Competition is fierce, particularly in the direct sales industry. Statistics indicate that almost 100 million people are involved in direct sales, either part-time or full-time. Thus, the industry is susceptible to unfounded allegations that may result to brand damage. Over the past years, QNET has been a victim of unfounded criticism due to its business model. Many people often associate direct sales with pyramid schemes.
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What is Direct Selling?
Direct sales business model that involves selling products and services directly to consumers. The main aim of the model is to cut off intermediaries such as wholesalers, distributors, and retailers. As a result, their products are relatively cheap compared to those found in your typical retail stores.
Companies that utilize the direct sale model use salespersons to market and sell their products to consumers in a non-retail setting. Therefore, salespersons are responsible for organizing forums and network marketing events to interact with potential consumers. Moreover, they earn a commission for the number of products sold and do not receive a basic salary. This reduces total operating costs for a company, hence, able to compete with rivals.
In some cases, the direct sales model may apply multi-level marketing. With MLM, salespersons may recruit other sales partners and earn a commission on the goods sold by recruits. However, it is essential to note that not all direct sales models utilize MLM.
Difference Between Direct Sales and Pyramid Schemes
Pyramid schemes are illegal models that aim to make money for the creators without offering any tangible goods or services. The key aim is to recruit individuals and gain a commission on every new individual recruited in the firm. Conversely, the direct sales model is aimed at selling products to consumers and not recruiting individuals.
Is QNET Legit?
QNET has been in operation for over 20 years in different countries. It focuses on producing goods at relatively low prices to its global consumer market.