QNet: We’re no pyramid

By MALUM NALU

THE founder of QNet, an international internet-based business in PNG, has denied claims that it is a pyramid scheme along the lines of the infamous Money Rain and Uvistract, The National reports.

John Schmidt, a son of Western Highlands former politician, the late Paul Pora, said this after allegations were levelled at him, especially on social networking site Facebook.

John Schmidt

This followed his setting up of a group on Facebook, “The Millionaire Mindset, a Kulcha for Dreamers”, which already had a big following and he had already held a number of seminars at hotels in Port Moresby.

QNet, or QuestNet or GoldQuest, is a Hong Kong-based direct selling company owned by the QI Group.

The company sells a variety of products, including energy products, nutrition, watches, jewellery and vacation packages.

The company’s marketing strategy follows a multi-level marketing model, depending on independent representatives to refer its products to consumers and receive compensation based on the sales volume of their referrals and the sales volume of other independent representatives in their teams who are arranged in a binary fashion.

The company had also been accused of operating a product-based pyramid scheme.

In Iran and Indonesia, these accusations had resulted in the shutdown of the company by the government and the arrest of key members involved with the company.

Schmidt told The National yesterday that critics were entitled to their opinions. However, QNet was based directly on e-commerce principles using the internet.

“The business model is direct selling, which links a manufacturer direct to a consumer,” he said.

“The company offers two options: buy as a consumer or to engage as an entrepreneur.

“The QNet online platform for PNG pays taxes to the government, and uses reputable international and domestic courier companies to provide direct delivery to customers.”

Schmidt, 38, from Dobel in Mt Hagen, said he also conducted his QNet business in Malaysia and Australia, and was looking to expand to Fiji and Africa.

He said he had no ulterior motives than to help Papua New Guineans set up their own companies and make money.

“It involves networking, people communicating to people, sharing ideas, knowledge, information, products and the opportunity to be in business.”

“As technology continues to advance in PNG, I see many opportunities coming, where Papua New Guineans can now be engaged in economic activities.”