Is Zeek Rewards a Ponzi scheme?
In order to know if Zeek Rewards is a Ponzi scheme, we must first understand what a Ponzi scheme is, the characteristics of one, and then compare that to the business structure of Zeek Rewards.
What a Ponzi scheme is?
Ponzi schemes were made famous by Charles Ponzi. In all actuality he wasn't the original person to come up with this concept but he brought in so much money that he basically put the scheme on the map. In essence, they are "investment" type vehicles that promise a guaranteed consistent or high return. There is no product or service being sold and return are almost always guaranteed.
Ponzi schemes can potentially last indefinitely and they usually always collapse. The idea is to constantly invest and reinvest compounded earnings, and to recruit new investors. You don't have to do any work to get paid in Ponzi schemes.
Ponzi schemes work by basically taking in money from new "investors" and paying the existing investors. They also heavily encourage reinvesting and recruiting. Ponzi schemes collapse when the existing investors with a lot of money in, withdraw it out. People usually always do that once they realize that it is a scam. The second instance of a Ponzi scheme collapsing is when the recruiting of new members slows down. They can potentially last invariably but not likely.
To make this simple, Ponzi schemes have no real product or service. They promise a guaranteed high return on investment with no real work done to obtain it. They also heavily encourage reinvesting and getting new members. Ponzi schemes can sustain themselves with out the heavy recruiting of new members by having current investors constantly reinvest.
Ponzi schemes compared to Zeek Rewards
Zeek Rewards is not an investment company of any kind. You are either purchasing a subscription or bids to give away. Zeek Rewards is also paying you to advertise their penny auction website.
As a member in Zeek Rewards, your main focus isn't recruiting new members or investing your money. There is no investment opportunity of any type within Zeek Rewards. Your main focus is advertising the penny auctions, purchasing bids, and then giving those bids away to potential new customers.
For each bid you give away, you get 1 VIP point, which is then redeemable as cash. You can either withdraw it or purchase more bids to give away to earn more. At the end of each day the company tallies its profits from all sales and pays out 1-2% to all affiliates who have qualified for that day. The 1-2% comes from half of the profit the company generated divided by the amount of VIP points of member who placed their ad that day. That's how the 1-2% is constantly generated.
The penny auctions will go on whether you take out all your money or not. The penny auctions will go on whether your recruit new members or not. In fact, your main focus should just be to give as many bids away as you can and let everything else take care of itself. Looking at what a Ponzi scheme is, and comparing it to Zeek Rewards, you can see that Zeek is categorically far from it.
What a Ponzi scheme is?
Ponzi schemes were made famous by Charles Ponzi. In all actuality he wasn't the original person to come up with this concept but he brought in so much money that he basically put the scheme on the map. In essence, they are "investment" type vehicles that promise a guaranteed consistent or high return. There is no product or service being sold and return are almost always guaranteed.
Ponzi schemes can potentially last indefinitely and they usually always collapse. The idea is to constantly invest and reinvest compounded earnings, and to recruit new investors. You don't have to do any work to get paid in Ponzi schemes.
Ponzi schemes work by basically taking in money from new "investors" and paying the existing investors. They also heavily encourage reinvesting and recruiting. Ponzi schemes collapse when the existing investors with a lot of money in, withdraw it out. People usually always do that once they realize that it is a scam. The second instance of a Ponzi scheme collapsing is when the recruiting of new members slows down. They can potentially last invariably but not likely.
To make this simple, Ponzi schemes have no real product or service. They promise a guaranteed high return on investment with no real work done to obtain it. They also heavily encourage reinvesting and getting new members. Ponzi schemes can sustain themselves with out the heavy recruiting of new members by having current investors constantly reinvest.
Ponzi schemes compared to Zeek Rewards
Zeek Rewards is not an investment company of any kind. You are either purchasing a subscription or bids to give away. Zeek Rewards is also paying you to advertise their penny auction website.
As a member in Zeek Rewards, your main focus isn't recruiting new members or investing your money. There is no investment opportunity of any type within Zeek Rewards. Your main focus is advertising the penny auctions, purchasing bids, and then giving those bids away to potential new customers.
For each bid you give away, you get 1 VIP point, which is then redeemable as cash. You can either withdraw it or purchase more bids to give away to earn more. At the end of each day the company tallies its profits from all sales and pays out 1-2% to all affiliates who have qualified for that day. The 1-2% comes from half of the profit the company generated divided by the amount of VIP points of member who placed their ad that day. That's how the 1-2% is constantly generated.
The penny auctions will go on whether you take out all your money or not. The penny auctions will go on whether your recruit new members or not. In fact, your main focus should just be to give as many bids away as you can and let everything else take care of itself. Looking at what a Ponzi scheme is, and comparing it to Zeek Rewards, you can see that Zeek is categorically far from it.