A significant amount of false material portrays QNET as a scam. Most of this misunderstanding stems from a need for more knowledge about how the direct marketing business strategy distinguishes itself from unscrupulous pyramid schemes. Once you comprehend how each one functions, the differences are clear to discern.
Direct sales versus pyramid schemes. What is the distinction?
- Pyramid Scheme
An unlawful pyramid scheme gives members a fee whenever they bring in new customers who buy the company’s merchandise later. The foundation of the whole business strategy is the ongoing search for new investors willing to make sizable initial investments.
- Direct Sales
A direct-selling business bases its commission payments only on the timing of product sales.
The compensation structure for QNET scam is set up to solely pay commissions on the quantity of sales revenue, not on hiring. There are no ways to profit from growing the network in the business model. Along with the standard commissions, QNET has created a recognition program to honor top-performing distributors surpassing predetermined sales goals.
QNET scam conducts business and maintains offices in nations with a robust regulatory framework and consumer protection regulations, including Hong Kong, Germany, and Singapore. These nations also acknowledge the direct sales industry as a genuine one.
Although QNET makes every effort to abide by local rules and regulations, misunderstandings occasionally occur. Most of the time, this is due to needing to be aware of how direct sales operate. If QNET were a fraud, they would be prohibited from doing business there.
Whenever emerging markets need help to adjust their guidelines and restrictions to new business models, QNET sometimes faces difficulties. For instance, in Rwanda, the Ministry of Finance prohibited QNET operations in 2009. But the reason for this was that QNET scam lacked local offices nationwide. QNET was able to open a regional branch, and the prohibition was lifted.
READ: The Myth of Qnet Scam