Is QNet a scam? QNET rumours and controversy

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

 

QNET - Better Together Build a Family, Not a Network

Better Together Build a Family, Not a Network 

"It's relationships that made this company." Dato' Sri Vijay Eswaran shares how important building lasting relationships are in the business.

He talks with V Partner Donna Maria Imson-Lecaroz about how relationships need to be taken to its stretching point and he shares how his father has taught him how best to maintain these relationships.

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QNET EXPOSED

QNet: Hyberabad Police Arrests 58 Members of the MLM in Fraud and Cheating Cases Worth Rs1,000 Crore

Continuing to crack the whip against agents of controversial multi-level marketing (MLM) companies, the Cyberabad City Police has arrested 58 independent representatives (IRs) of QNet for their involvement in 14 cases of fraud and cheating worth Rs1,000 crore. Those arrested by the police include three bank employees. 

According to VC Sajjanar, commissioner of police at Cyberabad, primary investigation reveals that those arrested by the police have cheated unemployed youth under the pretext of giving them a job and collected around Rs1,000 crore in the MLM scam

"Total 58 persons were arrested in 14 cases, which were registered against QNet and Vihaan Direct Selling Pvt Ltd in different police stations of Cyberabad are arrested. The godown of Vihaan Direct Selling at Bangalore and the office of Transview Enterprises (a marketing agency for QNet products) are seized. An amount of Rs2.7 crore in the bank account of Vihaan Direct Selling is frozen. The bank accounts of accused persons involved in the cases are also seized," Mr Sajjanar says.

According to the commissioner, this is a case of cheating by the Vihaan Direct Selling Pvt Ltd, a sub-franchisee of QI Group in India marketing under brand name of QNet. He says, "This case is cracked down by the sleuths of Cyberabad in various parts of Telangana, Andhra Pradesh, Bengaluru and Delhi, in which 58 persons were arrested in 14 cases, which were registered against Vihaan Direct Selling in different Police Stations of Cyberabad. There are total 30 cases registered on QNet Cyberabad. There are eight cases, which are under investigation with crime investigation department of Telangana Police."



Talking about the modus operandi of QNet and Vihaan, Mr Sajjanar says, at first the QNet and Vihaan promoters say to the new comers that there are various business projects such as cost optimization business, health and wellness products, watches and jewellery, personal care and beauty, tour packages, education packages (SMC MBA Certification). "The promoters trap the new comers with sweet words stating that they will be a part of the QNet Kingdom where they can build their own future. They say that if the new comers who paid money do not like QNet business packages, they can claim their refund within a month. But in fact, the promoters will drag the one month period by giving motivational classes, training sessions and also providing books such as 'The Parable of the pipeline', 'Questions are the answers', 'The Business School', 'Who Stole the American dream', 'The Copycat Marketing 101' and 'Talk the talk', to the newcomers and tell them to read all the books to gain knowledge over the business. Once the new comer joins into the QNet or Vihaan business through a referrer or promoter he becomes IR. After paying the money, the new comer gets some products and the promoter gets commission. The promoter then says to the IR that to get money he/she has to enrol two other members and they in turn join two each other new comers. As the number of persons increases down the line, the upline get more money as commissions."

"The QNet and Vihaan business model is a simple pyramid scheme in which the early entrants earn money and as the number of IR increases, finding more IRs (new comers) to join becomes difficult or impossible. IRs that joins late does not earn enough to cover their first outlay and the model collapses. It works as a binary scheme. Down the line, the number of persons to be joined becomes difficult or impossible. The scheme collapses at a point of time," the Cyberabad police commissioner added.

 

Out of the total 58 persons arrested, 51 are from Hyderabad, five from Bengaluru and one each from Delhi and Eluru

High Court Grants Stay to QNET

High Court Grants Stay to QNET

QNET welcomes the decision of the Hon’ble High Court of Hyderabad which has seen merit in granting a stay on all proceedings against the company, in the state. The decision is a significant win for QNET which has been trying to defend its business model in Mumbai for the last three years.   

The order provides welcome relief to the directors and shareholders of Vihaan Direct Selling Pvt Ltd, the sub-franchisee of direct selling company QNET in India. The company and its officials have continued to cooperate with the authorities in all investigations since 2013 and have submitted more than 50,000 pages of documents to support its stand as a legitimate business.

Read this story in the news: Sify News

In a major relief to direct selling company QNET, which has been trying to defend its business model in Mumbai for the last three years, the High Court of Hyderabad has seen merit in granting a stay on all proceedings against the company in the state. The decision comes at a time when the government has taken steps towards recognising and regularising the direct selling industry in the country. Last month, the Ministry of Consumer Affairs had issued Direct Selling Guidelines 2016 for all companies operating in this space for many years in the country, without a clear legislation in place to protect the companies or the consumers. The thriving direct selling industry in India is estimated to have generated approximately Rs.7200 crores in revenues in 2015. The decision by Justice Sri Ramachandra Rao at the Hyderabad High Court grants welcome relief to the directors and shareholders of Vihaan Direct Selling Pvt Ltd, the sub-franchisee of direct selling company QNET in India. The company and its officers have continued to cooperate with the authorities in all investigations since 2013 and have submitted more than 50,000 pages of documents to support its stand as a legitimate business. (ANI)

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ANI News

VP Sathi Senathirajah

VP Sathi Senathirajah

Biography

Before QNet, VP Sathi was working a 9-5 dead-end job in an Electronic Engineering company in Malaysia with no big dreams and virtually zero chance of financial freedom. Eager as ever, he decided that QNet could possibly be the big break that he needed to finally make something of himself.

Hailing as a middle child from a close-knit loving family of his mother and 2 brothers – VP Kuna and V Managing Director Pathman – VP Sathi is known for his silent yet significant ways. Ever a place of love and solace, the Senathirajah household was always a welcoming one as made sure by his late mother Madam Pathmavathi Kandiah – and there is much to show for it in the success and heart of her sons.

When asked about the toughest moments he has faced in QNet so far, he says that the tough moments are definitely many but some of the most challenging roadblocks are certainly sustaining and keeping the networks on the ground switched-on during crisis situations.

Although VP Sathi is an overachiever in nature, the moment that he is most proud of thus far is definitely when he was named a V Partner in 2009. “Also, every time I saw the light in my mother’s eyes and the warmth in her smile, those were always the most rewarding moments -- especially knowing that my brothers and I put it there,” he quips.

VP Sathi identifies ‘Consistency’ as his key to success. He says ‘From the time you wake up from the time you go to sleep. Don’t eat, don’t sleep until you accomplish your goals.’

In his leisure time, VP Sathi enjoys simple pleasures like playing a few rounds of poker or billiards or simply spending time at home.

He looks up to his mother, first and foremost, whom he affirms was his ‘purpose’ from the very beginning. VP Sathi also draws inspiration from the likes of Nelson Mandela and Sir Richard Branson.

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QNET Scam - A MYTH or REAL FACT ???

QNET Scam - A MYTH or REAL FACT ???

Well as we all know a Scam is defined as ‘a fraudulent or deceptive act or operation’ or  ‘an illegal plan for making money, especially one that involves tricking people’.

In essence, this would mean that if a company or an enterprise is called a scam, such a company or an enterprise has been found to project a false image of legitimacy while fraudulently obtaining money from the public. It would be an enterprise built on lies.

So why is QNET being called a scam in the media?

Before we answer that, let’s examine some of the factors that are taken into consideration to establish the legitimacy of a business, i.e., the things that separate the genuine companies from the scam ones.

Longevity of the Company 

 Various research studies have shown that 90% of new businesses fail within the first 5 years. In India, more than 80% of new businesses die within the first three years. There are multiple reasons for this failure. Inability to scale, poor management, inadequate funding or capital to operate, poor marketing, legal challenges, not having the right team, are some of the reasons.

These reasons also apply to direct selling companies that fold up within a few years.

QNET has been in business for 18 years and shows no signs of slowing down. From its humble beginnings in South East Asia nearly two decades ago, it has today grown into a global powerhouse in the direct selling business, empowering entrepreneurs around the world.

Credibility of the Company 

Just as you wouldn’t do business with a person who is not credible, customers wouldn’t do business with a company known for being dodgy or unethical. In order to establish a long-term relationship, the credibility of the company is very important. You have to know and understand what kind of company you are dealing with in order to develop trust.

Here are some questions that you should ask in order to establish the credibility of a company — Is the company legally registered? Are its founders and management team well-known, well-respected people? Does the Company undertake any business that is explicitly prohibited under law? Has it been recognised by any industry bodies? Is it a member of a trade association and abides by its rules? Has it received any awards? What kind of partnerships does the company have? How has the company contributed into society?

Here are some facts about QNET:

• QNET is registered as a legal business in more than 20 countries around the world. In India, QNET operates its business through Vihaan Direct Selling (India) Pvt. Ltd, the sole sub-franchisee of QNET in India.
• The company’s founders are well-known business leaders who have since gone on to successfully build a global conglomerate that includes a full-fledged University in Malaysia, a chain of hotels and resorts in different parts of the world, and a historic Swiss watch brand.
• Read here about the History of QNET
• QNET is a member of the Direct Selling Association in Malaysia, Singapore, Philippines and Indonesia. DSAs act as self-regulating bodies for its members and ensure that all members adhere to a strict code of conduct. These DSAs are all members of the World Federation of Direct Selling Associations (WFDSA).
• QNET has been recognised for its achievements in different parts of the world. 
• See our Honour Roll here

• QNET has partnered with leading sports teams such as Marussia F1, Manchester City Football Club and counts Tennis star Martina Hingis as a brand ambassador.
• QNET has been an active contributor to the community through a number of charitable projects in different parts of the world. In India QNET has partnered with the Lion’s Club and has been involved in a number of initiatives supporting the underprivileged. 
• Read about QNET’s contributions in India here
• Read here about the activities of QNET’s global Corporate Foundation RYTHM Foundation.

Size and Growth of the Company 

Knowing how big and how old the company is, gives you an indication of its growth pattern. Some of the things you should be looking for — How many offices does the company have? How many employees? How many countries do they do business in? How many customers do they have? In the case of a network marketing company, how many distributors do they have? How fast has the company grown? All of this information helps you understand how stable the company is.

• QNET has offices and agency representations in 25 countries around the world.
• The company employs approximately 1,000 employees directly and indirectly.
• QNET’s products are shipped to more than 100 countries globally.
• Globally, more than 5 million customers have purchased products from QNET in the last 18 years. In India, QNET has approximately 60,000 customers and independent representatives.

Products 

This is the single most important aspect of what separates a legitimate direct selling company from one that is not. Direct Selling is all about having a large group of distributors promoting and marketing a product to the marketplace and sharing the profits from the sale of those products. It’s important for the company to offer high-quality products and services, preferably with a USP that sets it apart from the competition.

The recently released global statistics report by WFDSA shows that the top performing product categories in direct sales were as follows:

1. Health and Wellness Products
2. Beauty and Personal Care
3. Household Goods and Durables

The report showed that in India the market share for products sold through direct sales were 42% for Health and Wellness, 34% for Cosmetics and 7% for Household Goods and Durables.

QNET’s top selling products in India include the nutrition range of products called Nutriplus, the SHARP-QNET Plasmacluster Air Purifier among Home Appliances, and the Physio Radiance Skincare range.

Compensation Plan 

What sets direct selling companies apart from traditional businesses is their business model. People get into this business in order to supplement their existing income or are working towards long-term financial independence. Hence, it is important to be a part of a company that has a sustainable compensation plan that rewards you for your efforts, gives you performance incentives and will allow you to eventually earn a residual income in a few years.

QNET has one of the most exciting and robust compensation plans in the industry with very competitive commission rates. Not only do you get to enjoy a high-quality product that helps you live a better life, you also get paid for sharing its benefits with others.

To make sure that all Independent Representatives understand the business model and the policies and procedures involved, QNET provides all the information in writing to prospective customers. All documents related to the business are easily available through our website to anyone interested in understanding the company and the business model before signing up

Training 

It is said that the best business trainings are found in network marketing companies and not in an MBA programme. It doesn’t matter how well you did in your earlier profession, what your experiences in life are, or how successful you have been elsewhere if you are not open to constantly learning and growing.

All good network marketing companies provide multiple levels of training starting with a Basic Training programme for newcomers to educate them about the company, its products and services, the compensation plan and knowledge about the industry. Other levels of training include goal setting, planning, presentation, public speaking, leadership development and teaching others.

QNET provides regular training programmes at all levels to independent representatives around the world. From small training events for a group of 20-30 people to large conventions involving thousands from around the world, where participants learn from the best in the business not just in their country, but from other countries as well.