Again and again, our industry struggles with being misunderstood in public. This is based on the misconception that network marketing equals a pyramid scheme. Today, we want to give you some facts on the subject, so that you have convincing arguments in talks with costumers and with new sales partners.
An important info in advance: pyramid schemes or pyramid systems are dubious and prohibited in Germany and other countries. A pyramid scheme has only one goal: to generate an ever-growing number of participants. The principle is based on mass. One person, the initiator, sells a product to another person or, in return for allegedly high chances of winning, entices them to buy into the system. The amount invested can only be distributed to the new business partner if he finds additional participants who also bring money into the system.
The pyramid scheme participant then receives a bounty for this recruitment. But this bounty does not correspond to the amount of money they invested up front to become a distributor. This can only be achieved by the masses: The more people participate in it, the greater the „profit“ – but only among the people who are in the higher levels of the pyramid. The participants in the downline can only lose in this system – unless they themselves sign up many new customers to whose deposits they can earn from. No value chain is being created. The money that the participants deposit is simply being reallocated within the respective pyramid. Those at the bottom of the pyramid earn nothing – unless they recruit like crazy to rise to the top level.
In summary, this means for the pyramid scheme:
• Only money is pushed back and forth,
• Earnings are paid by recruiting more distributors, not by selling the product or services
• The network itself is the goal of the system and the source of the profit
• There is not a lot of emphasis on selling the product
Consulting is the focus – strong arguments for network marketing
Network marketing like QN Europe has nothing to do with a snowball or pyramid system. Our business model can be described as follows:. Our sales partners advise interested new customers and, if they are interested in purchasing a product or service, assist in the transaction of the purchase in our eStore.In the analog world, that would be comparable to a sales consultant in a retail store. The sales partner receives a commission for the purchase made by the customer.
Customers who are interested in the business model of our sales organization are also advised: Our sales partners explain the framework conditions and requirements, and show the opportunities and opportunities that are associated with working as an independent sales partner for QN Europe. Both counseling approaches are completely independent of each other and are based exclusively on the interests of the client.
Network marketing finally is about
• selling a product through a network of distributors
• paying earnings by selling the product or services, not by recruiting more distributors
• Rewarding sales partners based on performance
• The sales people are self-employed
• Everyone decides how much they earn based on their personal commitment
• The focus is on customer service
• Value-added and sustainable products are sold
We want to hear from you. What experiences have you made during your customer discussions related to this topic? Please feel free to send us an e-mail at: email@example.com. We are happy to answer any further questions you may have.