Journalist Kenneth Awotwe Darko traveled to Malaysia to better understand direct selling company QNET’s business model. Darko works for a news team in Ghana and felt motivated to make the trip when the first news they heard about the direct selling company was negative. Darko wanted to know ifQNET was a scam or schemeof some sort. “Some individuals were accused of taking money from others with the promise of helping them travel outside of Africa,” stated Darko.
Darko decided to research QNET to separate fact from fiction. “The further I dug, the more I realized that the 24-year-old company has good intentions and an interesting business model, but the actions of some individuals who may or may not fully understand the brand’s line of business are causing some misconceptions about the company,” Darko explained.
The direct selling company works diligently to set the record straight about its legitimacy. While it’s often mistaken for a scam or pyramid scheme, the truth is that it’s an entirely legal direct seller. It pays commissions only on product sales. CEO Malou Caluza said, “The challenge is the lack of awareness and the lack of a legal framework to help the public differentiate between the genuine companies and the pyramid schemes.”
However, it’s not a get-rich-quick scheme. Caluza said, “We have always maintained that the direct selling company is not for those looking for overnight success. This is evident in the success stories we share. Every one of the top leaders that our network looks up to today started with nothing and built their businesses slowly but steadily. It took them years to get to where they are today. They are our best ambassadors for the message that success at the company takes hard work and consistent effort over a period of time.”
The company proactively tackles lies and false allegations. Biram Fall is the regional manager for sub-Saharan Africa. He stated that the direct selling company “is making frantic efforts to ensure its reputation is not soiled. We keep implementing measures to help the general public and our stakeholders understand our business model and the fact that we are not a get-rich-quick or Ponzi scheme, we are not a travel agency. We do not condone illegal gathering, migration, or unethical marketing practices.
Fall continued, “We are aware that some individuals use the company’s name for unethical marketing practices. We are in collaboration with some governmental agencies in markets where we operate to identify and clamp down on these people and their negative activities. If any independent representative is found to be culpable in a case of unethical marketing, they are punished or terminated from the company’s record. And in some cases, they are handed over to security agencies for the law to take its course.”
The direct selling company recently launched its 360-marketing initiative called the Mama Campaign, which aims to help people differentiate between the legitimate direct selling business and the actions of fraudulent individuals.
Caluza said, “While direct selling is more than a century old, in many emerging economies, it is still in very early stages and hence, not properly understood. Many people assume it is some type of financial or investment scheme, and they are wary of it. To address this, the company focuses on education and awareness through social media campaigns, stakeholder engagement, training and events, and seminars to help people understand the positive impact of direct selling. We also educate them about the difference between legitimate direct selling businesses and illegal pyramid schemes.”
Exploring QNET in Malaysia and Attending the Company’s Convention
Darko traveled to the company’s office in Kuala Lumpur, Malaysia, in an effort to establish the truth about the enterprise. “One of the first observations I made was the fact that in this part of the world [Africa], a lot of people do not understand the concept of direct selling, and sadly, they are often unable to distinguish it from a Ponzi scheme, multilevel marketing, and the sorts,” explained Darko.
During the visit, Darko stated, “I saw firsthand the towering building where its operations take place on a daily basis. I saw some of the products and had interactions with key officers of the company as they explained in detail the features of the products and key truths about QNET’s business model.”
At the company’s annual global V-Malaysia 2022 conference, Darko said, “I was in the same arena as more than 15,000 independent representatives and officers of the company. It was electrifying and a sight to behold. I listened to seminars and presentations by many leaders of the company, including its founders, and I visited the exhibition booths, where I saw, touched, felt, and experienced the company’s wide array of products. I saw independent representatives from different corners of the world testifying about their experiences and the achievements they made, both in small and big leaps.”
How Darko Determined the Direct Selling Company Is Not a Scam
“The first realization I had from my five-day sojourn was that unlike Ponzi orget-rich-quick schemesthat usually last for a short time and disappear, QNET has actually been in existence for 24 years and growing stronger. I got to know that it is one of Asia’s leading e-commerce-based direct selling companies offering a wide range of health, wellness, and lifestyle products that enable people to lead better lives,” stated Darko.
“I realized that the company is empowering millions of entrepreneurs and young people in more than 100 countries worldwide. I also got to know that it is headquartered in Hong Kong and has a presence in more than 25 countries around the world through subsidiaries, branch offices, agency partnerships, and franchisees.”
Darko discovered that the company is law-abiding and highly socially responsible. “I realized that QNET adheres to international best practices and that it is a member of the Direct Selling Association in several countries and is also a part of the Hong Kong Health Food Association and the Health Supplements Industry Association of Singapore, among others,” said Darko. “I saw pictures and evidence of the plethora of life-changing interventions and projects the company is implementing across the world, including Africa.”
After investigating the direct selling company in person, Darko concluded that it’s theopposite of a scamor scheme. “I am convinced that with the current economic situation in the world and especially in Africa, a lot of people need multiple streams of income to be able to stay afloat. Direct selling offers a wonderful opportunity for anyone to buy products, use them or refer [them] to other people and earn commission on the purchases they make,” explained Darko. “A lot of people have changed their lives for the better by simply taking up the opportunities offered by QNET and the direct selling industry.”
