DIFFERENCE BETWEEN AMWAY & QNET
Amway and QNET are the most popular Multi-Level Marketing Companies in the current market. Multi-Level Marketing is the business method used by many direct selling companies, including Amway & QNET. The vital part of any legitimate MLM business is its product sales. Legitimate organisations like Amway and QNET provide better opportunities and benefits to millions of distributors and consumers by delivering quality products and services. Here, the products are sold directly to customers without the help of a traditional store. Companies that genuinely care about their members and want to see them succeed provide enough training and support to help people grow their businesses. Amway and QNET are companies on that list.
WHAT IS NETWORK MARKETING?
Network Marketing is also referred to as Multi-Level Marketing (MLM). Multi-Level Marketing is a marketing strategy followed by many direct selling companies, which pays a percentage of commission to its members/representatives based on the product sales they make individually and by their ‘Downline‘ network. Downline refers to the group of people that the representatives or a sponsor introduce to a company to generate sales.
MLM companies also pay compensations for the members who enrol more members to the network to expand their business. A Network Marketing Company earns their reputation by the attractive compensation plan it can provide in the market.
HISTORY OF AMWAY
Amway (short for ‘American Way’) is an American Network Marketing company based in Ada, Michigan. Amway’s primary product line consists of Health Care, Cosmetics, and Home-Care products. The company was founded in 1959 by Jay Van Andel and Richard DeVos. Amway reported having an average sale of approximately 8.4 billion USD in 2019. They conduct business through several affiliated companies from different countries and territories. Amway work on the philosophy of;
“Freedom, Family, Hope & Reward”
– Rich DeVos (Co-founder of Amway)
Amway launched their first product called ‘Liquid Organic Cleaner (LOC)’, which became a sensation in the MLM market. This product was one of the first biodegradable and environmentally conscious cleaning products during those days, and the profits were made by selling their products and marketing their services. Amway has more than 19,000 employees and Independent Business Owners around the globe to contribute their mission of helping people live a better life.
BUSINESS MODELS OF AMWAY
“We just create more business opportunities for our distributors
by getting more people to join the business or sponsor others.”
– Van Andel (Co-Founder of Amway)
Amway’s business model combines direct selling with Multi-Level Marketing. Amway represents their distributors as ‘Independent Business Owners (IBO)’. Amway markets their products directly to desired customers and sponsors more people interested in becoming IBOs. IBOs can sell products personally and encourage other distributors on their downline as well. Also, registered IBOs can buy products at discounted prices, which is a great benefit.
Harvard Business School once described Amway as “One of the most profitable direct selling companies globally”. Amway founders Van Andel and DeVos accomplished their success through selling high-quality products and services in the market. Here, the independent distributors of Amway will receive a percentage of bonus from the product they sell and a portion of the compensation from the products sold by the recruited downline distributors. However, the person at a lower level can also make more money than the person on top of them. In a way, it’s not about when you joined, and it’s about how much effort you do in your job.
Related: Top 10 Amway MLM Products in India
HISTORY OF QNET
QNET LTD was formerly known as QuestNet; it is a Hong Kong-based Multi-Level Marketing (MLM) company owned by the QI Group. Qnet MLM Company successfully employs a unique business model that integrates both Network Marketing & E-Commerce. The company’s products line includes Energy Supplements, Weight Management Products, Nutrition Products, Personal Care, Home Care and Fashion accessories. All the Qnet products and services are conveniently sold and marketed online. QNET represents their members as ‘Independent Representatives (IRs)’. QNET rewards their Independent Representatives with a percentage of commission for making good sales. If an IR doesn’t want to be the sole salesperson, they can earn by enrolling new members to their network chain to expand the customer base as a part of marketing.
QNET was an official distributor of The Sydney Olympic Games in 2000, and in 2004, Qnet distributed at The Athens Olympic Games and The Beijing Olympic Games in 2008. The company announced its sponsorship of ‘Team Meritus’, a Malaysian motor racing team, and became a sponsor for the ‘Commonwealth Heads Of Government Meeting Business Forum’ in 2007. From 2007 – 2012, QNET witnessed an increase in sales by 70% and received the ‘TRUSTe Privacy Certification’ by the end of the year. In 2014-2017, Qnet started a three-year partnership with Manchester City Football Club and became the club’s official direct selling partner.
BUSINESS MODELS OF QNET
Qnet mostly follows Binary MLM Plan, and many MLM companies follow their business strategy. Qnet customers can choose to become ‘Independent Representatives (IRs)’ of the company by paying $10 for a starter kit and an online page, with which you can kick start your business. A Qnet IR receives about $250 commission after introducing products to six people to their network. The Two Legged MLM Plan is placed three people on their left and with three people on their right.
I am typically introduced to the company’s products, services, and business plan by other IRs who have taken up the business opportunity. When an IR recommends a new customer who eventually becomes an Independent Representative by receiving bonus points, it will benefit the Sponsor IR (the person who recruited the new member) from the success of their recruitments. These bonus points build upon only one of the IR’s legs. The IR must then find recruits for the other leg to receive commissions. The company holds intensive training programs and business development sessions for customers wishing to benefit from the business opportunity.
After all, QNET is not an investment business scheme. It is a legitimate direct selling business, where you only pay money to purchase products. If you are engaged to be a distributor of QNET products, you can sign up as an independent representative through our E-commerce portal.
PROS AND CONS OF AMWAY AND QNET
Like any business organisation, Amway and Qnet have their Pros and Cons. I will be discussing some critical Pros And Cons of both Amway and Qnet MLM organisations below. Let’s have a look at those;
PROS OF AMWAY:
- Improve confidence and leadership skills.
- Can get to work on team management skills.
- High-class product mentorship experience.
- Qnet will provide you with health and wellness support.
- Can earn the best knowledge in marketing and sales.
- Personality, relationships and positive attitude building.
- Flexibility in choosing timings, place, locality of work.
- Great working compensations to keep employees motivated.
- Good work-life balance at all levels.
- Great appreciation and good income potential.
CONS OF AMWAY:
- The slow growth rate on selling expensive products.
- It’s hard to build trust since there is much misconception.
- Learning opportunities could be limited by management.
- Interpersonal conflict can happen due to competition in the MLM field.
- Low motivation and job satisfaction can cause your performance.
PROS OF QNET:
- Can provide opportunities and help people to achieve their dreams.
- Opportunity to build life-long relationships.
- Can build long-term businessman mindsets and business assets.
- Can introduce innovative products to the public.
- Earn pedigree and profile to work with business tycoons.
- Learn unique working culture and product value system.
- Financial stability and control over a better financial future.
- Rewards are directly proportional to the effort put in.
- The best platform to achieve heights of success and your big dreams.
- Have to consistently and intelligent work to earn better.
CONS OF QNET:
- Need years of patience to earn the maximum outcome from business.
- People get misled because of fake reviews from haters.
- Have to work hard to ensure the flow of goods and services; it is not easy money.
- Have to stay committed to the business and be prepared for any challenges.
- Have to keep connected with the clients to maintain the relationship.
Amway and QNET are both pretty straightforward MLM companies and sell high-quality products and market their services. With accessible distributor and learning opportunities on a wide range, the future of QNET in the MLM market has empowered and motivated independent distributors to be their boss and chase their dreams. On the other hand, Amway has 550,000 active sellers, of which 60% are women. By giving more opportunities to women, Amway has a massive success in many countries and a promising future among MLM Industries around the world.