MLM Blog – Network Marketing Blog

 Friend of the blog, Troy Dooly interviewed the COO of Zeek Rewards in this video:

Apparently, the fine line between complying with the law and putting your distributors through the wringer is blurred when you get a bunch of lawyers involved...

Here is a copy of the lovely disclaimer that MUST BE READ ALOUD whenever the ZeekRewards compensation plan is presented verbally or by telephone, or included in it’s entirety when communicating in writing:

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

Watch me read the disclaimer here:

Sounds like so much fun...

Do you think the Zeek lawyers are going overboard or do you think this is needed to reign in the get rich quick scammers who were running rampant?

It looks like trouble is brewing for Zeek Rewards.

In the company's effort to move from an illegal scheme to a legitimate opportunity,  they risk losing the vast majority of their affiliates because they are actually going to require some effort.

There is an in depth article over at BehindMLM.com that makes a very interesting point about Zeek Rewards:

Before March 1st, 100% of the purchases made within Zeek Rewards were by members (VIP bids).

In other words, "no actual customers" could be found.  Now it looks like the company is adding a new rule, requiring two new preferred customers per month, which (like I mentioned above) will likely slow growth to a halt.

I always find it interesting when companies like Zeek Rewards pop up and gain some serious momentum.  Because, hey...running an illegal scheme can be very profitable.

However, I've seen it before, once a company begins to move toward legitimate opportunity, they inevitably will slow way down.

Schemes attract the easy money, something for nothing crowd and when the easy money dries up, the something for nothing crowd will move on to the next scheme.

Zeek Rewards is in a tough spot.  

They have to allow the lawyers to move the company in the direction of becoming a legitimate opportunity before the FTC and Attorney Generals come in and slam the doors shut.  But if they move too quickly, you will see an exodus along the lines of iJango ort AGLOCO.

There is no question that Zeek Rewards has had a pretty good run, but I suspect that the run is about to slow way down.

When companies grow wildly as a result of crazy income and product claims to the point where it finds it necessary to hire multiple attorneys...watch out!

Bringing in multiple compliance attorneys In an effort to reign in the illegal claims that make the company look like a classic Ponzi Scheme, you can pretty much bet that the growth will begin to slow.

Remember MonaVie?  In 2007, we blew the whistle on illegal claims being made by MonaVie reps, especially on YouTube.

Even into 2008, I believed it was part of the companies culture to make crazy claims about the MonaVie product.

As time went on, MonaVie began reigned in these claims and coincidentally, the growth slowed in the U.S. shortly thereafter.

As Zeek rewards works to get a handle on these crazy claims, watch the traffic on the Zeek Rewards site tumble.

If Zeek was a stock, I would call my broker to "short" it, meaning I would bet at this point that the company has reached it's pinnacle and will begin to decline.

I will say that the simple act of hiring compliance attorneys in an effort to clean up the illegal stuff tells me that the owners of Zeek Rewards are not out to scam people and take the money and run.

Having said that, I wouldn't look to this company as a long term way to impact my family's future.