WHY QUESTNET IS NOT LIKE OTHER NETWORKING COMPANIES
BY SYDNEY PEREIRA
(Graphics are missing-will be added soon)
(Note: To receive original ms word file,please e mail me your request at ramesh151@yahoo.com )
Many people when told about Questnet and Goldquest immediately say OH! It is like Amway or it is a scam, a chain, a pyramid or a Multi Level Marketing scheme or some other such nonsense without even trying to understand what it is. Questnet is unique in that there is no other business opportunity like it anywhere. And I will call it a Business, because it is hard work just like in any other business.
First let me explain to you what a Multi Level Marketing scheme or MLM as it is referred to is.
As the name implies, the amount of commission that you receive depends on the level you are at. Look at the diagram below. (So sorry -missing graphics)
YOU
A B
Here you are the head of your organization and you are selling products for which you receive commission. When you sell the products directly to a customer, you earn the highest commission say 20%. But there is only that much you can do by yourself. If you want your turnover to increase you need more people to sell the products, and you will have to give them a commission or else they will not be interested. So now you have got two others A and B to join you, and whatever A and B sells earns you a commission, let us say 10%. Now A and B will not be satisfied with the volume of business that they are doing, and will want to recruit more people to sell the products. Assume that they get two people each as the figure below shows.
Here A has C on left and D on right under him.
B has E on left and F on right under him.
Now C, D, E, and F will want their 10% margin from A and B, what is left is 10%, and if that is shared, it will work out to 5% each for A and you. But it is not shared equally as this is a MLM scheme and the commission depends on the level on which you are. So A will get more than 5% and you will get less than 5%.
As you can see, this is a law of diminishing returns. As the business builds, you at the top get less and less. So the only way you can maximize your commissions is by selling maximum directly to your customers, and having the maximum number of people directly below you, that is in the layer directly below you.
Another disadvantage in other schemes is that you are selling products on a commission basis; you have to stock up these products like a shopkeeper, and remember that these products have expiry dates. You have sell them before they expire, and many such schemes have a quota for you to fulfill in a given time period.
In the Questnet business plan every one gets an equal commission. It does not matter on which level you are. If a person ten levels below you joins, you will be credited with your commission, and in due course when your left and right sides balance, you will get your cheque.
No other business offers you this opportunity. You have to stock nothing; there is no expiry date, no quota, and no time frame. You can start your business, do nothing for two years, and then take off from where you started without loosing any advantage.
A PYRAMID SCHEME
People will tell you that this is a pyramid scheme. Do you really know what a pyramid scheme is? Perhaps you have received a letter stating Do you want to be a millionaire? Then send one rupee by money order to each of the following with instructions to each of them? The number of names will never be more than nine, and it will cost you only nine rupees. This is a pyramid scheme. One of the names on the top is the name of the person who started the scheme. He will always receive one rupee from every one who joins the scheme. The others will be those below him in a calculated order and every one below will receive something in a descending order. So those at the top will receive the bulk of the money, those at the bottom will be only contributing and receiving nothing.
Can you call the Questnet business opportunity a pyramid scheme? (In pyramid scheme, the top people receive all the money). This is utter rubbish.
Another argument is that the people on the bottom most rows pay for the top most rows to prosper. Shall I give you an example?
Say that you have enrolled in the Questnet Business and have been moderately successful. After working hard for one year you have sixty-four people on your lowest layer, thirty-two on your right and thirty-two on your left. Let me give you a diagram as shown below.
We have reached a bottom layer of 32 persons on the left and 32 persons on the right. Imagine that 31 people on the right and 31 on the left go to sleep and do nothing further. They have tried to do the business for a few months, have not succeeded, and have decided to give up. While the one guy on the left, who hasn’t given up is a very dynamic person and has seen tremendous success, the other guy on the right has still not given up and has collected 14 persons below him, and his success has stopped. Let us simplify it by putting it in a diagram.
As we can see the one guy on the left has reached 1024 persons below him on the lowest level that means about 2047 persons directly below him. What will he earn? If he has bought a single coin, he will earn roughly Rs. 2000 per coin below him. That will work out to over 40 lakhs. What will YOU get?
Up to the balanced level of 32 + 32 people, the number below you will be 126 persons, and that will earn you two lakhs and fifty two thousand. Below that, the man on the right has only 14 people below him, so you will get a cheque for 14 + 14, and that is 56,000 rupees. That is all. Just imagine, the guy right below you has earned over 40 lakhs, and you, even after being right on top, are stuck at an earning of just over three lakhs. Can you ever call this a PYRAMID Scheme? It is ridiculous to do so.
A CHAIN
This is another fallacy. People use this term without knowing what this term really means. A chain will work as long as there is not a single break anywhere. One break and the chain ends.
In the last example that I showed you, we had reached a stage where 31 persons on the right and 31 persons on the left stopped working. This left only one person on the right and one person on the left. If both these persons continue, the business will still run very well. It is only when ever one on one side stops, that the business can stop. But even here there is a remedy.
If you want to accelerate the business, you can always buy another coin and place it below anyone of the eight on the right in the last example. Your business will still continue.
Friday, August 11, 2006
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