QNET has weighed in on the proliferation of pyramid companies around the world—and on the crucial difference between pyramid companies and legitimate direct selling companies. This is a topic that has risen to the level of public consciousness in Egypt, thanks to an investigation by the Public Funds Authority into eight companies that have been accused of involvement with pyramid scheming. This investigation has been both good and necessary, but the media buzz has led to a great deal of confusion.
Of course, this problem is not restricted to Egypt. Around the world, misconceptions over direct selling versus pyramid scheming abound.
In particular, several related terms have become jumbled and confused. Direct selling (DS), multi level marketing (MLM), network marketing (NM), and pyramid schemes—these four concepts are all unique from one another, yet recent media speculation has caused them to blur together in the minds of many consumers.
In the paragraphs that follow, Zaheer Merchant—Director of Corporate Affairs for QNET—explains what makes these concepts unique from one another. He also emphasizes the need for regulation to keep these entities separate, and to protect consumers in nations across the world. Read more