Digital Marketing

Is QNET Illegal?

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Recently Biram Fall, QNET’s regional general manager for sub-Saharan Africa, extrapolated the reasons that the direct selling business isn’t an illegal scam or Ponzi scheme. “Debunking this common misconception is easy,” says Fall. “As a leading global direct selling company with millions of satisfied customers and distributors, QNET wants to ensure that all stakeholders — analysts, regulators, distributors/independent representatives, and the millions of customers who purchase our products and services — understand the difference.”

Fall explained that the direct selling business opportunities rely on social networking and QNET’s powerful e-commerce platform, as opposed to permanent brick-and-mortar retail locations. “We tapped into the rise in micro-entrepreneurship. Tech companies popularize the gig economy that everyone is talking about today, but direct selling was the original tech economy business,” says CEO Malou Caluza.

Since it was established over 23 years ago, the premier direct selling company, which is headquartered in Hong Kong, has expanded its business presence to over 25 countries. And it’s helped empower millions of entrepreneurs in more than 100 countries around the world. Countless motivated individuals with an entrepreneurial spirit have found financial success with the legal company. When asked is QNET illegal, they can confidently answer: No — it’s a 100% legal direct selling business. 

“We encourage proper enterprise and support entrepreneurs while maintaining strong ethical and professional practices at all times. We undertake consistently and continuing education and training programs which certify our representatives,” Fall stated. He clarified that many of the allegations leveled at the company could be traced back to “rogue individuals using QNET’s name wrongfully for their benefit and advancement. But we want to be clear: This has nothing to do with us. We will work with the authorities to ensure proper resolution and rogue elements being brought to their deserved justice.”

Since illegal Ponzi scheme businesses are indeed operating worldwide, it’s helpful to distinguish them from legitimate direct selling companies. 

5 Ways to Identify a Ponzi Scheme 

  1. With a Ponzi scheme, earnings and success are based on recruiting new members. However, at a direct selling company, distributors earn commissions based on sales of products and services. 
  1. The legal direct selling company invests in research and development in order to offer high-quality products that meet the needs of people worldwide. Often Ponzi schemes have no product to sell. 
  1. The company prides itself on its comprehensive three-perspective training system to train distributors for long-term success. It offers leadership training as well as marketing and sales tools. Meanwhile, pyramid schemes tend to be short-lived. According to Caluza, “Through this comprehensive 360-degree approach, the company aims to empower aspiring entrepreneurs to be professional CEOs of their business.”
  1. The company clarifies to distributors that the direct selling business is in no way a get-rich-quick plan. Caluza says that the company “has always maintained that it is not for those seeking overnight success.” 
  1. The direct selling company makes clear the strict code of conduct and policies to which all distributors must adhere. Unlike unregulated Ponzi schemes, Caluza’s company takes swift action when anyone diverges from the proper procedures.

Is QNET Illegal? No. The Legal Direct Selling Company Offers Entrepreneurial Opportunities Globally

According to a recent report from the World Federation of Direct Selling Association, 128.2 million individuals around the world were involved in the industry in 2021. The report considered those working full-time and part-time and states that the industry generated $186 billion in annual sales last year.

“Despite the current scenario, shaping a challenging path for many industries, direct selling continues to sustain its growth amidst the contraction in economic activity due to COVID-19,” stated Caluza. “The industry demonstrated continued strength in 2021 with a 3.0% increase in global sales compared to the previous year.”

According to a company statement, “Since its inception 23 years ago, QNET has welcomed millions of distributors of its products and services, known as independent representatives, in more than 25 countries globally into its business. As a result, every care and training is undertaken to ensure that our independent representatives personally commit to our strict code of conduct and policies and procedures.”