| Comment Number: | 522418-05693 |
| Received: | 7/3/2006 1:38:39 AM |
| Organization: | C & P Enterprises |
| Commenter: | John Gregov |
| State: | NY |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
My wife and I started our business over 11 years ago. When we started, we were affiliated with Amway and today with the Quixtar web site. Our long-term goal is for this business to replace my income in the next 6 years. I am a manager in a major corporation and my wife is a physical therapist. Our business has benefited both of our professions in numerous ways especial in our people skills. When I registered for this business I was told that it would require effort to build this business. It cost me about $200 to register, and over 11 years later it cost less than $200 to register and that includes products. While most of the people we register usually wait more than a month before they register, I don’t see any benefit in a 7 day wait period before someone can register. First, Quixtar will give you your money back if you decide you don’t want to be an IBO and the products that you receive have a six month money back guarantee. Most of the products you purchase at Quixtar have a six months money back guarantee. We are not interested in just registering someone and then moving on. We are interested in long-term relationship where people will use the high quality products and then sell them to others. Second, we as IBO’s (Independent Business Owners) do not make any money by just registering people. Our goal is to help them make money by moving products. I believe that it would be unfair and a violation of my privacy to require to provide references. For example, I show the business plan to someone I met on a business trip. That person lives in Boston. I drive from my home on Long Island, NY to Boston. This person in Boston, I will call him A, receives a reference of an IBO that lives in A’s neighborhood. The two of them end up knowing each other. Person A now joins into the business with the IBO that is in his neighborhood. In this case I did the work and someone else has the potential benefit. We always invite new people to meet some of the IBO’s that would be part of their support team before they register. Also to attend a group meeting where they can meet other IBO’s that had success with our business. In our business every IBO is a seller. Therefore if someone somewhere is an IBO and they do something stupid and get sued, how is that related to my business and me? We live in a society that loves to sue. My wife and I are in our own business; we do not work for Quixtar, if there is a lawsuit against Quixtar, why should that be associated with me? We provide everyone we show the business to with an opportunity to take with them a SA4400, this document describes how the money is earned in our business and average incomes. The fact is that in our business any individual can make more money that any other individual in the Quixtar business. It is up to each person how much effort they want to put in and therefore how much they will earn. We are not a “get rich quick” business. The combination of product sales and building a network of IBO’s has an unlimited number of combinations. It would be impractical to have a separate disclosure for every combination of the two factors of the business. When we describe our business opportunity we explain the concept of selling products and building a network of IBO’s who also sell products and build networks. It would be extremely inappropriate to show my financial records to people that are interested in looking at the business. Some of them may just want to see me financial records under the guise of being interested in the business. Lastly, our business is based on helping other people succeed. I our experience, my wife and I spend much more money of new people before they even make a decision to join the business. For example we drive to someone’s house, show them the business plan, then come back in a few days and show the business plan to their people and the first person is not even an IBO, and sometimes they never join.