Bidify adjusted its compensation plan on August 28, following the SEC's takedown of Zeek Rewards for operating a $600 million Ponzi scheme. The company immediately reduced the initial investment amount for US-based members, from 25,000 Euros down to 5,000.
Many viewed this change as cosmetic. Less than 24 hours after the announcement, Bidify stated it was shutting down the platform to remodel its entire compensation plan. Bidify had been Zeek Rewards' primary competitor, roughly halfway through its own 120-day penny auction points program. The shutdown confirmed suspicions for many: a multi-level marketing penny auction tied to a points-based compensation plan often relies on new affiliate money to sustain payouts. Zeek Rewards had done exactly this for nearly two years, with 98% of its daily ROI coming from newly invested funds.
Bidify came back online yesterday, introducing a new "more traditional" compensation plan for its affiliates. The earlier Bidify plan focused on affiliates buying bids and distributing them to increase their share in a profit pool. This pool was largely funded by other affiliates, as shown by the sharp drop in Bidify's daily ROI percentage immediately after the Zeek Rewards shutdown.
The new Bidify compensation plan centers on selling Bidsson penny auction bids directly to customers. To qualify for commission payouts, affiliates must generate a minimum of 25 Personal Volume (PV). Each PV unit equals 1 Euro spent. Bidify defines PV to include bids affiliates purchase themselves or through their retail customers.
Residual commissions operate on a unilevel structure. An affiliate sits at the top, with every directly recruited affiliate forming their Level 1. Affiliates recruited by Level 1 members become Level 2, and so on. Bidify pays commissions down eight levels using this structure. These commissions are a percentage of the Group Volume (GV) generated by an affiliate's downline, separated into levels within their unilevel team. Bidify defines GV as bid sales made by an affiliate's downline affiliates.