If you heard the rumors and wondered —is QNET really a scam? — the truth is that QNET is not a scam. It’s a legitimate direct selling business. The company, headquartered in Hong Kong, strictly adheres to all of the relevant rules and regulations of the countries in which it operates, and encourages everyone — especially potential distributors — to exercise due diligence and research the realities of becoming an entrepreneur through the direct selling business.
The Difference Between Direct Selling Companies and Pyramid Schemes
The premiere international e-commerce-powered direct selling company operates in more than 20 countries. It is, therefore, often the target of rumors and false accusations that it’s a fraudulent business aimed at cheating people. That could not be further from the truth, so QNET strives to educate the public about the difference between a legitimate direct selling company and a pyramid scheme.
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. 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.”
A lack of understanding of those differences is often to blame for anyone confusing the legitimate direct selling company for a get rich quick scheme or scam, especially in emerging markets where the direct selling industry is less regulated by consumer protections. The challenge is the lack of awareness and the lack of a legal framework to help the public differentiate between genuine companies and pyramid schemes.
Is QNET Really a Scam? How the Company Combats Misinformation
“One of the things we pride ourselves on at QNET is our comprehensive training system,” says CEO Malou Caluza. The company utilizes a three-pronged approach to training and education. “The first one is to help the distributor understand the company, the policies and procedures, the code of conduct, and their responsibility as a QNET independent representative,” explains Caluza. “The second is to help them become our product ambassadors. We focus on helping them understand how our products can help them address some of the challenges they face, be it with air and water quality, or nutrition deficiency, or even in learning a new skill. The third part is to help the independent representatives build their business in a sustainable manner for the long term. This includes leadership development, professional business practices, utilizing technology to manage their business, and much more.”
Through this comprehensive training approach, the direct selling company hopes to educate and empower aspiring entrepreneurs to become successful CEOs of their own businesses.
It worked for Sanu Nair. He was confused and wondering, “Is QNET really a scam?” before becoming a top distributor. “They trained me to understand the business. That included: how to do this business; what attitude an entrepreneur should cultivate; how we should love human beings beyond all the barriers of language, location, religion; how to be open-minded enough to listen and learn from others; and how not to ridicule, how not to make people feel less by sharing things that we don’t know is true or not.
“I was trained spiritually and taught how to be a good networker, a good son, a good husband, and a good person for society,” explains Nair. “I had expected that they would train me to convince more fools to work for them. Instead, I was trained to see the world differently, as a world of lawful opportunities. Instead of joining a club of people who complain and slander, bully, and spread negativity, they instead taught me to understand direct selling, the company, and how I can make it big.”
A successful QNET distributor leads with honesty and integrity, according to Caluza. “We have always maintained that QNET is not for those who are looking for overnight success. This is evident in the success stories we share. All of the top leaders [including Nair] that our network looks up to today started with nothing, and built their business slowly but steadily. It took them years to get to where they are today. They are our best ambassadors for the message that success at QNET takes hard work and consistent effort over a period of time,” she says.