Last year, Zeek Rewards emerged, blending penny auctions with a multi-level marketing compensation plan. The company largely functioned as an investment scheme, allowing members to buy "VIP bids," return them to the company, and then collect a daily return on their investment.
Zeek Rewards kept the specifics of its investment returns private, never detailing how much came from member investments versus its penny auction front, Zeekler. Paul Burks, CEO of Zeek Rewards, stated this information was "proprietary."
Bidify now enters the same penny auction MLM space, aiming to compete with Zeek Rewards. Bidify's website provides minimal information about its ownership or management. It only states the company is "privately held" by "several entrepreneurs from different parts of the world."
The domain 'bidify.com' was registered in May 2011. Larus Palmi Magnusson is listed as the registrant, with an address in Victoria, Mahe, Seychelles. This location matches the address Bidify provides on its website, "Unit 117, Orion Mall, Palm Street, P.O. Box 828, Victoria, Mahé, Seychelles," though the PO Box is absent from the domain registration.
Bidify includes a registered company number (100478) on its site. However, no publicly searchable online database for Seychelles companies exists. Seychelles is known as a tax haven. Bidify is likely set up as an International Business Company, which means its owners do not pay taxes in Seychelles if they conduct no business there. Seychelles business law also makes it difficult to obtain company information or take action against owners.
Larus Palmi Magnusson lists Iceland as his location on his Hi-5 profile. The same name appears on Facebook and, more notably, on SWOM, a social network for internet marketers. The unique name suggests this is the same Magnusson involved with Bidify. Why an Icelandic resident would operate his company from Seychelles remains unclear, as do the identities and roles of any other individuals in Bidify's ownership or operations.
Bidify offers no retail product. Customers cannot purchase anything from Bidify without joining the company or participating in its compensation plan.