Rishi Chandiok Addresses QNET Scam Allegations, Future of Direct Selling in India

Rishi Chandiok is QNET’s regional director of South Asia. He is responsible for managing the legal and operational functions of the highly-decorated direct selling company for the South Asia region, which includes India, and he wants the world to know: the QNET scam allegations are patently false. With over 12 years of experience working in strategic business implementation for large multinational companies, Chandiok confirms that India is the perfect backdrop for the growth of direct selling, with a bright financial future and endless expansion opportunities.

“We are proud to have helped many people start successful businesses in India,” he says. The company experienced steady growth despite the global coronavirus pandemic and malicious misinformation circulating through Indian media and Wikipedia about QNET’s authenticity and labeling it a scam.

“The people who call QNET a scam don’t understand the direct selling business model. Most conflate direct selling with pyramid schemes, in which the only way to make money is to increase membership. But QNET operates on commission. Our distributors only make money based on the products they sell, not the number of people they encourage to sign up with QNET,” he explains. “QNET has been in operation for over two decades so far, while in comparison, in India alone, 80% of new businesses fail within the first three years. How could we continue to operate, let alone thrive, if QNET was a scam or participating in illegal business practices?”

It is unclear why media outlets get QNET confused with pyramid schemes since they operate very differently. Explains Chandiok, “Our company is an international e-commerce-powered direct selling business. We offer all sorts of products for wellness, lifestyle, and health. Items can be purchased online, and we also have distributors around the world.”

It is a fact that QNET is a legal business with customers and distributors in nearly 100 countries. “We are a member of the Direct Selling Association in Singapore, Malaysia, the Philippines, and Indonesia. All DSA members are also members of the World Federation of Direct Selling Associations. These DSAs, and the WFDSA, are self-regulating authorities with very strict requirements for membership,” says Chandiok. “We could not operate as a member of the DSA if QNET was a scam.”

According to Chandiok, “QNET distributors are also encouraged to do their due diligence. While there are many scam allegations about QNET in India, they don’t hold up to scrutiny. However, with the base level of research, any potential distributors will be able to see through a QNET scam claim pretty easily.”

The future of direct selling in India

The direct selling industry is experiencing so much growth because it offers flexibility to the distributors. According to the World Federation of Direct Selling Associations (WFDSA), India’s direct selling community saw more than $2.47 billion in 2019 and a 12.1% increase from the previous year. This figure puts India at 15th overall in terms of growth, compared to 2018, when it was 19th on the WFDSA’s Global Statistics list. It’s especially popular with women. Those who are working moms can especially appreciate the scheduling flexibility direct selling provides. In fact, more than 3.6 million women from India are selling part-time or full-time.

In India specifically, QNET makes it possible for most people over age 21, who want to start their own business, to become distributors. “They earn commissions on everything they sell,” says Chandiok.

While the pandemic and worldwide lockdowns lead to countless companies closing, QNET has an advantage. “QNET has relied on an e-commerce platform for years, so we didn’t have to change our operations too much,” explains Chandiok. “Our challenge has been to train our distributors on how to deal with these new realities. So we began offering online training to help everyone understand our products and how we do business online. As a result, our distributors rose to the challenge and learned how to do business online, adapting fairly quickly to the new normal.”

And the premier direct selling company is looking at how to adapt QNET to the future of the industry.

“We anticipate a lot more of the market to evolve into social selling,” says Chandiok. So what exactly does that mean? “More and more young people use social media platforms like Instagram to tell people about products using video and posts. In addition, Gen Z and millennial influencers are driving certain brands and overall brand awareness,” he explains.

“There’s also a greater emphasis on sustainability than ever before,” says Chandiok. “In India, they have a ‘Vocal for Local’ program that encourages people to shop more locally, if possible. So international direct selling companies that do business here are looking for Made in India products to offer their customers. QNET currently sells more than 80 health, lifestyle and wellness products, and 75% are sourced from India through small and medium enterprises.”

For more information on QNET scam allegations: https://www.qbuzz.qnet.net/rumours-controversies-and-is-it-a-scam-question/

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