To answer this QNET scam question, it is important to first understand the difference between a legitimate direct selling company and a pyramid scheme. The key difference is that, in an illegal pyramid scheme, one gets commission for recruiting more people under him/her them; whereas in a genuine direct selling companies, commissions are paid only based on the sales of products. Even if a person has a large network of people under him/her them, but they have not neither retailed nor purchased any product, they don’t earn any commissions.
Pyramid schemes are illegal and the vast majority of their participants lose money. They rely on recruiting new representatives instead of product sales to profit, charge members large upfront fees, and convince them to buy large amounts of inventory that is not returnable. Their products generally have little or no actual value.
On the other hand, legitimate direct selling companies focus on the real value of their products, transparent compensation, and sustainable customer demand. These companies earn revenue primarily through the sale of high-quality products or services via their independent distributors (the direct sellers), provide fair refund and return policies, and reward those distributors for genuine retail activity. This is exactly how QNET functions.
QNET operates a product-focused business model, backed by clear policies, fair compensation, and strict adherence to international direct selling guidelines. Independent Distributors earn only when products are sold. With a diverse portfolio of wellness, lifestyle, education, and travel products, strong consumer protection measures, and long-term membership in respected industry associations, QNET demonstrates the hallmarks of a legitimate and ethical direct selling company.
QNET scam or lack of understanding?
Lack of understanding is usually to blame for people mistaking legitimate direct selling companies for scams. Often, when people complain about a direct selling company, it is either due to them not realising how much work is actually involved in building a successful business or because someone else misled them. Some say that QNET is a pyramid scheme where early entrants earn money, but it becomes difficult to find new members as the number of representatives increases. As a result, companies like QNET are often victims of endless media accusations, speculations, and baseless complaints.
QNET operates in countries with the most sophisticated and stringent laws and regulations governing this industry, such as Singapore, Hong Kong, and Germany, where our operations are completely legal and compliant with local laws.
We know that some people in network marketing may engage in unethical practices, making the industry an easy target for slurs like this. QNET has always complied with local regulations in any country it has operated in, paid taxes, contributed to numerous philanthropic activities, and reinvested in the country. We also instil a strict code of professional conduct in our distributors and penalise those who violate our Policies and Procedures.
To help combat this issue, it is important for various emerging economies to recognise that direct selling is a thriving industry creating microentrepreneurs who contribute to their communities, and institute the necessary legislation to govern the industry, to clearly distinguish the scams from the genuine direct selling companies.