| Comment Number: | 522418-05870 |
| Received: | 7/4/2006 12:15:21 AM |
| Organization: | Legacy Business Group |
| Commenter: | Diane Bailey |
| State: | MT |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Business Opportunity Rule, R511993 To Whom It May Concern: As an Independent Business Owner utilizing the Quixtar site since February 2005, I have enjoyed a business education while developing a home-based business. I have some concerns about the proposed rule and thought I’d share a few things about this business. When I signed up for this franchise, my coach was readily available providing me with information whenever I asked for it. I was not pressured in any way. That is one of the main reasons that I liked this business. I took all the time that I needed to learn the business before I sponsored IBO’s myself. This is another reason why I like this business run the way it is: I work at it at my own pace. Those people that I sponsored have never complained that they did not get their money’s worth with an investment of only $51.50. They knew/know that those who work at it, make money and those who do not, do not make money. A seven day waiting period is not necessary because I give them the information needed prior to and on the day that they sign the registration papers. I continue to offer materials and educate them at the speed that they chose. They are given access to our business team members and can call/contact any of them. These names are given to the new IBO upon registration. Prior to that, it would be an invasion of privacy, in my opinion. References are not needed because one of our goals is to get to know the team as we form relationship communities and provide coaches. References may be required in order to gain employment at a business or company, but the new clients are not hiring this business; they get paid for their efforts. If they are not willing to participate, do the work or find out that this is not what they expected, they do not have to pay their annual renewal. We do not steal each other’s clients, but share in the responsibilities. Because the incomes vary depending on the efforts made by the team members, it would be virtually impossible to keep up to date with current reimbursements in order to disclose specific earnings. Such a requirement would be very stressful to maintain for a small home based business such as mine. The financial record of other people is something that I probably should not have access to and I don’t think I would like my financial records public either. An average monthly income is already documented and given to every member. A list of litigations is not practical either because of all the false information and scandals initiated by people who do not understand this business. Providing a list of rumors is counterproductive when advocating this business and would not be any more helpful than Walmart providing the public with their pending lawsuits at every one of their stores. I appreciate your efforts to prevent fraudulent business scams, but this business works well with the rules that it has. I don’t think it would be beneficial to change their business plan because it does work. Though this business is somewhat different than the traditional brick and mortar companies, I don’t understand why such requirements and disclosures are being suggested for this type of business and not for more traditional businesses. Couldn’t the Better Business Bureau or the FTC be kept apprised of problem business scams and publicize a list of false businesses and legitimate businesses? Please consider some revision of the proposed rules to reflect concerns expressed here. Thank you, Diane Bailey. IBO, Legacy Business Group.