Randy Schroeder, president of MonaVie's North American and European operations, called Zeek Rewards an illegal pyramid scheme on a July 16th company call. He told his audience the company was "probably a Ponzi scheme." Schroeder's accusation stemmed from his claimed extensive knowledge of the multi-level marketing industry.
Schroeder observed a troubling trend spreading through the sector, prompting him to speak publicly. Zeek Rewards offers daily passive returns that prove difficult to ignore for many. Members invest funds, watch their VIP point balances increase, and collect daily payouts with minimal effort. This contrasts sharply with traditional MLM models requiring active product sales to real customers. Zeek's promised returns often appear too good to be true.
This situation creates complications for companies like MonaVie. Their distributors frequently work multiple jobs, often belonging to several MLM operations simultaneously. Many distributor contracts explicitly forbid promoting competing opportunities to existing networks. Some agreements go further, banning participation in other MLMs entirely.
Zeek Rewards members see consistent daily checks while their primary MLM business struggles. This makes the financial math tempting. Many consider recruiting known contacts into Zeek to boost passive income and accumulate daily dividends, often disregarding their contract terms.
Enough distributors ignoring these restrictions forces executives to react. Field members begin asking for guidance. Eventually, a figure with Schroeder's authority must declare a position. He spoke plainly during the July call, describing Zeek Rewards as a company that "comes along and sweeps people into a trail that turns into a trail of devastation."
Schroeder's reasoning draws from historical patterns. He explained that "One of the best ways to predict the future is to carefully and critically study the past." Companies built on compensation schemes where recruitment, not legitimate product sales, generates the primary revenue stream follow a predictable course. They collapse, and participants lose their investments.
Schroeder had received numerous questions about Zeek Rewards in the preceding weeks. These inquiries came from people debating whether to join or increase their involvement. His answer remained clear: the scheme is illegal, unsustainable, and will cause financial harm.
This pattern repeats because the appeal of such schemes persists. A Ponzi-style opportunity, seemingly without genuine work and offering risk-free daily returns, proves irresistible to those already working hard in legitimate sales-based businesses. Why build a customer base over months when passive income promises to start tomorrow? MonaVie saw the damage spreading within its ranks. Schroeder's statement aimed to contain this before more distributors abandoned their core business for Zeek's daily payouts. The actual number of distributors who heeded his warning remains unknown.