A 600-Million Dollar MLM Goes Down – Lessons To Be Learned

by Martin Russell on August 21, 2012



On August 16th Zeek Rewards / Zeekler.com was shut down by the US Securities and Exchange Commission as a Ponzi scheme.

The first I heard about it was when one of my contacts asked me to help petition the SEC to leave Zeek alone, saying, “LONG LIVE ZEEK! – LETS HELP ZEEK”.

He had first contacted me almost a year ago when I told him I had checked it out enough to have no interest in it.

This time I replied to him,

“Er [Name Deleted] – this wasn’t possible to continue. Hope you apologize to your recruits in full.”

So how can you avoid getting caught up in problems like this? What can be learned from the demise of Zeek?

It all comes down to one question.

When you are evaluating an opportunity you can ask yourself this:

“If I didn’t make a cent from this, would I still recommend it to people?”

This was the question I asked myself when someone first contacted me about Zeek, and the answer was clear for me.

There was no one I knew who would want what Zeekler offered – EXCEPT for the opportunity to make money. Zeekler was offering nothing unique or different or of added value as an auction site (‘penny auction’ is the term they used.)

Without true customer value to offer the marketplace Zeek was always destined to fail. It wouldn’t have enough customer profits to have a viable business.

It would only be able to talk about their money-making ‘value’ which usually would mean to say they will have to market that their money making system is either bigger, faster or easier than everyone else’s. Very dangerous indeed.

I assumed Zeek was just another company that would hype and then collapse on itself like so many others of this type have done. Only it didn’t.

This one caught fire.

So much so that in the past months I had been having people contact me about how much money they were making in Zeek. They now had stories of BIG incomes from small investments and with a simple system.

Unfortunately those stories were true!

I say unfortunately, because big incomes don’t change the fundamental flaws of the company and what it is offering.

Zeek hadn’t suddenly found a wildly profitable customer product. They were simply involving more people in the money-making side of the business, and this is unsustainable.

The big money is also when it starts to attract the attention of the authorities in various countries as the inevitable complaints and questions come in.

Where To From Here?

By definition, Zeek is an MLM because it has a multi-level compensation plan. It is also network marketing and relationship marketing. So Zeek’s rise and fall is another black eye for this industry.

My goal is to help you, and others, to understand what to look for so you can do your due diligence, know what you are getting in to, and avoid getting caught by a scam if at all possible.

If you were in Zeek, and you knew it was going to fail and you still recruited others to it, then shame on you.

If however you were in Zeek or considering it and had NOT understood it’s flaws, then it’s time to make the most of the lessons from it’s demise.

There can be many complicated issues when assessing a new opportunity, but keeping this one question in mind will help you lift the fog on ‘opportunities’ like Zeek.

 

Is this useful information for you? Do you think it would be useful to others? If so, then I would really appreciate you looking over to the left-hand side <— and then taking a moment to Share, Like or PLUS+ this post. Thanks!

Previous post:

Next post: