Comment Number: 522418-05883
Received: 7/4/2006 3:52:12 AM
Organization: Quixtar
Commenter: Dennis Stephan
State: CA
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

I have been affiliated with Quixtar since its launch in 1999 and with its Sister company Amway from 1986 to 1999. The experience has been extremely rewarding both financially and personally. I have met and associated with the greatest, most sincere, and honest people at the leadership level throughout our organization. I have witnessed affilaites leaving our business model to join another after being promised "get rich quick" by other business opportunities so I realize the need for Federal rules to police this type of unsavory, fraudulant activity. However, I am concerned that some of your requirements may adversely affect my ability to communicate to prospects the benefits of our wonderful business. I would like to address several items contained in your proposed rule as I understand them and their impact on my business. First, a seven day waiting period. Why? I see no benefit to a prospect. In fact, this rule will delay a prospect from starting a new business as soon as he wants. This is penalizing a prospect; not helping them. I understand that a prsopect may make a quick decision and later change their mind. This has happened several times to me personally. I am in the business of helping others that are looking for help. I understand that if someone changes their mind, that they will probably not do anything with the business, which does not help them or me so i have offered their money back with an open invitation to them that if they would like to pursue our opportunity in the future, they should call me. I beleive a "full money back" offer within a certain amount of time should be considered in lieu of a waiting period. Second, What are you trying to achieve with the list of references. I have been a very successful contractor for over 25 years. I have hired employees as well as subcontractors to perform work for me. I have always requested references; but I have never received a negative report from a reference even though I have made the mistake many times over of hiring an employee and/or a subcontractor that did not meet my expectations. Requested references are overrated!!! I believe this requirement is unnecassary and invites the fraudulant opportunities to use in their favor to take advantage of others. This requirement would also require new business owners to provide names of people that they do not know as references. This is NOT a good thing. Again, what are you trying to achieve with this requirement? Third, I provide a quixtar document number SA4400 to every prospect with income claims. The claim lists the average monthly income for all active IBO's. This is the most meaningless statistic I have ever seen in my entire business career. This averages the IBo's that have been in the business for a long time with those that have been in the business for less than a month with no explanation. Why? Everyone that knows anything about business realizes that a profitable business requires time to develop. A more meaningful statistic would be to provide an average for all IBO's who have been in the business for one year or longer; and another based upon five years or longer and perhaps another based upon ten years or longer. Furthermore; I totally disagree with a requirement of personal financial information. Even though I have made a lot of money in the business; I do not make any personal income claims. My focus is on what the prospect wants from the business and what literature and income claims have been provided to me by Quixtar. In order for the business to work for them; they need to be able to do and say with confidence everything I am saying to them. In closing; I am committed to helping others. I believe the Quixtar business is a great vehicle to do just that. I am certain that there are other great opportunities also. I also realize that there are new scams being created everyday. My hope is that you continue policing the scams without handcuffing the great ones. Thanks for taking my comments