Qnet is all about increasing profits and making the most possible money as possible. This is evident with its multi-level marketing platform. This particular platform is designed to help bring in money off of multiple sales, so no matter how often a product is sold, it is able to make money off of these particular products. This is also why it is moving its global manufacturing location away from its current location and to India, as Qnet is able to obtain the same level of quality through production and save money on labor and the cost of goods. All of this should go a long way in pushing more profits to the company and allowing it to do more with the money it brings in.
Multi-level marketing is a valuable means of increasing profit levels for the company. First, Qnet sells a product that it manufacturers to a distributor. The distributor then sells it to a retailer, but keeps a percentage based on what it sells. The rest of the profits go to the company. The retailer then sells the product to a consumer. The retailer keeps a percentage of the profits, with the distributor receiving a small percentage off of the retailer’s sale as well. The rest of the money goes back up the chain to Qnet. This has greatly allows for the company to increase its profits as it can make money off of multiple sales of the same item.
Now, the only way Qnet is able to increase its profit margins is to reduce the cost of production and the cost of the material it uses for the products it sells. This is exactly why the company is looking at moving its global production location to India. India has cheap labor and it does not have as much red tape as China, as other nations are starting to crack down on bringing in products made in China. The material used to make most of the products can also come from India, so with the labor force and material located in the same country, production cost is greatly reduced, which means more money for Qnet. Qnet wants to expand its sales team into the Middle East out of Asia, so positioning in India provides this opportunity as well. it all just comes down to increasing sales and being able to boost production.