zeekrewardsArriving hot on the heels of Zeek Rewards’ announcement that they were making some major adjustments to the passive investment side of their business opportunity, today the company dropped its 2011 Income Disclosure Statement.

Spanning late January 2011 when Zeek Rewards launched till December 31st, the 2011 Zeek Rewards Income Disclosure Statement is certainly eyebrow raising.

The most significant bombshell dropped?

That 89.2% of Zeek Rewards’ US based members are either ‘inactive’ or have failed to recruit at least two preferred customers.

Of that 89.2%, 65.73% are inactive and the remaining 70% are active, but have failed to recruit two preferred customers. Pretty indicative of just how much importance is placed on preferred customers when you consider that every member of that 70% group have been active in Zeek Rewards for over 12 months.

One would think that if there was any real value to be had in signing up as a preferred customer, a far more significant amount of Zeek Rewards members would have signed at least two of them up.

Membership wise for the 2011 year closing Zeek Rewards had 15,318 active members, making up just 34.22% of the total 44,763 registered memberbase.

Note that these are US-based affiliates, with the company choosing not to share its global memberbase statistics.

Income wise not so surprising was the top average income bracket being the ‘Executive’ membership level, coming in at $10,310.

Executive Zeek Reward members are Diamond members who have at least 2 preferred customers underneath them. Diamond being the paid membership level that offers members the highest amount of VIP bids to give away per customer, it only follows that with most Zeek Rewards members participating in the investment scheme, that this bracket would have the highest average income.

Senior Executives give them a run for their money (an average of $5,594) but there are almost four times as many Executives as there are Senior Executives.

Two other interesting tidbits from Zeek Rewards’ Income Disclosure Statement:

  • The average annual income for all affiliates worldwide in 2011 was $1076.24
  • In 2011 64 % of all distributors worldwide received no income at all (65.73% in the US)

Analysis wise it would be interesting to see what percentage of US members makes up the global memberbase but unfortunately Zeek Rewards has chosen to omit those statistics.

Looking forward it’s going to be extremely interesting to see how the recent monumental shift in focus towards preferred customers plays out.

Quite clearly the bulk of the Zeek Rewards memberbase have just been using the opportunity as a passive investment scheme and now that they have to recruit at least two preferred customers a month, I can’t imagine they’re too happy about it.

Furthermore the two preferred customers a month requirement appears to just have been the start of Zeek Rewards shifting away from a passive investment business model. The company has announced further qualifiers for members that wish to receive company-generated retail customers due in April, but thus far is yet to elaborate.

Either way after just over a year of passive investment it appears the party is over for the bulk of Zeek Reward’s members. Those that thought that Zeek Rewards would around for “years to come” would do well to re-educate themselves on the fundamental flaw all Ponzi schemes have;