MLM Company Review: Does Zeekler aka Zeek Rewards Offer A Viable Business Opportunity For Network Marketing

Over the few weeks, more and more network marketers have called, emailed and FaceBooked me asking about Zeek Rewards. Is it a legit MLM business opportunity, or a just the next generation of the Auto Surf Daily trend from a few years ago. The reality is it not be either of the above. Although, it does have a multi-level compensation plan, offers a daily advertising payout, like the old auto surfing. It also offers a reverse auction component, along with a free software download, like the My Magic Genie folks. SO when you put all this together, you come up with one wild looking way for the average person to make money without ever having to sell anything. Which is where the red flags and issue come in.

BehindMLM.com has done a couple of reviews on Zeek Rewards which also gives a more detailed review of the company. I suggest reps and potential reps read these articles to get a better feel of things.

ZeekRewards Review: SPAM, Penny Auctions & MLM

Using Zeek Rewards as a pure investment program?

Spread The News!

39 thoughts on “MLM Company Review: Does Zeekler aka Zeek Rewards Offer A Viable Business Opportunity For Network Marketing”

  1. at lynette ,, i loved your explanation .. we must put america back to work,, let promote zeekler bec its USA owned,,, … not just like this others they want to destroy america ,, USA number one country in the world,, go go go ..

  2. Troy man I love your Blog and what you're doing out there! I too am a member of Zeek Rewards, and understand the risks. However, I looked at the profitability of the Auctions and this sector, It is a powerful affiliate program first, and the subscriptions are secondary as part of the Matrix.

    Zeek Rewards is a new animal I will agree, and I'm thrilled at what has happened for me personally. Best of luck to us all, and thanks for covering this for us folks out here!

  3. @The People,

    Thank you for stopping by to comment. I do want to clarify a couple of concerns you bring up.

    1. When you say "they keep 80% of the money you pay in? Exactly what do you mean. My understanding is bids are bought. If my understanding is correct, then 100% of the money would go to Zeek, not 80%.

    2. They do payout a percentage of profits daily. I am no sure how those profits are calculated, but I do know each person can pull 100% of those growth, if they desire. However, the more pulled out, the less of the next days percentage is earned.

    3. As for "something for nothing" in investigating this company, if a rep is doing nothing, they will get nothing. The reps must be buying and either using or giving away bids. If folks are not bidding, advertising etc, then there is no money rolling through the action house.

    4. I do understand where you are coming from on the nutrition plan. I have to admit this is one very complex program for the outsider or even some of those who are participating.

    5. As for Zeek closed down. They are already 12 years old. I am not sure they will be shut down. The money they are investing in compliance is huge. The talent they have hired to make sure they are well within the current laws in five or more areas is more than most nutrition companies pay over a 20 year period.

    It is truly a high-risk proposition, but not a scam.

  4. Your right, I would bet on them being closed down.

    I hear they keep 80% of the "Money You Put In".

    Sure Free Enterprise is great if you work for it!

    Something for nothing is derived from the "Wild West of

    internet Scams" Give me a great Nutrition Plan. It has worked for 70 + years providing financial freedom to

    countless people who "worked" as well as providing

    The highest quality of products, not found in stores

    according to Fortune magazine early 2000's.

    Zeekler will be closed down and plenty will be left holding the bag.

    Bernie Madoff in disguise here

  5. @Tara that seems very unlikely. Every day of week for the past 4 months with very little variation in profit share rate despite various promotions, holidays,and seasonal conditions? All this time the revenue of retail business grows at the exact same rate as distributor growth? The Alexa graphs don't show anything similar bewteen Zeekler and Zeek Rewards traffic growth. Not even Starbucks, McDonalds, or The Gap have such rigid revenue ranges every 7 days and these are the retail titans of reliability. One day, Zeek will read this and add more variability in the daily profit share to fool people like me.

  6. @Jimmy, According to Zeek's webinar, the daily profit percentage is determined by the day's total sales, then up to 50% of that number is then divided by the TOTAL VIP points of every qualified affiliate. So, to my understanding, if the sales experience growth, more than likely the VIP point totals will reflect that same growth as well. Leaving us with a similar percentage week to week.

  7. Troy,

    As always you are the backbone of this industry, and I stand corrected, I was half correct….

    Thanks for everything you do, I look forward to your updated review on the company

    Rob

  8. Could you explain how the daily profit share is so evenly distributed? Surely a company experiencing as much growth as Zeekler, with all of their promotions in January and distributor momentum, the daily profit share would have a much larger variation.

    But it seems to be quite even on weekdays about the same amount, and weekends about the same amount as previous weekends.

    This has all the signs of the auto surf industry where they paid out fixed rates or if variable, was always "fixed" to show nice, steady, compound growth. That alone is suspicious.

  9. They only stopped taking credit cards for VIP bids (the ones that give you the daily compounding profit share like the surf programs). They still take credit cards for everything else that is less scammy – monthly subscription fee, retail bids, 5cc customer rotator, video marketing tools, and upcoming mandatory compliance.

    The claim was that there was fraud, but surely the actual number of fraudulent purchases cannot be very high, and for virtual currency, where the company controls the payout. Can't they simply put in verification tools or other process to reduce fraud impact? It is not like they are shipping products and are out hard costs for fraud.

    If you look at their payment processors – AlertPay and SolidTrustPay – AlertPay lost its credit card processing capability again so now you can only use SolidTrustPay. SolidTrustPay has a 7% fee on transactions. Both of these guys are used along with other high risk surf and similar investment schemes. Isn't it a red flag in and of itself when distributors are asking you to "invest" up to $10k but you have to send in a cashier's check or money order, or a check with your SSN and drivers license? Apparently people are lining up out the door to do so.

  10. Except you have to pay to take the mandatory compliance course. But don't worry about the cost, they pay you back in virtual currency (VIP bids). Sign me up for 1000 courses, please.

  11. @Rob,

    Zeek Rewards, have not hired Grimes & Reese for legal counsel. Nehra & Waak are still the general counsel for Zeekler/Zeek Rewards. However Zeek Rewards has contracted with <a href="http://www.MLMComplianceVT.com” target=”_blank”>www.MLMComplianceVT.com which is a company owned by Kevin Grimes so they can create a well educated field force.

    This is a fantastic investment on the companies side of things, and will do nothing but create a more professional field force. Many service based companies who have entered into the direct selling community are making this move.

    In talking with several attorney's focused on the direct selling channel, regulators seem to be focused on getting companies to educate their field force in compliance issues, rather than just shutting them down. I personally believe this is part of the bigger picture I have been talking about, where authentic collaboration is the future when it involves direct selling, network marketing, MLM or whatever spin we put on our community.

    As a matter of fact many of the top energy companies who have entered our community are also adopting this new compliance training to make sure they are building a professional image and sales team.

    Rob, as always thank you for adding rock solid value to the community.

    Living An Epic Adventure,

    Troy

  12. Troy,

    Zeek Rewards has hired top network marketing/ MLM attorney Kevin Grimes as cousel for the company they are making certain everyone affiliate follows very strict compliance, as a matter of fact you can not become an affiliate for the company unless you pass a compliance program, I do agree with what you said that Zeek is not structured as the typical Multi Level Marketing and is structured as a Netowrk Marketing company, as most people relate both together there are several diiferences, as You know Troy accociates or affiliates are sometimes their own worst enemy, as they post information that is misleading and create videos'that portray something that the company is not!!

    I am aware that you will be doing someupdates on the company, I personally feel the structure of this company is unique and willl help change the face the network marketing..

  13. This is a great move on Zeeks part and will go a long ways in helping the distributors to learn how to run a professional business.

  14. Bryan,

    Good question, but that is one you should learn from the company and know before you start building long term. A lot depends on the daily earnings of the company the the daily profit pools that Zeekler shares with us. Zeekler has long term growth planned. Have you listened to the leadership calls in your back office? You will learn much from those calls.

    As good as Troy is, he can't answer your questions about the future growth of Zeekler and what their plans are. Like any business, we must take responsibility to learn from the company and the person who involved us with Zeek Rewards.

    But for your information, your question has already been addressed, long before you ever thought about it. Zeekler has a plan in place!

    Gary

  15. Attorney Kevin Grimes has introduced a Zeek Training Center & Compliance Certification Course / Exam to Zeek.

    This is very good. If you don't pass the exam you don't get paid and cannot sponsor etc.

    Zeek Rewards is a top notch company, setting new standards to the industry

  16. My question is how will the VIP balances work long term? For instance, I am working to build my balance to 50k VIP points, pulling out about 30% of earnings or more weekly as a check? Once we have thousands of people reaching such levels, will the growth of auctions increase this to allow for such withdraws? I cannot figure out how the math works here for the long term. -bryan

  17. Tim Miller,

    If you go to a site you are given "x"amount of bids to try the auction. These are bids that can be used on the lower valued item auctions. Then you have premiere auctions where those bids have to be purchased directly from the Zeekler site. I hope that will help you with your customer question. If you watch these higher ticket item auctions you will see there are real customers using this auction site.

    Yes I have proof of numerous paying customers that are not distributors.

    Gdorn,

    Yes the company does not make money on every auction. There are no shill bidder,as i think you called it. That statement alone leads to you calling them crooks.

    There are many penny auctions out there. Look into them.

    Troy Dooly,

    I do appreciate your dedication to the industry, However, it is very disappointing for someone with your voice to question a company with the such inflamatory rhetoric as FTC, Secret Service, SEC without doing a true indepth look into a company.

    I do look forward to your more informed follow up report. It will be more credible in my mind at that point in time.

    Is Zeekrewards/Zeekler without flaws? No, but from what I have seen they are doing everything they can to protect the company and their distributors.

    I wish everyone good luck in finding the company that fits them best. Always do your OWN investigation of any company before joining.

  18. @Seth,

    Thanks for stopping by and adding some solid value to this community. I can see your point of view, however, I am not sure regulators will agree, or even that Zeek's attorneys agree with you based on the disclaimers which are on the site.

    Zeek distributors (the word affiliate is being used outside of the legal definition) which can also cause the distributors some issues.

    When you mention "The industry has a bad name" are you referring to the online advertising industry, or which industry are you referring?

    If you are referring to the direct selling industry, the bad name is not really industry wide. And even where baby boomers and regulators do look at direct selling in a negative light, we have been able to narrow their concerns down to companies which are NOT legit direct selling, network marketing or MLM companies. In other words they are frauds.

    Living An Epic Adventure,

    Troy

  19. @GDorn,

    Unless you are also writing as Tom Duly, your comment, I think you might have misread one of my comments. Tom Dully wrote:

    "Tom Duley
    January 6, 2012 at 7:56 pm # Edit
    Thanks, I did not know they were all crooks.

    I noticed Ebay is not on the state auction list, you better write about those crooks too.

    It takes one to know one."

    I believe you did point out viable concerns, without a doubt.

    It is documented that Mr. Burks is or at least was connected at an executive level with NNM.

    Again, you have brought up some great points that folks need to know and consider if they are joining Zeek.

    Living An Epic Adventure,

    Troy

  20. I joined…this is my view (glass half full)

    Zeek Rewards Affiliates 'Are Working' to promote the Zeekler Auction.

    Each day they 'must' produce a Ad, then locate and find a location to post it. Some locations are free…some they pay for, for this they receive a profit share from the daily profits from Zeekler.

    If they don't post or advertise for the company they don't get paid. Just like anyone who does not show up for work and complete the required tasks.

    Zeek Rewards Affiliates are just like any legitimate advertising agency, preforming a marketing task that takes research, time and effort. Many custom design their own Ads for better results and have discovered great locations online that deliver good marketing results through time and effort. They give free samples, gain loyal customers then hopefully earn comm from these efforts.

    I see a true product, real effort to get paid, and a legitimate business model.

    I like competition to the E-Bay Monopoly that we are all tired of. I think Zeekler will expand to many different types of Auctions and be a household name.

    Zeek Rewards have a top notch corporate team, legal representation and management.

    The Affiliates are in a good stable opportunity.

    The industry has a bad name…perhaps Zeek Rewards is about to change that.

    Zeek Rewards success will benefit a lot of other mlm companies and the economy.

    It will help the entire industry

  21. I'm sorry Troy but I'm a little puzzled by your reply. I'm not sure where my previous post said they were "all crooks," I pointed out what I thought were a few legitimate concerns.

    Ask Mr.Burks if he ran NewNetMail (NNM), I'm sure he'll confirm it. I would only point out that NNM had absolutely no retail customers and the only way you could earn money in this company was to recruit other people who would likewise pay to become part of the compensation plan. I posted the link to their earning plan in my previous post. I trust you Troy, you'll tell it like it is, you would not endorse a company of whom those things were true. But that says more about Paul Burks past than it does about Zeekler/Zeek Rewards.

    As to Ebay not being in the North Carolina auctions license list, I'm not sure that's a good analogy. I freely admit that I'm not an attorney so not versed in all the subtleties involved but you could argue that Ebay is an auction platform but Ebay as a company isn't an auctioneer. Lets imagine your state required anyone operating a retail store to hold some sort of vending license. But you own a shopping mall leasing 100 rental units to 100 individual retailers. You're not selling a single item to any of the customers of the 100 stores in your mall, you're leasing space to the people who do. So do you need your own vending license? No, you need to whatever license is required to lease retail properties. Ebay is far closer to being like that shopping mall owner than they are to being an individual auctioneer, unlike Zeekler who do operate their own auctions.

    And it isn't like penny auction websites are ineligible to be licensed by North Carolina's Auctions board, search the second link in my previous post for Ibid2Save, LLC, Ibid2Save is another penny auction site but one decided to make a good faith effort to register with the applicable regulatory agency.

    Troy, you expressed some well founded concerns about this program, I'm simply voicing my own. Thank you for this website and for a small space on the soapbox.

  22. Thanks Troy for clearing some of those issues up, those are things I had not given thought to. Topics that I want to educate myself on so that I am a little more clear on them especially in regards to what is necessary as an affiliate or distributor of Zeek Rewards so that I too am doing what is expected in regards to compliance.

    Lynette

  23. I have 2 simple questions. I have asked this of all 300 plus people that have contacted me to get in this deal. I ask one simple question and they all say, "Yes, we do and I can show you." I have not heard anything back except a few that seem to I pull the "I cant find the email."

    I was told this company was Iron clad and had these big MLM attourney's that wrote the comp plan. Only to find out that was not true and they finally did go get legal counsel.

    Please answer without the fluff.

    1. You all are saying it is not MLM. When did a Matrix paying multiple levels (More than 3) become MLM exempt?

    2. Everyone say's we pay a profit pool each day. The revenue is from people buying bids and the money made on these auctions.

    Where is the revenue coming from that is not internal members? Could someone simply show me…

    A. A customer site where a person would go and not see the opportunity and just buy bids to use in the Auctions. Customers buying bids. Not free bid's given to the from a member to entice them to invest (Become an advertiser) in the game.

    B. Any report that verifies these consumers?

    3. Based on those questions what makes this any different from Ad Surf Daily? You bought an AD PAC (Bid's), Had to surf to get daily pay (Post an ad) and you gave away Ad Pac's (Bids) to get them to iNVEST (Become a surfer/advertisor?)

    They were taken down buy the FED's and the Owners and TOP PROMOTERS got in trouble. 55 million in restitution and 1000's of people that hate this awesome industry after loosing their money as the money paid out is all on new money coming in.

    If I am wrong or missing something I simply want to see this information and not the pitch. I may join you BIG if you can produce this information. I hope it is the real deal but based on 23 yrs out here watching this stuff I see something Yellow, it has padded feet, and quacks.

    Making money is great but people get hurt on these deals all the time….Curious for facts.

  24. @Lynette,

    Thank you for stopping by and providing some solid insight and objective thought. I do want to address a few items for correction and clarification.

    1. It is not just the FTC and SEC that come into play. There are also laws governing lottery, gambling, business opportunity (not MLM) and consumer protection laws. Plus all 50 states which also have laws which govern all companies also, no matter what their marketing model. Zeek due to its business model, may come under more than just a couple of the laws in place, which is why both the company and the distributors must be very care how their present the business.

    2. MLM laws were NOT written before the internet. Also, the foundation laws were written years before the internet. In the last decade ALL court cases and new laws were written with the internet in mind. This is why the laws have been clarified as to what an affiliate program (two levels) is, compared to a MLM program (three levels or more). And when you look at all the additional industries which AG and regulators review, gambling, lottery, business opportunity etc., these also have been updated.

    3. I do NOT believe Zeek is trying to operate illegally, or scam anyone. And with their recent move to contract with Kevin Grimes MLM Compliance company MLMComplianceVT.com to help educate the distributors, I think this goes a long ways to show they are focused on the long term growth of both the company and the distributor base.

    4. I respectfully disagree with your thoughts on a regulator wanting to shut down Zeek/Zeekler. The regulators will make more money with them open than closed. In most cases where a company is closed it is because the regulators proved the owners were not protecting the distributors or the consumers.

    Again, you added some great insight and thoughts. I love your passion and challenge for people to step up and let their voice be heard.

    Living An Epic Adventure,

    Troy

  25. I have been in Zeek Rewards for 5 months and I love the business model. It levels the field completely and offers an equal earning opportunity based off your work not your referral ability versus nearly all the other MLM or business opportunities on the net currently.

    I think that what Paul Burke has designed is brilliant and I for one hope that it is around for many years to come. The average person can be a part of this company and earn simply for promoting and marketing the business. Paul could have hired a large marketing firm to do this, but instead designed a model that would pay us to do this and offer a solid opportunity for people to earn an income.

    The big question seems to be whether this business model is legitimate per the FTC and SEC laws. I think that we as people need to stand up for what we believe is legal and really take a long hard look at this objectively. MLM laws were written long before the internet became such a craze and I agree that there are more illegal scams online than legal, I don’t believe that Zeek Rewards is illegal and if there are some old MLM laws that need to be re-written to protect companies such as Zeek Rewards then I believe that we as members and customers of Zeek Rewards need to rally up and join forces to help protect this company that is helping and changing people’s lives.

    #1 what is wrong with us participating in actively helping to build Zeek Rewards and Zeekler – we do this by becoming members – (purchasing a membership) – No different than Sam’s Club.

    #2 what is wrong with us purchasing samples to “give away” to promote Zeek Rewards and Zeekler, we do this by purchasing “sample” VIP bids, no different than purchasing Mary Kay or Avon make-up and perfume samples and giving them away to promote their business.

    #3 what is wrong with shopping at the FSC store, or the Zeekler site to purchase products at a discount, The difference here between Zeek Rewards and Sam’s Club – is you need to be a member of Sam’s Club to purchase their “bulk” product and you don’t have to be a member of Zeek Rewards to take advantage of their discounted product.

    What makes Zeekler, Zeek Rewards or the FSC store any less legal than the Sam’s Club business? Is it because it is operated on the internet?

    Let’s be really truthful here, and seriously we as the people of the USA need to get involved and stand up for what is right and what is wrong. I am sure that if the FTC, or SEC or any other State or Local Government can find a reason to shut Zeek Rewards down they will. Trust me they are searching for ways to do this simply because they can. I believe it is the government agencies that are the sinister ones, not Paul Burke, think about it – when our Constitution was written it was done to protect the people from the "power" of the government; the idea was that the "power" would remain with the people, not government. Today with the poverty and lack of jobs the government has taken that power from the people by offering all of the government assistance to people. Keep the people poor and the government will prevail.

    Zeek Rewards has a business model in place that allows everyone a way to earn a solid residual income – and I don't mean just a few bucks, it's substantial life changing income. I tell everyone that it should be mandatory that everyone joins Zeek Rewards and shops the FTC store and utilized the auction site. In my opinion if everyone did this and everyone started making money it would put a real crimp in the government’s power plan. When the people started earning good money again, what happens? It's simple – the government loses their power and the people gain it back. That's a scary thought to the government. Our society has become so dependent on the governments aide that it renders the people helpless and puts them in a state where they cannot survive without the government’s assistance and then the government basically owns you.

    I'm not saying that Zeek Rewards alone can change the world’s economic problems, but I have to tell you that if Paul Burke continues forward he surely has a great shot at it. I personally would like to see more products in the FSC store, more of your everyday products that people go to the store to purchase, we would have a store that was more like a Sam’s Club. I love the auction site and it is not illegal by any means, auctions have been around for years this is not a new concept.

    Let’s look at the Sam's Club model and tell me how that is legal and Zeek Rewards is not. In order to be a "member" of Sam's Club to purchase product at discounted prices you must pay a membership fee, this fee is not cheap. You pay this fee simply to get through the doors so that you can purchase product from them. Here is the kicker to Sam’s Club – you might save money on the overall price of an item, but to receive that benefit more times than not you have to buy multiples of that one product or you buy a much larger quantity than you otherwise would. For example let’s say you go to your local shopping market and you buy a box of Kraft Macaroni and Cheese, you most likely would pay a buck for that box. If you go to Sam’s Club you might get that same box for .75 cents but you have to buy 12 boxes in order to receive it at that price. Ultimately you might save a few bucks, but you end up spending more each shopping trip because of the quantity you have to purchase in order to receive the savings. To me that should be illegal.

    Sam’s Club also has an affiliate program that pays commissions. Check this out… http://www.samsclub.com
    Program Highlights:

    * Commission Structure

    1.75% revenue share on Sales

    $3.25-$7.50 per Qualified Customer Sign-Up (details on application page)

    * $250.00 average sales order

    * Commission duration 60 Days

    * BYOL available

    Sam's Club bring's their members the highest possible quality products and services at exceptional values. Sam's Club offers more than 4,000 discounted items, including bulk office supplies, food, electronic goods, jewelry, outdoor living, Member's Mark store-brand products and much more.

    Become an Affiliate…Join the SamsClub.com Affiliate Program and turn website visits into revenue for you. When visitors click on a SamsClub.com ad from your site and complete a qualifying sale through SamsClub.com, you receive a commission on that sale.

    Explain to me how this is different than what Zeek Rewards is doing – if a person clicks on an ad for Sam's Club and a sales made they pay a commission. There is no difference here than what Zeek Rewards is doing, if a person clicks on a Zeek Rewards ad, and a sale is made we make a commission. Sam's Club also has a referral incentive program as well.

    Did you know that about 40% of companies offer profit sharing plans. Profit sharing programs require setting up a formula for distribution of company profits. I think that what Paul Burke has done by sharing the company profits with the members of Zeek Rewards is the most brilliant and unselfish way to not only incentivize people to market and promote the company but also a way to help people financially during these devastating economic times.

    What really boggles my mind is this, MLM laws were created long before the internet craze, and the biggest issue is what is and what is not a product. In the world of the internet, digital products are sold every day, yet there is a big controversy over whether digital products are a legal product in an MLM business model. I personally think that the MLM laws are outdated and need to be re-evaluated based on the fact that times have changed, we are no longer living in the cave man days when there was no internet and technology had not advanced to the level it is today. Our Government has no problem changing laws daily to suit their selfish needs and I think it’s high time that the MLM laws are reviewed and adjusted to meet the needs of the ever growing and increasing internet craze.

    I personally hope that Zeek Rewards is here for many years to come; I for one will stand behind Paul Burke and what he has designed and hope the majority will as well. It is time that we stand up for what we believe and not let the FTC or the SEC shut down or keep a hovering threat of shutting down Zeek Rewards. I would love to see this business grow into a company where we can purchase all of our products we are buying already from stores such as Sam’s Club and continue to receive daily rewards or profit sharing for promoting and marketing this brilliant business that Paul Burke has created for all of us.

    I personally think that the more people that join, the more people that voice their support of Zeek Rewards and continues to stand behind Zeek Rewards will help keep it alive and strong so it will continue to help people all over the world regain their financial freedom – after all that is the American Dream, or at least it used to be.

  26. You are correct Tim for the average MLM company. Competitors call the Attorney General to "check the books" and the three month shut down kills the company because everyone has gone to another company.

    That is not the case with this company. Say I am making $500 a day with zeek and the AG shuts them down with some phony record check. All zeek needs to do is freeze the accounts and stop the auctions. Six months later when the AG cannot enforce the phony charge they open back up.

    I do not care what company I am doing at that time, when zeek calls and tells me to start running my ads again and I will make $500 a day, you can bet I will be right back in the business.

  27. Something the occupy wall street group does not know because they never had merchant accounts is that credit card companies – ALWAYS – limit high growth companies based on purchase volume over a time ratio.

    Notice the company STILL takes credit cards so they are NOT at issue with the credit card companies other than volume limits all merchants are under.

    Bank wires were stopped because people did not identify where the money was going to. I am sure you can imagine how hard it would be to get a $100 wire from Wells Fargo and not have a clue what use it belonged to and still try to keep things going. Solution – no wires because affiliates are not smart enough to follow the rules.

  28. Thanks, I did not know they were all crooks.

    I noticed Ebay is not on the state auction list, you better write about those crooks too.

    It takes one to know one.

  29. A few questions that I have, the first might not seem related to Zeekler but hear me out. From the following website:

    http://guest.newnetmail.com/simple_affiliateinfor

    New Net Mail offers a free e-mail service but in addition to that it offers an income opportunity to people who are willing to pay for that very same free service AND the right to earn a commission from each and every person they can convince to also pay for that otherwise free service. I'm sure you can see the problem with this but perhaps you don't see why I'd raise this issue in context of this blog post.

    Very simple, look at the company name at the bottom of the page I linked above, Rex Venture Group LLC. New Net Mail is owned by the same people (person) as Zeekler and Zeek Rewards. When Paul Burks talks about his long buisness history he is talking deals like New Net Mail.

    What is a "penny auction"? I'll use round numbers here, let's say each bid costs $1 to make but also increases the price of an auction item by 1 cent (the numbers on Zeekler are a bit different, again, round numbers). Imagine an Apple I-Pod worth $500 is put up to penny auction with an opening price of one penny, who wouldn't spend one dollar to try to purchase the item? If they did then $1 flows into the auction company and now the price of that I-Pod is 2 cents. Would you spend $1 to buy an I-Pod for 2 cents, sure you would. So now $2 has been paid to the auction company and the item price is now 3 cents.

    So if the I-Pod costs the company $500 they need to attract 500 bids to break even but that would still leave the "purchase price at auction" of the item as $5. Would you spend $1 for the chance to buy an I-Pod for $5? Sure, why not? Except for the fact that any number of those $1 bids could have come from you and unless you win the auction you lose all the money you spend on bids. Clever marketing for sure but there is a chance for this being something more sinister.

    What happens if the auction timer is just about to run out and say only 250 bids have been made? Does the company lose near half the purchase price of the item and sell it to the winning bidder for $2.50? Or does their software create a "shill bidder" to place a bid hopefully to attract more bidding but perhaps only to help pocket all of the legitimate $1 bids that were placed and preserving the inventory item for another auction. If they did how would anyone know?

    I'm sure if the auction site did that there would be applicable laws to punish them but this sort of thing is too new to have a body of precedents to govern them. This wouldn't be the first time that an interesting marketing opportunity found it's self in the internet version of the wild wild west. So, what's the minimum you'd want to do to show your company was on the up and up particularly when you have attorneys like Mr.Nehra at your disposal? I'd think applying for a license to hold auctions in you state of operation would be a reasonable start.

    http://www.ncalb.org/search.cfm

    That's the North Carolina Auctioneer Licensing Board website's search page. Please do correct me if I'm wrong but I don't find Zeekler or any company or principle's names listed as having a license to hold auctions. The fees are fairly nominal so if they don't have a license I'm sure it's some sort of over site on their part but given the fact that it's almost impossible for anyone without access to the Zeekler website's source code to prove they aren't cheating people I do find it a bit distressing that they may not in fact even have a license to hold auctions.

  30. My concerns are more as well, that the company stopped taking credit cards for buying the product, VIP Bids… and that as well no bank wires can be taken any more… what you think about that and had you a chance to talk to the owner?

    Yes, a good lawyer is always good but the big brother team has more power and when they want to get something, they simply take it, and when it's taken, its gone and if their is a lawsuit or what so ever, the time that's it stopped, that the company can take payments or payout… its dead.

    Tim

  31. @Seth,

    From the information I have, Gerry Nehra is the MLM attorney for Zeekler. Gerry has been down this road before, and is very detailed in making sure his clients are given all they need to be legal, based on known case law.

    However, Zeekler, has a very unique business model, and it covers several different regulatory issues. Where as the FTC might be happy, that doesn't mean the SEC or the Treasury come looking. And that doesn't take into account the 50 different state personalities that have to come into the final equation.

    If they follow Gerry's advice, then they will be as covered as they can be until someone comes snooping. When that happens, they will find out why Gerry charges what he does. That boy and his team will fight to the end to defend their legal opinion!

    Living An Epic Adventure,

    troy

  32. @Brian,

    Thank you for coming by and adding some great value to this topic. Truly Zeek is way to broad to try and cover in a short brief overview. I am looking forward to digging deeper and talking with the principles. Even if in the end I may find strong issues and red flags, I have to say this… These folks have put some thought into building this brand and business concept.

    Have a great Christmas.

    Living An Epic Adventure,
    Troy

  33. Thanks Troy for your comments and input on Zeek Rewards. I have been part of this "profit sharing" program for just short of 5 months. Like you, I don't see it as MLM or Network Marketing. It is much, much different. The company is very strict on what this is and what this is NOT. I appreciate the strong warnings because I see many other companies that are promising certain returns, using spreadsheets, and referring to themselves as "investments" or something similar. This concerns and scares me.

    As with anything ZR comes with risk. How secure is a JOB today in the USA? How secure is an income based on a Health and Wellness product? I am pleased that ZR is being very diligent and careful with its claims and affiliate activities. As you mentioned, they have hired some top legal counsel also.

    I look forward to your future reviews and comments.

    Merry Christmas.

    Brian Nielsen

  34. @John, I did not say the risk of a new market, I did refer to the risk in the niche due to regulatory issues. I was pretty clear as to what some of those risks are, and the fact this is an interesting business model.

  35. You mentions the risks of this new market. Can anyone enlighten me, as to what risks he is referring to are?

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