Thank you for your letter and interest in the direct selling industry. Qnet is not a member of our association. This means that we did not see their registration papers, contracts with distributors and other documents on the basis of which our lawyers could determine whether the company is a pyramid and how it is connected to its main office abroad. So, as its members, we can not vouch for this company.
Also I’m worried about the information that is about the company on the Internet: http://ru.wikipedia.org/wiki/QNET
If you start working with a company of this type, I advise you to pay attention to the following points:
1) What exactly does the company promise you payments for? what does she sell?
If you receive payments depending on the volume of sales of goods and services – this is good. This is how “white” companies work: they sell their products to end-users through distributors or their networks, receive income and share revenue with distributors. Unsold goods – there are no payments.
If you built a network of several thousand people, and while your network did not work and did not provide any sales – you will not get anything, because there is no profit and nowhere to make these payments. The network is only a sales tool, not a goal.
But if you are promised a reward for attracting new people to the network – this may be a sign of the pyramid. Because the pyramid is fed by a constant expansion, and not by profit for selling the product to the end user who uses it and is ready to make a purchase again. There are often no pyramids and goods. True, recently the pyramids are mutated and can offer “goods” – but as a rule symbolic, small-bastard and for unrealistic money. It is immediately clear that the ultimate goal is not to sell the company’s goods, but to expand the network of sellers. Be careful and careful. You can suffer.
2) what responsibilities does the company have before you and what is the guarantee that the company will fulfill the promised? Read carefully your contract with the company.
When we talk about the members of our association, they are all connected to their main or European offices. In this case, we say that the company has officially entered Ukraine and works with distributors for the same transparent rules, as in other countries. And even if you have disputes over the Ukrainian office, you can complain to the central office and get help there.
But there are situations when distributors realizing the goods of a direct sales company decide on their own responsibility to register their own company with a consonant name. They work legitimately, according to Ukrainian legislation, pay taxes, and they can not be called illegitimate in Ukraine. But the boundaries of their responsibility to distributors are much narrower than that of an international company that has entered Ukraine officially and builds business in accordance with corporate rules. I think that you see this difference.
Those questions that you put in your letter, you will not say anything about your prospects in the company. The company can be officially registered as a limited liability company, pay taxes. But if you have a dispute over financial issues, then you will have only 2 outputs:
a) go to court (so read your contract with the company! what is the company’s responsibility to you?)
b) write to the head office of the company with a request to help (not the fact that they are aware of the opening of a representative office in Lviv, and not the fact that this company is not an international pyramid). At the moment I do not see Ukraine at all in the list of countries where this company has representative offices: http://www.qnet.net/en/company/worldwide _offices /
3) carefully read what kind of goods you will be selling. Whether the buyer is able to return this product or refuse to purchase
