| Comment Number: | 522418-04731 |
| Received: | 6/28/2006 4:53:09 AM |
| Organization: | Quixtar IBO |
| Commenter: | Jerome McLain |
| State: | SC |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
To whom it may concern: I have been an IBO since the launch of Quixtar.com and have been very pleased with my association with Quixtar and my business "Upline" team. My association with these men and women has inspired me to be a better husband, father and friend. I was sponsored by a gentleman that I did not know prior to becoming an IBO. Today, we have a good friendship that has been strengthened over the years. I feel that I was given good information when I checked into this business opportunity. My sponsor and his upline coach took a considerable amount of time to answer my questions and assist me in building my business. In this tradition, I strive to inform every potential IBO looking at joining my team with complete disclosure of the Compensation plan, the day-to-day activities required to run a successful IBO business as well as ways to improve their business. Upon joining my team, each new IBO typically invests $150 into getting started. I inform them that part of this covers basic administrative costs and part covers the initial product pack that is offered upon registration. I explain to them that this is optional BUT it would be wise as a business owner to order this product pack so they can familiarize themselves with what the have to offer potential customers. I also let them know that most of this investment is completely refundable for up to six months from the day they register. Concerning the specific issues up for FTC discussion: A 7-Day waiting requirement would hamper my ability to help a new IBO to earn income and prove that they have the resources to develop a successful business. The requirement to provide references so that a potential IBO can contact other IBOs seems unnecessary. Upon seeing the business plan, a potential IBO is introduced to several local IBOs that range from just getting started to Diamond Directs. Often, on-the-spot "references" are given to the potential IBO. The requirement for specific earnings disclosures should not be enforced. IBOs get asked about their income enough without that. Also, asking for specific earnings disclosures is like asking to see a corporation's P&L sheet before deciding to work there. I feel that the FTC is genuinely seeking to protect the public from illegal pyramid scheme creators that deceive people and take their money. However, I feel trying to eradicate such dishonest "businesses" with such hard line "solutions" will only hamper legitimate multilevel marketing opportunities. Such drastic requirements would not only hamper my business today but also the future business that I will be passing on to my children. Sincerely, Jerome McLain