|Received:||6/27/2006 1:37:28 PM|
|Organization:||K.A. Walsh & Assoc. (Quixtar IBO)|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:My husband and I have been Quixtar IBO's and Amway distributors for the past 15 years. We have never made big money, but we have saved money all those years and have made some great friends. Just this last April we decided to build a larger Quixtar business and our next goal is to replace my income so I can be home with my kids. Some other benefits we have gotten besides the savings are personal development through the support materials, people skills and integrity in business practices. When I initially registered I received a large box of information that included a catalog, business magazine, overview of the business and its profit structure, and average income per business. I was also informed of an average of at least 10 hours per week of time was required in order to build a large business that would generate significant income. I now provide my prospects with 2 CDs when they look at our business. One is mainly motivational and looks at different business practices in general, and the other is a review of the business I showed them. I also include a business prospectus that shows average earnings per 'active' business adn includes definition of 'active.' They are also informed that there is a 100% money-back guarantee on their membership costs, and that we do not make any money by just signing them up in the business. My new prospects spend about $200 to register and get set up in business, of which about $60 is products commonly used in running a household, $40 for voice mail service to keep in contact, $50 for website establishment and the remaining $50 for literature and registration. I have started 2 other conventional businesses, and I would have been thrilled to only have an initial investment of $200. We also show our new business owners how to save that money in purchases they can make through their own business in the first 30 to 90 days. Once in a while we have prospects who get involved and then never do anything else. They never order a product or attend another meeting. In these cases we like to offer either a full refund of their membership fees and refund on any products they are not satisfied with, or we offer products in exchange for their membership fees, whichever the prospect prefers. I live in an area where there are many business owners, as a matter of fact, there is another business owner in my neighborhood. I think if I had to provide a name and phone number of other business owners to my prospects, that would be like head-hunting a person for a job and then providing him other job packages offered by other competing businesses and then letting him pick. I put the effort into meeting this new prospect, talking to them about their life, creating a friendship, and ultimately taking the time and money to go share with them my business. But then to give them names and numbers of my competitors would be shooting myself in the foot. We own a vending business right now, and under no circumstances do I provide my customers lists of other vendors in the area with names and phone numbers. Sounds like a great way to work yourself right out of business. I also would not appreciate my information being given out for someone else's prospect to call. I do not want people to think they can 'shop' me and my business. My prospects meet many other people in our business at meetings held in our home and at public meetings. They have ample opportunity to talk with other people about their businesses in these public settings. I have 7 years of experience in conventional business and I feel that we are open and honest with our prospects about what they can expect and I feel all parameters are fully disclosed to the best of our ability both verbally and in writing. There are some prospects who never look at the literature, so we make sure to cover this information thoroughly with our prospects verbally, and we do our best to leave no room for deception or unreal expectations. I hope you find this helpful.