Despite being a prominent e-commerce business, misconceptions and rumours have often clouded the reputation of legitimate companies like QNET. Allegations of pyramid schemes, scams, and fraudulent practices have plagued the industry, leading to concerns about the legality of direct-selling companies in India. However, such accusations often arise from misinformation and a lack of awareness, resulting in an unfavourable perception surrounding QNET.
We will present you with factual information so you can make your judgements. But before we talk about QNET, first we need to understand the mechanics of direct selling. It’s important to note that QNET operates within the bounds of the law, and there is nothing illegal about its business practices.
Direct Selling In India
Direct selling, is entirely legal in India, and QNET is no exception. Since the early 1980s, numerous local and international companies have successfully launched direct selling businesses in India, contributing to phenomenal industry growth that generates over $1 billion in revenue annually. In 2016, the Indian government introduced comprehensive direct selling guidelines under the Ministry of Consumer Affairs’ purview, further enhancing consumer protection measures.
Additionally, in January 2022, direct selling was officially integrated into the framework of the Consumer Protection Act, solidifying its legitimacy as a lawful business model in India.
Direct selling is one of India’s most rapidly growing industries in India. The industry was worth over Rs 23,800 crores in FY 2021 with the highest YOY growth of over 28%. The industry currently comprises around 80 lakh self-employed individuals. The direct selling industry is poised to cross Rs 65,000 crores in sales by as soon as 2025, generating an estimated workforce of 2 crore direct sellers.
Direct selling is just like any other entrepreneurship opportunity that requires hard work, consistency, commitment and perseverance.
Debunking Common Misconceptions About Direct Selling
Direct selling is a pyramid scheme – In a legitimate direct selling business model, income is earned solely through the sale of products, and distributors are rewarded for building a team focused on product sales. Pyramid schemes, on the other hand, rely on recruiting new members with the primary goal of making money through recruitment rather than actual product sales.
Direct selling is similar to a chit fund business – A chit fund involves subscribers investing a fixed amount monthly for a specified period, and it operates as a form of investment scheme. On the other hand, direct selling focuses on selling products to consumers and building a network of distributors, with earnings based on product sales and team building.
Direct selling is an investment scheme – Unlike investment schemes that promise returns or profits based on financial contributions, direct selling involves the sale of tangible products to consumers. Distributors earn commissions based on the volume of products sold and the performance of their distributor network, not through financial investments.
Watch the video here to know more about Direct Selling.
The Legitimacy of QNET India – Dismissing The Scam Narrative
QNET, as one of Asia’s leading direct selling companies, offers a diverse range of products through its e-commerce platform. The company operates with a grassroots business model, empowering millions of entrepreneurs through its direct selling opportunity.
Contrary to unfounded allegations, QNET India’s legitimacy has been reaffirmed by the honourable Supreme Court of India. In January 2019, the Supreme Court directed no-coercive action against the company and its directors in more than 60 FIRs. Despite this order, certain actions by local authorities have persisted, prompting the company and its distributors to seek protective orders from high courts.
To know more, you can read this summary of important legal verdicts in India.
QNET has consistently demonstrated its commitment to business compliance and transparency in all the countries it operates, including India. QNET in India remains open and transparent about its business model and operations, ensuring compliance with local laws and regulations. Still not convinced? Here are some more reasons to consider:
- QNET develops high-quality products as per international standards – QNET India takes pride in offering a diverse portfolio of high-quality products, that are carefully designed to improve health and lifestyle, to make holistic well-being accessible to all. The company’s product development teams collaborate with an international panel of experts to ensure the highest quality products reach their customers.
From protecting homes from environmental pollution to personal care, beauty products, health and wellness solutions, and even online education programs, QNET India’s diverse product portfolio caters to a wide range of needs.
Operating legally and ethically across the globe – QNET India’s widespread operations testify to its legitimacy, as it adheres to strict regulatory systems and operates within the boundaries of the law. QNET’s journey from modest beginnings to becoming a leading organisation spans over two decades, with over 20 offices established worldwide, including Southeast Asia, Singapore, Hong Kong, and Germany. Significantly, the global presence of QNET’s customers in over 100 countries reiterates the company’s commitment to providing genuine entrepreneurial opportunities, backed by high-quality products in adherence to international standards.
- QNET distributors make money through commissions based on product sales – In the realm of direct selling, QNET India stands out for its unwavering commitment to transparency and legitimacy. Unlike pyramid schemes that lure participants with false promises of easy money, QNET’s business model operates on a strong foundation of product sales.
QNET pays commissions to its Distributors exclusively on product sales, ensuring that distributors earn based on the actual value they bring through real product consumption.
Many downlines have built thriving businesses, surpassing their uplines, based solely on the strength of their product sales efforts. The key to financial success lies in generating sales, re-highlighting QNET’s genuine focus on product-driven earnings.
- Association with reputable and established brands – QNET’s association with prestigious brands and renowned sports entities further reinforces its legitimacy. QNET’s partnership as the official direct selling partner of English Premier League champions, Manchester City, exemplifies the trust placed in the company.
Additionally, sports sponsorships with the Confederation of African Football and the Malaysian Hockey Confederation highlight QNET’s reputable standing.
Even Bernhard H. Mayer®, a distinguished jewellery and watch brand with a 150-year history, is associated with QNET, showcasing the company’s credibility and reliability, laying any misconceptions about its legitimacy to rest.
QNET India operates as a legitimate direct selling company, adhering to the laws and regulations governing the industry in India. The company’s broad range of products, compliance with local laws, and association as a sponsor for prestigious reputed brands across the globe underline its legitimacy. As misconceptions and rumours continue to circulate, it is essential to differentiate between genuine direct selling businesses like QNET and illegal pyramid schemes. Education and understanding are paramount in making informed decisions about direct selling opportunities and debunking the myth of QNET being a scam.
As individuals choose QNET, they become part of a global community focused on achieving overall well-being and leading a balanced life. The claims of QNET being a scam are unfounded, as the company’s track record and ethical practices solidify its position as a genuine and reputable direct selling enterprise.
- Has India banned direct selling?
No, direct selling is not banned in India. On the contrary, direct selling is entirely legal and operates under a well-regulated framework. The Indian government introduced comprehensive Direct Selling Guidelines in 2016, bringing the industry under the purview of the Ministry of Consumer Affairs. In January 2022, direct selling was officially integrated into the Consumer Protection Act, further solidifying its legitimacy.
- Why do people refer to QNET as a scam?
Even with a large network of people under a seller, without retailing or purchasing a product, they won’t earn any commissions.A lack of understanding is usually at fault for people mistaking legitimate direct selling companies like QNET as scams. When people complain about a direct selling company, it is either due to them not realising how much work is involved in building a successful business or because someone else misled them. As a result, companies like QNET earn a bad reputation and often end up as victims of endless media accusations, speculations, and baseless complaints.
- Is QNET banned in any country?
The nature of a direct selling business model leads most companies in the industry to face challenges in new and emerging markets. Direct selling is not very well understood in many countries, and a lack of regulation creates confusion and misunderstanding. However, QNET is not banned in any country.