Monday, August 20, 2012

Zeek Rewards: Everyone is Guilty!

Zeek Rewards: Everyone is Guilty!

Unless you've been living under a rock... you have heard about the Zeek Rewards, MLM Ponzi Scheme... Last week, the company was shut down, with millions of members (investors), $600 million turned over to a receivership, and a flood of people realizing that they were a victim of an MLM Ponzi Scheme!
First, they knew exactly what they were doing and are not contesting the action.
Second, it is estimate that if a one page summary is sent to each investor, summarizing the contributions and withdrawals, the stack would reach about 100 meters(about 300 feet).
Third, it brought new attacks on the MLM Industry, due to their model, which was clearly an MLM Ponzi Scheme!
Fourth, they aren't the only ones out there.  Some will mask an auction or dating site to their business model.  
Pick ONE... 
  • a.) are you marketing real products and services, to real people, for a commission on sales? 
  • b.) are you marketing recruiting package for commissions?  
  • c.) are you marketing an investment program?  
Hint... a.) is the only one you should have chosen.  Don't even waste your time, and please don't share with others, b.) or c.)!  Even with a.), you need to research the company, the products, and have a desire to actually market the company's products and services.
Most of those familiar with it Zeek Rewards, knew that it was wrong from the start, however has led others to believe it was legit, and launch another.  Additionally, many knew full well it was not legit, but joined anyway and handed over thousands to the "Lure of easy money."
Just one week ago, I spoke with a company from California, that is also proposing to launch a Penny Auction MLM, etc. etc. with rewards points that can be earned, etc. etc. and compared to existing companies,  I stated that "Most companies are outside the USA, as this can quickly be an illegal scheme."  He responded... there's some here in the USA, mentioning Zeek Rewards.  Yes, they do exist in the USA, but only serve to make you think it is legit.  It is NOT.  While I offered to provide consulting, to discuss further, I have no knowledge of his status.
1.) You need an MLM Consultant
2.) You need All Docs and Business Model Details sent to an MLM Attorney
Last week, two business associates called me to inquire on Zeek Rewards, specifically, with a desire to join.  I told them NO, in my opinion, it was  Ponzi Scheme and would be out of business soon.  I had no idea it would happen in only a few days from stating it!  I do hope they didn't send their money and app in... I hear the investigators are still receiving packages from new enrollees!
No doubt, Zeek Rewards was told, very clearly, what was right and wrong.  They state having an MLM Attorney, which was probably hired or consulted with, briefly, when they first launched.  Their stated MLM Attorney is reputable, and there is no reason to believe this model was acceptable by their firm.  It is not possible to believe that any MLM Attorney would confirm the business model to be safe.  Absolutely ridiculous.  They simply did what they wanted, in the face of good advice.
Regularly, I speak with potential start ups who present a wild and profitable business model, for which I explain is not legitimate and they should not do.  Zeek Rewards, in particular is closer to the High Yield Investment Club scams of the 90's, but repackaged with an auction site to conceal it's identity.
Based on the fast pace of people joining and sending thousands (in many cases over $5k each), and the fever of looking at a back office and it's reported incredible yield, it ran like wild fire.
Worse, I've received dozens of requests to launch a similar program mixed with auction or penny auction or reverse auction,... even dating site, and pointing out existing companies doing somewhat similar... like Zeek.
Often these companies are off shore, allowing them to run longer before a regulatory agency shuts them down.  At times, they actually do so from within the US, leading others to believe they must be legitimate, and want to launch their own.
Folks... Real Products to Real People.  Not Investment an MLM Ponzi Schemes.  
If you become a member of an MLM Ponzi Scheme, you are only assisting in the continuation of such.  Don't do it.  Worse, you are just as Guilty of encouraging others to be taken by a Ponzi Scheme.
And listen, when a company is shut down, many move to the mentality, "I am a Victim."
Stop it.  Do you know how many people I spoke with in the last couple months that mentioned Zeek Rewards, that they were a member, and they KNEW it was a Ponzi Scheme, they just hoped to make some money.  I'm serious!  And if you are honest, you probably knew it to.
Not everyone that falls for such a scheme is a Victim.  They should be brought in front of the judge, with the CEO.
If it is an MLM Ponzi Scheme, don't do it, just because you think you can make some money before it crashes.  In the end, you only fuel others to believe that it is legitimate.  In my book you are just as guilty.
You knew it and promoted it!
If you are a company, don't do it.  I have turned down, on average, 60-100 potential clients per month, on this one point.  If you are interested in marketing real products or real services to real people, then I am willing to work with you and willing to discuss software solutions.  If you are not... I must turn you down.  That's correct, I turn down 60-100 people per month, no matter how much money they are willing to spend on software.
It is time the industry gets cleaned up.
Next, already people are positioning to drag "Victims" of Zeek Rewards into another MLM.
New Start Up companies are thinking of the millions of people that are now candidates for MLM.
NO.  They are not.  Even if you happen to have contact with persons, and have the right to communicate with them.... Persons who willfully join a company, such as Zeek Rewards, will never do any work in a real MLM.  These persons are not interested in marketing Real Products to Real People.
If you are even thinking about this group of persons as your target market, you are wasting your time.  They are only interested in blindly tossing money in an imaginary machine and receiving more money back.  These persons approach real product based companies with the same mentality, if the comp plan is designed to attract them.  Comp plans often do attract them, they purchase a distributor kit, then do nothing.  
There is no reason in the world, for you, to design a compensation plan to attract the masses, recruiters, or the like.  Your compensation plan should strictly be designed to reward persons for marketing real products to real people, directly, and through a sales team.  If it has crazy rewards, bonuses, or other methods, to entice the masses, you will not reach company sales goals.  If you are a legitimate company, it is all about product/service sales, not about recruiting.
Again, the industry needs to be cleaned up.  It starts with me, an Industry Consultant and Software Provider, with MLM Attorneys, with MLM Start Ups, and with Distributors.  We ALL must work together, with correct expectations, towards success.

Scott H Leonard
MLM / Direct Selling Conultant
MLM / Direct Selling Software Provider

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