This Article is About
rewards
securities exchange commission
epic proportions
referral programs
auction website
ponzi scheme
auction site
business works
3 things
daily basis
single day
business model
percentages
profits
How Does Zeek Rewards Work?
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Zeek Rewards was and still is a very popular business that many people have both criticized and praised. Recently however, the organization came under attack from the Securities & Exchange Commission for supposedly being involved in a ponzi scheme of epic proportions. Although we have yet to see if this is true, it's very important to know how this business works and if the SEC truly as point in their claim.

So how does zeek rewards work? There are 3 things that when put together create the business model of this organization:

1. The business recruits members directly or through referral programs and makes money through their investments.

2. The company works with a penny auction site called Zeekler, which it sends traffic to by having it's members post daily ads for the penny auction website. The more traffic being send to the auction site, the more potential money is made. All profits are summed up on a daily basis and divided evenly between both organizations.

3. Zeek Rewards then takes half of the profits it receives and divides it amongst all it's members. Supposedly everyday there is a profit which is then added in the form of percentages to each members total investment pool which is signified in points, rather than money. 1 point equals $1.

The very fact that each day provided a profit for this company was one of the major reasons this caught the attention of the SEC. It was also alleged that the company could not make a consistent profit every single day and thus would pay it's members through the investments of other members which would constitute a ponzi scheme.

But is this true? Yes and no. Although it is extremely doubtful that any organization can make a profit consistently, there is one potential reasoning behind the claim that makes it "theoretically possible".

That theory is that in the past 2 years, the size and popularity of the company has greatly increased. Some people have said it has over a million members which is double of what it had a year prior. With this increase, most notably in members, more people have invested money and placed ads to promote the penny auction website.

If this can be proven true, then it is technically possible for the company to make a consistent profit. But then the argument of legitimacy of the penny auction site comes into question. Either way, there's always going to be 2 sides to the story and until a final verdict is rendered, we won't know for sure. In the meantime, the site has been shut down due to the case with many members angry and confused and searching for better alternatives.

The good news is that most members are expected to receive their initial investment sooner or later. However in many cases many won't receive a 100% of what they put into the business.


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