QNET is a legitimate direct selling business. However, despite its achievements as a leading e-commerce platform that enables motivated distributors to become successful entrepreneurs, the company is often accused of cheating people.
Because of that, people wonder: Is QNET a pyramid scheme or get rich quick scheme? A lack of understanding is often why people mistake legitimate direct selling companies for scams. The difference between lawful direct sales and a pyramid scheme must first be understood to clear up the false rumors.
What is direct selling? It’s a method of marketing and retailing goods and services directly to consumers in their homes, or in any location away from a permanent retail space. These sales are driven mainly by word-of-mouth referrals. Products sold through direct selling companies have unique features, are exclusive to the company, and are not available in stores.
Pyramid schemes are illegal and unethical since the majority of participants in any given pyramid scheme lose money. According to QNET, “The key difference is that, in an illegal pyramid scheme, one gets commission for recruiting more people under them. 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. 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.”
QNET is one of Asia’s leading e-commerce-enabled direct sales companies and has helped empower millions of entrepreneurs since it began in 1998. It has a presence in over 25 countries worldwide through branch offices, agency partnerships, subsidiaries, and franchisees.
Headquartered in Hong Kong, it offers a range of lifestyle, health, and wellness products and operates in countries with the most sophisticated and stringent laws and regulations governing this industry, including Singapore, Hong Kong, and Germany. Its operations are entirely legal and compliant with local laws.
At QNET, the distributors must adhere to ethical and professional guidelines. The company has a zero tolerance policy for any misrepresentation or unethical practices by independent representatives promoting their business.
For that reason, it established the Network Compliance Department to monitor network behavior and ensure the independent representatives conduct business ethically and professionally. Distributors who don’t adhere to the guidelines risk suspension and termination.
QNET: A Legacy of Lawful Business and Philanthropy
“QNET has been around for more than two decades. How many scam companies manage to survive this long?” asks CEO Malou Caluza. She says a lack of understanding and individuals misrepresenting the direct selling company are two main reasons people often ask, is QNET a pyramid scheme?
“While direct selling is a more than century-old profession, unfortunately, there is a lack of understanding about the direct selling business in many parts of the world,” explains Caluza. “It’s still in the early stages in many emerging economies, so it’s not properly understood.”
Also, when people complain about a direct selling company, it’s often due to them not realizing how much work is involved in building a successful business, or because someone else misled them. To address that issue, Caluza says, “We focus on education and awareness through various ways, ” including social media campaigns.
“This helps people understand the positive socioeconomic impact of direct selling,” says the CEO. “We also focus on educating them about the difference between [being a] legitimate direct selling business and illegal pyramid schemes.”
Those willing to learn and put in the work with an energized entrepreneurial spirit have found legitimate, lasting success. Arun George got involved with the company at age 23. He says it’s “the first and only direct selling company I have done business with. I was looking for better career opportunities and saw QNET’s list of great quality products.
I could not see any downside to them, so I decided to get started with them. I decided to give it my best, at least for the first year. Today, 20 years later, I have a global team that is thriving in 40 different countries, and I’ve been able to give my children the best opportunities for success.”
The company also gives back to international communities through its RYTHM (Raise Yourself to Help Mankind) Foundation, which serves as a social-impact initiative of its parent company, the QI Group.
“A successful QNET distributor is passionate about helping people take charge of their lives through our products and our businesses. One who leads with honesty and integrity and lives the values of RYTHM. These attributes make a distributor a successful CEO in their own right,” says Caluza.
