Qnet says banning pyramid companies is the right thing to do by Rajiv K

QNET Says Banning Pyramid Companies is the Right Thing to Do - SocialTimes Social Media 101 LostRem ote

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QNET Says Banning Pyramid Companies is the Right Thing to Do Sponsored Post on Decem ber 6, 2013 3:30 PM

QNET has w eighed in on the proliferation of pyramid companies around the w orld—and on the crucial difference betw een pyramid companies and legitimate direct selling companies. This is a topic that has risen to the level of public consciousness in Egypt, thanks to an investigation by the Public Funds Authority into eight companies that have been accused of involvement w ith pyramid scheming. This investigation has been both good and necessary, but the media buzz has led to a great deal of confusion.

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Of course, this problem is not restricted to Egypt. Around the w orld, misconceptions over direct selling versus pyramid scheming abound. In particular, several related terms have become jumbled and confused. Direct selling (DS), multi level marketing (MLM), netw ork marketing (NM), and pyramid schemes—these four concepts are all unique from one another, yet recent media speculation has caused them to blur together in the minds of many consumers. In the paragraphs that follow , Zaheer Merchant—Director of Corporate Affairs for QNET—explains w hat makes these concepts unique from one another. He also emphasizes the need for regulation to keep these entities separate, and to protect consumers in nations across the w orld.

The QNET executive begins by making some important distinctions. Direct selling, he says, is simply the process of marketing products and services directly to consumers—face to face, aw ay from a conventional retail location. Beneath this broad umbrella term there exist many varieties of distribution methods. Multi level marketing and netw ork marketing are tw o examples. All are legitimate means of doing commerce—unlike the pyramid scheme. Direct selling is not only legitimate, but—as the QNET executive hastens to add—it is also simply huge. Right now it is an approximately U.S. $154 billion industry, w ith more than 91 million people involved as product and service distributors.

The Dangers of Py ram id Schem es Nevertheless, there remains much speculation that direct selling and pyramid scheming are cut from the same cloth. “Based on media reports, it is clear that there are several misconceptions about this industry,” Merchant affirms. This is w hy he and the QNET team are strongly in favor of legislation that might better govern the industry. Interested in advertising on SocialTimes? For a nation like Egypt to impose regulations along these lines w ould hardly be unusual. Fastgrow ing economies such as Malaysia, Thailand, and Singapore have all adopted specific statutes that regulate and facilitate direct selling. These statutes and regulations are designed to keep a legitimate industry from being corrupted by pyramid schemers.

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“W e are more than w illing to help the relevant ministry w ith draft guidelines based on our experience in other legislated markets,” Merchant offers.

QNET and the Py ram id Ban Merchant goes farther than suggesting that his company w ould help formulate regulations; he says QNET w ould truly invite regulations against pyramid scheming. “W e w ould w elcome a ban on pyramid companies,” Merchant states. “Genuine direct selling companies like QNET w ill benefit if pyramid schemes are banned.” As it stands, the lack of regulation means that many legitimate direct sellers are unfairly lumped in w ith pyramid schemes, many of w hich disguise themselves as direct selling companies. The negative impact of this on the direct selling industry is difficult to overstate. https://socialtimes.com/qnet-says-banning-pyramid-companies-right-thing_b138832

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QNET Says Banning Pyramid Companies is the Right Thing to Do - SocialTimes

12/27/2013

Direct Selling v s. Py ram id Schem es Until the day w hen regulations come about, Merchant says consumers need to be extra vigilant to protect themselves against pyramid schemes. There are several w ays in w hich consumers can tell direct selling companies apart from pyramid schemes—among them: Direct selling is not a get-rich-quick scheme, and w ill never be promoted as such. W hile w orking via a direct seller like QNET can prove lucrative, it is not easy or instantaneous; in fact, it can prove a tough business, and results only come w hen the seller puts in some real time and effort. Direct sellers deliver products and services of true quality. Pyramid schemes do not deliver legitimate products or services, w hereas a company involved w ith real direct selling can offer a number of consumer goods, usually in several different categories. The QNET executive says that direct selling companies w ill alw ays have restrictions in their compensation plans. The number of people w ho can earn a commission through sales is limited, leveling the playing field for members; this is distinctly different from how pyramid schemes typically w ork. In direct selling, sellers do not earn their commissions solely through recruitment. “Recruiting new members is not a requirement for real direct sellers to earn a commission,” comments Merchant. “Legitimate direct selling companies are structured to rew ard people for promoting their products.” Direct selling companies like QNET w ill usually offer solid training opportunities—and in fact, Merchant says his company has qualified trainers on hand to truly empow er those w ho join its direct selling netw ork. Finally, Merchant notes that direct selling companies have policies and procedures in place to ensure ethical behavior at all times. “Direct sellers can only achieve sustainable grow th through building a culture of ethical and honest marketing,” he remarks.

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The Future of Direct Selling Though the proliferation of pyramid schemes has taken its toll on direct selling, Merchant believes that the industry w ill w eather the storm—especially w hen new regulations finally transpire. Until then, the QNET executive says his company w ill continue offering great products through honest marketing.

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