Frode Jorgensen, Bidify's Chief Creative Officer, reportedly operates as an active Diamond-level affiliate for Zeek Rewards, a direct competitor in the growing penny auction and MLM investment sector. Evidence suggests Jorgensen, known online by the alias "swoopzy", actively promoted Zeek Rewards as recently as January 2012.
Zeek Rewards launched in January 2011, pioneering a hybrid compensation model that combined MLM investment with a penny auction front-end. The significant revenue generated as affiliates joined and invested did not go unnoticed within the industry. Bidify then launched in February 2012, adopting a similar investment compensation hybrid and penny auction structure. These two companies quickly became the primary contenders in this specialized market niche.
Zeek Rewards initially guaranteed a 125% return on investment (ROI) for affiliates, later transitioning to a variable 90-day ROI. Bidify, by contrast, offers a 120-day ROI but requires members to reinvest 20% of their returns. Though similar in nature, their compensation plans differ enough to warrant their separate existence in the MLM industry.
Jorgensen uses the Twitter alias "swoopzy". This same username is tied to a currently active Diamond-level Zeek Rewards affiliate account. Promotional activity, including a webpage screenshot, shows the "swoopzy" Zeek Rewards affiliate link actively promoted. The date on the screenshot, appearing as 2012/01/05, indicates this promotion occurred recently.
An executive holding an active affiliate account with a direct business rival raises questions about potential conflicts of interest. Bidify's terms of service specifically address such competitive activities.
Bidify's Section 5.3.2, titled "Sale of Competing Goods or Services", states that affiliates must not sell or attempt to sell any competing non-Bidify programs or services to Bidify customers or affiliates. The terms broadly define "competing" to include any program, product, service, or direct selling opportunity in the same generic categories as Bidify services, regardless of differences in cost, quality, or other distinguishing factors. Section 5.3.3 further restricts targeting other direct sellers. Zeek Rewards, however, does not impose similar restrictions on its members promoting different opportunities.