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 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.

Qnet - the Truth behind The Business

Qnet - the Truth behind The Business

1) What is QNET? Qnet is a global E-commerce company & a subsidiary of Qi Group of Companies. Qnet is a part of Network Marketing Industry which is 110 years old & $100Billion Industry. Qnet has an annual Turnover of more than $1.7Billion. Qnet is also a business model where people are paid to create a Distribution Channel to sell its products.


Above: Some of the QNET partners based in Nairobi Kenya presenting a check to Mater Heart Fund in 2013... 

2) Is QNET a Scam?
NO. A scam is a con biz where you are asked to invest money - with a promise of double/triple returns without working. Qnet is a business hence if you don't work at it , you won't earn .

3) Why is QNET not a Scam? Is it Legal?
Q-net is a registered direct selling company & Direct Selling is a World wide recognized LEGAL Business. Govt. of India, Ministry of Consumer Affairs, Food & Public Distribution, has clarified via their circular dated March 31, 2003, that the Prize chits & Money circulation Scheme (Banning) Act 1978 - is not applicable to companies dealing with distribution of goods including Direct Selling & Network Marketing Companies.
In QNET, no one will tell you that you will get anything without working. QNET is a business model, where you invest money / buy a product & with that you get a Business center, Network support & virtual Infrastructure absolutely free of cost. With this business center you can create a network & spread the idea of the Biz, which will do more Sales. For each sale Qnet gives you a defined amount of profit (money) and hence more the sales, more the profit. In short Qnet pays you to sell their product, just like a Salesman / Stock Broker gets his salary & incentives, just like how a normal Business man earns, just like how a Shopkeeper earns by selling things. Only difference is you dont work alone here.

4) Is QNET a Pyramid scheme / system?
NO.  Pyramid schemes / systems are illegal all over the world, where the people at the top benefit from the financial suffering of those they introduce into the organisation. Both Network Marketing & Pyramid systems utilise the power of exponential growth, but they use this principle in different ways and for very different ends. Hence, one must verify the fact before joining a NM Compnay. facts cannot be verified from Googling or through baseless reports many media websites provide. facts can only be verified through a person in the Biz who is atleast 6 months old in the company. I had verified QNET's PAN no., Registered office & DSA registration, check out the link for proof : (http://www.dsam.org.my/members-list)
see  QNET's Head Office called Qi Tower in Kuala Lumpur, Malaysia below :

  Qi Tower, KL, Malaysia

Qnet - the Truth behind The Business

Above : Part of the Qnet Partners above with Richard Branson

5) Why do so many people write/complain  about QNET? or why do people fail in QNET?
As Networking requires hard work & dedication, most of the people are not able to cope up with the required efforts. These people are either lazy to work or lazy to LEARN. Most of the people fail in Qnet or in any Network marketing biz is because they just focus on earning and avoid LEARNING, which is the greatest mistake. No business can be run by anyone without knowing how to run it, without the knowledge of the Industry & the Know-how of the biz. Same is with Qnet biz, people who dont learn the Biz, fails drastically & hence they complain/write crap about it claiming that it dsnt work. Actually if you ask me, I'll say - "No business works, You have to work the Business."

6) Is this a 'Get Rich quick scheme'?
Nope! Network marketing is not by any means a get rich quick scheme. If you're looking for a way to make vast amounts of money in a very short time then you should probably consider crime or gambling, but I wouldn't advise either! NM requires effort like in any other biz to make it work. As answered in Q.5) above, it usually takes a dedicated effort over the course of a few years before anyone starts earning a substantial income.
Network marketing is not a 'get rich quick' scheme, but it is a good method to build up an extra stream of income, which is a lot better than most people have right now.

7) Is Network Marketing / Qnet Legal?
Network marketing is absolutely legal, and is governed by strict regulations in most countries. However, be aware that some companies masquerade as network marketing companies whilst failing to conform to the required regulations.
In most countries, the network marketing industry is regulated by the Direct Selling Association (DSA). There is lots more information on their website regarding regulations and legal issues. They charge hefty fees for membership, so it is certainly possible that a legitimate network marketing company might not be a member of the DSA. Qnet is registered with the DSA. The list of DSA registered companies can be checked through the link provided in Q.4).

8) Am I being brainwashed?

Yes, every time you watch a TV commercial, read the news paper or speak to any of your opinionated friends. Your opinions on pretty much everything are the result of brainwashing, some of which is accurate and some is not. The point of this page is that network marketing does not need to rely on such methods to be successful - either it makes sense to you or it doesn't. Lots of people are worried because they find network marketing extremely exciting, but their friends don't seem to agree. They have perhaps heard stories of unscrupulous conmen and wonder if they are being conned. At some point, you have to stand back and look at the situation with logical eyes - just ask yourself who is most qualified to make a valid decision. If you ask negative people why they dislike NM, 9 times out of 10 they will return with an incorrect or illogical reason. I soon realized that their opinion was probably based on brainwashing, not mine.

9) Isn't this exploiting my friends & relatives?

Lots of people worry about this point, despite the fact that they never considered it themselves when they were introduced to the business. When I was introduced to NM, I was grateful for the opportunity to examine the business, and I never once thought that I was being exploited. After all, I was offered exactly the same opportunity as my friend, and it was my choice whether to enter into the business or not. If I did all the work and they did none then I would still get a substantially larger income from my business than they would. In most network marketing organizations, those who do nothing are not eligible for an income. Besides - if there were no upline above me and I was the first person ever to join the organization, the compensation plan presented to me would have been exactly the same. The actions of those above me in the organization were not affecting me, except in a positive way through their encouragement and commitment.

10) Why should I trust and join QNET?

Qnet started in September 1998 & is now 14 years old (2012). It has an annual Turnover of  $1.7Billion. It has a customer base of more than 7 Million people across the globe. The products it offer are highly loved among its already existing customers with great services. It has the Best compensation plans among all the NM companies offering an annual turnover of Rs.14.42cr. after a dedicated effort of 4-5 yrs.

QNET is the official sponsor of Formula-1 Virgin Racing Team, AFC Champions League, etc. & is partner with bodies like FIFA, Ferrari Corp., United nations Food & agriculture program, RYTHM Foundation, Commonwealth Forums, Mayer Mint, etc.
If so powerful & influential people like Sir Richard Branson, Nick Vujicic, Muttiah Muralitharan, Boman Irani, Michael Ferreira, Sourav Ganguly, etc. can trust Qnet & work/endorse it, who are you & I to question Qnet's credibility!!!

11) If  QNET is so good, why doesn't everyone join?

People who say 'no' to Qnet for several reasons. For the majority, they don't see how it could fit into their lives. They have perhaps lived a very long time in the same frame of mind, or the same job, and it has become a fixed pattern. For others, they honestly don't see how they could find enough time in their hectic life. Plenty of people working 90 or 100+ hours a week have built huge network marketing businesses in their spare time. It's just a matter of priorities.
The majority of people who don't join all have exactly the same reason. That is "I just don't think that it will work for me." Of course, the job of a dedicated network marketer is to convince those people that it can work for them, and that the rewards are real and tangible. But in the end, many people will never join. But this is great - if the whole world joined then who would be the doctors, dentists, politicians, musicians, shop workers, police, waiters, cooks, accountants and teachers!

Then there is the group that is so sure of themselves that they cannot possibly understand why anyone would want to join a NM organization. Some of them even go out to stop those they know from doing the same. This is almost always borne of an ignorance of NM. There is usually a friend of a friend who tried and failed. Often these people cover their tracks by blaming it on the company or the business model - they don't admit that they simply didn't work hard enough. Sometimes they joined a poor company, and didn't research it enough. It's unfortunate, but these people will always exist. Everyone who has ever achieved anything difficult has faced those people telling them why they were sure to fail. Albert Einstein's school maths teacher famously told him that he would never amount to anything! I love this quote from that same man whose outstanding mind revolutionized practically all of modern physics:

Often those people mean well, but they are simply voicing their own opinion. Millions of people have been held back from achieving truly remarkable things with their lives because of  'well-meaning friends' who told them not to. You have to analyse your decision for yourself - make sure that it is the right one and then absolutely commit to it. It doesn't matter whether that decision is a 'yes' or a 'no' - just trust yourself! Remember - whenever anyone tells you that you're wrong, you almost certainly know a lot more about your business than they do! Don't let someone else's ignorance steal your chance for success!

FOLLOW OUR YOUTUBE CHANNEL 

CLICK HERE

FOLLOW OUR FACEBOOK PAGE

CLICK HERE