The Formal Bidify Response to Zeek Rewards Closing Down

Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.

Did You See the Bidify Penny Auction Reaction to Zeek Rewards Getting Shut Down?

The Zeek Rewards Shut Down is all over the web, and as the buzz began to subside a bit, some interesting things started to come in over the wire.

Most notably one of Zeek’s European counterparts, Bidify, came out fast and hard with a newsletter today that lists some specific changes the Bidify Penny Auction effort will undergo  – mainly per the candid advice by their counsel – The MLM Attorney Kevin Thompson.

Here’s Troy Dooly’s Latest Post Speaking to This Issue

Original Post from Troy Here

The Formal Bidify Response to Zeek Rewards Closing Down

The past few days have been very busy for the entire MLM industry. As many of you know, our specific niche was rocked last Friday when it became known that Zeek Rewards, our main competitor, was shut down as an illegal ponzi scheme.

After reading a few reports, it appears that Paul Burks, Zeek’s founder, is not contesting any of the allegations in the SEC’s complaint.

Assuming those allegations to be true, this is a tragic event for everyone involved with Zeek.

Unfortunately, since we’re also operating a network marketing company in the penny auction arena, our name has been drawn into the mud with Zeek.

We understand that many of you have questions and concerns about our business model. We understand that many of you want to know specifically what factors distinguishes us from Zeek.

Well, for starters, we’re not lying to you about the numbers. We publish our earnings daily. Those earnings drive the daily profit rewards. Second, our bids are actually being used.

With Zeek, it has been alleged that only 0.25% of the bids purchased were every used. It clearly shows that the bid purchases were merely token purchases designed to conceal a money transfer from late investors to early investors.

On Bidsson, the bids are actually being used. We have built an amazing technology platform and when we release our mobile applications, it’s only going to get stronger.

But we understand that these differences alone are not enough. We understand that no matter how hard we try to force affiliates to move sample bids to customers, it’s going to be nearly impossible to prevent people from promoting the program as an investment.

In reality, Bidify is NOT an investment. However, since there’s so much profit generated on the penny auction side of the business, and when people rack up a portion of those profits by providing sample bids for customers, it’ll always be viewed as a passive investment.

We realize that now, and we’re committed to putting an end to it. After having countless meetings between management and our legal counsel, we have developed a revised business plan to protect the longevity of the company while keeping it a very competitive and lucrative opportunity for the masses.

After serious discussions, we have decided to eliminate the leadership bonuses from Bidsson. We are eliminating the ability for people to purchase and give away sample bids.

While it served a valid purpose in generating activity on the Bidsson platform, it creates the most exposure. And quite frankly, given the excellent condition of our technology and our recent success with Bidsson, there’s really no need to be giving away so many free bids to customers.

We offer an excellent deal for customers, one that they’re willing to pay for.

We’re eliminating the daily leadership bonuses and turning off the re-purchase. We feel this was the cancer. This has led affiliates, both in Zeek and Bidify, to refer to their commissions as “compounding” when in fact it was a function of a simple commission based on customer activity.

In order to cure the cancer and eliminate all confusion, it must be removed.

In order to make it more lucrative to buy and sell bids for everyone, we are putting together a new bonus plan based more on a traditional MLM, one that will not lead to improper positioning in the field.

With all existing affiliates with bonus points in their back office, we are creating a new pool where we will continue to share profits from Bidsson.

These bonus points will trigger a piece of the profits from Bidsson indefinitely. The size of your profit sharing stake will not grow. It’s our way of honoring our commitments to you. We want to make sure that your experience is consistent with your expectations when you joined.

We will continue to build Bidsson to become the biggest penny auction platform in the world, and we will continue to reward affiliates for helping us promote it.

We will take down the website to implement these improvements. Stay tuned. We do these changes to make Bidify a long lasting opportunity for everyone.

We are committed to offering the safest model possible and cannot offer anything less.

We will be holding a conference call with Kevin Thompson, our legal counsel, where we’ll discuss these changes. He’s been given free rein to be candid during the call and shoot straight with everyone. It should be a good one!

Kind Regards
Bidify Management

Here Are My Thoughts On This Letter from Bidify

First, kudos to them and to Kevin Thompson for realizing that the proverbial bulls eye is in fact squarely on any and all penny auction or bid related MLMs that function in any way along the same lines as Zeek Rewards did.

I really respect the work Kevin has done in the MLM industry.  You can get a feel for what Kevin is all about on this call recording of him speaking with Bidify members the other day.

Listen to the Call Recording Here

The folks at Bidify state clearly that the Bidsson auction platform are in fact being used.  Kevin Thompson states emphatically that the issue of giving bids away in return for rewards that grow represents a passive activity, and that’s where the ‘jury’ so to speak has come back with a hard slap.

The idea is that the “rewards for giving bids away” model gives value to people for little or no effort or work, and that’s where the SEC saw a big problem.  This is especially true when Zeek allowed affiliates to buy and give bids away at will.

Now that Zeek is out of the picture, and that Bidify knows what the regulators did not like about Zeek’s model, the Bidify effort is able to move forward on a new path.

The changes you see referenced above are substantial.  Kevin and the Bidify leadership are clearly working very hard here to move towards a more MLM-driven model where products sold to customers really do make up the bulk of the company’s business.

No more sample bids.

No more leadership bonuses.

No more daily repurchases or what people call “compounding.”

My question is this… 

Will people still want to participate as actively in Bidify now that they may not be able to earn passively as they have been doing since the company’s outset?

Essentially, what people are going to have to do is get good at selling bids to customers in order to profit from the new Bidify model.

Are there enough people out there in Bidify now who are willing to stick with the company now the profit sharing model is gone?

I hope Bidify does well with these changes.  Nothing would please me more.  The more healthy MLM activity we have out there the better!