QNET Defends Direct Selling Industry Against “Pyramid Scheme” Claim

 

QNET is a company known for its advocacy of direct selling—which is not at all the same thing as a pyramid scheme. Unfortunately, the two concepts have become somewhat muddled and confused. Pyramid schemes continue to harm consumers across the world, and the media hype over these scams has led to increased skepticism. Some of that skepticism has been unduly extended to direct selling.

Direct Selling is NOT the Same as Pyramid Scheming

While the concept of the pyramid scheme is well-known, many individuals do not understand the completely distinct (and legitimate) practice known as direct selling. Direct selling, as practiced by companies like QNET, simply refers to the marketing of products and services directly to consumers. It happens in a face-to-face setting, away from a traditional retail location.

Direct selling encompasses several different distribution methods. The terms multilevel marketing and network marketing both apply here. A pyramid scheme is something altogether different and really unrelated.

QNET Advocates for Direct Selling Regulations

The misconceptions that have arisen, linking direct selling to pyramid schemes, have obviously hurt the direct selling market. The question is, what can be done to address this problem? One solution, advocated by QNET, is for more international governments to implement regulations to govern the direct selling industry.

This is already taking place in many countries. Rapidly growing nations such as Thailand, Malaysia, Indonesia, and Singapore have all passed specific statutes, designed to facilitate a thriving and honest direct selling industry. QNET has voiced its support of this, and has even offered to help government bodies draft appropriate legislation.

Why Direct Selling Needs to be Protected

Direct selling deserves to be protected by international governments because it offers many well-documented benefits to the economy.

· Currently, direct selling is an approximately US$154 billion industry.

· It has more than 91 million people involved as distributors.

· Direct selling creates many entry-level jobs, which helps to reduce unemployment and to empower those who are entrepreneurially minded.

How to Identify Legitimate Direct Selling Companies

Until the time comes when direct selling regulations are universal, there are a few ways in which consumers can protect themselves against being taken in by pyramid schemes.

· Direct selling is not a get-rich-quick scheme. While it can sometimes prove quite financially rewarding, it is also a tough business, one that requires real time and effort to be put in. A genuine direct selling business will be up front about this as it recruits new distributors—not promising them extravagant wealth over night, but affirming that hard work and dedication will pay off in the long run.

· Direct selling companies, unlike pyramid schemes, deliver high-quality products and services. A pyramid scheme has nothing legitimate to sell. A good direct selling company, meanwhile, will dedicate its resources to finding consumer products that are appealing, useful, and valuable. Take a company like QNET, which offers more than 30 products spread across nine different categories.

· Legitimate direct selling companies have restrictions in their compensation plan. They limit the number of people who can earn a commission through sales. This levels the playing field for all of its members. In a pyramid scheme, however, there may be many, many people involved with distributing products—but only the person at the top is likely to see any income.

· Reputable direct selling companies do not offer commissions solely based on recruitment. In fact, most of these companies will not make recruitment a requirement at all. Legitimate direct selling companies are structured in order to reward people for promoting products, above all else. In a pyramid scheme, there is no financial return unless other people are successfully enrolled.

· Respectable direct selling companies offer solid training programs. They place an enormous emphasis on the training their give to their marketers. Companies that actually care about the success of their distributors will invest in professional development opportunities for those distributors.

· Direct selling companies have proper policies and procedures in place, and clear codes of ethics. They aim to achieve long-term growth and prosperity by fostering a culture of ethical marketing. Needless to say, the same is not usually true of pyramid schemes, which are dishonest by their very definition.

The Future of Direct Selling

While misconceptions about direct selling rage, it is unlikely that this industry will suffer in the long run. In addition to the numerous countries that have implemented regulations, others—such as Egypt—are now considering doing the same. Such regulations will help to ensure that direct selling flourishes, all across the world.

This is in the best interest of everyone. Direct selling is an industry that provides myriad economic boosts and benefits. This is why companies like QNET are so adamant about protecting direct selling from being discredited.