My Life with ‘QuestNet’ – Part 1
This post like many others is a proof that ‘there is no free lunch’. By posting my experience with QuestNet, I aim at equipping people who may be interested in QuestNet to make an informed decision about it. I’m not necessarily against the QuestNet model, but I’m against false promises. Its purely advice because even after reading through, the powers to decide whether to join or not still remain with you. Feel free to advice me as well so that I can learn.
The First Presentation that I Attended
On 17th June 2007, in Manzini (Swaziland) I attended the first conference organized by the national coordinator for ‘QuestNet’. This initiative came as a newly invented method of making money as portrayed by my brother in-law who had invited me for the meeting. I know he invited me to be his down line, yet I know that his intention was not to steal from me as it eventually was a rip off. In one of my articles, I relate exactly how I was called to attend.
The occasion was called ‘A business Meeting’. Everybody who wanted to make quick money was to be there. I took my time to attend, bringing with me a laptop, a pen and a paper just to make sure that I don’t miss even a single point from the presenters. Just before the meeting started, I looked around to see if there was anybody I knew. We were a group of about twenty and I wasn’t expecting to see a lot of people that I know. To my surprise, six of the attendees were known to me. Instantly, the element of competition started to build up in
my mind. Not knowing what the idea was, I knew we would be chasing after more or less the same people for business. Eventually the presentation started.
Wow, a reputable man (the country coordinator) stood in front of us to introduce a business lady from Kenya who had made millions of dollars in the shortest time imaginable to us. The introducer went on to tell us the names of those who had already joined the QuestNet community from the locals, himself included. At this time, I was anxious to hear about the real business idea. The credits for the idea (the company) and the presenter were just beyond human imagination, she had even quit a high paying job with the United Nations for QuestNet. It appeared as if we had reached an all time solution to our financial problems.
The moment of truth came and the presentation started. Worth noting is that all other products and services were discussed, but special emphasis was made on the bio-disk. I have written my open thoughts on this product as well in a separate article. In fact, all the other products seemed irrelevant and extremely expensive. Even though the bio-disk was expensive but compared to the stated benefits, the price became ignorable. However, others amongst the group showed interest on some technology and jewellery items.
The Challenge
During the presentation, everyone was attentive until the end. None went out for whatever reason, simple because we couldn’t afford missing a single word from the eloquent presenter. I don’t know about others, but I thought of my credit card and thanked God that I had one and that it had some credit. Instantly I knew I was ahead of many because of my credit card and the fact that the requirements were a bit difficult for some. These were the challenges to most attendees:
- Strictly e-commerce – Unless you have access to the internet, it was impossible to participate.
- Payment in US Dollars – Our currency is at par with the South African Rand and the rate at the time was around 7.5, which was high.
- Payment method – Other than debiting from one’s credit card, I heard about the e-card but I don’t know how it works. So, I knew I was ahead.
I had no problem at all with any of these three requirements. After the meeting, I wanted to know more on how this programme works. As it had been presented already, I was ready to join and buy to qualify. That’s it! No working at all, as emphasized by the presenter. I can just help if I so wish by getting two down lines, but we were told that it was unnecessary.
From the meeting, I went back home and shared the so called good to my wife. She first didn’t understand what I was talking about, but eventually liked the idea. I knew very well that if I could join the following day, all the others would be my down lines. To be precise, I hoped so.
One MLM that has crippled my finances and relationships
My Spirit was a bit disturbed and deep inside I got this feeling of being confused. I was indeed overwhelmed by the presentation and no thought would be strong enough to persuade me otherwise. However, somehow I knew something was wrong with QuestNet. I battled with this thought but was convinced that it was good because of the reputation of the national coordinator. Allow me to pause for a fresh start in part 2.
This post has 7 comments
July 27th, 2008
I’m jobless, I have nothing to do, I only spend time with my family and friends and I don’t want to look for a job at all. I’m the boss of myself, I’m financially free, I have my personal freedom and all it took me is to give in the effort to do network marketing for almost two years. I make really really good money from questnet now. Just believe it and you’ll reach the million like me. I’m proud to say i’m a questnet partner. Thank you Questnet and the V partners.
July 29th, 2008
I’m not saying QuestNet is not working at all. I agree you could be making your millions but how many of the people that join QuestNet end up getting so much like you do? All schemes would have at least 2 % success rate for participants. I’m happy for you but wouldnt dare do the mistake again. Let them take all that belongs to me which is in their possetion, its fine. I dont need them in my life ever again.
August 29th, 2008
Do Most People Fail In MLM?
Some make the claim, “Most people fail at MLM (Network Marketing).”
Who would make this statement? My guess is people trying to justify why they failed
or never started.
If you looked at the statistics of how many people succeed compared to how many “fail,” you could draw the conclusion that most fail. Factually, the statement is true.
But why people act as though this is different than anything else is unknown to me, because the same could be said about anything people attempt!
According to the National Association of Real Estate, over 80% of people who get their real estate license quit in their first year – most never sell one home.
Most people who want to sing at the Opera fail.
Most people who want to play professional sports fail.
Most people who start a business fail.
Most people who want to play a musical instrument quit.
Most people who want to get into shape quit.
So while it is true that most people fail at MLM (network marketing), it is also true that a majority of people fail at every other pursuit!
If someone goes on a diet and exercise program and then cheats by eating things that are not on their diet program and/or by not exercising when they’re supposed to, can they really blame their “failure” on the diet and fitness industry?
NO! If a person fails, it’s because they failed, not the industry!
Having used that diet/exercise example, I will admit that if a person follows the program but doesn’t get results, then the program could have one or more flaws. But that doesn’t mean the entire diet and fitness industry is flawed.
The same is true with MLM (Network Marketing). If a person is trained and does everything they are trained to do but does not get results, the training could
be flawed. But that does not mean that the ENTIRE MLM INDUSTRY IS FLAWED.
A similar claim: “The odds” of making big money in MLM are low.
This isn’t relevant.
If I want to get fit, what are the odds that I will?
Huh?
That seems like an odd question, doesn’t it? What do “the odds” have to do
with me getting off the couch and tossing the potato chips in the trash?
Trying to apply the odds of success has nothing to do with someone pursuing
their dream. If someone wants something, they never look at the odds. Odds
belong in gambling and stock trading. Anyone who achieves anything worthwhile
actually beats the odds. Be one of them.
September 4th, 2008
Hi everyone,
I’ve seen that that there are a lot negative publicity about QuestNet, not only in this website but in other places as well. I’ve been with QuestNet for the past 5 years and I know what it is inside out.
However, I really relate to the people who feel they’ve been cheated. The way I see it, they’ve been cheated by the person who explained it to them. These people may have given the idea that the business is easy or have not told the whole story, the truth. But this doesn’t mean QuestNet is bad. I know doctors who practice unethically (you know what I mean), but that doesn’t mean that the whole medical industry is bad.
For the purpose of educating people on network marketing, I will post a series of articles starting from today so that people can make an educated decision when they look at a network marketing business.
Know the truth, differentiate the good from the bad.
WHAT IS MLM?
MLM is an acronym for Multi-Level-Marketing, sometimes called Network Marketing.
As the name suggests, multiple levels of people are marketing a product to consumers. A sales representative (also referred to as a distributor, member, affiliate, partner or associate) gets customers and recruits and trains another sales rep to get customers.
Multiple levels of marketing are actually what all companies desire (both MLM and non MLM companies). If you’ve ever heard a traditional company announce, “Refer a friend and you’ll receive a discount on your next purchase,” this is multi-level marketing. Health clubs, real estate, telecommunications, and countless other industries use this technique. Professionals (doctors, dentists, accountants) live or die based on their customers telling others about them. All these businesses are simply trying to get current customers to advertise and market their product or service to potential customers.
The Traditional Company
In a non-MLM company, a sales manager and sales reps are hired by the company. The company is limited to the number of sales reps they can hire based on the financial resources the company has to pay salaries and on the traffic the sales manager can handle. Once a sales manager is overwhelmed, the company can hire another manager or convert a sales rep into a manager. This could be called “Multi-Width” marketing because it expands the organization horizontally as compared to “Multi-Level” marketing, which expands its organization vertically.
The MLM Company
An MLM company “starts” by recruiting one person who gets customers and recruits sales reps (just as above in the traditional company). But each sales rep is also given the option to become a manager, who can also recruit sales reps. The MLM company only pays commissions, not salaries; therefore, there are no limitations on the number of sales reps or managers an MLM company can recruit. This is beneficial to the company because of rapid expansion by the number of trained sales reps. This is also beneficial to the sales reps because their income isn’t limited to only what they can sell – they can also earn commissions for having trained other sales reps.
Very simply and factually, MLM is one of the five main methods used by a company to sell and distribute a product or a service to a consumer.
All companies (MLM or traditional companies) have one main characteristic in common: they provide a product or a service that hopefully makes a consumer’s life better. Once a company has such a product or service they need to make it widely known. They do this by distributing it. Distributing a product involves finding customers and getting the product in their hands. There are five primary ways to distribute a product or service:
The Five Primary Ways to Distribute a Product or Service
STORE FRONT
Company rents or buys a store in busy area to get walk-in traffic. Hires sales person to communicate with customers who walk in.
DIRECT MAIL
Company buys addresses. Hires marketing person to write and send written communication about products and or services through the mail.
TELE MARKETING
Company buys telephone numbers of prospects. Hires and trains sales people to call and sell products/services via the phone.
INTERNET
Company puts up a web site and advertises to get traffic. Similar to direct mail, the marketing occurs through written communication.
MLM
Company recruits a distributor (sales representative) to sell products. Grants sales person right to recruit other sales reps to sell products.
Each of the five methods above can use techniques from one or more of the other methods to get customers. Meaning, a Store Front isn’t limited to only walk-in traffic. The Store Front can also advertise on radio, television and in newspapers, magazines, and mailers (post cards, flyers, etc.) directing prospects to the store location. This can increase the number of people walking into their store.
Similarly, a distributor in an MLM company can use some or all of the 4 other methods as well as getting customers through friends and family. And of course an owner of a store front (such as a restaurant) can also tell his friends and family about his store!
So what is MLM? The main point to understand is that distributing any product means to make it known. MLM and the other four primary ways to distribute a product are simply methods used to make a product known.
MLM is Organic
Organically, the MLM industry is a fantastic model. By “organic” I mean that if you strip away all the hype and noise and just look at it conceptually, it is the purest way to move a product to a consumer and the purest way to be compensated. Here’s why…
1. In its organic state one person shares a valuable product or service with another (not because they will profit, but because the product is valuable). “I like it, maybe you will too.” That is clean and pure.
2. A person shares a business idea with another – this is the foundation of all businesses throughout history. “I found a business I like and maybe you’d like to work on it with me.” That too is clean and pure.
3. The person who shares the business with another ONLY profits IF the person they shared the business with succeeds – that is ultra-responsible, which is also clean and pure.
Those three steps are the organic concepts of MLM and are absolutely brilliant.
If you strip traditional marketing down to its core, it would be a person writing an advertisement and 98% of the people who review the advertisement not responding (a top marketer gets a 10% response; the average is 2%).
Look around and see what all it takes to move a product to the consumer in the “traditional” sense, and you’ll see a lot of wasted actions and resources. Can you imagine how pure a city would look if there were no advertisements? Think of the number of trees that get consumed in the name of advertising, and the materials that then end up in land fills.
Perhaps a good way to describe MLM is to demonstrate how MLM is the same as a traditional company, and also how MLM is different. Look at this diagram for a visual.
Please understand that I am not criticizing the use of trees, the cluttered environment, or advertising – I’m simply asking you to look at the amount of unnecessary actions that go into moving a product to a consumer, as compared to the simplicity of one person communicating with another.
September 14th, 2008
Multi-level marketing (MLM), also known as Network Marketing, is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling.
Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).
Independent distributors develop their organizations by either building an active customer base, who buy direct from the parent company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization.
It is sometimes difficult to distinguish legal and reputable MLMs from illegal pyramid or Ponzi schemes. MLM businesses operate in the United States in all 50 states and in more than 100 other countries, and new businesses may use terms like “affiliate marketing” or “home-based business franchising”. However, many pyramid schemes try to present themselves as legitimate MLM businesses.
In the most legitimate MLM companies, commissions are earned only on sales of the company’s products or services. No money may be earned from recruiting alone (“sign-up fees”), though money earned from the sales of members recruited is one attraction of MLM arrangements. If participants are paid primarily from money received from new recruits, or if they are required to buy more product than they are likely to sell, then the company may be a pyramid or Ponzi scheme, which is illegal in most countries.
New salespeople may be asked to pay for their own training and marketing materials, or to buy a significant amount of inventory. A commonly adopted test of legality is that MLMs follow the so-called 70% rule which prevents members “inventory loading” in order to qualify for additional bonuses. The 70% rule requires participants to sell 70% of previously purchased inventory before placing new orders with the company. There are however variations in interpretations of this rule. Some attorneys insist that 70% of purchased inventory should be sold to people who are not participants in the business, while many MLM companies allow for self-consumption to be a significant part of the sales of a participant.
The Federal Trade Commission (FTC) issued a decision, In re. Amway Corp. in 1979, which indicated that multi-level marketing was not illegal per se. However, Amway was found guilty of price fixing (by requiring “independent” distributors to sell at the low price) and making exaggerated income claims.[8]
The FTC advises that multi-level marketing organizations with greater incentives for recruitment than product sales are to be viewed skeptically. The FTC also warns that the practice of getting commissions from recruiting new members is outlawed in most states as “pyramiding”.[5] In April 2006, it proposed a Business Opportunity Rule intended to require all sellers of business opportunities—including MLMs—to provide enough information to enable prospective buyers to make an informed decision about their probability of earning money.
In March 2008, the FTC removed Network Marketing (MLM) companies from the proposed Business Opportunity Rule.
“The revised proposal, however, would not reach multi-level marketing companies or certain companies that may have been swept inadvertently into scope of the April 2006 proposal.”[9]
Criticisms have been raised against various MLM programs for being cult-like in nature. Some MLM programs feature intense motivational programs, which can be hard to distinguish from cult propaganda. So-called corporate cults are businesses whose techniques to gain associate commitment and loyalty are in some ways similar to those used by traditional cults. Amway associates are sometimes cited as an example of such devotion. [10]
March 5th, 2010
you say that you’re still recovering ?? few hundred dollars aren’t that big of amount to be recovering from !!!!!! plus you seem like you REALLY didn’t pay attention to the presentation because nearly all you say is wrong ! I say for your own health stop wastig time hating and spreading negativity and go out there make some money , wish you best of luck!! am a Questnet partner and proud to be =)
March 7th, 2010
QuestNet for us was not what it actually it. It was not an ordinary MLM but a lazy man’s way of making money – it just was too good to be true & very decieving. I regret having believed the lie of making money and lost all my thousands of Rands. I still hate QN.
Trackbacks