TIPS TO WATCH OUT FOR AS A BROKER, INTERMEDIARY OR FACILITATOR IN A PHYSICAL COMMODITIES TRANSACTION.
A Few Tips For Brokers & Agents Below
We know how hard it is to be successful in a campaign against Time wasting and Fraudster Commodity Sellers, of which the internet is full. We have created our service company to fight such dangerous people because too many brokers, with families and children to feed, waste months and months (some even years!!!) chasing just such Fake sellers and never understand the risk of being an accessory to a fraud.
Please, think how many Commodities offers with pricing on a CIF ASWP basis you followed (that means: CIF to ANY Safe World Ports). This is merely a ridiculous condition, as it doesn't exist in the REAL COMMODITY MARKET !!! Think about it this way: how can the shipping cost be the same if the final port is Australia instead Africa? The shipping service is not free; it's one of the MOST important expense items in selling commodities...
ZEEK REWARD'S CLOSES DOORS FOR GOOD, DOES THIS MEAN THAT UNIQUE BID AUCTIONS ARE A BAD BET? YOU DECIDE..
GRB Provides some insight on how this might of happened.
CLICK HERE TO GET A BETTER UNDERSTANDING OF WHAT MAKES A BID AUCTION SUCCEED OR FAIL..
Source of Artilce Below : ttp://money.cnn.com/2012/08/17/technology/zeek-rewards-ponzi-scheme/index.html
NEW YORK (CNNMoney) -- Federal regulators announced fraud charges Friday against a company they said was operating a $600 million Internet Ponzi scheme "on the verge of collapse."
The Securities and Exchange Commission accused ZeekRewards.com, its parent company, Rex Venture Group, and Rex Venture head Paul Burks of luring more than 1 million investors worldwide into the scheme, which began in early 2011.
ZeekRewards is a companion to the penny auction site Zeekler.com. Visitors to the the ZeekRewards site were told that by paying subscription fees and becoming "affiliates," they could share in the company's profits.
In fact, the SEC said, the payouts the firm made came from the funds of new investors, "in classic Ponzi scheme fashion."
"The obligations to investors drastically exceed the company's cash on hand, which is why we need to step in quickly, salvage whatever funds remain and ensure an orderly and fair payout to investors," the SEC's Stephen Cohen said in a written statement.
The SEC said it has frozen the roughly $225 million in investor funds that remain in the company's bank accounts. So far, the agency said, ZeekRewards has paid out some $375 million to investors, while Burks allegedly siphoned off millions for himself in the process.
Burks has agreed to settle the SEC case without admitting or denying wrongdoing, paying a $4 million penalty and forfeiting his stake in the firm.
The SEC can only pursue civil charges. Burks could still face further charges from subsequent criminal investigations.
Lawyers for Burks and Rex Venture did not immediately return requests for comment.
"Penny auctions" are a controversial kind of online sale in which prospective buyers compete over a set period of time with bids that increase by increments of one cent.
Participants pay a separate, non-refundable fee for each bid they make. An expensive item like an iPad might therefore sell for a seemingly unbelievable list price of $30, even though participants in the auction paid many times more than that in total to place their bids
WHY ZEEK REWARDS CLOSED THEIR DOORS - HOW IS ZEEK REWARDS AND PENNY AUCTIONS PROFIT ACTUALLY CALCULATED?
Taking in to account the RECENT DOOR CLOSING OF ZEEK REWARDS AND ZEEKLER Have you ever wondered how unique bid auctions calcuate the daily profit? I have as well, so I went out and did my due diligence and here were my findings. I hope your find this is helpful in your discovery process as to choosing a viable bid auctions opportunity to particiatpe as an affilate with.
Bid autions are a exciting extremly lucrative new craze that almost everyone is getting on the band wagon and this is for multitude of reasons It seems that ithe concept has created a paradigm of the way people think of typical MLM , which is normally based on tools and events. ZEEK REWARDS AND ZEEKLER Were just the pioneers of the industry and could not handle the growth and PROVIDE the proper infrastructure to sustain and manage their insane growth with causing too many noticeable issues. One they were late on commissions "BIG NO NO, two the customer service was horrible "NO WAY TO HANDLE ISSUES , and Three, they DID NOT communicate EFFECTIVELY to the field or provide them with transparency .That said, I give them credit on helping many people to earn substantial incomes and understand the power of compounding their commissions.
TRADITIONAL MLM MODEL:
TOOLS - The traditional model that is tried and true is tools and events. Which simply means that you use tools, books, dvds, videos, conference calls to expose prospects to the home based business.
EVENTS - Once you have a prospect in the system of plugging into training and attending weekly meetings you then encourage them to attend a major event which will increase their overall believe level in the company they are involved with. At this event they will see success stories of and testimonial of people like them self's and be encouraged to leverage TOOLS to expose new people and plug them into the
SYSTEM , which is a simple teachable duplicatable process to make exposing a new prospect and acquiring a new customers as easy as possible.
Here is the RUB, most distributors affiliate's and Representatives of these companies are not making much money or having a large amount of success based on how much they are investing back into their home based business,which includes tools, meetings, training's, team events local one on one meetings all expense you can use as tax deduction on your new business.
Now lets switch gears back to the unique bid auctions and why it s is attracting so many people. I have listed the reasons why its so alluring.
WHY BID AUCTIONS ARE STILL A GREAT MODEL WHEN DONE RIGHT:
a) Fastest growing segment in MLM and afiliate segmate unique bid auctions
b) Major change in compensation fundamentals. The systems is designed to encourage you to allow to leverage your commission's earned by utilizing marketing dollars to attact more customers which in turn creates more daily profits.
c) No need to attend weekly local meetings and training's.
d) Abilty to Daily compounded profits of your commissions and daily profits based on activity and marketing dollars.
e) Monthly recurring autoship or site/ back office fee can be paid from your commission's.
f) No products for reps to investor or have to purchase or store any product.s.
i) With proper income disclosure affiliates are not embarrassed to share their income and or profits because they are acutaly making money with very little effort.
SO THE QUESTION HOW DOES ZEEK REWARDS CALCUALTE DAILY PROFIT.
Disclaimer: I am not a Representative of Zeek Rewards or zeekler, this below analisis is just my opinon and in no way represents the acutaly daily profits of the company. The number bvelow are calculated soley based on assumptions and review by www.allpennyauctions.com .
The best I could do is find the historical data for zeek on all penny auctions which reivews and reports on the top 200 bid auctions.
During a 7 period used a snap shot between July 6th 2012 and July 13th 2012 bids's paid verse bids won which can provide a picture as to daily profits for the company.
However this does not take in consideration that all sample bids that are not used expire after 30 days expire. Zeek would still keep the profits from these un used bids. So the numbers below (do not inlclude bids placed on active or canceled auctions as well as bids that were paid by afiliates but were never used or expired )
To calcuate the daily profit from auctions you can use the following formula
The best I could do is find the historical data for zeek on all penny auctions dot com which reviews and reports on the top 200 bid auctions.
During the last 7 days a snap shot of bids's paid verse bids won can be reviewed which can provide a picture as to aprox daily profits for the company.
However, these figures do not take in consideration that sample bids that are not used expire after 30 days if there not used. Zeek would still keep the profits from these un used bids. Which are a substantial ammount. Also (does not inlclude bids placed on active or canceled auctions as well as bids that were paid by afiliates but were never used/expired )
To calculate the daily profit from auctions you can do the following these numbers are approx.. based on 7 days
Cost of bids received - MSRP or cost of product + total cost of bids won = gross profit
MSRP or cost of product / gross profit = 7 day net daily profit
The following data was suplied by allpennyauctions.com
Over the last 7 days aproxx cost for bids purchased
$663,575 / 7 DAYS = $94,796
Cost MSRP products won over last 7 days.
$117,339 / 7 DAYS = $16,762
Total Final Purchase Prices for products won last 7 days $19,375
Calculations by Globalresourcebroker.com
($663,575 - $117,339 ) + 19,375 = gross profit $565,611
$117,339 / $565,611 = 7 day profit percentage .176 % / 7 days = aproxx daily profit 2.52%
To be fair -
Please note, that the margins can be significaly higher when you factor in the following five factors:
1) This model is based on MSRP not cost of products provided onthe auction
2) This model is based on active bids purchased at .65 each for the 7 days and does not take into account all bids sample bids that affiliates padi $1 each for.
3) This model does not account for all the profit earned from sample bids that were given away and purchased for $1 that have expired and never made it to the auction.
4) This model does not inlucde operational cost however, based onthe bid cost this is assumed to be part of the cost per bid.
5) This model does not account for upfront commisions paid to affilates for intial bid purchases.
I hope this review is helpful when making your decision to join uniqe bid auctions, for more info on my review take a moment and visit our blog.
THE QUESTION IS WILL ZEEK REWARDS OR ZEEKLER MAKE IT THROUGH THIS CID..
We need to have a bit of patience on this one since, ZEEK did not say they are out of business, at this point they are under CID investigation and will not be conduting business for a few days or more during this time frame.
Below is an article on the closure of the Zeek Rewards office for a CID (Civil Investigative Demand).Please read the information so you will be informed.
The top leaders are all confident that Zeek is clean and will come through with flying colors. Meanwhile, the Red Carpet Event is cancelled and the websites are down. They do not know how long the sites will be down, so check on zeekrewardsnews.com for any updates.
Source of article below from The Dispatch .
Zeek closes headquartersBy Nash Dunn
Published: Thursday, August 16, 2012 at 6:42 p.m.Last Modified: Thursday, August 16, 2012 at 9:18 p.m.
Rex Venture Group, which operates the online penny auction site Zeekler.com and affiliates program Zeek Rewards, has closed its headquarters for the remainder of the week for undisclosed reasons.
The company, known to most as Zeek, posted three signs on the windows of its headquarters at 803 W. Center St. in Lexington by about 4 p.m. on Thursday that stated the office will be closed, telling visitors to "check the website for more information." As of 6:22 p.m., there was no further information available on Zeekler.com or zeekrewards.com.
Zeekler.com and zeekrewards.com were offline as of 9 p.m.
The company also announced it is canceling its upcoming "Red Carpet" event, scheduled for Wednesday. The announcement, made on zeekrewardsnews.com, also advised readers to continue to monitor its websites for more information to be forthcoming.
On Monday, the company also advised Zeek Rewards affiliates there would be no training, recruitment and leadership calls during “the next few days while planning is going on,” according to a message on zeekrewards.com.
Both Zeekler.com and Zeek Rewards have recently come under the scrutiny of the North Carolina Attorney General's office, after dozens of users filed complaints and inquiries in the past six months. The company, which is rooted in its penny auction website, has expanded in the past year to let users buy in through an "affiliates program." Some say the company is a good way to make a little more cash while others condemn it as the makings of a pyramid or Ponzi scheme.
Source of second article below from WWW.MLM.COM:
Thursday Aug 16, 2012
Sources at the scene today reported to MLM.com that Zeek Rewards has closed its doors in Lexington, North Carolina.
August 16, 12:32 P.M. MST — Only hours after a headline in the Lexington Post-Dispatch reported "Users tout Zeek's programs...," the MLM marketing arm of the Zeekler penny auction site has put "Closed" signs in its windows.
The North Carolina Attorney General had reported "we have concerns about...and have asked the companies to provide us with documents so we can examine their business practices." The investigation appears to have resulted from 8 consumer complaints. And a spokesperson for the North Carolina AG said, "The complaints generally seek refunds." Zeek Rewards reportedly had responded to the complaints, had resolved 7 of the 8 complaints, and the 8th complaint was in process of being resolved at the time of the closure.
At this time there is no confirmed report as to the reason for the closure or the agency or agencies that may be involved in the action, although the North Carolina Attorney General's office had not mentioned to the Post-Dispatch any action beyond its investigation. Sources close to the company speculate the closure is voluntary.
Zeek Rewards was reported to have had banking challenges early on, but banking difficulties frequently are reported by MLM start-ups, the growth of which can be alarming to financial institutions. And the growth of Zeek Rewards—that was signing up customers and Affiliates around the world—may prove to have broken even the records of mega-MLMs like Mona Vie. The Post-Dispatch reported that after less than a year in business, Zeek Rewards already had more than 200,000 customers...and the number may be many times more than that, perhaps in the millions.
However disappointed the Independent Affiliates of Zeek Rewards are likely to be when the cause of the closure is known—an announcement is anticipated before the weekend—the merchants of Lexington, North Carolina, are likely to be even more so: the growth of Zeek Rewards in that regionally depressed economy had been a boon to the business community.
As it was to tens of thousands of Zeek Rewards Independent Affiliates, one of whom told MLM.com, "I really needed this. You get so many that you just can't make any money in, and everybody I know is making money in Zeek Rewards!"
But not anymore. The questions now being asked by Affiliates is whether or not Zeek Rewards will make its commission payments. Or will the reportedly cash-rich company even be permitted to pay commissions?
We'll have an update for you tomorrow when the reason for the closure is released.