|Received:||7/3/2006 8:50:37 PM|
|Organization:||Setzer & Associates|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I am writing about the proposed changes to direct selling and marketing businesses. I am currently a Quixtar affiliated business owner, and I am very happy with my experience thus far. (I've been in business less than 3 years now.) I think some of the proposed changes are inappropriate. The first thing I do not like is a possible waiting period for signing up in business, because it serves no purpose. We have a no pressure approach, so when someone starts, it's because they WANT to, not because someone talked them into it. Also, our start up costs are minimal, under $200, and even that is refundable for up to 6 months if they decide not to pursue the business. I do think all businesses like ours should have that same kind of grace period and refund available. I do not think we should be forced to provide 10 names of other business owners in our area. Our "sponsors" in our business live on the other side of the state and I'm not sure I know 10 other people in the same business in our town. Potential business owners have access to our upline after screening (are they really looking for a business or just another job or get-rich-quick scheme) to ask questions of those more experienced than we are. I also think requiring upfront information on past and current lawsuits is ridiculous at best. First, I have no idea how many or what kind of lawsuits are going on involving Quixtar affiliated business, and I don't care. They don't involve me or my business, and is therefore, irrelevant to anyone wanting to get involved in business with me. How many lawsuits are against any major corporation right now? Are those companies required to tell all new employees about past and present lawsuits? Of course not, because it's irrelevant. It would only be relevant if I were personally involved in a lawsuit, and that wouldn't even necessarily be relevant to a potential new business owner because anyone can sue anybody in this country for any reason. And just because someone sues, that doesn't mean their allegations are true, and many people are just looking for an easy buck and sue. So lawsuits, in my opinion are irrelevant. I didn't care who got sued for what when I started my business. What I cared about was: Is Quixtar a solid, reputable company, and would it be there to support my business as it grows. And the answers to those were very clearly, yes. I don't care if some underachiever didn't work his business and didn't make any money and is now suing the corporation because he had no business sense. That's not my concern and it's not the concern of serious potential owners either. INVESTORS care if the company they're investing in is going to go bankrupt because of a major lawsuit. We're not investors, we're INDEPENDENT business owners. Finally, I don't like the idea of forcing to disclose personal financial information to new prospects for one reason. Each person is responsible for his or her own success, and my success or lack thereof as some cases may be, is not an indicator of how well the prospect will do. How well the prospect will do in business is dependent entirely upon his/her work ethic and business building skills. If I'm not able to help them get what they want out of the business, then I refer them upline to someone more successful in this business who can help them. But again, the failures of some looking for get-rich-quick schemes are not the concern of serious prospects. The "average" made last year in a Quixtar business was $150. Why? Because of the 80/20 rule. 80% of the people who sign up don't treat the business like a business for profit and therefore, do not make a profit. IT'S THEIR OWN FAULT. But the 20% of the serious business people do make good money in the business. So to a serious prospect with a business mindset, the "average" is deceivingly low. It is those looking to get something for nothing who complain about this kind of business, not the real business people. Thank you.