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ponzi scheme
securities exchange commission
clean slate
auction website
placing ads
auction site
enough money
skepticism
successful business
sibling
business model
How Zeek Rewards Works & Why The Sec Labeled It A Ponzi Scheme
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Before it was shut down by the Securities & Exchange Commission, the company known as Zeek Rewards had a very controversial and yet highly successful business model which attracted a lot of skepticism and popularity. It's popularity was so high that prior to it's shut down, the company had over 1 million members. But how does Zeek Rewards work that made it so popular and why did the SEC label it a ponzi scheme?

Firstly, the company's main focus was on 2 fronts. The first being attracting as many members as possible to not only join their program, but to also invest into it. The more money member's put into the program, the better potential returns they could receive. The company also featured an affiliate program which gave their present member's an incentive to get others to join the program in return for commissions.

Secondly the company had it's members refer traffic to their sibling company "Zeekler" which is a penny auction website. They did this by having their members place daily ads pointing to the auction site. The more members placing ads, the more traffic Zeekler received, thus leading to more profits.

In essence this is how the company supposedly worked. And with a 14 year clean slate and $0 in debt, the company had risen exponentially in popularity, even doubling it's member size twice in one year. Every member that was a part of the program claimed they were very happy with the program.

But the SEC claims otherwise, alleging the company could not provide enough money for all it's members from it's daily auction profits it split with Zeekler and as such used other people's investments to pay members who wished to check out.

This allegation in addition to the SEC doubting that it was possible for the company to attain a consistent profit daily also fueled the controversy which ultimately led to the shut down. And since then, each member's funds have been frozen, lawsuits have been organized and many customers are extremely upset with this turn of events.

Former skeptics of the company are now saying "I told you so", but let's not forget an allegation is not proof of guilt, but is in fact just an allegation which means that until both sides bring their evidence to the table and a verdict is rendered, we won't know if this company will continue to run.

In the meantime, people are wondering what to do next, and if there's any other opportunities out there besides Zeek Rewards. And the truth is there are, but most of them are scams. But there are still legitimate opportunities available.


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