Breaking Zeek Rewards News: Rex Venture Group COO Responds To NCSECU

This week an email was reticulated from an employee of North Carolina State Employees Credit Union stating Rex Venture Group, specifically their marketing arm Zeek Rewards was a fraudulent company. Late yesterday Friday August 3rd a Senior VP of the NCSECU sent a statement rescinding that statement. Today, RVG Acting COO Greg Caldwell Responds.

Zeek Rewards News

RVG Acting COO Greg Acaldwell Responce

[quote style=”1″]

Rex Venture Group, LLC, discovered an internal memo circulating in the North Carolina Credit Unions that was at once unfavorable to Zeek Rewards and false. Unfortunately, not only was it being circulated internally, but a number of tellers were distributing it to Zeek Affiliates attempting to access their personal accounts in order to get a money order or cashier’s check with which to purchase bids.

(Essentially, the memo was a rehash of a number of the unsupported criticisms we’ve already seen posted on the Internet by self-appointed critics with no standing in the professional community. In other words, it was completely false.)

Zeek Rewards policy is to act quickly to support the Zeek reputation and the future of your business. Upon learning of the memo slandering Zeek, I called the head of Risk Management to track down the origin of the memo. Upon being discovered, the person responsible admitted he really didn’t know anything about the laws regarding direct selling or how to identify a legitimate network marketing company or opportunity. Like all our critics, he was behaving unprofessionally by acting on false information.

We intervened, shut down the misinformation at its source, and that would have been that…were it not for the inappropriate action of one of our own Affiliates who posted the memo online where it has been picked up and is now being used by our critics.

Sometimes, folks, we are our own worst enemy. But there are several good lessons to be learned:

1. If you have a question about some rumor or something someone else is alleging, DON’T fan the flames by retelling or publishing the rumor! There are channels to follow. Check with your upline or call Affiliate Services. Several responsible, concerned Affiliates brought us copies, along with the names of the tellers and the branches of their Credit Union where the false information was being distributed. And because they followed channels, our attorneys were able to take action on your behalf and accomplish precisely the end we intended.

2. Let the home office do our job so we can better help you do yours. We know there is a lot of “chatter” out there. That’s why we have professionals working 24/7 to do everything technologically and legally possible to support you. I won’t pretend we will be able to stop all the ZeekHaters—even companies like Apple™ and IBM™ can’t keep negative comments off the chat boards, and major MLMs like Herbalife® have many more negative comments on the web than Zeek has (Herbalife stock plummeted by nearly 30% just a month ago because of malicious rumors!)—but we have campaigns underway that I’ll be telling you more about in the near future that will begin getting the Zeek word out. And you will see the Internet atmosphere beginning to improve.

3. It’s counter-productive for Affiliates to fan the flames of issues that are the proper responsibility of Zeek Corporate…and it’s a violation of the Zeek Policies and Procedures for which violators will be held responsible.

Zeek Rewards has become a very large company getting ever-increasing attention. We always will fulfill our professional responsibility to you, and every Affiliate must follow professional protocols and not interfere with Corporate responses. When Affiliates act outside their authority, the results always are bad. When we all do the jobs we do best—whether in the home office or as Affiliates sharing the message and opportunity of Zeek Rewards—the outcome inevitably is GREAT!

Your partner in success,

Gregory J Caldwell
(Acting) COO
[/quote]

First email circulated from Jeremy Pitman employee of NCSECU

[quote style=”1″] Mr. (edited by Troy Dooly),

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!

(Links Removed By Troy Dooly)

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

Follow By NCSECU Senior VP

[quote style=”1″]

Mr (Edited By Troy Dooly)

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
[/quote]

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68 thoughts on “Breaking Zeek Rewards News: Rex Venture Group COO Responds To NCSECU”

  1. I love zeek, I hate MLMs with a passion, but when I found zeek I am getting the “love back” for MLM. Yea ZEEK has some “glitches” right now and are working thru them. I only got in a month and a half ago and have 24k points built up and signed up with a ewallet NXPAY and set my acct at 0% last week for a few days and sent myself $500 just to see if I would get paid and I did without a problem. I’m just pissed I did that to take away from my earnings, but I had to see it for myself from hearing the stories of others not getting paid. GO ZEEK!!!

  2. '' What license are you referring to? ''

    He must be thinking of STP's recent challenges …….

  3. Mike and Mikey – I subscribed as a Diamond on March 29th. I was dropped down to Free affiliate on August 2nd. The day before I was dropped, I set up my bid repurchase to 70% so I can get one day of daily awards to add to my available cash so that I could pay my July subscription. I was a few days late but Zeek has never dropped me down for being a couple days late. Like Mike said you have 30 days to pay your subscription.

  4. @Anonymous Watcher,

    The BBB is not ever a worry at all. They are the most shady of all organizations. If the original founders were still alive they would have a heart attack knowing the extortion this organization tries to pull on folks. Check out this investigation http://www.youtube.com/watch?v=Yo8kfV9kONw

    Now as to the moves on Center Street. The original building was not owned by RVG, and when the owners lost it to the bank, RVG moved down the street. It is good to see that there is public info to show this move.

    As for the Nevada address being listed as the register on the sites. That is pretty standard across the board due to the fact, if folks have issues when using the websites, and decide to sue RVG, the lawsuit would need to be filed in Nevada before anywhere else. RVG is domiciled in the State of Nevada.

    If you research most fortune 500 corporations you find they are incorporated in Delaware, but are located in different states across America. So RVG being domiciled in Nevada is not strange at all.

    Moving down the block is not a strange deal. And now that they have bought the new 27K sqft building across town they will have a new address soon.

    Living An Epic Adventure,
    Troy

  5. Eddie , i was worried about the same thing until today. Here is what another member told me , it makes total sense. There's no potential gain for company to do this.

    yes, it's correct that u would have missed out on earning a daily % on a higher pts balance had those pts been added on time. but the 90-day clock does not start ticking until those bids are given away. once those large # of combined bids are finally given away and are added to ur pts balance, u would now be earning on a MUCH higher pts balance anyway. it does make up for the lost days.

    using the example below (assuming 1.5% for 3 consecutive days & 100% repurchase):

    bids for 08-03 = 150 (10,000×1.5%=150)

    bids for 08-04 = 152 (10,150×1.5%=152)

    bids for 08-05 = 154 (10,302×1.5%=154)

    if the above bids were given away on time:

    150 bids for 08-03 would earn for 90 days & expire on 11-01 (day 90 pts=572)

    152 bids for 08-04 would earn for 90 days & expire on 11-02 (day 90 pts=580)

    154 bids for 08-05 would earn for 90 days & expire on 11-03 (day 90 pts=588)

    ——

    TOTAL=1740

    if the above bids were combined & given away late on 08-06:

    150+152+154=456 total bids would earn for 90 days & expire on 11-04 (day 90 pts=1741)

    so u can see that it comes out to the same result in the end. u can't look at it from the point of view of just the first few days. u have to take into account the entire scope of the 90 days.

    that's what i meant by u r not losing $ just time. if the bids were given away on time, then u would have earned on them for 90 days and they would have expired in 3 consecutive days as opposed to all expiring in one day. either way, same result.

    Please forward this to whoever you know that is involved in this business.

  6. I agree with you on private registry as being shady for a business like this (which is still shady.)

    On more shady notes, the BBB and other websites shows RVG (rex venture group) having its business address here:

    803 West Center Street, Lexington, NC 27292

    Or is it here?

    500 East Center Street

    Lexington, NC 27292

    336-243-1123

    Now after looking at the whois for zeekler / zeekrewards, the domains are now under RVG in Las Vegas:

    Rex Venture Group LLC

    7477 W. Lake Mead Blvd. Ste 17

    Las Vegas, NV 89128

    I know Nevada has better legal protection for an LLC, but isn't it very shady for this company to shift their business address around? Also, does this mean RVG is now newly incorporated out of Nevada, and is no longer attached to the RVG in North Carolina?

    Why wasn't this change of address announced anywhere? Is Paul living it up at the casinos now?

  7. Eddie- My comments were not aimed at you at all but rather to a general misunderstanding about how the system works that I notice in the forums by those with less exposure/experience. Obviously you understand it as well as I do, and my post came in out of context in the conversation.

    I too have had to go in and manually give away bids lately, but I'm not seeing the greying out that you're referring too. Will be interesting to see how this gets resolved, but I continue to have confidence it will.

  8. @Corey,

    I think you will have to click on the upgrade link in your back office were you can upgrade back to diamond. You have to manually pay your subscription every month. If you don't you get down graded to free. I think they give you 30 days before it happens though. Hope this helps.

  9. @Living The Beach Life, thanks for understanding my problem and more importantly, thumbs up to you for understanding exactly how Zeek works!

  10. @Greg,

    I understand exactly how Zeek works. I've been in Zeek for over a year.

    Obviously, what I'm trying to say is not getting over to you, but thanks for your explanation.

    @Living The Beach Life, you do understand what I'm saying. But I have tried to do that. I have a lot of customers that are no where near getting a 1000 bids and they are all greyed out so I can't give my bids away manually. Trust me, that was my first thought. This is happening to a lot of people. I've even suggested this to most in my down-line, but they are in the same situation.

    I even went and got more customers, but by the time I logged into my account to give the bids away, they were already greyed out, so I couldn't give them any bids either.

    Bids are suppose to be given away automatically but my understanding is that Zeek is aware of the glitch in the system. Be nice if they'd fix it. But thanks anyway!

  11. @Corey
    You probably are over 3 months on your subscription renewals. When the processors stopped working, affiliates were required to go back and manually catch up their subscriptions with e-wallets, credit cards, or funds set aside with "cash available" in your RPP. I'm sure it is going to be a long line and hassle to get reactivated. Reactivation instructions are in FAQ on your website.

  12. The RPP VIP point balance goes up only when bids are purchased, a real product, and given to prospective customers as samples. If you choose to not purchase bids, your point total will not increase. In fact it will likely decrease since points expire after 90 days. Points are tied to bids.

    A lot of people have a hard time wrapping their minds around this. Bids are a product. They are used constantly, and you can go to the auction site and watch it happen several hundred times/day. Zeek grew huge because they found a way to give out lots of sample bids through thousands of advertising sources around the world. Affiliate-driven traffic with a free trial for those thousands upon thousands of people who enjoy penny auctions.

    Since we buy and provide the bids to be given out, we are given a point for every one. If we don't buy bids, we don't get points. In return, Zeek pays us up to 50% of its daily profits on the points we have. If we use some of those earnings to buy more product, i.e. more sample bids to drive more customers in, then our point total goes up. If we don't, the point total stays the same and eventually declines as points expire after 90 days.

    I know this is elementary to most everyone here. But reading some of the comments it seems that many don't get that points are tied to a real product that people use, and the company thanks us for providing the bids by sharing profits through a point system. Heck, I give out free samples in my office but the manufacturer never shares anything with me except more samples. Doctors give out free medication samples and get fancy dinners and trips from the pharmaceuticals.

    I'm not clear on the issue regarding people "not being paid." Delayed, or an error of some kind, yes. But I know dozens of people in my downline that have been paid as of last week. I have received 20 weekly payments, never one missed. Most errors are associated with unverified e-wallets, incorrect user names to e-wallets, etc.

  13. Eddie , check your bid/give manager in the back office and make sure the bids are being given away to your customers so that you get the points earned on them each day. I had a similar problem around the 1st and it looks like when Zeek updated the coding/programming my bids were not being automatically given to customers anymore? You might need to give them away manually, not a big deal. I check the bid/give manager everyday to make sure the bids are given to customers, so I get points added to my VIP balance for the bids?

  14. Troy, I am an affiliate.

    Yes, the VIP point balance increases as you repurchase bids. No, you can't buy points…only bids. But your bids turn into points once you repurchase with revenue earned.

    If your commission earned each day is set to repurchase at 100%, yes you will earn on the total amount of VIP points. But if the company lets say, as an example Zeek owes the affiliate 250 in repurchases and you have 10,000 point balance…of course you would earn more on 10250 than you would 10000.

    Meaning Zeek is not adding that 250 in repurchases to your VIP point balance so you can earn on the entire point balance.

    From my understanding Zeek is saying this is a glitch in the system. But I beg to differ.

    Maybe someone can chime in and explain it better. Zeek didn't make it easy to understand for others or explain to others.

    Troy, I really want Zeek to last, but we all are just looking from some answers because we can't get any from Zeek.

    Thanks again for all you do!

  15. Hey Corey – same thing happend with my downliner. I think you need to go to "Upgrade Now" and choose the diamond subscription again. I think they switched you to a freebie, since you were late on your monthly fees. Did you join Zeek on the 2nd of the month? Ask your upline if you don't know or go back and search for emails from Zeekler.

  16. Eddie,

    When you set your RPP to 100%, you purchase points or bids?

    I understand the RPP point balance will go up when bids are purchased. But I have never heard you can buy additional points. I guess you could buy points, but I am not sure that would increase any commissions.

    I may sit this one out and let someone who is an affiliate try an answer.

  17. Hey Steve,

    Zeek or any company targeted by so-called critics always has the option to sue for libel, not slander.

    You will rarely see it happen though.

    The two main reasons IMO are:

    1. The business is a ponzi and knows that there is no way they could prove what the critics are saying is untrue in court. Suing would expedite their inevitable collapse.

    2. The business is legit and the overall damage done by the critics' sites isn't enough to bother with filing charges. There are plenty of sites out there that are critical of long established legal MLM's as well as sites that are critical of traditional companies like Microsoft, Wal-Mart, etc.

    It would usually be a big waste of time, money, and resources for legit companies to go after critics.

    It could also backfire with negative publicity being created.

    Why do you assume that someone like Oz who has a different opinion than yours must be working for some other company and reaping financial benefit.

    I'm sure he gets some revenue from Adsense and whatever other contextual advertising sources he has on his site, but it's unlikely to offset the headache of butting heads with the zealots of the internet underworld.

  18. To clarify the RPP, let' say today you earn $100 and you have your bid purchase set to 100%. That means you purchased 100 more points that day. When you actually earn that money it should increase your VIP point balance.

    So it's not a question of whether the money is being earned. The money is being earned daily, but it is not being added to the VIP balance. Which also means when they wait 4 or 5 days to add it all up, it gives you a much larger point retirement than you would have normally had.

    You also can't make the daily rewards on your repurchases because it's not added to your VIP balance. It's just sitting in your RPP.

    Hope that makes sense.

  19. What is your private email address Troy?

    I hit the reply button and sent my ZR ID and full name. Hopefuly it get's caught.

    Thanks.

  20. The NC AG comments are found on their Facebook home page under Recent Posts by Others on NC Attorney General's Office.

  21. @Eddie,

    I have reached out to my contact in the AGs office for conformation. Since I have been reporting for weeks that I figured the NC AG would issue a CID (Civil Investigative Demand) letter to Zeek, it does make since. The NC AG did this same thing to the billion dollar energy giant Duke Energy last month. I am looking at the NC AG website and still do not see any information, but will keep you posted as soon as I know what is up.

    As for what this may mean for Zeek, I think it is fantastic news and great for Zeek. Which I have written over and over. Here is how this works. The AG after receiving 6 or 7 complaints and who knows how many calls, decided to investigate and

    From reading what OZ wrote, it does seem he is presenting information from the NC AG Facebook page. I did go look but did not see anything there. The AG may have taken it down or I just missed it.

    It's my understanding that the RPP is calculated in direct proportion to the net revenues the company receive daily. Am I wrong in this deduction?

    In your statement above, you seem to believe that some point value should be added daily. That is not my understanding. It is my understanding that point value will be added if there is net revenue to share. If there is no net revenue then the point balance stays the same form day to day.

    In the last few weeks the company has purchased a new building, major inventory, brought on new executives, added support staff to the tech team, are moving to huge server farms, and are upgrading the auctions. Seem to me, this can cause the daily net revenues to take a huge hit. But since all this has been requested by the affiliates, it does seem like great improvements.

    I will ask about this RPP issue so I get a better understanding.

    Also, when you mention pay. You did not clarify where the issue is. From my understanding, there have been many issues with the EWallets, but no one has sent me emails on Zeek not paying to the eWallets.

    Can you provide more details?

  22. Eddie,

    If you to the NC AG's Facebook page at http://www.facebook.com/pages/NC-Attorney-General… you can see a question from Wendy Tussey asking about what they are doing.

    Their response was "We have received complaints about Zeek Rewards and have concerns about the company. We've asked the company to provide us with documents so we can examine its business practices."

    It's highly unlikely you'll get much more info than that from the AG's office.

    As for those at places like BehindMLM, PatrickPretty, RealScam, etc. I think they do know what they're talking about AND have too much time on their hands, lol 🙂

    As always, time will tell how this all plays out.

  23. Hi Troy,

    Over on BehindMLM, Oz posted that the NC AG's office has asked Zeek to provide them with documents to examine Zeeks business practices. First of all is this true? And secondly, what does this mean to the future of Zeek?

    This definitely raises some concerns because of the way they are controlling the RPP. I understand some will say that you are not guaranteed and income. I understand that, but the income is already made. It's just not being added to the VIP balance daily as it should be.

    When this happens, they add 3-4 and sometimes 5 days together making for a large point retirement. That means that some days people will have more retiring than what they are earning even based on Zeek's on recommendation to set your repurchase at 80/20

    The reason I say it's controlled, is because if it were a software issue, it would effect everyone. But it only seems to effect the people with larger VIP balances. And this is based on my own down-line reporting. This is the new complaint popping up everywhere.

    I think Zeek's problems started because they are not willing to be transparent, fix their cs issues and the biggest one is not paying affiliates. There are so many affiliates in the forums and skype rooms asking where's their money, it ain't funny.

    I certainly hope Zeek doesn't turn out to be a ponzi/pyramid scheme because I have a lot riding on this and how this will effect the people I sponsored.

    As far as Oz, K Chang and the others posting on BehindMLM, they either know what they are talking about and don't want people to get hurt, or they have too much time on their hands.

    Can you dig deeper and try to get us some answers?

    Thanks for all you do!

  24. Troy,

    This is off the subject. I need some help. I have been a diamond affiliate with Zeekrewards for over 3 months. I have a good VIP ballance. On August 2nd for some strange reason I got moved from a Diamond affiliate to a FREE affiliate. For the past 6 days I havent been included in the RPP. I don't even have the option to make a subscription payment in my backoffice because now I am being recognized as a Free affiliate instead of a diamond affiliate. I have submitted multiple ticket requests and I have emailed zeek support to no avail. Nobody is available to skype and when you call zeek a recording comes on about high call volume and then the call just get's dropped. My upline cant help me. And this mess all started on August first when I changed my repurchase from 100% to 70%. Please help!

  25. Troy,

    The North Carolina Attorney General's Office has this message on their Facebook homepage in response to a question from Wendy Tussey:

    Is it true that the NC AG office is going to be looking into Zeek and Zeek rewards? I question whether this is a valid claim as shown on Behind MLM websites. Thanks for your info!

    NC Attorney General's Office – We have received complaints about Zeek Rewards and have concerns about the company. We've asked the company to provide us with documents so we can examine its business practices.

    Here is the link – https://www.facebook.com/pages/NC-Attorney-Genera

    In case the link does not work, search for the NC Attorney General's Office and 'like' them. The comments are under recent posts by others. These posts are open to the public.

    Any insight into what is going on?

  26. Ryan,

    Let me see if I can help.

    1. Penny Auctions are NOT illegal gambling. Now with that said, some auctions have been shut down because they used the same techniques as slot machines to big against real people. I wrote two articles on Unique Bid Auctions sharing the difference between legit auctions and illegal operations. By the way, most folks do not even understand that online gambling is not illegal even in the USA. Delaware for example have approved specific internet based games of skill.

    2. RVG does not run an investment program at all. But since most folks who have not taken the compliance course (and even some that have) promote it that way. The AG now has a recording live talking about the fact people should never invest in any company without doing their due diligence. I expect the AG has or will soon issue a CID to Zeek like they did last month on the billion dollar energy company Duke Energy to get answers and protect the citizens of North Carolina.

    3. I do not see RVG or Zeek Rewards specifically as a ponzi. I do feel that if they did not focus on getting the additional revenue above and beyond what it takes to max the comp plan, that regulators might decide to see them as a pyramid scheme. But even that is a push, since they can show millions in revenue from the different income streams. But without a doubt, revenue from outside the compensation plan is a focus, and is why they have bought a network marketing company and are launching the new Zee Bates.

    4. I do not believe Zeek is a pyramid. Now as to your math of 51% not sure where that comes from. There is no law on the books that tells a company how much revenue must come from external consumption, or even how to determine the difference between internal and external consumption. Many folks love to use the 70% Rule, but that is not a law, and was something Amway did long before they went to court. So you 51% doesn't make any sense to me.

    5. Zeek doesn't use any 3rd party processors to get around any US-Based processing. Like most international companies they do use international processing as well as some US based processing from the information I have been told. Plus, all funds are deposited in the US Based Bank, and always have been. Zeek has at least two very large, if not the largest US banks handling their financial accounts. I might also add, very little of Zeek revenue comes from credit cards period. So nope I do not see any violation of the Wire Act.

    By the way, your information on the Wire-Act and Gambling is incorrect. The DOJ made it very clear in December of 2011, they would not use the Wire Act against online gambling. DO a little more research. I wrote about this last week.

    Hope this helps!

    Living An Epic Adventure,
    Troy

  27. @Steve,

    Well, I have never known Oz to slander folks. Take some creative liberty at times, but the facts always seem to be real close to home. But if you can give me a specific situation I will gladly look into it.

  28. Troy, Can you please provide some insight into the slander going on at behind mlm. I am a Zeek Rewards a affilliate so when they slander zeek they are slandering me. It is one thing to report but they are out of hand. It is obvious this is done for financial gain as they advertise on the site. their must be a business entity attached. Can they be held liable for their fraudulant claims? If i wasnt involved , reading their posts would be commical. Ithink it would be helpful if you could do some digging and find out the business entity they are working under. If you can not print this please send it to my email. Thank you for presenting honest reporting. It is greatly appreciated! Steve

  29. Troy,

    I am new member of Zeek and am happy to be involved. ( I only wish I got in sooner)

    I read the below in the comments of a other blog and would like your opinion on the points raised. My other concern is that more members that have been in longer are going to run.

    Thanks!

    One would hope that the NC AG will see that as only ONE facet of FIVE risk areas, namely:

    1. Are penny auctions illegal gambling?

    2. Is Zeek Rewards an investment, thereby making it an unregistered security and illegal? Will the NC AG look past the compliance courses, disclaimers, and linguistic gymnastics, and apply the Howey Test? (thanks to K. Chang for providing context on this in many threads here)

    3. Is Zeek Rewards a Ponzi, where almost all money being paid to affiliates is affiliate money and not external money. Specifically, analyzing affiliates who create fake/friend/family accounts to earn VIP points, where the first layer of the onion looks like external revenue, but deeper inspection reveals that most of the external revenue that is really affiliate money.

    4. Is Zeek Rewards an illegal pyramid, where > 51% of revenue is from internal consumption?

    5. Is Zeek Rewards in violation of the wire act and other fraud statutes by using multiple foreign third-party credit card processors to get around US-based processing, similar to what many gambling sites have done?

    Customers & affiliates purchase using a credit card but the merchant shown on the credit card statement changes and can be from multiple different foreign countries (outside the US). For example, South Korea, Brazil, China, etc.

  30. @Jerry,

    Thanks for coming by and comments. If you take the time to read through the editorials I have written and the comments that follow each you should get a good picture of all that is happening or has happened.

    1. Do no what license you might be referring. They have all the licenses they are required to have to my knowledge. And they have filed all annual paperwork in the stated that require it. What license are you referring?

    2. They have paid their affiliates, or the affiliates would have quit working. I assume you are referring to when they did not have a band, and the pay got slow through the eWallets. There is also issues when they are sending the reports to the eWallet. If during the transfer their is a glitch on either end, then specific information can be dropped and the tech team have to manually upload that info. There was also the issues, where affiliates were buying bids in one eWallet and requesting commissions through another. Before the banking issues were fixed that did cause some issues for about three week. Now they are working through the database to clean up any missed payments.

    3. I have had one issue brought to me on merchandise shipments, and that happened as they were hiring Barb to take over the position.

    By the way, your conclusion on why to hire good attorneys doesn't have a logical conclusion. If your conclusion was true, then MicroSoft would be out of business and their attorneys would be jobless. MicroSoft has never released one piece of software without a security breech or some other issues, and yet they are the most successful software company in history.

    When any company is growing faster then the visionaries who started it can keep up. They listen to what everyone is saying and find the right people to fill in the areas where they are weak. This is business 101.

    Now, you might have a point if they had done what Just Been Paid did. Just Been Paid hired a US criminal attorney to answer all questions about the company and to act as their general counsel. That does raise some some concerns. 🙂

    Now if you can provide specific info, instead of general rumors I can look into them.

    Living An Epic Adventure,
    Troy

  31. You seriously spent 24 hours of your life to watch Zeekler penny auction so you can try to come up with "a smoking gun"…The first question is, WHERE do you get the 400,000 Affiliates in the first place who are buying bids?? do you realise MOST of the people in Zeek are dinky accounts and who do NOT participate in the program, you really do not have the correct starting point, so of course your result is wrong….

  32. Hi Troy, I might have false info. or not up to date on Zeek Rewards. I tried a week ago to comment and some how it did not go thru. I remember reading forums about they did not have license in all the states, that after June 1st they were not paying their associates, and people that won merchandise thru bids were not getting their merchandise, and the company's response to give info. was not happening. Maybe someI or all these things were not true . If you could let me know what was truth I will appreciate it. If a lot of these things were true, it would seem to me that they hired good attorneys and others which are people you know because they were just about to be caught for the things that were not right. Which to me if you start a company off on dishonest practice would you not want anything to do with them even if they hired good people.

  33. @Michael,

    Thanks for taking time to comment.

    From digging a little deeper, it seems that several branches of the credit union have had depositors come in and request certified funds to go buy bids. This raised concerns with the risk management department. They did some due diligence, saw the negative info, and decided it would be wise to send an internal memo to their employees.

    The memo was then used in a response to someone asking for more information.

    Once Zeek was notified of the situation, they had their legal team handle things, and the VP made it very clear where the credit union stood.

    Personally, I am not sure I would not have done the same thing in the credit unions position. The only difference is I like to dig a little deeper before putting out a memo.

    If the memo had stayed inside the bank, and the employees used it to suggest to folks they do their own due diligence, and not spam Zeek then things would have been cool.

  34. troy, I have read everything you have posted on your blog about Zeek Rewards. I admire the fact that with all the bullying and criticism you have taken for believing that Zeek was a pretty good new idea, you didn't back down. You are one stand up guy, I am an affiliate. Heck, I'll like you even if you change your mind, because I know it's what YOU believe. Don't ever change your epic adventure.

  35. Troy,

    Something just doesn't smell right regarding NCSECU. Behind MLM has added some interesting information concerning this credit union. Regarding the credit union, it seems that the left-hand doesn't know what the right-hand is doing within their management and among their employees.

    ———-

    This is what “Behind MLM” is reporting:

    1) NCSECU employees did call some members to warn them about Zeek.

    2) When confronted by “Behind MLM” different stories were provided by different individuals within NCSECU.

    3) The initial claims against Zeek were based on an undisclosed email claiming Rex Venture Group to be fraudulent. The credit union's follow-up investigation included some reports at Ripoff Report, BBB and scam reporting websites.

    ———-

    If this information is accurate it doesn't sound as if the email came from the state's AG or the FTC. If the credit union had received info from one of these two they would have had no inclination to do a follow up investigation at "scam websites." Therefore it seems the email came from some unofficial source and the follow-up investigation was conducted in a very irresponsible fashion.

    My concern is not with Zeek, but with presumably intelligent people doing damage to a company’s reputation with evidence based on scam websites. Quite frankly I would be embarrassed to admit that these were my sources which propelled me into action.

  36. @Brad,

    FIrst let me say thank you for guiding me though the process to get to the call. I finally talked to the nice lady in charge and she explained a lot on the issue.

    1. Due to the amount of calls they have received on if Zeek Rewards is legal or not. The AG decided it would be far better if a recording was made available instead of taking the productive hours away answering the same questions over and over.

    2. Since NO AG can tell folks if a company is legal or not, this recording does make it clear for folks to do their own due diligence before doing business with Zeek.

    3. Now in the recording they use the word "investment". I asked her why they use the word investment, when Rex Venture Group and their legal and compliance counsel make it clear it is a network marketing opportunity?". She informed me they used the same verbiage of the folks asking questions.

    4. She also confirmed they have only received six or seven complaints about Zeek Rewards at this date.

    5. I would say it might be unusual for an AG to put out this type of recording. But based on the historical track record of folks calling the banks, attorneys, consultants, etc., I can sure see why they did it. Talk about taking time away from handling other issues. This make it simple.

  37. Troy,

    The North Carolina Department of Justice has a recording regarding Zeek Rewards when you call their office (919-716-6400). Their Consumer Complaint division can transfer you to a recording about Zeek Rewards. The recording had a similar flavor to the NC SECU e-mail talking about people doing their own research due diligence before investing with a company and to contact Zeek Rewards about how the company operates. They also talk about how to file a complaint with the NC DOJ if that is your objective. At the end they state, "We can confirm several complaints (about Zeek)."

    Do you know anything about the NC DOJ recording? Is it unusual for a state DOJ to have a prerecorded message on a specific company? Any insights would be helpful. I am sorry that I do not have the transcript.

  38. @Will Hartness

    You're correct, the math is wrong. The correct math AND logic should probably be something like this:

    $50 * 109 auctions = $5,450 (the price the winners will have to pay for the items)

    5,450 * 100 = 545,000 bids total used (ignoring any special rules where the first bid costs 5 or 10 bids)

    $1 * 545,000 = $545,000 max revenue from the sale of bids related to the auctions that day.

    So if we can assume all bidders were real customers not affiliated with Zeek, they brought in max $560,000 in gross revenue from external sources.

    If we assume all bids were VIP bids sold through affiliates they generated max $112,000 in 20% commission, so the revenue after commissions will be max $448,000. If we assume that all of the affiliates earned matching VIP points, the VIP balance increased max 560,000 points.

  39. @Troy,

    Jaden was presenting what Josh#46 at another site had proposed, which by the way are grossly inaccurate. According to the information provided Will's calculations are correct.

  40. @Greg,

    I would love to do just that. Sadly, most of the information has not been written down for public viewing and the videos they have are not detailed. The one huge red flag is the Money Laundrying Disclosure they have on their website.

    There are many promoting huge incomes, many larger than anything I have seen promoted at Zeek Rewards an the penny auctions in general.

    Now let me make sure I fully understood what you wrote above…

    You became a publisher, then had to buy the impressions that would show up on your site?

    If that is the case, then again it is has issues. I run two different ad networks on my blog and NEVER pay for anything. The advertiser will pay me. But, if I misunderstand please correct me.

    I will continue to dig.

  41. Troy,

    Based on the growth of Bannersbroker to over 100,000 affiliates and a number of people I know making money with them, I wonder if you could dig in and learn more for us at some point? It's hard to find any trustworthy information about it, but I have a friend that is heavily involved with them and is making a great income. He makes more money than I can dream of online from a variety of arguably legitimate sources and following his lead in the past has been well rewarded. I realize that doesn't make Bannersbroker valid, but it is interesting from what I've followed over several months.

    If you watch their webinars, it seems the ad network is more sophisticated than you allude to, and I have used their service as a publisher to advertise banners by buying impressions. It seemed to work well, but there's much I don't understand about it. Anyway, this is a tangent I realize, but if you get a chance to dig deeper and provide credible info at some stage, it would be greatly appreciated. Thanks again for what you do!

  42. @Sam,

    Banner Brokers does operate out of Canada, although I have not seen where they are a legal business there. They do not have a legal entity to operate in the USA.

    They do provide an Ad Network, but from all I have been able to find, it is an Ad Network, where only the members of Banner Brokers can be a part of it, or actually ever see it, which does make it a real close business model to ASD.

    I have looked for ways to place Banner Broker Ads on my site by becoming a publisher that is not part of the compensation structure and could not find a place.

    So based on what I have seen and many others have reported on, yes I feel it is a pyramid, and based on the money flowing into it, and now real customers in the general advertising and marketing world, it could be a ponzi.

  43. Hi Troy,

    This may be off topic..

    but I don't know where to ask this..

    I read you mentioned that Banners Broker

    is $100,000 ponzi program on your blog and its model is very similar with ASD.

    But they are operating in Canada(if I recall it correctly) and claimed that they make profit with advertising.

    In fact, I'm new to this industry and can't distinguish which is is legit or not. I do trust your reputation and hope you would cover it in detail like Just Been Paid.

    Thank you.

    Sam

  44. People continue to try to project how this model works without having all the facts. There is too much proprietary information to really understand how the pieces fit together. Some days there are far more than 109 auctions, for example, so what is the average over the course of a week. And what effect do a few higher ticket items play into the weekly mix?

    This month they'll be auctioning off a car, cruise, Rolex, and Apple home office. When they did this before, the car went for over $4000. That's $400,000 worth of bids on one item since they were all purchased, NOT FREE, bids. Critics argue no one buys bids, but these items were all retail bids so apparently a few people bought nearly half a million bids for one item.

    How does the decreased retail profit pool Friday-Sunday effect the company's profit? Is the auction volume really half the other week days or does this help create an average that spreads profits over a week in a sustainable fashion? All I know is the RPP has paid strong, consistent, and higher than expected every single day the past year I've worked this business. And yes, I have worked it.

    I'm just getting started, but there are dozens of questions that no one can answer that play into the financial equation of Zeek, and they are just as valid as the critical questions that are asked. Analysis is fine, but the continual attempt to do it without huge chunks of information is the same tired incomplete story that critics have been trying to put together for well over a year now. You just can't do it. You only see the tip of the iceberg. Meanwhile, the company is growing, expanding, adding major new opportunities to the mix, and paying us more with stronger profits.

  45. @Patrick,

    All good. The comment itself has value, and if you notice I left your link live in your address.

    I am also very careful, when it comes to folks promoting a company we have not reviewed. UPP has a few red flags, nothing major, but until they fully launch and we can review the complete business model, I am being very careful as I am in any company.

    Again, we're cool and you are a valuable asset to the community.

    Living An Epic Adventure,
    Troy

  46. @Will,

    Just one small clarification. I do not think this was Jaden's math, I think it came from another site and he is asking if it is right. I could be wrong.

  47. Troy,

    Jaden's math is incorrect. Here is his example:

    "For example; The day I watched the site 109 auctions were conducted and ended within the 24 hour time frame. The average cost of all closed items was 50.00 USD, the most expensive of those items being an Ipad for a little over a hundred dollars.

    Now, let’s give Zeek the benefit of the doubt and say every bid in pennies was a real U.S. dollar. For the day, based on the mathematics, Zeek made a profit of 545,000.00 USD.

    Now, for mathematic purposes, let’s also show that to sell all 109 items for this profit (not taking into account the cost of the items) 545,000.00 would require a minimum of 54,500,000 bids. Let’s study both the profit, and the bid amounts as two separate problems."

    In Jaden's example he says that each bid cost the bidder $1. Therefore a $545,000 profit (ignoring the cost of the items) would require just 545,000 bids.

    Calculating the pennies into the cost of the bids is what got the $545,000 profit in the first place.

    I'll give the whole math equation which Jaden left out.

    The average winning price of each of the 109 items was $50. $50 is 5000 pennies. Each of those pennies represents a bid that cost the bidder $1 therefore the income on each auction was $5000 plus the $50 final auction price or $5050. $5050 times 109 equals $550,450.

    To do the math without the final auction price.

    $50 times 100/$ equals 5000 pennies. 5000 pennies times $1 for each penny bid is $5000 times 109 auctions equals $545,000.

    It took 545,000 bids at $1 each to "make a profit of" $545,000.

    If Zeek had 54,500,000 bids then at $1 per bid the profit would be $54,500,000.

    I can't speak to Jaden's other points but it seems to me that if the first premise is wrong the whole argument is probably wrong.

    Trying to live the adventure,

    Will

  48. Troy @ Chris I did not spam the site I was actually talking about the previous post above mine. I did not ask anyone to join it went along with what I was saying that is all. I do not feel that I was off topic at all. Also I did not post numerous times I was hoping to see feedback on my comment thats all.

  49. @Chris,

    Well I will have to find what you are referring. We go through the back office or are on remote when comments get approved. Everyone now and then one slips through. Will go look now.

  50. @Brad,

    Not sure they are taking any action. Last week there was some major changes at MonaVie with Dallin Larsen coming back as the CEO, and is not in the process of making some major changes in the executive office.

    I will be talking with Dallin in a week or so.

    Living An Epic Adventure,
    Troy

  51. @Alex,

    We are watching it. But at this time there is not much. There are few red flags, but since they are still in prelaunch I expect these red flags. The biggest is the private registry.

    Once they get through the hype and show us the read deal, and the auction then I can comment.

  52. What action is Zeek going to take against Randy Schroeder for calling them possibly a pyramid or ponzi scheme?

  53. Troy I agree with jaden that numbers don't lie, like you stated i feel that there is a lot of info thats missing there are too many variables to consider.

    For instants : Did you 24hr cycle start when RVG timing started? if not that will change the whole average.

    Was it a weekend? Historically the payout tends to be less on weekends. How long ago was this done (few affiliates in the beginning or recently) Whenever it was done how do you /we know how many affiliates where actually qualified for the RPP for that day? and that days percentage you can have 1 million affiliates but if only 2 does what is required then only 2 out of 1 million will get paid.

    Only the folks at RVG knows the whole story. I just trust that how things been going so far that as well as good intentions that are doing the right I can expect it is not an easy task with this type of company and wish them all the best and there members.

    We can speculate on the inner works of zeek but won't know the whole story until it is over. (Edited By Troy! I do not mind seeing links to replicated sites, when the sites are to the company the editorial is written about. Or to a critics website to help balance the conversation. But no competitors sites)

  54. @Jaden,

    I am not sure I can answer this completely yet… Here is the info I am missing.

    1. What day was used for this example, so I can find out the total amount of auctions for the that day.

    2. Were these paid auctions or the free auctions. I need this to break out the free auctions and bids, because those would be from affiliate buys, and I would want to try and calculate a clear VIP bought bid.

    3. I need to know if anyone who lost the auction, decided to apply their bids to the discounted "buy now" purchase price.

    4. Affiliates can let heir points accumulate, but they do not have an form of dollars they are able to invest or reinvest in RVG, so this part of the example causes the whole math equation the person is trying to calculate to become null and void.

    5. Now, I think what the person is talking about is the RPP retirement system. The way it is explained to me, is that if all affiliates were to decide to stop buying bids, and marketing the Zeekler site, then daily the revenue would go down, and depending on the amount of qualified affiliates, the conversion rate of the points would go from whatever it is at that moment to 0 pretty quick.

    But, since points are not dollars, it does not effect the main portion of the compensation plan, just the RPP bonus pool. Now the rest of the compensation model would follow suit, If folks are not buying bids, then no income would be paid. This has happened several times over the years at RVG, and I would say it could happen again, it the trend surrounding penny auctions changes, or folks do not like the new ZeeBates site.

    6. RVG does not publish a P&L statement. I would need clarification on what this person is referring.

    If you can get me clarification I can sure see if I can answer.

    Living An Epic Adventure,
    Troy

  55. @ TRoy Dooly, need your thought on this…

    Josh#46

    August 4th, 2012 at 1:18 pm (Quote)

    If indeed that is true @ Phil Brooks, that would truly be breaking news, can anyone confirm?

    On another note, I love this site and @KS Chang’s HubPage. It is very informative and well thought out. It shows excellent organizational skills and tons of effort. What I want to know is why nobody has delivered the smoking gun yet?

    I want to see if I may be of assistance, so that there is no further need for debate…I would like for anybody to do what I have already done and watch the Zeekler auction site for a 24 hour period. I know that it is boring, and time consuming, but the “reward” (no pun intended) is magnificent.

    While watching the site you will find exactly what you are looking for; rock solid proof that there is no possible way that Zeekler’s site pays the daily profit share for ZeekRewards affiliates. Then we can compare notes and publish our findings.

    For example; The day I watched the site 109 auctions were conducted and ended within the 24 hour time frame. The average cost of all closed items was 50.00 USD, the most expensive of those items being an Ipad for a little over a hundred dollars.

    Now, let’s give Zeek the benefit of the doubt and say every bid in pennies was a real U.S. dollar. For the day, based on the mathematics, Zeek made a profit of 545,000.00 USD.

    Now, for mathematic purposes, let’s also show that to sell all 109 items for this profit (not taking into account the cost of the items) 545,000.00 would require a minimum of 54,500,000 bids. Let’s study both the profit, and the bid amounts as two separate problems.

    Being generous to Zeek again, let’s only use the amount of U.S. affiliates they claim to have, roughly 400,000.00 at a minimal average daily balance, and again give Zeek the benefit of the doubt, saying that all 400,000 affiliates do a 100% reinvestment of their profit share daily.

    The average daily balance of U.S. Zeek affiliates is in the neighborhood of 1,500 points according to their own profit and loss statement meaning, at the end of the day, 600,000,000 bids are purchased. As you can see, problem #1 shows that 10 times the needed bids to successfully complete every auction for the day were puchased by just U.S. affiliates.

    Problem #2 now comes into play. If Zeek takes half of the 545,000.00 profit for the day, leaving the affiliates with 272,500 in the revenue sharing pool, that would be ok. According to their profit and loss statement, the number is somewhere around 165,000 daily so they’re covered right? Wrong!

    This mathematical experiment just demonstrated that at minimum, 99.9% of all bids were purchased by the affiliates, not retail customers. So many bids were purchased in fact, that they could have covered the daily bid requirement ten times over!!!

    As a result, you can see from a mathematical standpoint, this is PROOF that affiliates are being paid mostly if not solely with their own money. Well, paid points anyway.

    Not to be cruel, but if anybody would like to give me 150.00 dollars I will give them 150,000,000 points in return, a 1 million x point superior exchange rate to that of Zeek!!! Not that the points will be worth anything, but neither are your Zeek points, so who cares right?

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