In a courtroom in Benin, three QNET representatives were recently acquitted of fraud charges, marking a significant milestone for the Asian direct-selling company. This ruling, handed down in July 2023, is more than a legal victory for QNET; it’s a stand against the continued misunderstanding that has long dogged the direct-selling industry. It presents an opportunity for the company to further its efforts to clear its name and educate the public on what direct selling actually entails.
For those unfamiliar with the business model, direct selling serves as a retail channel where businesses use independent agents—often called representatives or distributors—to market their products directly to consumers. The representatives earn commissions based on sales, which Biram Fall, QNET’s general manager for sub-Saharan Africa, emphasized when discussing the case. “The more products they sell, the more commission they earn,” he stated, further distancing the company from illegal pyramid schemes, which focus on recruitment rather than sales.
It’s not an overstatement to say that the direct-selling market is big business. Reports project that the global market will grow by $78.81 million, with a compound annual growth rate of 5.04% from 2022 to 2027. Yet despite its economic impact, direct selling often finds itself marred by misconceptions, frequently confused with pyramid schemes or scamming operations. QNET’s recent legal win is a pushback against these damaging notions.
Founded in 1998, QNET has evolved into a global player with a focus on wellness and lifestyle products. It’s an extension of the QI Group, a conglomerate based in Hong Kong and one of Asia’s fastest-growing e-commerce-based companies. Fall remarked on the importance of understanding QNET’s compensation plan, which calculates commissions based on sales volume through its e-commerce portal.
Of course, like many organizations, QNET has had to contend with those who misrepresent its mission. Bad actors within the independent representative pool have at times exaggerated claims about the business or its products, leading to public skepticism and legal challenges.
In response, the company is taking comprehensive measures. It has opened a Direct Selling Disinformation Centre to combat false information and launched educational efforts like the Mama Campaign in Ghana. These efforts aim to clarify what the business is about, highlighting the difference between illegal schemes and legitimate direct selling models.
As Trevor Kuna, the company’s chief strategy and transformation officer, stated, “This new QNET-hosted Direct Selling Disinformation Centre is the only one of its kind dedicated to countering disinformation originating from and about the industry.”
The company has a long road ahead as it works to solidify its reputation, but the recent court ruling in Benin serves as a beacon, shedding light on the facts and dispelling the darkness of misconception. QNET’s ongoing commitment to transparency and education may serve as a model for the direct selling industry as a whole.