This weekend has been one of the craziest I have ever seen. The information on Zeek Rewards and Rex Venture Group has been growing since the SEC closed them down with the emergency order. Below is the most current info and some resources to help all the former affiliates of Zeek Rewards get their refunds.
[quote]Our firm is developing an action plan for the victims in Zeek. I recently called Ken Bell, the receiver, to establish a relationship. The receiver in this case is going to be required to deal with over 500,000 people. I think our firm can represent the victims and act as an advocate on behalf of the community. Instead of dealing with each individual, the receiver can deal with our firm and we can communicate effectively on behalf of our people. Calling the AG’s hotline is not going to work for people. [/quote]
SEC Complaint Against Rex Venture Group, LLC aka Zeek Rewards
Randy Jeffers is not new to Network Mareketing. As one of the most colorful founders in current MLM history, he has experienced both ups and downs. Randy rose to fame by launching one of the fastest growing network marketing companies in history Destiny TelCom, just to see it fall when regulators came busting through the doors.
After fighting off regulators on every front, all that was left was Randy’s drive to build another company. Liberty International was born, and for years Randy run under the radar, creating a very successful company, with thousands of networkers earning their products and services for free, and several hundred became financially independent.
In 2009 – 2010 during the MLM Wireless Wars (you can read more on this site), Randy Jeffers and his team launched WOW Mobile, quickly taking on all the other pre-paid MLM wireless companies and dominating… for a short period of time. Soon, it was exposed that WOW Mobile through no fault of their own (except Randy didn’t see something in the fine print of his agreement between T-Mobile and himself), that both he and his LLC were responsible for all international calls maded by customers and reps of WOW Mobile. Long story short, Randy bankrupted the company, and distributors purport they are still owed missions in back commissions.
Randy, went on to help launch Liberty International network, and went back to creating a solid program, where thousands get their products/services for free, while a few long time leaders are still enjoying financial freedom.
Which brings up to the current MLM trend Unique Bid Auctions aka Penny Auctions aka Reverse Auctions. DubLi Network is the first such company to launch in the USA back in 2009 – 2010. DubLi slowed down to correct some of their early issues, and then focused on international expansion.
In 2010 Rex Venture Group, launched their penny auction house Zeekler, and in 2011 added Zeek Rewards, their Network Marketing affiliate organization to help market and advertise Zeekler. In nine short months, they quickly became the fastest growing, and largest MLM organization of any first year startup (source Network Marketing Business Journal) in modern history.
BidiFy launched in 2012, to become the first competitor of Zeek Rewards and is quickly coming on strong internationally. They have just launched their new penny auction house Bidsson.com and are growing steady in the USA as well as worldwide.
Today, July 4th, 2012, Randy Jeffers has opened for prelaunch his “Bids That Give” penny auction house and MLM Income opportunity (although Randy Jeffers is stating Bids That Give is NOT mlm).
Next week I will be doing a deeper investigation into the whole business model. But I do caution anyone who is looking at Bids That Give to fully understand a couple of concerns I have.
1. Although I personally do not think penny auctions fall under the U.S. Code of what is defined as a direct selling company, at this time that is the only reference point the regulators have to work with, and if any penny auction house is stating “we are not MLM” that is a red flag to be concerned with.
2. History has proven that when a for profit company (with a compensation plan) leads off with “giving to the needy” the SEC, FTC and State AGs feel the hair on the back of the neck’s start to prickle. Several very successful networker marketers have tried this in the past just to have regulators get involved. Randy is a smart businessman and has access to great legal minds, so only time will tell, but this is a red flag concern.
If you love the unique bid auction niche, and you are reviewing Bids That Give, just realize this is a young niche and is still very vulnerable to regulatory actions.
I have always enjoyed speaking with Randy Jeffers and have found he doesn’t back down from the hard questions. I look forward to chatting with him in the near future on this new venture.
Plus in seeing some of the growing pains the other auction houses have or are going through, just be very careful.