[Mr. Ken Russell]

Today I am writing this article to explain to you what exactly happened with Zeek Rewards. Even though I was not affiliated with Zeek Rewards, I am sympathetic for the people who were involved – the affiliates and the corporate staff because I do believe they were acting in good faith. I feel like the Zeek Rewards affiliates who were tied up into this company lost their hopes and dreams. Quite honestly, I knew some people whose livelihood was based on Zeek Rewards. They literally created a full-time income working only part-time that exceeded what they were making with their regular jobs.

If you're unaware of what happened, Zeek Rewards voluntarily shut down their business. A few days after, the Securities Exchange Commissions (SEC) actually shut them down allegedly saying they were operating a $600 million ponzi scheme. Ultimately people were left without answers. People showed up to the Zeek Rewards corporate office, some to drop off bids – give money to the company, some were trying to pick up their cheques, and others I'm sure were there to establish what was going on. All these people got was a note on the door saying, “no longer operational.” The Zeek Rewards website had no details and people were left looking for answers. They turned to the internet and unfortunately the internet had all types of misleading information – distributers that wanted to maintain what they had, saying things were going to be okay; people and critics saying they knew it was a ponzi scam from the beginning.

The misleading information about Zeek Rewards literally created a frenzy among people. Shortly, some credible sources – Forbes, CNN Money, NPros began to reveal information. The SEC did step in and shut it down. They managed to seize over $230 million from Zeek Rewards. I personally believe Zeek Rewards faced scrutiny with the SEC because distributers faced a lot of critics online. The SEC has always had a firm stance when it comes to network marketing. There have been cases upon cases of companies who face challenges for 2 primary reasons:

1. Income Claims - Zeek Rewards company model was based on sharing company revenue. The company was saying they would pay 2% of the company's net profits per day to those who were affiliates. Even though Zeek Rewards was fulfilling this, they made a promise to pay an income claim.

2. The SEC does not like upfront inventory, or inventory loading. - Zeek Rewards allowed people to purchase up to $10,000 in bids upfront.

These 2 factors - an income claim, whether true or not, along with upfront loading has in the past made the SEC take action against companies. If you were wondering why Zeek Rewards is no longer in business this is exactly why the SEC shut it down. There's a lesson to be learned in all of this and that is if you are involved or affiliated with a network marketing company or MLM, you need to make sure that they comply with the SEC or FTC regulations, so you don't lose out on your earnings and your entire business.