Bidify, an MLM company linked to penny auctions, restructured its compensation plan in August 2012 following the SEC's shutdown of Zeek Rewards. The company, initially compared to Zeek Rewards, had operated with Larus Palmi Magnusson listed as CEO. Before its Bidsson auction site went live, Bidify affiliates earned commissions solely from recruiting new members, ranging from 5 to 25 Euros depending on the new affiliate's purchased membership.
This early model raised concerns about it operating as a pyramid scheme, where payments stemmed primarily from recruitment. Months of delays preceded the eventual launch of Bidsson, the company's penny auction platform. Its activation triggered the full Bidify compensation plan, ostensibly generating revenue from auction activity.
Magnusson, listed as founder and co-owner, states he operates Bidify from Iceland, where he lives with his family. However, no physical headquarters address in Iceland appears on company records. Bidify instead provides two corporate addresses: Bidify LLC at 427 N Tatnall St #15902, Wilmington, DE 19801-2230, United States, with EIN 45-5440622.
The second address is for Bidify Europe Ltd. at GBW 88 Lower Leeson Street, Dublin 2, Ireland. Information regarding the connection between Bidify Europe LTD and Ireland remains undisclosed. Bidify also offers no details on its other co-owners, beyond stating that "Bidsson and Bidify are privately held corporations, owned by several entrepreneurs from different parts of the world."