Zeek Rewards released its 2011 Income Disclosure Statement, revealing that 89.2% of its US-based members were either inactive or had not recruited two preferred customers by December 31st. The company published these figures shortly after announcing major changes to its passive investment structure.
Of that number, 65.73% of US members were entirely inactive. The remaining portion, approximately 70% of active members, had been in the system for over a year but still lacked two preferred customers. These figures suggest preferred customers held little real value for members. These were not new affiliates; they had a full year in the system to meet the requirement.
Zeek closed 2011 with 15,318 active US members. This represented 34.22% of the total 44,763 registered US base. The company opted not to release global figures.
Executive-level affiliates, specifically Diamond members, reported the highest average income at $10,310. These members distribute the most VIP bids and often focus on the investment side. Senior Executives averaged $5,594. But the system held four times as many Executives.
The average annual income for all affiliates worldwide reached $1,076.24 in 2011. And 64% of all global distributors received nothing. The US figure for zero earnings stood at 65.73%. The company's refusal to state the percentage of its global member base located in the US makes this partial disclosure less useful.
The recent push for preferred customer recruitment will test the business model. Most members have treated Zeek as a passive investment. Now they must recruit two preferred customers monthly. Widespread enthusiasm for that shift seems unlikely. April will bring additional requirements for members seeking company-generated retail customers. Zeek has not yet detailed these changes.
After a year of passive returns, the structure is changing fast. Those banking on Zeek operating for years might need to reconsider how Ponzi schemes function.