Making extra money is not always a no-brainer. Especially when it comes to selling products for commission. Companies with these business models want you to believe that all you have to do is sell products and earn commissions. However, it’s rarely that simple. QNet is one such company that uses a multi-level marketing model to sell products. In this QNet MLM review, you will learn why it is not the best option for you.
What is QNet MLM
QNet is based in Hong Kong and was founded in 1998 by Vijay Eswaran and Joseph Bismark. It’s a multi-level marketing (MLM) company owned by the QI Group. The company has been bought and sold several times since 2005, when it was first acquired by QI Comm, a British telecommunications company.
The company has a diverse range of products on offer, including wellness products, home care, personal care, weight management, energy and fashion accessories. At the time, the company had more than 1 million independent representatives and operates in several countries worldwide. Reported sales for 2021 were $520 million.
Interestingly, the company was the official distributor of the commemorative coins from the Sydney Olympics in 2000, as well as the Athens 2004 and Beijing 2008 Olympics.
Are QNet Products Worth Their Price?
QNet has a large selection of products, but the items within each category are quite limited. I chose the Jewelry category because it contains the most products.
The Sun & Earth Diamond Pendant is made of 18K yellow gold intertwined with 18K white gold, diamond-studded (0.09-carat diamonds, H color, SI clarity) ring. The price tag on this pendant is $1,080. It’s certainly beautiful but the price tag is quite high. Items like this will be a hard sell. So let’s check out one of the more “inexpensive” products.
There are two different packs of toothpaste on offer. The ProSpark toothpaste costs $52 for 6 tubes of toothpaste. That’s about $8.66 per tube before tax, shipping and handling. A customer can get three tubes for $27, which is about $9 per tube. There is no weight information available, but I can guarantee you can find cheaper toothpaste.
So to answer the question of whether the products are worth the price, I have to say no.
The QNet Opportunity
To sign up with QNet as an Independent Representative (IR), you must have a Sponsor. Once you sign up, you will be expected to place an order for products and/or sell products to customers. Sales techniques and other training will be provided.
You can promote products by placing ads on Facebook pages and other social media, hosting parties, and organizing other events.
To earn more money, you are encouraged to recruit people for your team.
How Much Does It Cost To Join Net?
There are no registration fees or starter kits that you must purchase to become a member. You are expected to become a customer by placing an order for products.
There are also hidden costs. You are responsible for any expenses you incur for gas, phone calls to customers, wear and tear on your car, or any other expenses you incur in the course of doing business. None of this is reimbursable.
You may also be responsible for shipping costs, taxes, and handling fees for products ordered by your customers.
Can You Make Money With QNet?
IRs earn commissions based on Retail Profit. Retail Profit equals the Maximum Retail Price – Distributor Price of a product (before taxes, shipping and handling charges).
According to QNet, there are 10 income channels you can leverage by using the four key behaviors: refer, repeat, rise and retain. The 10 income channels are quite complicated.
You need to make at least 50 RSP (Repeat Sales Point) each month to earn RSP commissions. 10,000 RSP = $300.
As you can see from the table below, the first level is the Bronze Star Level. Let’s say you manage to recruit a few people to your team and you reach the Bronze Star Level. To earn $200 in commissions, you and your team must sell at least 3,000 BV (Business Volume) points to qualify.
Weekly Commissions: commissions earned by you and your team are paid out weekly.
No Experience Necessary: Training is provided through online videos.
No Fees to Join: There’s no registration fee and no starter kit to purchase.
Minimum Requirements: An IR must maintain a minimum of 50 RSPs per month. This may be a combination of retail sales and goods purchased by IRs.
Expensive Products: These products are very expensive for the average customer and will be difficult to sell.
Fraud Claims: In March 2020, Qnet fired over 400 IRs in 20 countries due to alleged fraud allegations, unethical practices, and allegations of being a pyramid scheme.
Is it a Scam?
QNet likes to franchise out to local businesses. In this way, the company can continue to earn revenue while being absolved of any responsibility. In the event of fraud or other allegations, all liability falls on the local franchise and not the company.
QNet operates in many countries but has been accused of being a Ponzi scheme in some countries such as India. I hesitate to call this company a scam, but I would definitely advise you to proceed with caution.
If you take the time to read the fine print, you will find that a direct selling company like QNet not only expects you to make sales, but also expects you to be a customer. You will spend a lot of money for very little in return.
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