Bidify, a prominent multi-level marketing penny auction platform, has eliminated its points-based compensation plan. The decision comes amidst increased scrutiny of similar schemes following the collapse of Zeek Rewards, a model Bidify closely mirrored. Its daily investor returns had recently fallen to 0.8%.

The downfall of Zeek Rewards intensified attention on other MLM penny auction operations. A wave of copycat competitors quickly emerged, often by acquiring generic penny auction scripts and partnering with drop-ship suppliers or Amazon. Many of these newer platforms remained in pre-launch phases, their viability uncertain. Global One, for instance, publicly reassured its members it would proceed with its point-based plan, despite the Zeek precedent.

Among the launched penny auction MLMs, Bidify garnered significant public interest. The platform, structurally similar to Zeek Rewards, paid an initial daily ROI of over 5%. This percentage steadily declined, however, settling into the low 1% range before dropping to as little as 0.8% in the weeks leading up to its recent announcement.

Early investor activity shortly after Bidify's launch skewed the average daily ROI rate. But even with a 120-day window for members to recover their bid purchase investments, the continuously falling daily returns indicated ongoing financial strain. Analysis of Bidify's ROI projections became moot when the company informed members it had scrapped the existing points compensation plan.

This was not Bidify's first adjustment to its operational model. Within 24 hours of Zeek's issues, Bidify initially announced a reduction in the maximum investment for US-based affiliates to 5000 EUR. Observers noted this change had no fundamental impact on the investment-style points compensation plan, appearing instead as a cosmetic adjustment akin to those seen at Zeek Rewards. Previously, Bidify had also announced the scrapping of its "Mandatory reinvestment account," which proved to be merely a name change to a "frequent sales credit account."

In its announcement to members regarding the points system change, Bidify stated, "We understand that many of you want to know specifically what factors distinguishes us from Zeek. Well, for starters, we’re not lying to you about the numbers. We publish our earnings daily. Those earnings drive the daily profit rewards."