Zeek Rewards recently mandated a compliance course for all its members, charging them for the training. The company also announced partnerships with several legal firms, aiming to reassure participants about its commitment to addressing regulatory concerns. These steps follow weeks of speculation regarding Zeek's operational legitimacy.
The latest company policy bans all promotional material not authored by Zeek Rewards itself. Members risk account termination if they break this rule. The company also established "Zeek Squad," actively enrolling its own members to monitor the internet and report other Zeek Rewards participants found violating new compliance standards.
Zeek Rewards' business model operates as an investment scheme. Rather than examining its own structure, the company has instead cracked down on its members. These members joined the company and simply advertised the Zeek Rewards business opportunity as it was presented to them.
Zeek Rewards could achieve compliance and address critical issues if it implemented a few simple changes. One key step involves publishing the daily revenue generated by its Penny Auctions. Zeek Rewards claims to pay members a share of the total revenue from its penny auctions through Zeekler on a daily basis.
There is currently no transparency. Members have no idea what revenue the auctions generate. Zeek Rewards' daily profit share payouts have remained suspiciously consistent, despite the fluctuating nature one would expect from penny auctions. This suggests Zeek Rewards does not base its profit share on actual penny auction revenue.
Publishing the penny auction revenue would remedy this lack of transparency. It would prove that people are actually using the penny auctions. Members could then pro-rata calculate their standing in the company, based on their VIP bid share of the profit pool. Some may suggest this information is confidential. However, many multi-level marketing companies use a bonus pool, which is a percentage of total global revenue, often from sales.