Kz professional marketing guidelines (en)

PROFESSIONAL MARKETING GUIDELINES KAZAKHSTAN EDITION

“Professional Marketing is the basis for the stable, long-term growth of your business. You have to always act according to QNET’s Code of Ethics to secure a prosperous future for your business and the businesses of all Independent Representatives worldwide.”

Gerry Nehra US Lawyer/MLM Legal Expert Former QNET Advisory Board Member

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Dear Independent Representative, QNET prides itself in creating an environment in which you can realise your personal and financial goals. To do this, every one of us must be committed to always behaving with the highest ethical standards, respect and professionalism. Be sure that you follow QNET’s Code of Ethics at all times.

QNET’s Code of Ethics can be found on QNET’s website at www.qnet.net and in your Virtual Office.

This guideline provides some professional marketing guidelines for you to follow in your everyday business activities. If you have any questions regarding professional marketing, please contact QNET’s Network Compliance Department at ncd@qnet.net.

Yours in service,

PROFESSIONAL MARKETING GUIDELINES Prohibited Practices Independent Representatives shall not use false, misleading, deceptive or unfair sales practices.

Independent Representatives shall take all necessary and reasonable steps to ensure that they and their downlines do not knowingly make, or cause or permit others to make, any false or misleading representation relating to the business, company or the offered products. No omissions of material particulars relating to the business, company or offered products shall be made or engaged in, knowingly or otherwise.

Explanation and Demonstration Product presentations and demonstrations shall be accurate and complete, in particular with regard to product description and benefits. Independent Representatives shall not provide any misleading product claims and benefits in any of their promotional materials in any form whatsoever. All promotional and advertising materials must be strictly compliant with the company’s policy and its official approved materials.

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Verbal Promises Independent Representatives shall not make verbal or other representations concerning the product, except in compliance with the above.

Literature Promotional literature and advertisements shall not contain any product description, claims or illustrations that are deceptive or misleading. All promotional literature and advertisements shall contain name, address, Independent Representative’s title, phone number, and Representative Identification Number.

Comparison and Denigration Independent Representatives shall refrain from using comparisons that are likely to mislead and which are incompatible with principles of fair competition. Points of comparison shall not be unfairly selected and shall be based on facts that can be substantiated. Independent Representatives shall not unfairly denigrate any firm or product directly or by implication. Independent Representatives shall not take unfair advantage of the goodwill attached to the trade name and symbol of another firm or product.

Income and Earning QNET’s business is not a ‘get-rich-quick scheme’. There is no guarantee, promise, representation or warranty that you will make a certain level of income. You accept the fact that earnings and income statements differ by individual, as the nature of this business and the level of earning are both strongly connected to a person’s personal efforts, diligence, dedication, motivation and personal skills. Once your prospects understand this, you avoid disappointment and at the same time, you create a solid working culture within your organisation.

Enforcement of Code of Ethics QNET’s Code of Ethics and professional marketing guidelines ensure fair business practices by regulating the relations and dealings between Independent Representatives, as well as between Independent Representatives and their prospects and/or customers. These guidelines must at all times be observed, adhered to, and strictly followed. Any violation will result in due enquiry and/or disciplinary proceedings being taken against the individual(s) concerned, which can result in show cause action, suspension and/or termination of the status as an Independent Representative.

Independent Representatives must familiarise themselves with the actual terms of professional marketing and the Code of Ethics on the QNET website at www.qnet.net, and are formally directed to do so. Independent Representatives are encouraged to report any violation of the Code of Ethics to their active uplines.

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Compliance To Local Laws And Regulations Independent Representatives must fully comply to the laws and regulations of Republic of Kazakhstan, including registration of their business with Tax authorities and payment of taxes on the commissions they earn.

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According to the laws of Kazakhstan, commissions earned by Independent Representatives are considered as business income, while their activities of network marketing are considered as business activities. Therefore, an Independent Representatives must register his/her business with the Tax Department as a Sole Proprietor (or any other form of business registration) and pay taxes on the commissions they earn. The registration must be done as soon as an Independen Representatives income from commissions reaches a level of 12 minimum wages within a year reach (around USD 1300). For further questions on SP registration and payment of taxes, please contact your local office of Tax Department for details of business registration or your accountant/lawyer.

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Independent Representatives must, from the start of making a presentation, provide full information about QNET products and services and clearly explain about the compensation plan.

Independent Representatives should clearly explain to new customers/prospects that the money he/she pays is for enrolment as an Independent Representative and placement of product order, while the money they can earn is in the form of commissions based on sales of products and services. Independent Representatives should ensure that the customers/prospects do not feel that the money is investment and the commissions are returns on their investment. If they are helping potential customer/ Independent Representative to place an order, they must ensure that enrolment and order is made in the presence of the customer and a receipt must be printed our without a delay.

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Independent Representatives must ensure that their customers/prospects maintain confidentiality of data. If they are assisting downlines in their business activities, they must let the downlines maintain and retain their key data confidentiality also. Independent Representatives are requested to please refer to the documents in detail on this and to ensure full compliance with them.

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If an Independent Representatives decides to open its own sole proprietor office and promote QNET products from the office, he/she must have registered his business as an SP, LLP or etc. (the simplest form is Sole Proprietorship). Revenues and expenses of the office must be clearly explained and declared to authorities. The office should not be branded as a QNET office or The V office or any of the QI Group subsidiaries. Independent Representatives who operate from their office should not present themselves as staff/employees or representatives of QNET (they should clearly state that they are Independent Representatives of QNET that promote/market QNET products/services as an independent business person in Kazakhstan). The office should be rented in officially allowed office venue, not in residential areas where offices are not permitted.

Examples of officially allowed office venues are office buildings or ground floors of some of residential buildings where opening office is allowed by city authorities.

If an Independent Representative decides to organise a seminar, conference or any other event, in a public venue, for more than 50 people, to promote QNET products and business opportunity, pre-approval from The V Business Development must be obtained and the organising Independent Representative must, prior to holding such event, prove that: the venue of the event will be rented under his/her registered business (i.e., contract with the venue owner must be signed under his/her registered business name); proper permission or a license to hold the event from the relevant authorities is in place; if charges are to be applied for the participants of the event, official tickets must be given out as receipts and the proceeds of the ticket sale must be declared to Tax Authorities as revenues and taxes must be paid for such revenues based on rates applicable to that particular type of business registration; and a program schedule of the event’s topics and speakers is documented and given to The V Business Development.

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PLEDGE OF COMMITMENT TO MY SUCCESS “Good business practices start with ME. As a QNET Independent Representative, I will...

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be honest and fair in all my dealings with QNET ;

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perform all my professional activities in a manner that will enhance my reputation and the positive reputation established by QNET ;

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present the compensation plan accurately and honestly, clearly portraying the level of effort

required to achieve success;

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strive to ensure that my downlines are satisfied with my service and leadership;

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present realistic income possibilities only and solely in relation to the appropriate effort involved;

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answer the questions and queries of prospects and Downlines fairly and honestly;

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sponsor/refer only those people that I have developed as my own downlines and/or business prospects;

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not create any unapproved or illegal websites that will tarnish the image of QNET and its related companies;

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always encourage prospect(s) developed by their initial referrers to be sponsored by them as well

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not entice downlines from outside my Line of Sponsorship to sign under my organisation;

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not use any advertising which I know may be false or misleading;

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conduct myself in such a manner as to reflect only the highest standard of integrity and

responsibility because I recognise that my actions as an Independent Representative with QNET have far-reaching effects;

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be clear that QNET is a Network Marketing opportunity in which my income is related to my

marketing and leadership skills as well as my own personal efforts;

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treat all prospects, downlines and associates with respect, goodwill and professional courtesy;

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not misrepresent the QNET business in any way;

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be fair and just to my downlines and associates, and not engage in practices which may reflect unfavourably on myself, my organisation, the Company, and/or the industry.”

I AM COMMITTED TO MY SUCCESS Name Independent Representative’s ID No. Signed Date