Is QNet a scam? A question you may have researched when doing your due diligence on QNet. Find the answer and more answers about QNet rumours and controversy.
Why is QNET
so often referred to as a scam, a pyramid scheme, and/or a fraudulent business
aimed at cheating people?
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
