Understanding the difference between direct selling and pyramid schemes

Misinformation has led to misconceptions about direct selling companies and as a result they are portrayed as pyramid schemes, yet in reality, direct selling businesses are legitimate, taxpaying and socially responsible companies.

The only difference is the mode of conducting business. While traditional, businesses go through a middleman, the retailer before reaching the consumer, direct selling uses word of mouth, with the independent distributor speaks directly to the consumer.

Legitimate companies affected by this misinformation like QNET, are now increasing awareness about how they operate to ensure the public is educated in the difference between direct selling and pyramid schemes.

"We are a very transparent as a company. Please make up your mind after you have had a chance to review both sides of the story," says QNET’s CEO Malou Caluza.

"There is a lot of misinformation about QNET out there, which is unfortunately due to a lack of understanding of the direct-selling business in many parts of the world," explains Caluza.

"While direct selling is more than a century old, it is still in its infancy in many emerging economies and hence, not properly understood. Many people assume it is some type of financial or investment scheme, and they are wary," the CEO went on to explain.

"Some bad apples have made exaggerated claims about the business or our products that are simply not true and not endorsed by QNET. The damage caused by such people is extensive," the CEO admitted in a press statement released at the end of the week.

She says, to address misinformation that has been circulating about QNET, the company is now focusing on increasing education and creating awareness in all the countries where it operates including Tanzania.

"We use social media campaigns, stakeholder engagement, PR programs, seminars, training, and events to help people understand the positive socio-economic impact of direct selling," explains Caluza.

"We also focus on educating about the difference between legitimate direct-selling businesses and illegal pyramid scams," she went on to detail.

The CEO says that whoever mistakes QNET for a scam has not investigated the true nature of the direct-sales company.

“Everything you want to know about QNET is available on our website and our social media platforms," she encourages.

Honesty as the best policy

QNET maintains internal transparency by openly communicating with employees and remaining honest about company operations which correlates to higher employee morale.

Further still, by providing independent representatives (IRs) access to company and training information, QNET creates a welcoming, educational environment for employees to learn how to grow and succeed.

The direct-selling company knows that investing time and adequate resources is essential to creating longtime, successful distributors.

“There is no place for secrecy at QNET,” the CEO emphasized.

Caluza says that each and every one of QNET's best distributors pulled themselves up through the ranks the old-fashioned way: with lots of hard work and a willingness to learn.

"They are our best ambassadors for the message that success at QNET takes hard work and consistent effort. Once a distributor puts in the hard work and diligently follows the best practices, the results will be rewarding as we train them. It may take time, but it will be worth the wait."

 QNET understands the importance of having a solid online presence in today's technology-driven world. The company website evaluates customer feedback utilizing reviews and testimonials.

QNET is committed to providing the best for its customers and employees by adhering to an ethical code of conduct. Being transparent with company policies and product features encourages distributors to reach their full potential.

Being on the cutting edge of technology significantly helped the direct-sales company throughout the COVID-19 pandemic. And with tools that monitor and manage data in real time, distributors have access to available resources and analyze purchasing trends to better serve their business.

Transparency also facilitates engagement and effective communication between distributors and QNET. Building strong business connections is imperative for successful direct selling.

QNET provides distributors with an accessible registration process to help them better understand the training and resources necessary to grow at the company.

"We have established the 'QNET Pro Initiative,'" says Caluza, "which focuses on training and education for our network on building the QNET business in a legal, professional, and ethical manner."

QNET maintains the utmost transparency regarding product information and refund policies.

"Our Network Compliance Department is focused on investigating all complaints we receive from the field about violations to our policies and procedures," Caluza explains.

"That department also enforces penalties on those who misuse the QNET name and harm our reputation," she cautioned.

The company offers distributors a vast education program to help them see beyond the false scam allegations made about the direct-sales business.

Being transparent about set selling practices allows QNET to develop a success-driven workforce of distributors.

"We have hundreds of success stories from people who have transformed their lives with QNET," says Caluza.