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Quest Net (QNet) was established in 1998 by Dato Vijay Eswaran and Joseph Bismark in the Philippines with company headquarters set up in Hong Kong that same year. To put it simply, QNet is a global, direct selling company which sells all its products online and is considered one of the world’s leading network marketing companies. It is a subsidiary of international conglomerate, QI Group.

Business model

QNet advocates taking pride in the system behind the network marketing company. A QNet Independent Representative (IR) sits down to talk to recruits and to explain the plan, which mainly revolves around the finances of the process. In a nutshell, the recruit will earn back the money spent on a product. In the plan, the IR explains ‘the worst case scenario’ that a person can go through once they sign up in QNet, and that happens when the latter or his recruits do not work as often as they were expected.

Providing believable evidence, the IR explains why QNet is not a risky deal, leaving the audience to make a choice of whether or not they want to join.

Once you’ve bought a product from QNet, you’re recruited and the hunt for new recruits begins. The recruiter A starts off by recruiting two people, creating a branch for the first B and another for the second C. Each one of these recruits has to recruit others in order to create their own branches. The commission for every new recruit is $41.67 (LE 252); however, A is not actually paid any money until three more recruits are brought on board under his/her two branches. When that balance is created, A receives $250 (LE 1,510) in cash.

So A does not necessarily get paid first — B or C could see their returns first if they succeed in gathering three people on their left branch and another three on their right branch.

“The more you work, the more you will get. It’s like anything else, but here you have the option of encouraging others to work and you will also gain, so it’s also important to stay in contact with your network. But, if they see that you’re encouraging them and telling them to do things you are not doing, they won’t do them either. Lead by example and you will win,” Wahba says.

Controversies

Corruption in Chennai, India had long been a sore spot for businesses there, and Qnet says it had always complied with the regular shakedowns. But one day in mid-2008 there was a mix-up and the office manager refused to pay. Before long local police had jailed seven workers and impounded all of the customer goods in its warehouse. Massive, ugly demonstrations ensued as angry IRs demanded their merchandise and officials condemned the company as a pyramid scheme.

Similar phony charges in a number of countries over the past ten years have also been made. According to press accounts, governments in Sri Lanka, Rwanda, Sudan, Iran, Turkey and Nepal have either banned or formally investigated Qnet or its affiliates, QuestNet and the former Goldquest. But in these cases, the company says, terminated IRs or even impostors used the company’s name as cover for unsavory dealings. Benjamin Tan, one of the founders of the Direct Sales Association of Singapore and author of its Code of Ethics barring abusive practices, says they are common in places with slack regulation. “Qnet or any legitimate company would simply have too much to lose ,” he says.

In the end everybody in Chennai got their goods, and nobody was convicted of any crimes. But the damage had been done. Negative press coverage spread all over India; sales suffered.

Shaken by these incidents, Eswaran set out to remake the company so it would not be hurt in this way. He beefed up the compliance office so it could investigate and expose abusive IRs and impostors, and set up a website to openly rebut allegations and rumors. He cut off malefactors. He sped up plans to convert IR operations to an all-digital platform, so that every IR does business through a virtual office and the inventory he’s reserved for customers is not at risk. One consultant says Qnet’s use of information systems is “far in advance” of any direct sales company in Asia. “No such company has gone as far in using e-commerce as a way to implement trust-based business relationships that are as old as business itself.”

His most profound decision would transform the Qnet product line. Luxury goods such as jewelry and watches can be sold only once, and customers can compare prices between his line and competitors. But Eswaran knows his strongest asset is the personal bond between his IRs and the people they sell to. The best products for Qnet, he decided, promise a personal transformation–better health, more youthful appearance, even physical and spiritual vitality, the kind of thing that’s best explained and sold person to person. Better yet, often these products can be sold in a steady stream, such as a new line of nutritional supplements.

Future Plans

Feeling vindicated, Eswaran is remaking the much maligned multilevel marketing industry, bringing in corporate-style management, information technology and new product development. He’s diversified into areas such as telecoms, travel and meeting management. He’s brought business skills, energy and jobs to developing parts of Asia where they can be scarce. And he’s done this with a company culture that stresses spiritual growth, positive intentions and service to others (see sidebar) . “This is a very difficult part of the world to operate in,” says Charles King, an academic at the University of Illinois who has studied direct sales for 25 years. “I don’t know of any other company in Asia that has been able to master the subtleties of the multilevel marketing structure so well, continually adapting it to produce sustained growth.”

Products

The products are exclusively sold through QNet. The companies that offer their products on QNet are as follows.

Amezcua, a German company that specializes in bio-energy and specializes in treating and restoring energy in the human body. Amezcua offers some of its products like the Bio Disc and the Chi Energy Pendant. Bernhard H. Mayer, is another German company that produces hand-made Swiss watches. The company was established in 1871.

Swiss eLearning institute is an institute which offers five different courses in these fields as stated on QNet’s online blog; motorsport management, presentation and communication skills, career design, marketing and the art of management — winning concepts and strategies.

Why have these companies chosen to work with QNet rather than operating like any other product and utilizing conventional marketing? Tarek uses Porsche as an example. Porsche, being a high-end car maker whose latest models are rarely seen on the street, will only be able to sell approximately six new cars per year. However, if a businessman heard that a new car has been released that no one knows about, he would invest in this coveted, unique product. It helps that he heard about it from the right person — another businessman just like him.

References

http://www.businesstodayegypt.com/article/artId:308/QNet-Making-Your-Own-Decision/secId:3 http://www.forbes.com/sites/donaldfrazier/2012/10/24/selling-a-better-life/