page_title: Qnet
section_title: Business model
hierarchical_section_title: Qnet / Business model
caption_attribution_description: English: A simple binary tree diagram illustrating the hierarchical structure of a multi-level marketing compensation plan.
context_page_description: Qnet Ltd, formerly known as QuestNet, GoldQuest, and QI Limited, is a Hong Kong-based multi-level marketing company owned by the QI Group. The company's products include energy, weight management, nutrition, personal care, home care and fashion accessories on an e-commerce platform.
  It operates legally in some countries, but has been charged with Ponzi scheme and multi level marketing in countries such as India. The government of India and the Telecom Regulatory Authority of India banned the site in India after a protest spread in Bangalore.
  Qnet's operations tend to be franchised out to local companies, thus allowing the head office to earn while relieving it of liability and responsibility from local and national cases of fraud.
context_section_description: The company employs a multi-level marketing model whereby a group of independent representatives refer its products to consumers and receive compensation based on the sales volume of their referrals and the sales volume of other independent representatives on their teams.
  Customers can choose to become "independent representatives" (IRs) of the company by paying $10 for a starter kit and an online office. IRs receive $250 commission after they introduce the products to six people, placing three people on their left and three people on their right, described as two 'legs'. When an IR introduces a new customer who then becomes an IR themselves, the original IR benefits (by receiving bonus points) from the success of their recruit. These bonus points build up on only one of the IR's legs. The IR must then find recruits for the other leg in order to receive commissions.
  Many government entities described Qnet's business model as a pyramid scheme: early entrants earn money, and as the number of Independent Representatives (IRs) increases, finding more IRs to join becomes difficult or impossible; IRs that join late do not earn enough to cover their first outlay and the model collapses.
  As per an official spokesperson, even though sign-up fees are not charged, a purchase might be required. This may be in the form of the sale of a qualifying product to a retail customer or by the new representative making a qualifying purchase.
caption: A typical MLM binary tree structure. The blue individual will receive compensation from the sales of the downline red members.
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