A large number of people have fulfilled their entrepreneurial dreams and achieved unparalleled professional growth by starting a direct selling business. However, there are also those who haven’t been quite as successful. What causes them to fail even as others continue to achieve bigger goals?
Unrealistic targets, lack of commitment to the process, and absence of hard work are some of the common reasons for failure in direct selling. However, there are some other reasons that bring businesses crashing down.
In this list, we dig deeper and go beyond the obvious by presenting instances that have led to the termination of distributors and their businesses, after following processes and conducting due investigations.
We know that going through the Policies and Procedures can be a tedious task, especially due to its use of legal terminology. But understanding it is truly the way to go if you want to have a fail-proof business in QNet.
If you’re new to the business, take notes, and if you’re a seasoned distributor, this is a good refresher!
1. Intentionally registering more than one distributor account
Having more than one account in QNet makes you accountable for violating Clause 4.04 or Multiple Online Distributor Application Forms in the Policies and Procedures with appropriate penalties, which include but are not limited to the termination of your second and/or subsequent accounts without prior notice.
The person who advised you to register more than once and sponsored you will also share the penalties of another P&P violation called Cross Lining or otherwise known as Clause 6.08.
2. Publicising adverse or abusive statements against QNet
Feedback forms the backbone of any successful business, and in order to grow constructive feedback is crucial. We at QNet always welcome feedback and acknowledge its power to bring change. The feedback we receive from our distributors helps us identify loopholes, address problems and improve their experience with us.
But while providing feedback do take into account the difference between constructive feedback and unproven damaging statements. Ask yourself, what are your intentions? Do you genuinely want to resolve the situation? Or do you just want aimless retribution?
We have in place proper channels to help you report any dubious situations where you believe you have been mistreated or cheated in the business.
However, publicly humiliating an entity for unresolved issues without the right intentions and breaking P&P Clause 6.14 Obligation to the Company is definitely not the right way to do things. Additionally, it also violates our social media policy.
3. Cheating people by collecting money and using it for wrong purposes
Collecting money for a specific reason, like for IR registration and/or product purchase, and using it for other purposes that have not been agreed upon, falls under theft and fraud. This unscrupulous act not only brings your integrity into question, but the abuse also makes you liable for a breach of Clause 6.12 – Legal Compliance in the QNET Policies and Procedures.
4. Misrepresenting QNet’s products and compensation plan
QNet distributors earn commissions based on the amount made from product sales that they have achieved along with their sales team. In simple terms, if you don’t sell any product, there will be no earnings. This sometimes triggers the “sales-at-all-costs” mentality which can be harmful to both the individual and the company.
As a responsible distributor, it is your obligation to understand the products and business opportunity to the core and share only official and true information to your prospects and direct referrals. If you are unsure, you can always refer to official QNet materials in your Virtual Office.
Misrepresentation of the products and business model is not only a deceitful act, but it can also subject you to an investigation because you have breached the following clauses in the QNet Policies and Procedures.
12 Promotion of Distributor’s Business
12.02 Income Claims
12.10 Product and Services Claims
…and more.
5. Joining other MLM companies while being an active QNet distributor
The QNet business model requires one to focus on product sales and build professional sales teams. These are the only ways to run a successful and sustainable Direct Selling business.
Participating in many business plans creates conflict for both QNet as a company and the distributors. Referring or attempting to refer people in your QNet sales team to join other Direct Selling companies not only harms your team’s performance but also gives rise to conflicts within your business. Being part of multiple business plans takes away your team’s focus on sales and growth, which can reduce their chances to maximise their earnings with QNet.
Like any other business, QNet values and rewards loyalty and hard work. This is why a breach of any parts of Clause 6.10 or Obligation not to Refer to Other Network Marketing Companies and Programmes is a serious breach of the P&P and may lead to immediate suspension or even termination of the perpetrators’ accounts.
At QNet, we have zero tolerance towards malpractices, misrepresentation, and unethical practices of any kind. We are committed to empowering our customers with relevant tools, training, and well-drafted policies and procedures and the code of ethics to ensure a better understanding of how to conduct Direct Selling business the right way.
If you want your QNet business to thrive just adhere to these sets of rules.
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