According to findings from the Federal Trade Commission, consumers lost nearly $8.8 billion to scams in 2022. For those wondering how much was the QNET scam, it’s essential to understand that the direct selling company is a legitimate opportunity for entrepreneurs. It’s been in business for 25 years and is dedicated to fighting fraudulent allegations.
In 2022, 2.4 million consumers reported fraudulent activity to the FTC. Unfortunately, due to the actions of a few scammers, QNET occasionally gets misidentified as a fraudulent business. Imposter scams were the most commonly reported fraud. Additionally, online shopping scams, prizes, sweepstakes and lotteries, investment-related issues, and business and job opportunities comprised the top five most significant fraud categories.
In emerging economies worldwide, the direct selling industry isn’t fully established, which often causes confusion about the legitimacy of a business like QNET. Still skeptical? This is what you need to know.
A Better Understanding of the Direct Selling Business
The direct selling company has run a successful, lucrative business for over two decades. The direct selling business is a subsidiary of the QI Group, a multi-business conglomerate headquartered in Hong Kong. It’s one of Asia’s fastest-growing e-commerce-based direct selling companies. It has a global footprint of independent representatives and customers in almost 100 countries.
During the past 25 years, it’s partnered with acclaimed brands such as Manchester City Football Club and earned multiple international accolades, including an Asia-Pacific and Middle East Gold Standard Award. However, some individuals and the media continue making unfounded allegations against the direct selling company.
There are many reasons why the direct selling company has been falsely branded a scam or pyramid scheme. A lack of understanding of the direct selling industry is a significant factor in the unjustifiable accusations against QNET.
Direct selling is a retail channel that various businesses worldwide embrace to market products and services to consumers. Although it differs from traditional business-to-consumer retail since it’s not entirely focused on getting quality products and services to consumers — because distributors use and like the products they sell — it’s also a way for entrepreneurs to work independently to establish their own businesses with a low barrier to entry.
While many have succeeded with QNET, the direct selling industry may not be a good fit for every aspiring entrepreneur. Those who decide to pursue the business opportunity in addition to purchasing the product are eligible for a refund within a certain time period, depending on the country they made the purchase. For example, customers in India are entitled to a 30-day refund. In many other countries, the refund period varies from 7 to 14 days in accordance with the consumer protection laws of the jurisdiction.
However, disgruntled entrepreneurs have occasionally damaged the direct selling company’s reputation. CEO Malou Caluza explains, “Some bad apples who misrepresent the QNET name by making exaggerated claims about the business or our products that are simply not true and not endorsed by QNET.”
The misinformation spread by those deceitful people can cause an immense amount of harm to the direct selling company. Why would anyone want to do such a thing? Sometimes malcontent former independent representatives, who were terminated for failing to follow the company’s strict ethical rules, have spread damaging lies about the direct selling company.
Biram Fall, the regional manager of the sub-Saharan Africa region, said the company “condemns the actions of these unscrupulous individuals who are misusing QNET’s name to promote illegal activities.
“We do not have such agents anywhere in the world who are authorized to offer a job in exchange for money. What these people are doing is reprehensible and criminal.”
How Much Was the QNET Scam?
The direct selling company isn’t a scam or pyramid scheme. Instead, distributors are rewarded for selling the products they use and enjoy. “The more products they sell, the more commission they earn,” stated Fall. Unlike pyramid schemes that reward members for recruiting more participants and are illegal, the only way to earn money with the direct selling business is through product sales.
“QNET uses a compensation plan that calculates commissions payable to the independent representatives based on the sales volume generated through these successful sales referrals in our e-commerce portal,” stated Fall. “Many people have managed to build a successful sales business using this business model.”
It’s also not a get-rich-quick scheme. There are no shortcuts to becoming a successful independent representative with the premier direct selling company. Success on the direct selling company’s e-commerce platform takes hard work and dedication.
In order to dispel common misconceptions and scam allegations regarding how much the QNET scam affects the company’s stature, it initiated an extensive set of policies and procedures explaining how its independent representatives must conduct their business.
Caluza says the company “established the QNETPRO initiative, which focuses on training and education for our network on building the direct selling business in a legal, professional, and ethical manner.” It also created a network compliance department. “This team is focused on investigating all complaints we receive from the field about violations of our policies and procedures.” The CEO adds that it enforces “penalties on those who misuse the QNET name and harm our reputation.”
Entrepreneurial-minded individuals who abide by the direct selling company’s advice and guidance have found that it can pay off in big ways. Fall stated, “Thousands of people around the world have benefited from our products and services and have been empowered to become entrepreneurs using our direct selling business opportunity.”