| Comment Number: | 522418-04811 |
| Received: | 6/28/2006 1:54:38 PM |
| Organization: | Quixtar |
| Commenter: | Deedre Anderson |
| State: | ID |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
My husband and I have been Independent Business Owners (IBOs) with the Quixtar Corporation for six years. I support the concept of this Proposed Rule, but I have concerns about some of the content. I agree that there are "scams" out there that are taking advantage of people, however, there are honest businesses that will be affected by this rule as well. Scams hurt my business and I hate to see friends and family hurt by them. But an honest business with ethics and integrity at its heart does not deserve to be punished just because criminals that take advantage of others. My experience with the Quixtar Corporation and other Independent Business Owners has been a positive one. Besides changes in income, lifestyle changes have allowed my family and other IBOs on our team live fuller lives. I have a concern over the 7-day waiting period for a person to register with the company. This would significantly slow the growth of my organization by dragging down momentum. If someone registers with our organization and then changes their mind, they can be refunded the cost of registration and return any purchased products for a refund as well. This is an option that any business of integrity would offer. Although I do not hesitated to tell prospects of other members in our organization. I would be concerned as to giving a list of local IBOs to pospects if that list contained members of an organization other than mine. Our team has certain training and building techniques that are not the same as other organizations in the area. Keeping our process streamlined and duplicatable is very important. I also understand that a litigation disclosure document may be required. Anyone can get on the interent and see the list of people who feel they have been wronged by the Quixtar Corporation or any other business for that matter. I don't see Walmart posting a list of Litigations past and present in their stores. In regards to financial disclosures, the Quixtar Corporation is very careful in telling IOBs what should and should not be said. There is a document that is shown to propects prior to registration that lists the "average monthly gross income of 'active' IBOs." Registrants must sign this document. When we discuss income potential with prospects, we do not use specific numbers or make any promises. We tell them that the potential to make hundreds to thousands of dollars a month is there, but that it depends on the persons activity and involvement. We tell them the changes the business has made in our lifestyle, but do not tell them actual dollar amounts. I can't promise what they'll make and I don't think it is any of their business what my actual income is. In any business, whether direct sales or "traditional business" you'll be able to tell if a person is telling you the truth by actually seeing if they have the "fruit on the tree." I agree that there are companies and scams out there that take advantage of individuals. As they commit these crimes, they should be punished. But by applying rules that assume that all direct sales or network marketing business are out to "rip people off" you will hurt thousands of good business men and women who have dedicated their lives to building sucessful businesses. Don't punish the honest because a few people are dishonest. Give guidelines and let the honest people do business. Don't place harsh restrictions that eliminate the possiblity for people to take advantage of a sound business opportunity with great potential.