If you know anything about direct selling, then you should be aware that misinformation is a major problem plaguing the direct selling business. Even QNET India is not safe from these misinformation campaigns and lies. Therefore it is important to understand what causes this misinformation, the most common kind of misinformation and what we can do as QNET IRs to stop its spread.
Here are the most common kinds of misinformation that are levied against top direct selling companies like QNET.
Direct selling companies are a scam.
One of the biggest misconceptions regarding direct selling businesses is that they are scams or illegal. Nothing could be further from the truth. The reason for this misconception is that people confuse legitimate direct selling companies with pyramid schemes and Ponzi schemes of the past.
Yes, it is true that many pyramid schemes in the past have masqueraded themselves as legitimate direct selling businesses in the past. But today, there are many government rules and regulations that are put in place to make sure that such instances are no longer an issue. Similarly, all top direct selling companies in India are registered and regulated businesses under the government of India.
The direct selling model of business and revenue is declining
If you have read my article on the future of direct selling in India, you must be well aware of the truth regarding direct selling and its future. But to summarise, direct selling as a business model has seen a meteoric rise in the last few years. In India, it has grown over 16% over the last 5 years and is currently valued at Rs. 16,000 crore.
Reports also state that the industry is expected to reach a whopping Rs. 65,000 crore by the end of 2025 while providing employment to over 18 million Indians. And the best thing is that more than 50% of direct sellers are women, making it a great tool for women empowerment and equality.
Direct Selling is outdated and cannot compete in the digital era
In fact, things cannot be further from the truth. Direct selling always has The digital era, especially the growth of social media platforms, have given new life to direct selling companies and their distributors. Now it is easier than ever for a distributor to market their products and reach a wider audience.
In direct selling, word-of-mouth and organic customer interaction are crucial. Social media has allowed direct sellers to create organic interactions with their customers and to spread their business. In fact, even the V-Con 2021, the global convention for QNET entrepreneurs and distributors, was an online event.
Direct selling cannot compete with the new gig economy
My friend had written a long and detailed article about direct selling vs gig economy, and I don’t think that I will be able to do justice to the top as she did. But yes, direct selling can compete with the new gig economy. In fact, it can do much better.
I have not worked in any gig-based industry, so I am not sure of its benefits and issues. But as an outsider who interacts with people in the gig-based industry, I am well aware of the issues that they face. This was made clearer in the time of direct selling, where social and economic restrictions made it harder for workers of the gig economy to work and earn a living. In comparison, direct selling as a business was thriving at the same time, with more and more people looking to become financially independent and be their own boss. Even post COVID19, experts predict great things for the industry.
You have to recruit people to become profitable.
The network marketing model of direct selling is one where you grow your network, build a sales team and sell your products to people. Building a sales team is crucial if you want to make a huge profit as a direct seller, but it is not the only. Building a sales team is helpful as it allows you to sell larger volumes of products, and top direct selling companies like QNET does not pay you commission for recruiting anyone. What they do is give you part of the commission from the sales of products by anyone in your sales team.
As you can see, there are more than a few misconceptions about the direct selling business and what it brings to the table. But it is important to make sure that such false news and accusations are not allowed to spread. You can read this article by my good friend about why there is such a large number of misconceptions and such that you check out!
