Qnet is it really a scam.. Part 2 (The Pyramid Scheme)

We discussed earlier why there is  a debate about Qnet and who started it and why? ( check Qnet Is It Really a Scam? Part 1)


Now lets start with the first and main objection..... Is Qnet A pyramid scheme?
a famous article on the net that’s published everywhere about Qnet, the scam or the fraud whatever your search is... You will sure find this article appearing to you...



I was going to copy and paste what is written in that article, but I found out there is no need, as the author tries by every way to prove that it’s a pyramid scheme… without going into details we have to know first what is the PYRAMID scheme?


During my search on the net to identify the truth of this delegation, I found out a very useful article, that describes the problem of Qnet and its connection to the pyramid scheme and whether it’s right or wrong?


The Pyramid scheme programs are 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.


All businesses and institutions employ some kind of pyramid structure based model. The argument then is not really about the geometric nature of an organization, but the way the system is operated. 


QNET utilizes a binary compensation plan, which may look like a pyramid when it is filled up, but the similarity ends right there. Let me explain.


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 the market and not for the purpose of recruiting for payment. If a distributor sponsors more than two distributors, the excess are placed at levels below the sponsoring distributors front-line. This ‘spillover’ is one of the most attractive features to new distributors since they need only sponsor two distributors to participate in the compensation plan. The primary limitation is that distributors must ‘balance’ their two down-line legs to receive commissions as illustrated below.
Legal multi-level marketing (MLM) involves being recruited in order to sell a product or service that actually has some inherent value. As a recruit, you can make a profit from the sales of the product or service, so you don't necessarily have to recruit more salespeople below you. And while you may be encouraged to recruit other salespeople whose sales would give you more profit, you can stick to just selling the product directly to the consumer if you choose. 


A pyramid scheme MLM, however, will most likely sell a product with no independent value. The product could take the form of reports of some kind, for example, or mailing lists. In this kind of pyramid scheme, you would be required to recruit new members into the MLM in order to make a profit and keep the MLM alive. Joining the MLM is the only reason anyone would buy the products sold by this pyramid scheme.


So Qnet doesn’t utilize the pyramid scheme but utilizes what is called the “ Binary Compensation Plan”


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