Dr. Charles King of the University of Illinois at Chicago developed and has taught a seminar in network marketing since 1994. He was a guest speaker at QNET's annual convention V-Indonesia 2012 in Bogor, Indonesia where he made this presentation on the factual concepts of Network Marketing. Know more about QNET by visiting these sites: http://www.qnet.net http://www.qnetlife.net https://twitter.com/QNetOfficial https://www.youtube.com/user/QNETofficial https://play.google.com/store/apps/details?id=com.qnet.estore.android&hl=en https://www.facebook.com/QNETIndiaOfficial

1. NETWORK MARKETING:
A GLOBAL PERSPECTIVE
Positioning QNET
V-Indonesia 2012
Theme: I am M.A.D.
(Making a Difference)
Dr. Charles W. King

2. The Focus of this Session…
BUILD YOUR
BELIEF SYSTEM
IN NETWORK MARKETING
Presentation Dr. Charles King, V-Indonesia 2012

3. The Central Theme:
In Decade 2013-2023
Network Marketing will
move into an
“AGE OF KNOWLEDGE”
About…
Presentation Dr. Charles King, V-Indonesia 2012

4. AGE OF KNOWLEDGE
• A STRONG BELIEF SYSTEM Regarding the Credibility of the
Network Marketing Industry
• In-Depth Knowledge of the GENERIC NETWORK MARKETING
PROCESS OF RELATIONSHIP MARKETING
• A PASSION FOR AND KNOWLEDGE ABOUT the Company’s
PRODUCTS AND SERVICES
• A Comprehensive Understanding of the Company’s
– UNIQUE MARKET POSITIONING STRATEGY
– INTERNAL POLICIES AND PROCEDURES
Presentation Dr. Charles King, V-Indonesia 2012

5. Presentation Outline
• Network Marketing: A Global Perspective
• The Movement Toward “Entrepreneurism” World
Wide
• The Rise of Developing Countries: Decade 2013-
2023
• Positioning of QI—QNET in the the Evolving World
View
Presentation Dr. Charles King, V-Indonesia 2012

6. DIRECT SELLING: A Global View
Direct Selling is:
• A $153.7 Billion (US$) Industry Worldwide (WFDSA—
2011)
• Involving Over 91.5 Million Distributors Worldwide
(WFDSA—2011)
• 21 Countries Do Over $1 Billion (US$) in Direct Sales
Annually
Presentation Dr. Charles King, V-Indonesia 2012

7. The “Billion Dollar +” Countries in Direct Selling:
A Global Analysis 2011*
Country US Retail Dollars Sales People
(Billions) (Millions)
United States $29.9 15.6
Japan $23.9 3.4
Korea $12.9 4.2
Brazil $12.0 2.8
Mexico $6.3 2.2
France $5.1 0.5
*WFDSA Statistics Report, June, 2012

8. The “Billion Dollar +” Countries in Direct Selling:
A Global Analysis 2011*
Country US Retail Dollars Sales People
(Billions) (Millions)
Germany $3.7 0.3
Russia $3.6 4.1
Italy $3.4 0.4
Malaysia $2.9 7.4
Venezuela $2.9 1.0
Taiwan 2.8 4.7
*WFDSA Statistics Report, June, 2012

9. The “Billion Dollar +” Countries in Direct Selling:
A Global Analysis 2011*
Country
•
US Retail Dollars Sales People
(Billions) (Millions)
Canada $2.2 0.7
Thailand $2.1 15.6
Colombia (LA) $2.0 1.2
United Kingdom $1.9 0.4
Argentina $1.6 0.6
*WFDSA Statistics Report, June, 2012

10. The “Billion Dollar +” Countries in Direct Selling:
A Global Analysis 2011*
Country US Retail Dollars Sales People
(Billions) (Millions)
Turkey $1.2 1.2
South Africa $1.2 1.4
Peru $1.2 0.4
Indonesia $1.0 8.2
TOTAL GLOBAL $153.7 91.5
*WFDSA Statistics Report, June, 2012

11. Direct Selling: A Regional Analysis 2011
Country % Sales % Sales People by
by Region Region
Asia/ Pacific 36.7% 51.6%
Africa/ Middle East 0.8% N/A
US/ Canada 33.2% 26.5%
Sou/ Cen America 15.5% 9.9%
Western Europe 9.5% 2.5%
Cen/ East Europe 4.3% 8.5%
TOTAL GLOBAL 100.0% 100.0%

12. Presentation Outline
• Network Marketing: A Global Perspective
• The Movement Toward “Entrepreneurism” World
Wide
• The Rise of Developing Countries: Decade 2013-
2023
• Positioning of QI—QNET in the the Evolving World
View
Presentation Dr. Charles King, V-Indonesia 2012

13. “Entrepreneur” and “Entrepreneurship”...
derived from the French
word “entreprende” which
means “TO UNDERTAKE...”
Presentation Dr. Charles King, V-Indonesia 2012

14. “Home Based Business”: A Definition— Going Solo
• Any Enterprise Where the Principal Administrative
Activities
• Take Place in an Individual’s Personal Residence
Presentation Dr. Charles King, V-Indonesia 2012

15. “Home Based Business” Statistics
• “Home Based Business” is a $427 Billion a Year Industry
• 150 Million People in North America
• Involve 34.3—36.6 Million home based businesses
• An estimated 8,500 new jobs created daily by Home
Based Businesses—the “NEW MIDDLE CLASS” Economic
Engine
Presentation Dr. Charles King, V-Indonesia 2012

16. United States “Home Based Business” Statistics
• 70% of “Home-Based Businesses” Succeed for at Least 3
Years vs. 29% of “Non-Home Based Ventures”
• 12% of All Households Operate a “Home- Based Business”
• Forecast in 2013-2023: Over 50% of All Households Will
Operate a “Home-Based Business”
• 48% of Operators are College Graduates
Presentation Dr. Charles King, V-Indonesia 2012

17. “Home Based Business”: Advantages
• Flexible Time Schedule
• Combine Family/Work
• “Home Office” Tax Deductions
• Independence/Self Determination
Presentation Dr. Charles King, V-Indonesia 2012

18. Major Daily Challenges in a “Home-Based Business”
• Marketing and Selling for Cash Flow
• Time Management
• Financial Management/Book Keeping
• Minimizing Overhead
• Managing Multiple Responsibilities
Presentation Dr. Charles King, V-Indonesia 2012

19. The “Home Based Business” Movement Needs a
“How to do it”…”Step-by-Step”…
Operating Model…
Network Marketing Can Provide That “How-to-do-it”
Structure…
Presentation Dr. Charles King, V-Indonesia 2012

20. PRESENTATION OUTLINE
• Network Marketing: A global Perspective
• The Movement Toward “Entrepreneurism” World
Wide
• The Rise of Developing Countries: Decade 2013-
2023
• Positioning of QI—QNET in the the Evolving World
View
Presentation Dr. Charles King, V-Indonesia 2012

21. “The Rise of the Rest”
• United States Annual Growth – 2-3 %
• Developing Countries – 10-15 %
• American Companies Relocating in Developing Countries
• Evolution of World Power: United States -- ”The” Super
Power
• New World: United States—A Power China, India, Brazil—
New Powers
• Global Direct Selling Changing
Presentation Dr. Charles King, V-Indonesia 2012

22. CONCEPT # 4: Major Population Centers
Country Population
India 1.220 Billion
China 1.340 Billion
Africa 1.038 Billion
Arab World (Arab League) 358 Million
Latin America 583 Million
TOTAL ESTMATED 4.539 Billion
Presentation Dr. Charles King, V-Indonesia 2012

23. Major Global Growth: The Outlook*
Global Developing Markets
• 20%- 30% Middle/ Upper Middle Class
Population
• 908 Million- 1.362 Billion
Almost Population for either India or China
*United Nations Estimates-2011
Presentation Dr. Charles King, V-Indonesia 2012

24. QNET Market Sales Distributed By Region--2011
Country Retail Sales QNET Sales
% by Region % by Region
Asia/ Pacific 36.7% 53%
Southeast Asia 19%
Central Asia 19%
South Asia 15%
Africa/ Middle East 0.8% 37%
US/ Canada 33.2% N/A
Sou/ Cen America 15.5% N/A
Europe 13.8% 10%
TOTAL GLOBAL 100.0% 100.0%
Presentation Dr. Charles King, V-Indonesia 2012

25. Target Marketing the Arab World: Some Profile Data
• Average Per Capita GDP: $ 5,563 US $
• 9th Largest Global Economy: $ 1.99 Trillion US$
• Consumer Spending as a % of GDP: 49% in Arab World
vs. 37% in China and 57% in India
• Not All Arabs are Muslims…Faiths Co-Exist…Culture is
Mixed… Expats, Immigrants, South Asians, Etc.
Presentation Dr. Charles King, V-Indonesia 2012

26. The Arab World: 25 Years and Younger
• 53% of Arab World is 25 Years old or Under— 189 Million
“Arab World Millennials”
• The “Entrepreneurial Boom” is reaching the Arab World
• The “Arab World Millennials” --90 million:
Are looking for opportunity
--31 thousand: Come to the United States to study
• The Cultural Demands of Early Marriage and Housing
Presentation Dr. Charles King, V-Indonesia 2012

27. PRESENTATION OUTLINE
• Network Marketing: A global Perspective
• The Movement Toward “Entrepreneurism” World
Wide
• The Rise of Developing Countries: Decade 2013-
2023
• Positioning of QI—QNET in the the Evolving World
View
Presentation Dr. Charles King, V-Indonesia 2012

28. QNET in 2011
• Sales Growth + 15-20% over 2010
• QNET posted no significant penetration in top 10 Billion
dollar Global Markets
• Middle East/ North Africa sales suffered due to hostility
of “Arab Spring”
• Great growth potential across Asia
Presentation Dr. Charles King, V-Indonesia 2012

29. Four Phases Of Growth-2013
Formulation Concentration Momentum Stability
50
We Are Here!
TIME

30. The Power of the QI Group:
• QNET…Main Subsidiary of Conglomerate: The QI Group
• The QI Group- Engaged in:
• Direct Selling/E-Commerce
• Lifestyle and Leisure
• Property/Resort Management
• Training/Conference Operations –Telecommunications
Presentation Dr. Charles King, V-Indonesia 2012

31. QNET’S CORE VALUES: “S.T.I.R.”
Service
• Dedicated to service of
others
Results Oriented Teamwork
• Dedicated to • Work together as a
achieving highest unified team with a
results common goal
Integrity
• Conduct ourselves with
utmost integrity
Presentation Dr. Charles King, V-Indonesia 2012

32. QNET’S MISSION: “RYTHM”
• “…Help individuals reach their potential and their goals by
offering entrepreneurial opportunities and the highest
quality products practices while practicing “RYTHM”
RAISE YOURSELF TO HELP MANKIND (RYTHM)
Presentation Dr. Charles King, V-Indonesia 2012

33. QNET’S BUSINESS MODEL: “Global Reach, Local
Presence…”
• World Headquarters— Hong Kong
• Regional Offices
• Affiliate Companies
• Franchise Companies
• Agents
Presentation Dr. Charles King, V-Indonesia 2012

34. QNET’S PRODUCTS: Selection Criteria
• Innovation
• Exclusivity
• Quality
• Fit with QNET Philosophy
• Fulfillment of Market Need
Presentation Dr. Charles King, V-Indonesia 2012

35. QNET’S PRODUCT GROUPS
Luxury/
Energy Education
Collectibles
Fashion Weight
Nutrition
Accessories Management
Personal Holiday/
Home Care
Care Travel
Presentation Dr. Charles King, V-Indonesia 2012

36. NETWORK MARKETING:
A GLOBAL PERSPECTIVE
Positioning QNET
V-Indonesia 2012
Theme: I am M.A.D.
(Making a Difference)
Dr. Charles W. King