QNET, Hong Kong’s e-commerce company, has severally been indicted for allegedly being a Ponzi and a pyramid scheme. It would be a loss for an entrepreneur to make their decision based on these misinterpreted allegations. This article will shed some light on how QNET works and whether or not the company is a scam.
How Does QNET Work?
QNET is an e-commerce company that uses a direct selling business model. At QNET Scam, customers have the opportunity to choose their roles. Some have chosen to become representatives, while others have settled on buying items for themselves. The representatives sell products offered by the company through referrals and are later paid on commissions. QNET trains all its independent representatives. The company believes that equipping them with the right skills will help them maximize the available opportunities.
Is QNET a Pyramid Scheme?
Pyramid schemes solely depend on new members to keep running. They only make money if new members continue signing up and investing with them. QNET operates differently. It has a direct selling business model where sellers are provided with actual products and services, and their earnings come from commissions. Therefore, QNET cannot be classified as a pyramid scheme.
Is QNET a Ponzi Scheme?
Ponzi schemes have some features in common with pyramid schemes. In Ponzi’s capital from the new investors goes to the old ones. The difference between Ponzi schemes and QNET is clear; QNET has a direct selling business model, not an investor model. QNET’s members earn their money by selling authentic products provided by the company. Therefore, QNET does not fit in the Ponzi scheme bracket.
QNET is neither a pyramid nor a Ponzi scheme. The e-commerce company has a direct selling business model that allows it to provide sellers with actual products and services. Money in QNET is made through commissions on authentic products, not on the investment made by new members.