Saturday, May 19, 2012

QNET: A Pyramid Scheme Or Not?

With the recent introduction of the new QNET Infinite compensation plan, I have had to add on to my previous post "Is QNET A Pyramid Scheme Or Not" mainly because there have been some major changes, however much of the data remains the same. QNET now utilizes a unilevel and binary compensation plan, which may look like a pyramid at first glance, but the similarity ends there. Allow me to explain.

As you may know, a binary plan is a compensation plan which allows distributors to have only two front-line distributors. The people joining such a compensation plan join to market a legitimate product or service, which they bought and own, to their friends, family and the world. If a distributor sponsors more than two distributors as is normally the case, the excess are placed at levels below the sponsoring distributors front-line. The primary limitation is that distributors must ‘balance’ their two down-line legs to receive commissions as illustrated below.


QNET has countered this limitation by adopting a uni-level plan. A Unilevel plan only enables a sponsor one line of distributors, therefore everyone you sponsor is on your frontline. There are no width limitations to this plan (ie there is no limit to the amount of people you can sponsor in your frontline) and it's primary limitation is that commissions are normally paid out on a limited depth and in the case of QNET, the limit depth is 3 levels ie: your direct referrals, their referrals and their referral's referrals.


Pyramid schemes however are programs similar to chain letters where people invest money based on the promise that other people will put in money that will filtrate back to them and somehow they will get rich. A pyramid scheme is strictly a money game and has no basis in real commerce. Modern day pyramids may have a product, but such products are not worth the money being paid. Normally, there’s no product involved, just money changing hands.

It may be important to note that almost all businesses and institutions out there today employ some kind of pyramid structure based model as seen below.


So a pyramid scheme should not be defined by it's STRUCTURE but by it's SYSTEM. The argument then is not really about the geometric nature of an organization such as QNET, but by the way they employ their system to do business.

The QInfinite compensation plan breakdown 

The goal of the new QNET Infinite plan is to recruit a large number of front-line distributors in your binary plan and then encourage them to do the same because now all your direct referrals, their referrals and their referral's referrals in the binary plan are placed on the first, second and third levels respectively of the new uni-level plan, and you earn commission every time they make a REPEAT purchase.

For a clear understanding of the new QNET Infinite plan, watch the video below as V Managing Director, Pathman Senathirajah explains the plan step by step.

video

It’s important to note that not all compensation plans are created equal. All compensation plans have a good and/or bad characteristic, to some degree. Some of the characteristics mentioned in the above video are very desirable. It is also important to note that although there may be disadvantages to this new kind of compensation plan, to the right person with the proper mindset, these disadvantages can be viewed as an opportunity.

At the end of the day it’s your business opportunity so you have to work to make it successful. QNET has been around for the last thirteen years so they must have figured out how to make this plan work for their two million plus distributors. And if it can work for us, surly it can work for you too.

Take ACTION Today

Are you are interested in starting your own business but have no clue where to start? Do you wish to earn an extra income in these tough economic times? Email me and let me help you get started as you head on over to the official QNET website and register today.

5 comments:

  1. Appreciate this post. Will try it out.
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  3. Hi. needed a numerical example explaining a real case specially BV and RSP. Besides when one joins, how to create his own web sight to market your products. I am about to join. Thanks.

    ReplyDelete
    Replies
    1. There is a playlist on Youtube with videos that give a detailed breakdown of the QInfinite plan. Follow this link to watch them: http://www.youtube.com/playlist?list=PLB6E35B5340F9266D

      Here is a link to my private playlist of videos by VP Donna Imson where she shows some really simple steps on how to earn with the QInfinite plan. Follow this link to watch them: http://www.youtube.com/playlist?list=PLOMljnauv1O7ejWakMX4KfyTAskOUwynt&feature=view_all

      As to your question about a personal website, QNET offers their registered IR's with a fully customizable website that they can purchase from their repeat eStore in their virtual office with a payment plan of every three, six to 12 month option available.

      Delete
  4. Binary Compensation Plan
    Binary compensation plans have become the darling of startup multi-level marketing (MLM) companies. There is a an appeal to the binary compensation plans for newcomers to the field of network marketing. Newbies are sold on the idea that their upline can only place people in one of two places and thus a new person's business will be "fed" from above.

    Binary means 2. Thus, each sponsor can have only 2 distributors in their immediate downline. The Binary Compensation is a specific case of a Matrix Scheme having a width of two. The downline is the term used for those recruited distributors who are placed beneath you. The Sponsor is the distributor who is immediately above you. However, the number of levels in the downline is infinite in binary compensation plans. Binary MLM compensation plans pay out a percentage based on the total volume on the lesser (least profitable) leg. You do not get paid on your greater leg.

    In a binary compensation plan, the distributor must “balance” their downline. Say your downline is balanced and you enroll Bob on your left leg. Bob's recruiting takes off and he is generating a volume worth six figures per month. Well, you receive nothing from Bob's sales until you recruit the equivalent sales volume to your right leg. It is already difficult to recruit a new distributor, never mind recruiting an outstanding one. Worse, your compensation may diminish because of attrition. If you are not constantly recruiting on your right leg, then you may end up with a zero commission, despite Bob's sales breaking new records.
    source:
    https://www.igolder.com/glossary/pyramid-scheme/

    ReplyDelete

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