The Merriam-Webster dictionary defines a Scam as ‘a fraudulent or deceptive act or operation’. The Cambridge Dictionary defines it as ‘an illegal plan for making money, especially one that involves tricking people’.
In essence, this would mean that if a company or an enterprise is called a scam, such a company or an enterprise has been found to project a false image of legitimacy while fraudulently obtaining money from the public. It would be an enterprise built on lies.
It is a well-known fact of life that anything that is built on lies simply cannot last. Sooner or later, the façade comes crumbling down, and the lies are exposed. History is witness to the many hundreds and thousands of companies and ill-motive ventures that died a quick death either because they got caught or because the people behind the scam knew their time was running out and shut down and disappeared before anyone figured out what was truly going on.
So why is QNET being called a scam in the media?
Before we answer that, let’s examine some of the factors taken into consideration to establish the legitimacy of a business, i.e., the things that separate genuine companies from the ones that are a scam.
Longevity of the Company
Various research studies have shown that 90% of new businesses fail within the first 5 years. In India, more than 80% of new businesses die within the first three years. There are multiple reasons for this failure. Inability to scale, poor management, inadequate funding or capital to operate, poor marketing, legal challenges, not having the right team, are some of the reasons.
These reasons also apply to direct selling companies that fold up within a few years.
QNET has been in business for 18 years and shows no signs of slowing down. From its humble beginnings in South East Asia nearly two decades ago, it has today grown into a global powerhouse in the direct selling business, empowering entrepreneurs around the world.
Credibility of the Company
Just as you wouldn’t do business with a person who is not credible, customers wouldn’t do business with a company known for being dodgy or unethical. To establish a long-term relationship, the credibility of the company is very important. You have to know and understand what kind of company you are dealing with in order to develop trust.
Here are some questions that you should ask in order to establish the credibility of a company — Is the company legally registered? Are its founders and management team well-known, well-respected people? Does the Company undertake any business that is explicitly prohibited under the law? Have any industry bodies recognised it? Is it a member of a trade association and abides by its rules? Has it received any awards? What kind of partnerships does the company have? How has the company contributed to society?
Here are some facts about QNET:
- QNET is registered as a legal business in more than 20 countries around the world. In India, QNET operates its business through Vihaan Direct Selling (India) Pvt. Ltd, the sole sub-franchisee of QNET in India.
- The company’s founders are well-known business leaders who have since gone on to successfully build a global conglomerate that includes a full-fledged University in Malaysia, a chain of hotels and resorts in different parts of the world, and a historic Swiss watch brand.
- Read here about the History of QNET
- QNET is a member of the Direct Selling Association in Malaysia, Singapore, Philippines and Indonesia. DSAs act as self-regulating bodies for its members and ensure that all members adhere to a strict code of conduct. These DSAs are all members of the World Federation of Direct Selling Associations (WFDSA).
- QNET has been recognised for its achievements in different parts of the world.
- QNET has partnered with leading sports teams such as Marussia F1, Manchester City Football Club and counts Tennis star Martina Hingis as a brand ambassador.
- QNET has been an active contributor to the community through a number of charitable projects in different parts of the world. In India, QNET has partnered with the Lion’s Club and has been involved in a number of initiatives supporting the underprivileged.
- Read here about the activities of QNET’s global Corporate Foundation RYTHM Foundation.
Size and Growth of the Company
Knowing how big and how old the company is, gives you an indication of its growth pattern. Some of the things you should be looking for — How many offices does the company have? How many employees? How many countries do they do business in? How many customers do they have? In the case of a network marketing company, how many distributors do they have? How fast has the company grown? All of this information helps you understand how stable the company is.
- QNET has offices and agency representations in 25 countries around the world.
- The company employs approximately 1,000 employees directly and indirectly.
- QNET’s products are shipped to more than 100 countries globally.
- Globally, more than 5 million customers have purchased products from QNET in the last 18 years. In India, QNET has approximately 60,000 customers and independent representatives.
This is the single most important aspect of what separates a legitimate direct selling company from one that is not. Direct Selling is all about having a large group of distributors promoting and marketing a product to the marketplace and sharing the profits from the sale of those products. It’s important for the company to offer high-quality products and services, preferably with a USP that sets it apart from the competition.
The recently released global statistics report by WFDSA shows that the top performing product categories in direct sales were as follows:
- Health and Wellness Products
- Beauty and Personal Care
- Household Goods and Durables
The report showed that in India, the market share for products sold through direct sales were 42% for Health and Wellness, 34% for Cosmetics and 7% for Household Goods and Durables.
QNET’s top selling products in India include the nutrition range of products called Nutriplus, the SHARP-QNET Plasmacluster Air Purifier among Home Appliances, and the Physio Radiance Skincare range.
What sets direct selling companies apart from traditional businesses is their business model. People get into this business in order to supplement their existing income or are working towards long-term financial independence. Hence, it is important to be a part of a company that has a sustainable compensation plan that rewards you for your efforts, gives you performance incentives and will allow you to eventually earn a residual income in a few years.
QNET has one of the most exciting and robust compensation plans in the industry with very competitive commission rates. Not only do you get to enjoy a high-quality product that helps you live a better life, you also get paid for sharing its benefits with others.
To make sure that all Independent Representatives understand the business model and the policies and procedures involved, QNET provides all the information in writing to prospective customers. All documents related to the business are easily available through our website to anyone interested in understanding the company and the business model before signing up.
It is said that the best business training is found in network marketing companies and not in an MBA programme. It doesn’t matter how well you did in your earlier profession, what your experiences in life are, or how successful you have been elsewhere if you are not open to constantly learning and growing.
All good network marketing companies provide multiple levels of training starting with a Basic Training programme for newcomers to educate them about the company, its products and services, the compensation plan and knowledge about the industry. Other levels of training include goal setting, planning, presentation, public speaking, leadership development and teaching others.
QNET provides regular training programmes at all levels to independent representatives around the world. From small training events for a group of 20-30 people to large conventions involving thousands from around the world, where participants learn from the best in the business not just in their country but also from other countries.