Friday, March 24, 2023

Is QNET a Scam? Is is Banned in any Country, Rumours and Controversies

Is QNET a scam? A question you may have researched when doing your due diligence on QNET.

Find the answer and more answers about QNET rumours and controversy.


Why People Refer QNET as a scam, a pyramid scheme, and/or a fraudulent business aimed at cheating people?

To answer this 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 them; whereas in a genuine direct selling company, commissions are paid only based on the sale of products. Even if a person has a large network of people under them, but they have 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.

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. As a result, companies like QNET are often victims of endless media accusations, speculations, and baseless complaints.

QNET operates in Tanzania and other countries with the most sophisticated and stringent laws and regulations governing this industry, such as Ghana, Ivory Coast, and Senegal, 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.

Has QNET been banned in any countries?

QNET is not banned in any country. And Due to the nature of the direct selling business model, almost every single company in this industry has faced 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 and QNET is Not Banned in any Country in the world.

In 2009, Rwanda’s Ministry of Finance issued a notice banning QNET because our operations were not localised at the time. We opened a dialogue with the government and addressed their concerns, and in 2012, we set up a local company in Rwanda, following which the Ministry of Finance revoked the ban. This company now serves as our East African hub.

Why has the company changed its name so many times?

Companies change their names frequently for reasons such as branding, variations in lines of business, and marketing. In our case, this was done for strategic business purposes. When QNET was founded in 1998 it offered only one product: commemorative gold coins. As the company added more products to its portfolio and the e-commerce platform evolved, the name GoldQuest was no longer suitable and it was changed to QuestNet, and then shortened to QNET. Hundreds of companies all over the world have done the same sort of thing.

How many individuals should a new IR recruit (assuming lowest priced package) to recover their initial investment?

There is no “recovering” as there is no investment. Individuals buy products they want to use, for the money they pay the company. If they choose to take advantage of the business opportunity, they can earn commissions from the purchases of people they refer to QNET. How much one earns therefore depends on how hard the person works towards building a sales business. Commissions are paid according to QNET’s Compensation Plan. Naturally, the more products you sell, the more you earn in commissions.

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