Is Network Marketing legal in India?

As one venture more into the directs selling network marketing business, the more you come across questions about network marketing and multi-level marketing companies like Qnet and their legality in India. So today, I have decided to answer a question that I have heard and seen from multiple sources- is network marketing legal in India? Or to be more precise, is the Qnet network marketing company in India legal?

Before we answer the question, let us see what Qnet network marketing company in India is?

Network marketing is a business model where the business is done on a person-to-person basic by independent representatives. Qnet IRs play an integral part in the Qnet network marketing business as they are tasked with selling the Qnet India products and introducing more people to the business.

Is network marketing legal in India?

Yes, network marketing is very much legal in India. And so are multi-level marketing companies like Qnet India. However, there are some businesses that use the name of network marketing and MLM that engage in illegal schemes. While the Government of India and the supreme court has allowed Qnet network marketing company in India, there are a few that the former has identified as fraudulent and illegal. These have been marked illegal under the Direct Selling Guidelines 2016 and Prize Chits & Money Circulation Schemes (Banning) Act of 1978 in the country.

These includes:

• Pyramid Schemes:

Pyramid schemes are described as schemes in which an organizer builds a structure similar to a pyramid that starts with one person who is at the top of the tip of the pyramid. In a pyramid scheme, a member recruits another person and asks him to invest money with the promise of improved returns in the future. However, this initial fee is used to pay older members of the pyramid who are above the new recruit. In order to get returns for his investments, the new recruit has to get other people to join the pyramid. However, this is not a sustainable business model and quickly goes bust. I have already talked about how direct selling companies like QNET are not pyramid schemes.

• Money Circulation schemes

A money circulation scheme has been defined under the Section 2(c) of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 as “any scheme that promises quick and easy earning through money chain or if someone demands money from another in order to invest into a ‘money circulation scheme’ means any scheme for making quick or easy money or for receiving any money or valuable thing as consideration for a promise to pay money.” Money circulations schemes or money chain businesses have been ruled illegal in India.

• Ponzi Schemes

Most of us are aware of what a Ponzi scheme is. A Ponzi scheme is very much similar to a pyramid scheme as the returns from new investors are used to pay returns to old investors. The scheme works on a constant flow of new recruits and their investments, and crumbles as the income of new investors stop. In most Ponzi scheme, once the person in the top has gained enough confidence and as other people start investing money, the person behind the fraud skips town with all the money.

Is QNET safe?

In the direct selling industry, there are few companies as with such a storied past as QNET. It has been one of the biggest and most influential company in the direct selling market and has changed the lives of millions of people around the world. Not only does it have some of the best and most-sought after products in the business, it has also provided a business opportunity for many. The success stories of QNET India IR can easily impresses and win over the hardest of skeptics.

But what makes QNET India such a trusted name in the industry, it is the trust and safety that it promises its customers and IRs. QNET has over two decades of history as one of the top direct selling companies in India. But is QNET safe? Is it a legitimate and trust-worthy business opportunity? Are QNET India products as good as what they say they are or are they just smoke and mirrors?

QNET India as a Business Opportunity

As someone who has been a major player (self-claimed) in the direct selling network marketing business, I have had the opportunity to meet people who have made their fortune through direct selling. And this includes people who are in my upline and downline. QNET has touched many lives in India and the world as a whole. QNET India is a registered and tax-paying business entity in India. Its IRs or Independent Representatives have to follow a strict code of conduct and have been trained to do their business in a ethical and legal manner. Gone are the days where direct selling network marketing was synonymous with scams and lies. And a large part of the credits for this change has to be given to QNET. The Indian government has also introduced many rules and legislature to make sure that the direct selling industry is regulated and is transparent.

QNET India Products

The next main aspect of direct selling business that defines if it is legitimate and safe is the product that they sell. A direct selling company is only as good as the products that they sell. A direct selling company without a list of good products is most probably a pyramid scheme. That is why it is important to choose a direct selling company that has good products to sale. For example; QNET India.

QNET India has a long list of high-quality products that they sell to their customers all around the world. This includes their range of health care products under Nutriplus, top air purifiers from SHARP like the SHARP QNET SmartAir, water purifiers from Cuckoo and HomePure among others. They also sell high-quality jewellery and watches in the form of Kinnari and CHAIROS.

As you can see, QNET products are of the at most quality and standards. They are either made in collaboration with industry leaders like SHARP and Cuckoo, or have undergone years of research by top scientists around the world to assure its quality.

You should always be wary of frauds and illegal scams that are aimed at stealing your money. However, Qnet network marketing in India is very much legal and backed by the government. I hope that this has helped to answer your question — ‘is network marketing legal in India?’ More importantly, you would have seen why QNET is such a trusted name and a top direct selling business in India. If you have any concerns or wish to add to the conversation, you can do so through a comment below.