Business Opportunity or Pyramid Scheme?

Editor,  This letter is a reaction to the various articles and Government ban of QuestNet. First of all I am really thankful for government’s willingness to look into the issue of Quest Net Business Practices.

Editor,
 
This letter is a reaction to the various articles and Government ban of QuestNet. First of all I am really thankful for government’s willingness to look into the issue of Quest Net Business Practices.

Some people confuse the Network Marketing business opportunity with disreputable pyramid schemes.

However, there are major differences, which have been officially recognized by the US Federal Trade Commission.

Multilevel or “network” marketing is a lawful and legitimate business method that uses a network of independent business owners to sell consumer products supplied by an established company.

Business owners merchandise products to consumers, not in fixed retail stores, but through person-to-person relationships between business owner and customer.

Pyramid schemes are illegal scams in which participants invest a large amount of money in exchange for the promise of receiving profits by recruiting additional participants to make a similar investment.

Pyramid promoters sometimes try to make their schemes resemble multilevel marketing methods by introducing a product line.

However, little or no effort is made to actually market the products to consumers. Instead, compensation is paid for recruiting.

The NM Sales and Marketing Plan is based on retail sales to consumers, not empty “get rich quick” promises demanding that you hand over large sums of money.

While business owners can earn bonuses from sales made by people they recruit into the business, Network Marketing does not pay bonuses for the mere act of sponsoring another person.

Jeevan Pangeni
jeevan20002@yahoo.com

 

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