How to spot a Pyramid Scheme?

I have already talked about the legality of a direct selling network marketing business in India like QNET and how some fraudulent entities try to masquerade themselves as legal companies to trick people. Fraudulent companies have used the good name and favour that direct selling like QNET has accomplished over the year to trick innocent people into parting with their hard-earned money and trapping them in pyramid schemes. But the good news is that you can always learn to spot a pyramid scheme and save yourself and your loved ones. There are many telltale signs that can show you if the direct selling network marketing company that you plan to join is a legitimate direct selling company like QNET or if it is a pyramid scheme. Using these signs, you will be able to make sure that you do not fall prey to such fraudulent companies.

No or Low-quality product or service

One of the biggest red flags that you should be on the lookout for is the lack of a product for you to sell. The main idea behind a direct selling company is that you sell products directly to customers. It’s in the name, after all. However, the main objective of the pyramid scheme is to get more people into the business. Suppose the objective of the business is to recruit more and more people into the business. While they call it building a team of membership, it is a red flag that you should look out for you.

In any respectable direct selling company like QNET, while recruiting new members to the company is essential, it is not a major part of the business. Direct selling companies like QNET give a part of the commission from the sales made by the people you recruit to you, but that’s it.

Outrageous and unfounded claims

Pyramid schemes try to attract unwitting customers into their scheme by coming up with outrageous and unfounded claims about their products or the opportunity. It can be about the benefits of the product or about being a make-money-quick scheme. The last thing you want to be associated with is a business that lies to you.

High-pressure closing tactics

One of the simplest yet most effective techniques that fraudulent companies use when it comes to trying to convince someone to join their business is to pressure them into joining during the start of a company. But the truth is that you will be much better off joining a direct selling company that has experience in the industry and is well-established in the market.

Pressure to stock up inventory

There will be cases where the pyramid masquerading as a direct selling company will have products to sell. Always beware if your direct selling company is forcing you to buy their products and to stock up. Top direct selling companies like QNET are confident about the quality of their product and does not see the need to pressure someone to invest more money than needed on the product and stocking up.

Deceptive advertising practices and job interview

Let’s make this absolutely clear- top direct selling companies in the world like QNET will never tell you that they are a job opportunity, nor will they take an interview to admit you. However, this has not stopped deceptive companies and direct sellers looking to recruit from lying about the business and what it entails. They are also known to suggest that joining a direct selling network marketing business is a guaranteed income generator and that you will not have to do a lot of work. QNET and other top direct selling companies are not a get rich quick scheme.

Trust your gut feeling

Many people who have fallen victim to such scams have said that they always had an unsettling feeling about the company and the business. Always trust your gut feeling and never be afraid to ask questions if you find anything concerning or troubling.

I hope I was able to help you to learn the difference between a legitimate direct selling network marketing business in India and a pyramid scheme. If you have any other question or products that you won’t answer, feel free to put in the comments below. Also, follow my page for regular and up-to-date content on QNET and the direct selling business.

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