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Moneylife » Life » Public Interest » QNet: The “money game” played by MLMs to lure the gullible

QNet: The “money game” played by MLMs to lure the gullible

Sucheta Dalal and Yogesh Sapkale | 17/11/2012 02:38 PM | 

QNet, the controversial MLM company is luring executives and professionals by promising a weekly income of Rs27.7 lakh. Do the math… this is about the salary that Mukesh Ambani, one of India's highest paid CEOs earns. Yet, this patently exaggerated claim by QNet is ensnaring people to invest their hard-earned money on the fake promise of an enormous wealth. Meanwhile, the company seems to operating under several different names that are designed to hide a trail to its operations

QNet, the controversial, Hong Kong-based multi-level marketing (MLM) operator with multiple names (GoldQuest, QuestNet, QNet, QI Ltd and QI group are the better known names) and identities seems to be working on a clear plan to hide the trail of its Indian operations. Interestingly, worried investors and bloggers or those burned by the pyramid marketing business are doing an excellent job of tracking its operations and publicising them. Here are some such trails gathered through helpful bloggers like Sherwette Mansour from Egypt (http://joinnetworkmarketing.wordpress.com ).

 

According to Wikipedia, QNet’s business model has been described as a simple pyramid scheme, where initial entrants to the scheme do make money, but as the number of IRs increase, finding more independent representatives (IRs) becomes harder and harder, until those that join late are unable to recover even their initial outlay and the model collapses. QNet counters this explanation as offering a business opportunity that doesn't have the high cost of start up as a limiting factor. When an IR recommends the product, the customer makes a purchase through QNet’s online system and the IR receives a commission based upon QNet’s compensation plan.

 

The compensation plan operates by the recruitment of customers by the existing IR. An IR is provided with an ID that gives access to a “Tracking Centre” (TC) in its computer system through which the IR’s sales are tracked. A TC has a left and right customer group. Every customer owns a TC which is then placed on the left or right customer side of the IR’s TC. A ‘direct’ transaction (a customer’s personal reference or sale) is counted as one transaction. An “indirect transaction (someone in the customer’s TC buys/refers/sells) is also counted as one transaction. QNet pays $250 each time three product sales on an IR’s left customer group are matched by three product sales on the right,” says Wikipedia.

 

According to Mr Mansour, the blogger, if you are being paid for every six new people you recruit, by 13th level down you would exceed the population of Earth. He uses example of his home country Egypt. He says, “By level 11, you will exceed the population of Egypt. So, I am assuming that the business flourish and reaches level 10, which will have 60,466,176 (6.04 crore) people. Let’s assume that all these people will join the business, keeping aside the fact that Egypt is a POOR country and not everyone can pay an average of $1,000 to join the business. By level 9, the last level making profit in the country assuming everyone will join, an average of 60,466,176x$1,000 = $60,466,176,000 ($6,046.6 crore) is sent outside the country for all members in level 9 to make profit. Please do keep in mind that this number of people entering the business is almost impossible because a small percentage of Egyptians can actually afford to pay an average of $1,000 to join the ‘business’.”

 

To read more about QNet on our wesbite, click here.

 

Here are the repeat sales points (RSP) and its cash and business volume (BV) equivalents provided by QNet in its FAQs for India...
 

Image source-QNet FAQs for India

 

QNet says, its IRs can achieve rankings like Bronze Star, Silver Star, Gold Star, Platinum Star and Diamond Star, depending upon, how much he and his network or down lines sells.

 

Image source- QInfinite Compensation Plan for India

 

QNet claims that a Diamond Star can earn up to Rs27,73,800 (Rs27.7 lakh) per week while the same for a Platinum Star would be Rs22,39,050 (Rs22.4 lakh) a week. The money earned by a Diamond Star in QNet is almost the same that Mukesh Ambani of Reliance Industries (RIL), India's richest man as per the Forbes list, earns every week as salary (Mukesh Ambani forgoes Rs23.82 crore from his pay package ). We all have heard about Mr Ambani and his wealth. However, nobody knows how many Diamond or Platinum Stars are there in QNet's MLM network. If you know, then please share it.

 

In India, QNet’s MLM operations were controlled by QuestNet Enterprises (India) Pvt Ltd, a company registered at Chennai till 13 April 2012. From next day, it shifted all its registered agents, database and business to Vihaan Direct Selling Pvt Ltd, company registered in Bengaluru. Here are the details mentioned in the frequently asked question (FAQ) section on QNet’s site…

 

Image source-QNet FAQs for India

 

QuestNet Enterprises was operating QNEI eStore, a platform from where IRs, which is how the investor-dealers of QNet are described, could place orders or buy products and also enrol new recruits. After launching Vihaan, the company asked all its old IRs to mandatorily register under the new business name in order to receive their commissions. It is pertinent to mention that the big crackdown on its operations also occurred in Chennai when QNet operated under the name GoldQuest and sold numismatic coins.

 

You may also be interested in reading about the many other MLM schemes that Moneylife covers. Click here to read about them.


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320 Comments
gurupreet

gurupreet 1 week ago

Vanamala/QNET runs away from Mumbai...

This is the message that was posted on http://www.vanamala-india.com recently...

Dear Members,

Due to service disruptions on our current hotlines, please refer to the following number should you have any queries: 0008006001144 or email us at customercare@vanamala-india.com

We apologize for any inconvenience.

Is it a 'Simple" Disruption or there is more then meets the eye..The truth is their offices were raided by the EOW..effectively shutting down the whole operations of Vanamala in Mumbai.

The last time this message was posted after Vanamala's Payment gateways were blocked..

Important Announcement regarding Payment Gateway - INR Payments
Dear members,

We are experiencing problems with our Payment Gateway system. As such, please refrain from using it with immediate effect.

To know the alternate modes of payment you can use, please contact our Customer Experience Ambassadors at
+91-22-6139-9500 and they will assist you accordingly. Thank you.

The above mentioned PRI Line number +91-22-6139-9500 has also become un-operational

How good these white collared criminals are at sugar coating the real truth...Raids become "disruptions"...blocking becomes "problems"...shame on you all white collared criminals, you all should be tried for treason for your anti national activities.

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gurupreet

gurupreet 2 weeks ago

EOW RAIDS QNET SYSTEM MEETING IN MUMBAY BEING CONDUCTED BY "MR.BIJOY MATEHWS"..TEAM LEADER OF QNET.

This Morning QNET team Leaders had organised a Seminar/System at the following address and invited innocent people to induce them into this illegal money circulation scheme..the system was held at the following address:

Youthapreneurs Training Center, 605, Alpana Bldg, Opp Sarvoday Hospital, LBS Marg, Ghatkopar (W), Mumbai - 86

During the raid Mr.Bijoy Mathews was caught red handed promoting the illegal money circulation scheme in presence of 45 Odd people.

Ironically this Mr.Bijoy Mathews is the same person who has had cooled his heels in the jail for more then 20 days in the past for the same offence.

The officers of EOW detained and questioned several people and names and contact details of 47 people were noted down :)

I am sure the records of the activity today will lead to the cancellation of the bail of several team leaders of QNET.

Let me mention here that a similar activity was done by the EOW several months back when QNET leaders were holding a system meeting in Dadar, Mumbai and details were noted down. These details led to the arrest of Nine qnet leaders earlier.

So guys any guess who all will be arrested now after today's raid/activity?

Best guesses will win prizes ;)

Keep posting/replying...

Regards
Gurupreet

P.S Tomorrow is the Hindi New Year so my msg to QNET "Happy New Year" in advance...

After the ABA of your people are cancelled we will get the bails also cancelled wait and see...

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gurupreet

gurupreet 2 months ago

"One man with courage is a majority."

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gurupreet

gurupreet 2 months ago

********** Appeal **********

Dear Friends,

As the fight comes to the crucial stage we need some more info inputs from you all, I hope you will all come forward as in the past and help us.

We need the following information:-

1. Details of events/systems etc held in different cities by members of quesetnet/qnet/vihaan etc with dates and name of the venue, with photographs & Videos if available.

2. Names and IR,s numbers of the top leaders of Questnet/QNET all over India.

3. Details of these leaders like the house addresses, cars owned etc.

Please email us all the details on gurupreet@gmail.com

STOP THE SCAM
BE THE CHANGE

Jai Hind
Guru

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