QNET is a company that focuses on direct selling and offers entrepreneurs the chance to build a sales venture by promoting the company’s products. The salespeople are compensated based on the sales they make in a certain period.
The direct selling firm started with a limited product portfolio. As e-commerce started becoming popular, the firm took advantage of the platform and expanded the product portfolio. Different people and institutions have labeled the company as a pyramid scheme. It is essential to distinguish between a pyramid scheme and a direct selling model to verify the legitimacy of QNET.
How a Pyramid Scheme Works
A pyramid scheme is designed to benefit its founders at the expense of the recruits. Recruiters require people to pay a fee to join the system. Remuneration is based on the number of people a person recruits into the scheme. In most cases, no specific products are sold.
Direct selling, on the other hand, involves selling directly to customers without using intermediaries. Direct selling mainly utilizes online platforms rather than physical stores to make sales. Salespeople are compensated based on the volume of sales they make rather than the number of people they recruit into the system.
Direct selling is associated with Multi-Level Marketing, also known as network marketing. In Multi-Level Marketing, a salesperson earns a commission from the sales made by the person they recruited in the firm. This commission is usually a certain percentage of the total sales made by the recruit.
The objective of Multi-Level Marketing is to increase sales by increasing the number of salespeople. The firm is mainly confused as a scam since it adopts the use of Multi-Level Marketing.
Is QNet a Scam
The direct selling firm is not a scam since people earn money from selling legitimate products. Also, the company has its operations in countries with the most stringent measures against pyramid schemes.