to me that you would be so harsh on Randy considering the fact that it was his innovative thinking that brought so much interest to the MLM/Wireless Service Niche. I do not believe there would be no three and free with lightyear had it not been for WOW.

    Even though WOW kicked your butt in the short term in the long run the competition helped lightyear produce a better product and service plan that I am enjoying as a customer. I never would have gone with lightyear had it not been for WOW. Lightyear had their act together and it showed, they came through all of that and are the better for it.

    As for Randy using "GOD" to promote his business I was with him all the way through the WOW mess and I don't remember Randy ever saying God told him to do anything. Randy is a person of strong faith and I remember him having to lean on that faith when all of this happened but not using it as a marketing tool. WOW failed because of a combination of poor planning as well not understanding the cell service industry. He was trying to sell a prepaid plan on a post pay chasis and he should have forseen the problems that were coming.

    But to attack him personally because of his business failure is wrong unless you have never failed at anything yourself. You have every right to not have confidence in his business leadership and to warn people based on facts that you know to be true. But to say he is using kids as bait not knowing what is in his heart just makes you sound bitter.

    If we look at the facts we will see that LIberty International operated for ten years before WOW with no signifcant issues and he paid his distributors on time and never had a problem shipping out product.

    Destiny grew to over 1 million distributors in 18 months before it was shut down. Prosecutors said it was because his pay plan was based on recruiting people and not on product sales (how many times have we heard that) he won that case hands down and was able to prove his case. So is that supposed to make him a crook ?

    You need to look a little more closely at all the facts. Anytime I join a Network Marketing company I go in with the understanding that I could lose money should some unforseen event arise and the company should go out of business. It could happen with lightyear as well as any company out there.

    This is America where we believe in capitalism, there are winners and losers that is just the way it is. If Lightyear goes under tomorrow and thousands of distributors are displaced due to some unforseen event does that make you a bad person or a liar because you enrolled a distributor whose house is in forclosure and he bought into the dream that you were selling.

    Do I think Randy made some poor desicions, Absolutely, but do I think he is a crook, No Way. I admire your leadership Ben with Lightyear but on this point we are just going to disagree. I wish Randy the very best and I believe alot of children are going to have food on there table because of BIDS THAT GIVE.

    (Pardon all the spelling and punctuation errors)

  12. @Ben,

    Randy has run a Children's foundation for years, I assume the focus is part of his true passion in life. Although, I do not feel it is wise to lead off any income opportunity with an emotional plea for anything, I am just one opinion.

    On a more positive note, send me an email with the most current stats on Lightyear. It has been a couple of years since I did a review, and I want your perspective. I will add your info to the public info I collect.

    Living An Epic Adventure,
    Troy

  13. Why is it that Randy is always trying to use some emotional angle to build his businesses? Why use kids? When he was pushing Liberty Intl/Liberty Freedom/WOW it was all about what God was pushing him to do and how God was guiding him. Now he's using kids as his bait? After the trail of destruction that this man has left in the MLM world Troy I can't believe you're putting a positive spin on his latest deal. Wow.

  14. Troy

    Now would be a good time for zeek to take its program to the next level. It needs to distinguish itself from this BidsThat Give venture. Zeek previously announced that it was launching some changes on July 1 (new qualifiers etc). Would you be able to get a definite launch date on these changes. I think this is now more important than ever.

  15. Thanks for the article. There are so much helpful info on Randy Jeffers. Thanks for the info.

  16. Randy had a very successful run for ten years before the WOW debacle. I have never missed a single check as long as I have been a distributor and it has been for three years even through WOW. I am not making excuses for his lack of due dilligence when he tried to tap into the cell phone industry. He did not have a proper MVNO agreement with t-mobile and it bit him in the but and destroyed his company. But that does not take away from the fact that Randy has been involved and owned several succesful business ventures in the past. He is a very agressive business man an innovator and he has a huge heart for charity. I have read some of the comments about Randy using this as front for a scam and this simply is not true. This may not be an opportunity that you would want to be involved with because of your lack of confidence in Randy's leadership ability or the fear of regulatory problems but to question his motives in helping the children is ludicrous. If you know enough about him that you could pass judgement and call him a worm then you are being disingenuous because noone that knows him would ever say that he does not have genuine love for the poor and helpless. Despite his failures I wish him the very best in this new venture and I also hope that millions of lives will be changed as a result.

  17. Troy

    whats new with Zeek are you going to make some more

    video interviews with the management ?

    I haven't seen anything new from them for a while.

    Please give us a little update.

    You are the only one that gives me a prompt response to my questions 🙂

  18. @Troy,

    Maybe the reason that known fraudsters such as Jeffers and Frode Jorgensen (Bidify) are using MLM Penny Auction is because the entire business model is a Ponzi with a clever retail disguise? Flys are attracted to stink no matter how much perfume you spray around the stink.

    You have said you believe the legal uncertainties with Zeek Rewars is around the unique bid auction, itself. With Zeek, perhaps the owners did not intend to run a scam (whereas these others know they were building one), but intent matters not if the business model requires members to pay other members.

    Perhaps the answer is much simpler than that? Simply put, it is mathematically impossible for retail penny auction revenue to pay every increasing ROI on bid purchases. Yes, Zeek says the profit share is "not guaranteed" but we all know when the daily profit share drops below a certain ROI the entire business collapses because there will be a "rush for the exists" and no new money will be put in (why would a new member join if the daily profit rate has dropped below a break-even or a reasonable risk/rewards?)

    I submit to you that if the penny auction business itself were proftiable, these companies could use a more typical affiliate revenue model such as pay % on direct sales and then add MLM for sales of your downline. The fact that Zeek, Bidify, Bids that Pay all require an "initial purchase" (I'm trying to avoid using the "inv*****nt" word on your blog), is the first key indicator of a Ponzi.

  19. Troy,

    While I am personally not a big fan of the penny auction/MLM combo, I do have several friends and associates who are making tens of thousands of dollars a week with Zeek Rewards, so perhaps I missed something here. To me it just seems like these programs will end up having a short shelf life when it comes to creating a truly life long residual income, when it comes down to that… short term rewards don't matter.

    I just don't know if I would want to bet my reputation with my team on these penny auction programs, as a responsible sponsor and leader it is our duty to look out for our team's best interests… even if they may not see what we see or agree with us at the time.

    Vision is what is needed when you lead your team, not short sighted profiteering, I hope that all of these programs are able to stand the test of time and not leave a bunch of distributors blowing in the wind.

  20. I'm thinking it will be the abused Puppies Penny Auction next, this is exactly the kind of thing that keeps a dark cloud looming over the mlm/direct marketing community as a whole.

  21. @Amy,

    I can fully understand your anger.

    For years Randy has been involved in helping kids worldwide through Liberty Kids his foundation. His family has a long hisory of charity work, and although he has had a questionable run in network marketing, no one has ever questioned is charitable passions.

    You make some very sound observations and ones I have been wondering about myself.

  22. @Amy,

    I agree that if the MLM Penny Auction is not careful and doesn't watch itself, then there is a good change the regulators will shut down the whole thing.

  23. TROY I JUST CANT LET THIS GO!!!

    Its going to be a company like this that causes

    The hammer to come down on all the other companies

    I was considering zeek now ……….

    Oh why did this worm crawl out from under its rock

  24. What a ooooooohhhhhh I can't believe this guy

    Really!!!! After screwing so many people

    Not to mention bringing in criminals and

    More to work with you at the end of wow. I can't believe

    He has the stones to say its about kids.

    Troy this is wrong you shouldn't let people like this

    Exploit kids. I didn't see that video name one legit charity.

    What's next Troy we going to resurrect that chris character

    And the global verge guys.

    I bet you troy it happens. Watch it will be to support the troops or to help old people.

    You shouldn't give these guys a way to get attention

    That video you posted will hurt a lot of people Troy.

    Take this as a victim of Randy, Global Verge, and Chris

    This is bad news.

  25. No Thanks!!….Seems a little Sketchy and Pathetic using those poor Underprivileged Children as a cover to try and make a buck…..Give us a break.

    Beware the Wrath of K. Chang…lol.

  26. What The….??!!. You''ve got to be kidding. Who is this Randy clown?

    @K Chang…well the upside is you have a new bone to chew on 🙂 🙂

  27. No way after Liberty Freedom. How many people did they #*&@???? They took the money and ran. They should be embarrassed to hide behind children.. Everyone look at Randy's history. BAD BAD and very BAD. Do the research. Randy how is the WowTV going?? So many lies. JR,MF and WW how can you do this again??

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