To answer this question, it is important to first understand the difference between a legitimate direct selling company and a pyramid scheme. The key difference is that, in an illegal pyramid scheme, one gets commission for recruiting more people under him/herthem; whereas in a genuine direct selling companyies, commissions are paid only based on the sales of products. Even if a person has a large network of people under him/herthem, but they have not neither retailed nor purchased any product, they don’t earn any commissions.
Pyramid schemes are illegal and the vast majority of their participants lose money. They rely on recruiting new representatives instead of product sales to profit (not product sales), charge reps members large To answer this question, it is important to first understand the difference between a legitimate direct selling company and a pyramid scheme. The key difference is that, in an illegal pyramid scheme, one gets commission for recruiting more people under them; whereas in a genuine direct selling company, commissions are paid only based on the sale of products. Even if a person has a large network of people under them, but they have neither retailed nor purchased any product, they don’t earn any commissions.
Pyramid schemes are illegal and the vast majority of their participants lose money. They rely on recruiting new representatives instead of product sales to profit, charge members large upfront fees, and convince them to buy large amounts of inventory that is not returnable. Their products generally have little or no actual value.
Lack of understanding is usually to blame for people mistaking legitimate direct selling companies for scams. Often, when people complain about a direct selling company, it is either due to them not realising how much work is actually involved in building a successful business or because someone else misled them. As a result, companies like QNET are often victims of endless media accusations, speculations, and baseless complaints.
QNET operates in countries with the most sophisticated and stringent laws and regulations governing this industry, such as Singapore, Hong Kong, and Germany, where our operations are completely legal and compliant with local laws.
We know that some people in network marketing may engage in unethical practices, making the industry an easy target for slurs like this. QNET has always complied with local regulations in any country it has operated in, paid taxes, contributed to numerous philanthropic activities, and reinvested in the country. We also instil a strict code of professional conduct in our distributors and penalise those who violate our Policies and Procedures.
To help combat this issue, it is important for various emerging economies to recognise that direct selling is a thriving industry creating microentrepreneurs who contribute to their communities, and institute the necessary legislation to govern the industry, to clearly distinguish the scams from the genuine direct selling companies.