UNDERSTANDING THE DIFFERENCE BETWEEN DIRECT SELLING AND PYRAMID SCHEME

It is necessary to notice that the direct commerce business which know as Direct selling company is usually represented in an exceedingly method that’s deceptive and inaccurate. Often, real firms are bracketed with pyramid schemes that are dishonorable in nature. Pyramid schemes continue to harm consumers across the world, and the media hype over these scams has led to increased skepticism. Some of that skepticism has been unduly extended to direct selling.

QNET is thought for its support of direct commerce and also the want for legislation to control the business in rising economies. Direct commerce deserves to be protected by international governments because it offers several well-documented edges to the economy.

• The direct selling industry generated an estimated USD 183 billion in 2016 (WFDSA Report 2017)

• Approximately 107 million people involved as distributors either part-time or full time

• Direct selling has helped address challenges arising from unemployment by encouraging micro-entrepreneurs

• Direct selling has empowered many women in developing countries to become economically independent

While there are many advantages of this industry, consumers are often misled by unscrupulous businesses due to lack of awareness. There are a few simple ways in which consumers can protect themselves from being taken in by pyramid schemes. It is important to remember, direct selling is not a get-rich-quick scheme. It is a tough business, one that requires a significant investment of time and effort. Here are the key distinguishing factors:

• Direct commerce firms ( Direct selling companies ), unlike pyramid schemes, deliver high-quality, legitimate products and services and dedicate their resources to finding consumer products that are appealing, useful, and valuable. Take, for instance, a company like QNET, that offers more than 30 product brands spread across eight different categories.

•  Legitimate direct commerce firms DSC (Direct selling companies) have restrictions in their compensation set up. They limit the quantity of individuals UN agency will earn a commission through sales. In a strategy, there may be many people involved with distributing products — but only the person at the top is likely to see any income.

• Reputable direct selling companies do not offer commissions based on recruitment. A genuine direct selling company rewards people for promoting products. In a pyramid scheme, there is no financial return unless other people are successfully enrolled. With QNET, the only way to earn an income is through sale of products.

Respectable direct commerce firms DSC supply their marketers with solid coaching programmes. Companies that really care regarding the success of their distributors can invest in skilled development opportunities for those distributors. QNET offers a number of online and offline training programs around the world to help our Independent Representatives understand not just our business and our products, but also to teach them skills related to building a business.

• Direct selling companies have proper policies and procedures in place, and clear codes of ethics. They aim to achieve long-term growth and prosperity by fostering a culture of ethical marketing. The same is not true of pyramid schemes, which are dishonest by their very definition. QNET has clearly documented regulations and follows a strict code of conduct endorsed by the Direct Selling Association in several countries.

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2 thoughts on “UNDERSTANDING THE DIFFERENCE BETWEEN DIRECT SELLING AND PYRAMID SCHEME

  • at 10:12 pm
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    Great topic and clear ideas . Thanks!

    Reply
    • at 10:15 pm
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      We appreciate your kind comment. Do not hesitate to contact us any time.

      Reply

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