bidify-logoPenny auctions have been around since 2005 but it was only last year that Zeek Rewards burst onto the scene combing the auction model with a MLM compensation plan.

Operating largely as an investment scheme, the company allows members to invest money via the “purchase” of VIP bids, give the bids back to the company and then earn a daily return on their investment.

Additionally Zeek Rewards remains tight-lipped about how much of its investment returns are paid out using money invested by members and how much comes from Zeekler, the company’s penny auction front.

Zeek Rewards CEO Paul Burks cites the reason for this secrecy being that such information is “proprietary”.

Looking to give Zeek Rewards a run for their money in the penny auction MLM niche comes Bidify.

So, how proprietary is Zeek Rewards’ business model and the obvious question? How does Bidify compare?

Read on for a full review of the Bidify MLM business opportunity.

The Company

Bidify reveal little no information about who owns or runs the company on their website:

Bidify is a privately held corporation owned by several entrepreneurs from different parts of the world.

The domain ‘bidify.com’ however was registered in May 2011 and lists ‘Larus Palmi Magnusson’ as the registrant:

Bidify Ltd.

Larus Palmi Magnusson

Unit 117, Orion Mall, Palm Street
Victoria
Mahe,K1S5P5 SC

SC stands for Seychelles and roughly matches up with the address Bidify provide on their website:

Unit 117, Orion Mall, Palm Street,
P.O. Box 828, Victoria, Mahé,
Seychelles.

Note that the PO Box part of the address is missing from the domain registration.

Bidify provide a registered company number (100478 ) on their website but as far as I can tell there’s no publicly searchable online database of companies registered in Seychelles.

Seychelles is a known tax-haven and if I had to I’d guess that Bidify has been set up as an International Business Company, meaning the owners don’t have to pay any tax in Seychelles provided they don’t do any business there.

As I understand it, Seychelles business law also means it’s extremely difficult to obtain any information about the company and/or take any action against the owners.

Larus Palmi Magnusson himself lists Iceland as his location in his Hi-5 profile. The same person appears in a Facebook profile and more importantly a SWOM profile.

SWOM is a social network for internet marketers and with the uniqueness of the name ‘Larus Palmi Magnusson’, I’d be very surprised if this wasn’t the same Magnusson running Bidify.

Why a resident of Iceland specifically needs to run his company from Seychelles remains a mystery, as do the identities and involvement of any other person(s) in the running and/or ownership of Bidify.

The Bidify Product Line

Bidify themselves have no retail product. That is to say that you cannot purchase anything from Bidify as a retail customer without joining the company and/or participating in the company’s compensation plan.

Retail purchase of penny auction bids is possible via Bidsson, however they are a seperate company to Bidify and as such don’t count.

Members of Bidify are able to purchase bids to give away to customers of Bidsson or purchase bids for their own personal use.

100% of the sales generated by Bidify are from company members.

The Bidify Compensation Plan

The Bidify compensation plan rewards members with a profit share, retail bid commissions made by customers, sample bid purchases made by personally recruited members and recruitment commissions.

Profit Share

When Bidify members purchase sample bids that they then give away to customers, the company allocates them a share in the daily profit pool.

Bidify state that this profit pool is made up of 50% of the daily net-profits generated by the penny auction website Bidsson.

For each sample bid given away by Bidify members, the company awards them a profit share point that is equal to one share in the daily profit share pool.

Each point has a lifespan of 120 days from the date of issue (the date the bid was given away) and expires thereafter.

As far the return goes, 20% is paid out in Bidsson bids (not redeemable for cash and must be used on Bidsson penny auctions), with the remaining 80% being paid out as cash.

Customer Bid Purchases

When customers a Bidify member has referred to Bidsson purchase retail bids for their own personal use, the referring member earns a 25% commission on the purchase price.

This commission is paid out as cash.

Recruited Member Bid Purchases

When a personally recruited Bidify member purchases sample bids, the member who recruited the purchasing member earns a 5% commission on the purchase price.

This commission is paid out as cash.

Recruitment Commissions

In addition to the bid commissions above, Bidify also pay recruitment commissions.

  • a new affiliate pays out a 5 Euro ($6.75 USD) commission
  • a new Executive member pays out a 10 Euro ($13.40 USD) commission and
  • a new Premium Executive member pays out a 25 Euro ($33.50 USD) commission

There is also a unilevel component to the Bidify’s recruitment commissions that pays down 15 levels.

A unilevel compensation structure places each new member you recruit directly under you (your level 1).

Each new member one of your level 1 members recruit becomes your level 2, each member they recruit becomes your level 3 and so on and so forth.

For each Premium and Executive Premium Affiliate you have in your downline, Bidify will pay you a monthly commission down  to 15 levels.

How many levels a Bidify member is paid out on depends on how many Executive or Premium Executive members they have personally recruited.

  • members who haven’t recruited anyone you are paid up to 4 levels
  • members who have recruited 2 Executive or Premium Executive members are paid down 9 levels
  • members who have recruited 4 Executive or Premium Executive members are paid down 12 levels
  • members who have recruited 6 Executive or Premium Executive members are paid down 15 levels

The amount you are paid depends on which level members are within your unilevel organisation.

  • Level 1 – 5 Euro ($6.70 USD)
  • Levels 2 to 4 – 1 Euro ($1.34 USD)
  • Level 5 – 5 Euro ($6.70 USD)
  • Levels 6 to 9 – 1 Euro ($1.34 USD)
  • Level 10 – 5 Euro ($6.70 USD)
  • Levels 11-14 – 1 Euro ($1.34 USD)
  • Level 15 – 5 Euro ($1.34 USD)

Joining Bidify

Membership to Bidify comes in three varieties:

  1. Affiliate – cost 100 Euro ($134 USD) with no monthly fee. Affiliates are capped at spending 1000 Euros on sample bids at any given time.
  2. Executive Affiliate – cost 150 Euro ($201 USD) and 50 Euro ($67 USD) a month. Executive Affiliates are capped at spending 5000 euros on sample bids at any given time.
  3. Premium Executive Affiliate – cost 250 euro ($335.20 USD) and 50 euro ($67 USD) a month. Premium Executive Affiliates are capped at spending 10,000 euros on sample bids at any given time.

Conclusion

As far as I can tell there’s no option in Bidify to simply give your bids away to the company and earn a return on your investment in purchasing sample bids over 120 days.

With bids actually having to be given away to customers by affiliates, it seems as if there’s a much stronger dependence on the penny auction side of the business than with Zeek Rewards.

That said, it is noted that Bidify have quite a strong emphasis on the recruitment of new members and pay out sizeable commissions accordingly.

Obviously being paid out from the monthly membership fees it charges Executive and Executive Premium members, Bidify reward members for the initial recruitment of new members along with a monthly commission that is entirely based on how many members a Bidify member and those they’ve recruited recruit themselves.

This part of the Bidify compensation plan is hugely questionable as it strongly looks to be a pyramid scheme.

Unlike Zeek Rewards who acknowledge that some of their daily profit pool is generated by the money being spent by members on VIP bids (Bidify’s ‘sample bid’ equivalent), I couldn’t find anything indicating that the same happens with Bidify.

As far as I can tell, 100% of the Bidify daily profit share is generated by the penny auctions.

Without an option to simply dump sample bids onto the company and treat Bidify as an investment scheme, it certainly appears to be a step in the right direction in terms of legitimately combining a MLM compensation plan with penny auctions.

That said on the surface there are some serious problems with Bidify’s recruitment commissions.

Dubiously based in Seychelles, it appears that Bidify have set themselves up in a prime position to disappear with little to no accountability should they run into troubles further down the track.

I’d suggest approaching the Bidify opportunity with a decent level of caution.