Want to understand the Direct Selling industry and how to tell an illegal pyramid from a legitimate network marketing company? This presentation helps you understand the key differences. Know more about QNET by visiting these sites: http://www.qnet.net http://www.qbuzz.qnet.net http://www.qnetlife.net https://twitter.com/QNetOfficial https://www.youtube.com/user/QNETofficial https://play.google.com/store/apps/details?id=com.qnet.estore.android&hl=en https://www.facebook.com/QNETIndiaOfficial

2. DIRECT SELLING is the marketing of
products and services directly to consumers
in a face-to-face manner, away from retail
locations.”
– World Federation of Direct Selling Associations (WFDSA)
“

3. There are over 103 million
direct selling entrepreneurs
worldwide.
Last year, direct selling accounted for over
USD 183 billion in global retail sales, with a
growth of 7.7% from 2014.
(WFSDA Global Direct Selling - 2015 Retail Sales, Published
June 2016)

4. Indonesia is the #23 largest direct selling market in the world, with 12.7 million
direct sellers active in the country. Last year, the country generated USD 1.1 billion
in sales, up by 12.9% from 2014.
In 2015, direct selling in the US generated USD 36.1 billion in estimated retail sales,
up 4.8% and a US record.
DIRECT SELLING
AND THE WORLD ECONOMY

5. Last year, over 1.1 million sellers in South Africa made USD 597.2 million in sales, a 3.8%
increase from 2014.
Russia is the world’s 11th largest direct selling market. As of 2015, there are now 5.1
million direct sellers in Russia, 87% of whom are women.
Turkey sales reached USD 762 million in 2015, showing an increase of 8.0% from the
previous year. In 2014, it was recorded that 84% of the 1.3 million direct sellers in the
country are women.
(WFSDA Global Direct Selling - 2015 Retail Sales, Published
June 2016)

6. Your industry gives people a
chance to make the most of
their own lives. And to me,
that is the
very heart of the
American dream.
“
”
Former US President Bill Clinton

7. Network Marketing (NM) is an important component of
Direct Selling, where the company and its products are
marketed directly through word-of-mouth.
WHAT IS NETWORK MARKETING?
A legitimate business with real products sold at a fair price,
where financial success is due to network marketers’ dedicated efforts.
(Entrepreneur.com, 25 December 2000)

8. DOWNLINES build a
network of distributors & have
equal opportunity
with their UPLINES.
PROMOTION & FINANCIAL
GROWTH come from encouraging
downlines to achieve the same.
Start at the bottom &
RISE TO THE TOP by building
your own business.
NETWOR
K
MARKETING

9. Father of Microfinance & Nobel Peace Prize Winner 2006 opened his
keynote address at the World DSA Congress in Singapore in 2008
with these memorable words…
This morning, while sitting with the leaders of
this industry, I was amazed by how the way we work
is so similar. We got involved in the business in
different ways, but since our objective was the
same, we somehow became very close to each
other.
In the same way, what I'm about to tell you today
will sound familiar to you as well.
“
”
Professor Muhammad Yunus

10. DIRECT SELLING
an alternative source
of income during the
economic crisis
During an economic crisis, companies
downsize and lay off staff.
Starting a traditional business requires substantial capital
investment which not many can afford.
People choose to purchase necessities and consumable goods
from their business partners, colleagues, family and friends.

11. What are the BENEFITS of
being a direct sales professional?
Choose when, where and how much you want to work.
Earn profits in direct proportion to your efforts.
Use direct selling as a full-time business or supplementary income source.
Open to everyone regardless of age, race, gender, experience, etc.
Good way to meet people and socialise.
Access to innovative products not found in retail stores.
Convenient service provided.

12. COMMON MISCONCEPTIONS
99.9% of people lose money from network marketing.
Most network marketing companies are pyramid schemes.
Recruitment is the key to success in network marketing.
Network marketing companies are unregulated.
Requires inventory purchase.
Drop-outs are stuck with what they have purchased.
All network marketers just want an easy way to make money.

13. Network marketing is the
big wave of the future.
It's taking the place of
franchising, which now
requires too much capital
for the average person.
“
”
Jim Rohn (1930-2009)
Multimillionaire & Motivational Speaker

14. PYRAMID
SCHEMES

15. Right from the start, network
marketing companies will tell you
that financial freedom requires hard
work, dedication and business smarts.
1LEGITIMATE NETWORK MARKETING
is not a ‘get rich quick’ scheme
Any company that promises you
an easy way to get rich quickly
(especially through membership building)
is probably a scam.
$$

16. Network marketing companies help
distributors keep track of purchases,
commission earnings & product
delivery status while offering full
customer and marketing support.
2
LEGITIMATE NETWORK MARKETING
provide business tools
Network marketing companies place huge emphasis on
training and have a lot of qualified trainers to help you
understand the business and products better, so you
have the ability to mentor and steer you in the direction
of success.
3
LEGITIMATE NETWORK MARKETING
has a solid training system

17. They believe in achieving strong long-term growth and
stability by creating a culture of ethical marketing.
The business policies and procedures of
network marketing companies are clearly
stated, binding every network marketer to strict
regulations and agreements.
4 LEGITIMATE NETWORK MARKETING
has proper policies, procedures and
ethical marketing codes

18. Unlike Pyramid Schemes, where there are no legitimate
products/services for initial investment, network
marketing companies spend millions on research &
development to provide high quality products that meet
the lifestyle needs of people across the globe.
5LEGITIMATE NETWORK MARKETING
delivers quality products or services
Network Marketers are rewarded mainly for selling products.
In a pyramid scheme, there is no financial return unless you have
successfully recruited others into the company.
6LEGITIMATE NETWORK MARKETING
gives out commissions based on product sales

19. Network marketing companies apply
fair and reasonable compensation plan
restrictions in their distributor’s earnings to
create equal income opportunities for all.
7
LEGITIMATE NETWORK MARKETING
imposes restrictions on compensation plans
In a pyramid scheme, those who came in first make all
the money while new members lag hopelessly behind
because they were recruited when the money pool had
already been depleting.

20. Network marketing companies follow strict
methods in dealing with inventory and do not
encourage product overloading. This drives focus
towards proper networking and distributors do not
have to worry about having to dispose of
excessive product supply.
8LEGITIMATE NETWORK MARKETING
does not encourage product overloading

21. Many network marketing
companies are really business
schools that teach values not
found in traditional business
schools. Values such as the
best way to become rich is to
teach yourself and other
people to become business
owners, rather than to teach
them to be a loyal employee
working for the rich.
“
”
Robert Kiyosaki
Best-selling Author of Rich Dad, Poor Dad

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