Thursday, October 7, 2010

Why DEVELOPED (1st World) countries are NOT involved with QNET? Let’s find out…



Mohsen: “Hey Abbas, have you heard about Qnet?!!! The business is AMAZING; it gets you to “Financial Freedom” in no time. All you have to do is to buy our products and get your friends to buy them too!!!” 
Abbas: “You MUST be KIDDING!!! How is the business operating?”
Mohsen: “It is very simple; the whole process is done over the Internet!!!”
Abbas: “Over the Internet? How is that possible?”
Mohsen: “YEAH, it’s just like amazon.com, you can do business on any place in the world! You even don’t need to have an office in your country.”

Many of us might think that QNET [1] is an e-commerce business, and that is the reason why the products are not available in the market (shops). It might also not be available in the market due to the costs endured for distribution such as from the manufacturer, to national distributor to regional distributor to local distributor and finally to the retailer.. Alright, alright, fair enough. Yet, I kept thinking to myself e-commerce should make our lives easier, why doesn’t qnet.net feel that way to me? I mean I tried to order a product online and guess what? I couldn’t!   I wondered if QNET.NET is really an e-commerce website. Does it apply to the guidelines? Let’s find out…

First, let me explain to you what is e-commerce? “E-commerce refers to buying and selling goods and services online, on the Internet.”[2] It is basically a form of e-businesses, which was designed to make our lives easier and more efficient (i.e.: Not going to the shop to buy a product, but instead order it from the comfort of your own couch). The US along with 28 countries as members of the Organization for Economic Cooperation and Development has agreed that e-businesses should follow certain guidelines [3] to protect the customer. As stated by the US Federal Trade Commission[3], The goal is to build consumer confidence in the global electronic marketplace by working to ensure that consumers are just as safe when shopping online as when shopping offline — no matter where they live or where the company they do business with is based.”

I thought, okay let’s read those guidelines and see if they apply to qnet.net. Please see the following table.


Table 1 - FTC E-commerce Guidelines
Guideline
Qnet’s Position
Yes
No
Maybe
1.     “Use fair business, advertising and marketing practices.”
Including claims on “how well a product works or how quickly a product will arrive”.


2.     “Provide accurate, clear and easily accessible information about the company and the goods or services it offers.”



o    Company


o    Goods or Services


3.    “Disclose full information about the terms, conditions and costs of the transaction.”


4.    “Ensure that consumers know they are making a commitment to buy before closing the deal.”


5.    “Provide an easy-to-use and secure method for online payments.”


6.    “Protect consumer privacy during electronic commerce transactions.”


7.     “Address consumer complaints and difficulties.”


8.     “Adopt fair, effective and easy to understand self-regulatory policies and procedures.”


9.    “Help educate consumers about electronic commerce.”




When I try to examine if Qnet has satisfied the above guidelines, I will find out that it DOES NOT.  It either does NOT satisfy the guidelines or its unclear whether it does, since ONLY those in the network or have the referral number can actually see the products and their prices.  So, for the general public: Does it provide clear information about the product’s description and usage? Does it imply the transaction costs? Transportation costs? Extra costs? Time it takes for the product to arrive? Does it provide information about after sales? Warranties? The answer is NO.

If you look at the above table, you will find all the required guidelines to make an e-commerce website trustworthy for its customers to make online purchases; however, most of the guidelines fell under the “no” or “maybe” categories when we examined Qnet. According to qnet.net, only those in the network can access this information. As a customer, I have the RIGHT to acquire ALL the required information stated on the above guidelines BEFORE I make a purchase. Otherwise, why should I trust this website in the first place?  

Let me recall one of the criteria that ensures a Legitimate Multi Level Marketing [4], it implies that the goods or services must be AVAILABLE to members of the GENERAL PUBLIC. If you want to say we don’t have the products in the shops due to the overhead costs endured for delivery to retailers, Okay, I will try to buy that, BUT how much would it really cost you to make the products available for sale on the website? You might think shipping costs! Hey, the customer pays for the shipping costs; Zero extra cost is endured on the company! In fact, if they make the products available for sale on the website, MORE SALES WILL BE MADE! Isn’t that what the company wants? To actually sell MORE products!

I then took a look at the countries that signed on those guidelines. Let me list them for you:
Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, The Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland, Turkey, United Kingdom and United States. I realized that NONE of these countries has offices as listed by Qnet; here are the countries that have offices or agents for Qnet: Hong Kong, Azerbaijan, Indonesia, Philippines, Singapore, Taiwan, Tajikistan, Thailand, UAE, Malaysia, Kazakhstan, Kyrgystan, Malawi, Syria, Oman, Tanzania, and Uganda. I started wondering, what does that imply? Why aren’t any of the countries that signed the guidelines involved in this?

Last but not least, I would like to say that I was kindly informed that in my last article “DO YOU STILL WANT TO JOIN NETWORK MARKETING? INFORM YOURSELF!!!”[5], I used information for analysis about the usage of the website qnet.net; however, the old website was quest.net, and that is the reason why there was no activity of the website prior to 2010. I checked the activity of quest.net, and I found out that it has been working since before 2010. Still, there is an unanswered question delivered by analyzing either qnet.net or quest.net, which is: WHY ONLY DEVELOPING COUNTRIES ARE INVOLVED IN THIS?








Note: For more information about Legitimate Multi Level Marketing, pleases check the article "DO YOU STILL WANT TO JOIN NETWORK MARKETING? INFORM YOURSELF USING FACTS, LOGIC & MATH!!!"
http://sherwette.blogspot.com/2010/10/do-u-still-want-to-join-network.html

NEW: Please refer to: Is Qnet Scam? Illegal? Desperate justifications by Qnet proved FALSE! Increase your AWARENESS!!!: http://sherwette.blogspot.com/2010/10/is-qnet-scam-illegal-desperate.html

For Religion's View: Anti-Qnet Egyptians 

References:
1. Qnet: www.qnet.net  or www.quest.net  (Oct. 2010)
2. E-commerce Definition: Johansson, Johny K. Global Marketing: foreign entry, local marketing & global management. 3rd edition. p.cm. The McGraw-Hill/Irwin series in marketing.2003
3. E-commerce Guidelines by the US Federal Trade Commission: http://business.ftc.gov/documents/alt067-electronic-commerce-selling-internationally-guide-businesses (Oct. 2010)
4. Legitimate Multi Level Marketing by the US Federal Trade Commission: http://www.ftc.gov/speeches/other/dvimf16.shtm  (Oct. 2010)
5. Article “DO YOU STILL WANT TO JOIN NETWORK MARKETING? INFORM YOURSELF USING FACTS, LOGIC & MATH!!!” : http://sherwette.blogspot.com/2010/10/do-u-still-want-to-join-network.html (Oct. 2010)

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26 comments:

Sherif Khairy said...

great analysis..

Sherwette Mansour said...

Thanks Sherif :)

Anonymous said...

I'm still Hesitated

Anonymous said...

That's really weird article. First of all there is an office in Turkey. Let it be clear. You can also check offical website. www.qnet.com.tr
Secondly, I don't understand lots of comments about this company. Why? Because, If you want to be a participant, you can purchase holiday package which is worth to go. Even if we imagined this is not a network marketing, I could buy this product. Anyway, plan is clear. You buy product and if you reference this products to your friends, you get commission. Could you tell me what's wrong with this? This is word of mouth which is basic principle in marketing. With this business, I claim there is nobody to lose. Why? Because you BUY product. Can you earn money with this business? Yes. So what? I believe that this capitalist system face to network marketing. Because ıf this business develops, nobody wants to make reservations from booking.com(It's just an example).

Anonymous said...

Agree with the above comment. (Anonymous - 1 March, 2011)

Secondly, do your research a little well. Nothing wrong with word-of-mouth. You do it everyday anyway, the only difference here is, you get paid for it! And Qnet informs you about everything before you join. You are allowed to ask all the questions you want and get them answered properly. The people who are part of it aren't stupid.

abdulla said...

all these informations are not true regarding QNET , first of all, QNET is not a Pyramid scheme it is a Binary Balance plan (two sides) and here is a big difference between these two things , more over it not an internet business , internet just a tool but it is a business of direct (variable) advertisement , and many things are wrong about Qnet here for example :- 1/every member has to buy a product each month. 2/ FTC E-commerce Guidelines Qnet’s Position should be YES for all of them , NO and MAYBE is not right.and MAYBE show that he is not sure !!! am saying that as a result of five years joining this business .3/ About the members in first world this is not true many many members from Europe Canada , Australia , and the company one of her congress was been in Spain i think this Guy does not know this business well ,or speaks about other Company , or he is one of a competitor company and they are many

mohamed said...

i dunno why a lot of people when they are not convinced with network marketing they try to make it a fraud...and they are trying to convince others by what they say "FACTS"...stop it people....i have joined QNET 4 months ago and im making now $1000 a week.

if you are not interested in just leave it and look at your usual life as an Employee or whatever you do man.

Guys,
Get a Life :D:D

Anonymous said...

Thanks guys for making it clear. Qnet isn’t a fraud what so ever. I've done my research and each doubt I had has been answered and changed my vision about direct-selling through Qnet. Network Marketing is present since the 1960's but we haven’t ever heard of it because there wasn’t enough technology (computers, Internet, etc.) included. Now after the huge intervention of International Trade, E-business and E-Commerce this Industry of Network Marketing has proven itself it has grown rapidly. All those companies involved have created their very high tech. developed systems lately and now if not the first it’s one of the most fast growing economic and practiced industries over the world. Believe it or not within 5 to 10 years Network Marketing will have a huge role in the world and will take a huge part on the most effective, life enhancing and successful industry over the world. E-Commerce trading will prove itself soon.

Anonymous said...

Qnet is not completely based on E-commerce it uses it to have access to international trade and other trading reasons that makes Network marketing that has legal transactions overseas.

Anonymous said...

The mian fact is missed from your article which is very important:
Questnet are not selling products, the whole idea is that you make money from recruiting people, you dont make money form selling the products, the products are useless and overpriced, this is bad for any economy as there is no production or real value from the business.
some people benifit form this but the majority who fail to recruit people down the line simply lose, not even can get compensation for thier mony.
Defiantly scam... big time.

Maverick said...

Anonymous states " Secondly, do your research a little well. Nothing wrong with word-of-mouth. You do it everyday anyway, the only difference here is, you get paid for it! And Qnet informs you about everything before you join. You are allowed to ask all the questions you want and get them answered properly. The people who are part of it aren't stupid "

>>>>>>>>>>>>

In short if the mugs that participate are willing .. what's your beef. If they believe the "bullshit answers" and do not ask the the right questions ... it's all good.

Maverick said...

abdullah states " all these informations are not true regarding QNET , first of all, QNET is not a Pyramid scheme it is a Binary Balance plan (two sides) and here is a big difference between these two things."

Please DO EXPLAIN .. calling a pyramid scheme a binary balance plan .. is not a difference and you have not explained anything ... LMAO


I could sell you a donkey and call it a thoroughbred stallion .. it's still a donkey!!

Akshay said...

I agree with Maverick. What they refer to as "binary scheme" is absolutely the same as a "pyramid scheme". After all the binary duplication system eventually forms a PYRAMID and therefore the majority of players who entered the scheme at lower levels will be left with no commission.

Qnet is very skillful in managing communications. As such it knows that if it uses the word "BINARY" instead of the word "PYRAMID" it will have a much better chance of attracting members to the business.

To learn more about Pyramid Schemes (AKA, Binary schemes...lol) please visit the below sites;

http://www.trevenna.net/ccrd/BewareofQuickMo
neymakingSchemes.htm

http://en.wikipedia.org/wiki/Pyramid_scheme

Ramtin said...

The reason government Of IRAN Banned Qnet due to lost of so many people money.It's true,you'll lost your money 99.9% if you do not have any friends or outside-member to join for selling your products to him/her.In this company only top of the list is making money.They will try to brain wash you and force you to buy their products with giving some dum-calculation which is gonna make you richer in the future.buy your own Home,Car and etc....
For further information
Why Qnet Keep on changing name?
Why Qnet working with poor country?
Because the level of the hunger for money is so high and they want to be richer as fast as they can but just they loose it all.
I know those country and I've been there
Azerbaijan,Tajikistan,Kazakhstan, Kyrgystan these countries are in border my country and level of life is so hard and tough.
Indonesia, Philippines, Singapore, Taiwan,Thailand,Malaysia, Malawi.In these countries should every body knows that how is level of life and is obvious."Muslim More right"

UAE In these contry only secound class of people involved which means The true UAE Nationality do no need this Bullshit story to give him.

Tanzania, and Uganda, as I said Poor are hunger for money and good life..

Turkey Government still are not aware of that.small office some where in behind with some group.

Pleas go and get a proper job before its to late to waste your time and money for this and be appreciate of what you have,Enjoy with what you have.Money would not reach you easy =)In capitalism top people making money where as lower people just working for them.
God Bless

Ramtin said...

Turkey so many people are arrested
http://www.hurriyet.com.tr/gundem/17879955.asp
Why keep on changing name?Loll ppl are not stupid Mr.India(maybe in India)

continues operations under the name of QNet in Turkey. Representatives from QNet had earlier informed us that they had no connection to QuestNet and that customers who did not sign a contract with QNet cannot [make any claims] on the company,” the statement continued.
http://www.sundayszaman.com/sunday/newsDetail_getNewsById.action?newsId=240912

Anonymous said...

Case 1:

MLM NewJoinee: Sir My new prospect just asked me... how much do i earned in MLM...
Leader : Tell him..you are getting 2000 USD per week...
[psst...telling the truth in Advance..no harm]
Fake it Till you make it...

Leader [thinking....] ..my friend if you dont make it how will me and my upline get it..
i already trapped 1000 fools.. so tht they can trap make 100000 fools... Unbeliveable plan...
----


Case 2:

MLM NewJoinee: Sir i paid So much to get a membership.

Leader: Get more high class ppl[sportsmen, doctors..] under u.... u will get back ur paid amount + wide network...

Case 3:
In college for Many years without hardwork. but didnt become a quality product.. but want to earn money... join MLM... cheat 2.. 2 will have to cheat 4 to recover. then 8.. then definitely money will flow.. at the top.. buy expensive things on credit [Hummer car] and show off... Business is on..

Dear God.. Is this justice ?

Anonymous said...

I'm satisfied with Qnet. I am from Malaysia.

Anonymous said...

A pyramid scam is a pyramid scam. It doesn't matter if you choose another name for it, It's still a pyramid scam.

Anonymous said...

Hello everyone, First of all i want to say that i am Sales Manager and i have been working in this Career for 3 years and when i got a presentation to QNet from a friend of mine. I said what a magnificent brains ! cuz i am sales person i can assure u the PASSWORD to sell anything is ( REFERRALS ) which in QNET word of mouth ! so i do agree with that 100%
So i had some questions before i join QNET:
1- i am a Muslim and i wanted to know if its legal or not and i got the answers ( not from QNet agent ) from my researches & asking Muslims Leaders.
2- i wanted to know how much the Company gain and how much they pay ( Cash in & out ) and i got answers.
3- i thought its easy to gain money without working hard. and its not easy if you didn't work.
4- i wanted to know how stable is QNET ? and i got the answers.

so after all here it is ....
In Islamic way i would say ( قل هل يستوي الذين يعلمون والذين لا يعلمون إنما يتذكّر أولو الألباب ) in this case meaning if you join QNet and take ur product and do nothing to get people join and teach these people after joining to do the same to grow them up & of course u will be grown u will not gain this money .... and u will simply fail. that means u will need to work hard & smart.
so if i have a small shop selling anything and i do not care of it. i mean if i am taking like 2 or 3 days off and opening it late . Do i get profit ? of course not i will just cover the shop's spent or maybe not. but if i work daily opening it early and i am taking only 1 day off, of course i will get profit. so QNET is not a free money company. guys wake up its A BUSINESS u have to work hard in it to gain profit & i dun think that anyone can deny that. SO from my point of view Qnet can be my second way to get money from ! why not !
with all my respect to all of you guys who don't agree or convinced to QNET ! answer this please ... Tell me 1 thing all the people all over the world accept it or agree with it .... i mean QNet is a company like any other companies maybe u will like it or excited with it or not if not just let it go and do not stand in front of the people who enjoy it .. EXAMPLE i do like football and a friend like Tennis so i do not have to convince him to be a Football fan & he do not have to convince me to be a Tennis fan. QNETer is making presentation to their friends & family and if anyone interested its ok ur welcome.. if not interested its ok no problem i dun have to push & convince them to join !

Anonymous said...

Working hard? Working hard to do what? To make money at the expense of a bunch of gullible people!!!
It’s right. If you like Tennis and I like Soccer, It’s not right for me to convince you to quit tennis and become a soccer fan, BUT what the hell does this have to do with justifying a pyramid scam.

>Should we just stay quiet and watch our relatives, friends, and neighbors get scammed by this company?

>Should we allow Qnet to take over our economy and weaken the currency of our country?

>should we allow our youth to become representatives of a foreign company instead of encouraging them to do something productive for their own country?

>Should we encourage millions of people to join this company only to see that less than 5% of them have made profit out of it?

>Should we allow the currency of our country go to foreign country just to receive some over-priced products in exchange?

If your answer to any of these questions is anything other than “NO” then you are definitely uneducated, irrational, and presumptuous. Man, if this is what you’re thinking then you really are the poster child for stupidity.

Anonymous said...

While I agree with the comment above about it being wrong to make money at the expense of gullible fools, I would pause for a moment and look at how blatant and misleading commercial advertisements for everyday products are. People still buy those products and then say "Hey! This is so not like what was shown in the advertisement!" I did some research on the Qnet model and while it DOES look fishy to me, a few of its products are hardly in the "overprice"d range and are very much usable WITHOUT having the need to join the business.

What I DO NOT agree with is the obscene manner in which Qnet IRs go about soliciting their leads! They sell the business and not the product. That, right there, to me is the biggest deal breaker. You tend to get overly suspicious because in your mind you go, "If I sign up, what business do I have? Do I have to sell the holiday packages or get more people to join??" Not a good feeling. Having said that, I see nothing wrong with earning a commission for referring a product. That sort of thing goes on in EVERY supply chain, albeit, invisible, since the consumer comes in at a very later stage in the supply cycle.

Anonymous said...

guys all of the above fight on qnet has confused me more....

i just want ti know is it legal in India?

Is the government sleeping if it is a scam? when will they wake up????

Kaveh said...

This article makes complete sense. I could affirm that the content of this article is based on unbiased research, reasonable investigation, and critical thinking.

I am originally from Iran myself. I immigrated to Canada six years ago. I could tell you that during the past six years that I have lived here in Canada, I have not encountered a SINGLE Qnet representative (or a representative of a similar type company), As oppose to the time that I lived in Iran where all cities were flooded with Qnet representatives, and in every family and neighbourhood there were at least a few of them. (Note: back then Qnet operated under the name Goldquest!)

So here we have it. If Qnet is such a profitable business why don’t Canadians take part in it? After all there are millions of entrepreneurs in Canada. Why do millions of Canadians invest their money in risky bonds, stocks and mutual funds instead of investing it in Qnet and taking advantage of this so called amazing business opportunity? The answer is that Qnet was designed for third world countries to rip off their people by taking advantage of the high unemployment rates and low levels of income in those countries.

Thank you Sherwette for your effort in putting together this great article.

Paul said...

I completely agree with you on this. When presented with the "binary" plan (lol... renaming it doesn't change it!), I asked about the "long-term" effect. In the long term, no matter how you put it, the L/R sides ARE going to balance out. If the ones joining below benefit the upper levels, wouldn't the commission paid out be greater than the revenue per product after sufficient generations?

The rep kept saying "it's a Binary plan!! BINARY!!!", I KNOW he understood my meaning, but still chose to hoodwink me into buying a product.

Kudos to Sherwette for taking the time to expose this giant pyramid scheme.

Muntazir said...

Thanks for this brief explanation. As per what you have explained above it isn’t expectable to believe such allegations on the Company by just showing a small Graph/table. Based on my personal experience of more than 2 years I can say that Qnet is a nice and reliable Company and it can be trusted. Qnet is not completely based on E-commerce it uses it to have access to international trade and other trading reasons that makes Network marketing that has legal transactions overseas. And if it is a scam then where is the Government? It should respond on it if they were playing a scam on people.

Anonymous said...

hi everyone,
i was an qnet ir for around 6 months i invested 64k(rupees), and earned 1.23 lakhs(including tax).. but i had spent around 3 lakh rupees ....these qnet people talk bullshit... they make money by standing on other ppl tears.....they are spoiling youth .... they talk all bullshit...my uplines used to tell me that if you spend money in building yourself in this business ....you will become millaniore...they had even brai washed me to such an extent that i should quit my decent paying job and do this scam for full time......guys my sincere request...m telling this after doing and earning very fast money from this business......do not quit your jobs to do this business

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