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QNet ltd, or QuestNet or GoldQuest or Qi limited, is a Hong Kong based direct selling company owned by the QI Group. The company sells a variety of products including energy products, nutrition, watches, jewelry and vacation packages.

The company's marketing strategy follows a multi-level marketing model, depending on independent representatives to refer its products to consumers and receive compensation based on the sales volume of their referrals and the sales volume of other independent representatives in their teams who are arranged in a binary fashion.

QNet is a member in the Direct Selling Association of Malaysia and Singapore. It has offices in some Asian countries such as Indonesia, Philippines and Taiwan and it also operates or has operated in other countries such as India, Saudi Arabia, Egypt and Côte d'Ivoire. QNET has recieved Fatwā by Al Azhar that its Business is halal within Islamic law.

The company has also been accused of operating a product-based pyramid scheme. In India, Iran and Indonesia these accusations have resulted in the shutdown of the company by the government and the arrest of key members involved with the company.

History

QNet is the main subsidiary of the QI Group and was founded in Hong Kong by Dato' Vijay Eswaran in 1998. It was initially known as GoldQuest. QNet operates as a direct selling company providing a variety of consumer products including watches jewellery, holiday packages and energy products. In 2003, the company re-branded to QuestNet. In 2010, the name of the company was shortened to QNet.

Business model

A typical MLM binary tree structure. The blue individual will receive compensation from the sales of the downline red members.

The company's marketing strategy is based on a multi-level marketing model which depends on a group of independent representatives who refer its products to consumers and receive compensation based on the sales volume of their referrals and the sales volume of other independent representatives in their teams who are arranged in a binary fashion.

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 Independent Representatives(IR) increases, finding more IR's becomes harder and harder, until those that join late are unable to recover even their initial outlay and the model collapses. QNet's Public Relations manager 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 QNets online system and the IR receives a commission based upon QNets compensation plan.

The compensation plan operates by the recruitment of customers by existing Independent Representatives (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 cusomer's TC buys/refers/sells) is also counted as 1 transaction. the company pays $250 each time 3 product sales on an IR's left customer group are matched by 3 product sales on the right.

RYTHM foundation -derived from the acronym 'Raise Yourself To Help Mankind'- is a charity organization created by QI Group.

QNet is a member of the direct selling association of Malaysia, and the direct selling association of Singapore. In 2007, APLI, the direct selling Association of Indonesia, considered GoldQuest or QuestNet a pyramid scheme.

Products

One of the products being marketed by the company, is the Amezcua Bio Disc (also spelled BioDisc and BioDisk) which the company claims that it can "redefine and harmonise the energy of water, greatly maximising its positive affect on the human body". These and other detailed claims of often miraculous properties have been widely denounced as fraudulent by various scientists, media commentators and watchdog organizations. Critics have noted that the claims are based on thoroughly debunked pseudoscientific concepts such as hexagonal water and that they have never been validated by a peer-reviewed process. The company, QNet, itself states in a document published to its IRs named FAQ – Amezcua Bio Disc that there are no known test and approval bodies to date on such products.

References

  1. ^ "All Products". Retrieved 17 December 2011.
  2. ^ Members List | Direct Selling Association of Malaysia. DSAM. Retrieved on 2011-11-12.
  3. ^ List Of All Members. Dsas.org.sg. Retrieved on 2011-11-12.
  4. "Worldwide Offices". Retrieved 16 December 2011.
  5. "Al Azhar Fatwa". Retrieved 14 December 2012.
  6. PressTV – Iran busts more pyramid scammers. Presstv.ir (2010-08-01). Retrieved on 2011-11-12.
  7. SriLanka banned Gold Quest long time ago. Muthamil.com (2007-05-16). Retrieved on 2011-11-12.
  8. Ir. Widarto Wirawan (April 2007). "Money Game Marak Lagi!". Bulletin of the Direct Selling Association of Indonesia (in Indonesian). Asosiasi Penjualan Langsung Indonesia (Direct Selling Association of Indonesia). Retrieved 16 November 2012.
  9. "TRADE PRACTICES AMENDMENT BILL (NO. 1) 2002 Second Reading". Retrieved 9 November 2011.
  10. ^ "About". Qnet. Qnet. Retrieved 20 December 2011.
  11. "The QuestNet Scam: A Case of Mistaken Identity". Retrieved 17 December 2011.
  12. ^ "Direct selling - How does it work". Qnet. Retrieved 20 December 2011.
  13. Faso, Brukina (04-05-2010). "QuestNet pyramid scheme drops anchor in Africa". France 24. Retrieved 20 December 2011. {{cite news}}: Check date values in: |date= (help)
  14. Frauds and Scams Introduction | Crimes of Persuasion – A Resource for Investigators. Fraudsandscams.com. Retrieved on 2011-11-12.
  15. http://apli.or.id/website/index.php?option=com_content&view=article&id=60%3Akewaspadaan-terhadap-bahaya-money-game-meningkat&catid=35%3Afokus&Itemid=1
  16. "Bio Disc 2 (product description)". QNet. Retrieved 11 November 2011.
  17. "BIO DISC SUMMARY" (PDF). Africa Center for Apologetics Research. Retrieved 11 November 2011.
  18. Fulcher, Ben (April 2008). "Feature Article: Scalar Energy" (PDF). Jeremy (newsletter of the University of Sydney Physics Society). Retrieved 11 November 2011.
  19. http://www.qnet.net/static_files/pdf/FAQBioDisc.pdf
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