Welcome to our QNet Review!
There has been some buzz about this company so we decided to investigate what it was all about…
Some say it’s a scam while others QNet reviews are saying legit so what is it?
The good news is we are going to walk you through the company, products and compensation plan so you can make the right decision.
Let’s dig in this QNet review…
QNet was introduced in 1998 and is headquartered in Hong Kong.
QNet exists just in name and has no business operations in Hong Kong itself.
Vijay Eswaran, who is based out of Malaysia, founded the company. QNet operates as a Malaysian company.
As far as their story goes, Vijay Eswaran and Joseph came together in business and friendship in the mid-90s.
Having attained reasonable success in network marketing with an American company that was flourishing in Philippines, the duo joined forces and formed a group named, V Team consisting of bright, motivated, and talented men and women. It soon became the largest revenue earner for the American company.
At one point, they realized that the company was not being honest with them and after efforts to rectify the situation failed, the V Team and some leaders gathered to discuss the next steps.
Around 1,500 peoplewho had faith in V Team leaders joined the team. The owners did not choose the easy way out to wash their hands off any culpability.
With the fate of several team members at stake, and a liability in excess of USD 250.000, the 2 men along with their core team members made a bold decision to begin their own company.
In September 1998 in the Philippine Stock Exchange Centre in Manila, the company known as QNET was launched.
QNet initially started out as QuestNet and promoted gold and silver coins.
QNet has seeded at least 76 related shell companies in addition to GoldQuest and QI Limited.
QNet itself is a subsidiary of QI Group that looks over the company’s operations globally.
The reason behind it appears to be mitigation of corporate liability.
QNet sets up shop under a different name in a country. With its headquarter in Hong Kong, QNet has been extra careful not to conduct business in either Hong Kong or China.
Aside from Malaysia, QNet has run into regulatory trouble in almost every country it has established a significant presence in.
- The Department of Trade and Industry in Philippines issued QuestNet a cease and desist (2003)
- The Royal Monetary Authority of Bhutan carried out an investigation into GoldQuest and found it to be a pyramid scheme (2003)
- The Nepalese Home Ministry banned GoldQuest from operating in Nepal (2003)
- The government of Sri Lanka banned GoldQuest (2005)
- The government of Iran banned GoldQuest (2005)
- Vijay Eswaran and several GoldQuest officials were arrested in Indonesia as per an Interpol alert resulting from a Philippine investigation. They were released and the charges were dismissed after 3 weeks (2007)
- QuestNet’s license was withdrawn and was not allowed to conduct business by Afghanistan (2006)
- QuestNet was banned by Rwanda’s Ministry of Finance after the National bank of Rwanda declared it a pyramid scheme (2008)
- QuestNet was banned by Sudan (2009)
- QuestNet was shut down by Syria’s Ministry of Economics for violation of commercial registration laws and operating a pyramid scheme (2009)
- QNet was issued a warning by Turkey, after an investigation revealed it was simply a rebranding of the QuestNet pyramid scheme (2011)
- The Egyptian government’s educational institute, Dar al-Ifta al-Misriyyah, issued a fatwa declaring QNet’s business model haram (2010)
- QNet was banned by Saudi Arabia’s Ministry of Commerce and Industry amid accusations of theft, falsification and failure to register (2010)
- Several bank accounts tied to QNet was frozen by India’s EOW as part of a major bust (2013)
- QNet’s license was revoked by the Philippines’s SEC to conduct business in the Philippines (2014)
- The Fatwa Commission of the Indonesian Ulema Council’s chairman concluded the business model was not haram (it contained “elements of fraud”) and issued a fatwa (2014)
- India’s EOW banned QNet and its Indian subsidiary Vihaan from holding workshops and training sessions in Mumbai (2014)
- A criminal case was opened by Central Police in Azerbaijan into QuestNet, to investigate claims of fraudulent appropriation of money (2014)
- A First Information Report was filed by India’s EOW (Delhi) against Qnet and Vihaan Direct, alleging the companies were engaged in cheating and deceitfully operating an MLM scheme (2016)
- Burkina Faso’s authorities labelled QNet “a network of crooks” (2016)
The management and affiliates have been arrested in India, Indonesia, Turkey, Iran, Azerbaijan, Burkino Faso, Nepal and Algeria because of QNet’s fraudulent global business operations.
Vijay Eswaran the founder of QNet is currently a wanted fugitive in India.
QNet’s marketing copy website also appears to be somewhat antiquated.
QNet asserts to be one of “Asia’s leading direct selling companies.” However, the scheme today appears to be chiefly promoted in Africa.
As estimated by Alexa, the top sources of traffic to the QNet website are Cameroon at 8.2%, Morocco at 7.5%, India at 6.4%, Tanzania at 5.5% and Algeria at 5.4%.
QNet appears to be all but collapsed across Asia with the exception of India.
The authorities of Africa have only recently begun cracking down on QNet. QNet’s operations in India are in chaos as a result multiple arrests and asset seizures across the country.
Read further for a full review of the QNet MLM business opportunity.
Products of QNet
QNet market a number of products across health and wellness, personal care & beauty, education, watches and jewelry, holidays, technology and motor care niches.
Health and Wellness
- HomePure water filtration products
- AirPure air purifier products
- Ole olive leaf extract
- VitaNet nutritional supplements
- LifeQuode food supplements
- Amezcua “harmonized energy” products
- Qafe green coffee
Personal Care and Beauty
- Physio Radiance hypoallergenic skin care range
- DEFY skin care for men
- BioSilver skin cleanser
- Couleurs makeup
- Bell & Belle face and bath cream
Watches and Jewelry
- a selection of QNetCity branded Cimier watches
- Bernhard H. Mayer watches and jewerly
- Himalayan Crystal Collection jewelry
- Swiss eLearning Institute e-courses (not accredited)
- Master of Business Administration, Accelerated Bachelor of Business Administration – Information Technology and Accelerated Bachelor of Business Administration, offered through SMC University (formerly Swiss Management Center)
The online store of QNet only lists 3 “English for Beginners” courses costing $620 each.
- Tripsavr discount travel booking portal
- QVI Club discount resort vacations
- Q-breaks short break vacation packages
- QVI Points redemption points (can be put towards discounted accommodation, guided tours, adventure activities, car rentals and cruises)
- BrilTime offers BrilCloud online storage and BrilNet web conferencing services
- QNet Life Site sales and marketing tool service
- Vtube+, an “internative online video community dedicated to network marketing” (looks like a YouTube clone)
There are far too many QNet products to list out individually. However, a full retail catalog is available on the online store section of the QNet website.
The Compensation Plan of QNet
The compensation plan of QNet rewards affiliates for making retail sales, buying products and/or recruiting others who do the same.
Commissions are given out directly (retail) and residually via binary and unilevel compensation structures.
Affiliate Ranks of QNet
There are 8 affiliate ranks within the compensation plan of QNet.
They are as follows:
- Independent Representative (IR): sign up as an affiliate of QNet
- Bronze Star: produce at least 50 RSP monthly (residual unilevel commission qualified)
- Silver Star: enlist at least 3 affiliates who each produce 500 PV or 2 affiliates who each produce 1000 PV
- Gold Star: personally produce at least 500 PV, produce at least 600 RSP across your unilevel team, earn at least 2 binary step commissions and remain residual unilevel commission qualified
- Sapphire Star: personally produce at least 1000 PV, produce at least 2000 RSP across your unilevel team, earn at least 40 binary step commissions and remain residual unilevel commission qualified
- Platinum Star (qualification criteria must be met for 2 consecutive months) – preserve 1000 PV monthly, produce 5000 RSP from at least 2 unilevel team legs (max 2500 GV from one leg), earn at least 120 binary step commissions and remain residual unilevel commission qualified
- Diamond Star (qualification criteria must be met for two consecutive months): produce 2000 PV monthly, produce 15,000 RSP from at least 2 unilevel team legs (max 7500 GV from one leg), earn at least 200 binary step commissions, have at least 30 Sapphire or higher ranked affiliates in your downline (at least 1 personally enlisted Platinum Star) and remain residual unilevel commission qualified
- Blue Diamond Star (qualification criteria must be met for 3 consecutive months): produce 3000 PV monthly, produce 20,000 RSP from at least 3 unilevel team legs (max 7500 GV from one leg), earn at least 320 binary step commissions, have at least 10 Platinum Star or higher ranked affiliates in your downline (at least 2 personally enlisted Diamond Stars) and remain residual unilevel commission qualified
MLM Commission Qualification
To qualify for MLM commissions an affiliate of QNet must first “qualify” and then “activate”.
To qualify as an affiliate of QNet, you must generate 500 PV.
PV stands for “Personal Volume” and is sales volume produced through retail sales and/or the affiliate’s own purchase of product.
An affiliate of QNet has 2 ways through which they can activate:
- produce 500 GV worth sales on both sides of their binary team
- enlist at least two “qualified” affiliates
GV stands for “Group Volume and is PV produced by an affiliate and their enlisted downline.
Retail commissions are paid by QNet on products ordered by retail customers.
The compensation plan of QNet defines retail commissions as ‘the difference between the price paid by your customer and your discounted price as an IR’ (Independent Representative).
Residual Commissions (binary)
An affiliate is placed at the top of a binary team by a binary compensation structure. It is split into 2 sides (left and right).
The 1st level of the binary team holds 2 positions. The 2nd level of the binary team is created by dividing these first 2 positions into another 2 positions each (4 positions).
Following levels of the binary team are created as required, with each new level holding twice as many positions as the previous level.
In the binary team positions are filled via direct and indirect recruitment of affiliates. There is no limit to how deep a binary team can grow.
GV is produced through affiliate and retail purchases within the binary team.
Commissions are given out when 3000 GV is matched on both sides of the binary team.
This match of 3000 GV on both binary team sides is referred to as a “step”.
How much of a residual binary commission is paid per 3000 GV match is determined by affiliate rank:
- Bronze Stars earn $200 per step (capped at 40 steps weekly)
- Silver Stars earn $225 per step (capped at 50 steps weekly)
- Gold Stars earn $250 per step (capped at 60 steps weekly)
- Sapphire Stars earn $260 per step (capped at 65 steps weekly)
- Platinum Stars earn $275 per step (capped at 70 steps weekly)
- Diamond Stars earn $300 per step (capped at 80 steps weekly)
- Blue Diamond Stars earn $325 per step (capped at 90 steps weekly)
When an affiliate of QNet signs up, they are given 3 binary positions.
This is increased by 1 per 1000 PV they produce (up to 2 per single product order).
Residual Commissions (unilevel)
An affiliate is placed at the top of a unilevel team by a unilevel compensation structure. Every personally enlisted affiliate is placed directly under them (level 1).
When any level 1 affiliate recruits new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
When any level 2 affiliate recruits new affiliates, they are placed on level 3 and so on down a theoretical unlimited number of levels.
Residual unilevel commissions are paid by QNet based on “Repeat Sales Points” (RSP).
An affiliate must personally create at least 50 RSP monthly to qualify for residual unilevel commissions.
RSP is created through retail customer sales, an affiliate’s own purchase of product and that of their downline (up to 10 unilevel team levels).
Generated RSP in a QNet affiliate’s unilevel team is given out weekly at a rate of 10,000 RSP = $400.
How many unilevel team levels generated RSP is counted from is determined by affiliate rank:
- Affiliate to Silver Star produce RSP on 5 unilevel team levels
- Gold Stars produce RSP on 6 unilevel team levels
- Sapphire Stars produce RSP on 7 unilevel team levels
- Platinum Stars produce RSP on 8 unilevel team levels
- Diamond Stars produce RSP on 9 unilevel team levels
- Blue Diamond Stars produce RSP on all 10 available unilevel team levels
RSP produced on level 2 of the unilevel team is counted at 200%.
If an affiliate of QNet produces less than 10,000 GV across their unilevel team, they are paid pro-rata based on generated volume.
The rate of 10,000 GV = $400 works out to 4% paid on generated unilevel team GV.
a QNet affiliate is rewarded an Early Payout bonus for producing 1000 GV on their lesser binary team
- produce 1000 GV in weaker binary team side volume within 4 weeks of signing up and receive $50 bonus
- produce another 1000 GV in weaker binary team side volume within 6 weeks of signing up and receive another $50 bonus
- produce another 1000 GV in weaker binary team side volume (no time limit) and obtain another $125 bonus
Rank Achievement Bonuses
The affiliates are rewarded by QNet for qualifying at the Diamond Star and Blue Diamond Star ranks with a one-time $10,000 and $30,000 respective bonus (new rank must be maintained for six consecutive months).
The affiliates of Platinum, Diamond and Blue Diamond who maintain rank for 12 consecutive months are rewarded with “exciting all-expenses paid travel and lifestyle incentives”.
V Ambassadors and QNet Founder are rewarded with invitations to exclusive events and great experiences which can be celebrated with their fellow achievers, esteemed V Ambassadors and QNet Founders.
QNet affiliate membership is $30 yearly.
QNet is a raging forest fire that should have burnt out years ago.
The only reason QNet is still alive is the excessive use of shell companies.
As QNet gradually extends across Africa, it seems Asia is well and truly done. Europe and the US remain, although if QNet has not made a crack of it after 18 years, it’s doubtful they will now.
The root of legitimacy for QNet lies in their PV requirements. These can either be produced through retail sales or an affiliate’s own purchase of product, and therein lays the pyramid scheme issue.
If the affiliates of QNet are signing up, buying just enough to PV qualify and then just enough to produce 50 RSP monthly, they can build a sizeable income doing nothing else than enlisting others who do the same.
QNet heavily focus on “duplication” in their marketing;
You sign up; buy products to qualify for commissions and then receive payment to enlist others who do the same.
The flip side to this is qualification through retail sales, but the fact that several countries have banned QNet and/or arrested its affiliates for participating in a pyramid scheme is revealing.
Also revealing is the fact that QNet have had 18 years to address the likely lack of retail sales taking place but have failed to do so.
QNet hop from country to country leaving a trail of financial destruction in any jurisdiction they’ve operated in, instead of addressing issues with its business model.
There’s also no identifiable theme with the different product ranges, making them come off more as whatever QNet management could get their hands on.
Also, some products are weird.
Perhaps, the best example is QNet’s Amezcua health and wellness range.
QNet’s kooky Amezcua range includes plastic discs, “chi pendant”, glass discs, “bio lights” and an “e-guard.”
QNet assert their Amezcua products are backed by “ongoing research and development”, but fail to provide evidence of any research and development taking place.
Some paid research papers are provided but nothing that remotely resembles a properly conducted peer review from the greater medical community.
There is not going to be a retail market for this junk. It sums up the problem with QNet.
If you want to dig deeper than analysis of QNet’s products and compensation plan, a good start is with the person trying to enlist you.
Every affiliate of QNet has to qualify for MLM commissions. What you want to know is whether this person simply enlisted their way to qualification, or produced required volume via retail sales.
Make a note to ask for proof, as any pyramid scammer knows how to answer this question when asked.
Next every affiliate of QNet is required to produce 50 RSP monthly to qualify for residual unilevel commissions.
Further, what you want to know is how this RSP is being produced. If it is through a monthly self-purchase and there’s no retail volume equivalent, run.
QNet have triggered over the years given the amount of regulatory concern.
Undoubtedly, QNet has made a ton of money for Vijay Eswaran and his cronies, for participants it had been gradual.
Reaching critical mass and triggering regulatory alerts is even more gradual, by which time QNet’s leaders have moved onto the next country.
A lawful MLM business will ebb and flow in the various markets it operates in. Scams like QNet launch in a region, reach critical mass and then implode.
That QNet hasn’t resurfaced in any jurisdiction it operates or has operated in tells it all.
Aaron and Shara What Do You Suggest?
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