| Comment Number: | 522418-06312 |
| Received: | 7/5/2006 10:52:21 PM |
| Organization: | Quixtar & TeamBuilders |
| Commenter: | Page |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Thank you for addressing the recent fraudulent businesses that have cropped up recently. I have been associated with Quixtar since its inception in 1999 and with Amway before that since 1996. I have recently joined TeamBuilders (affiliated with Quixtar). My wife and I have had great experiences and wonderful personal growth during these times. We are looking forward to reaching a point at which I can work with TeamBuilders full time and leave my software engineering job behind. I have several people on my team that I am working on on helping them make enough money that their wives can stay home with their children. When I registered with TeamBuilders, I was informed that the average active IBO made $110/month. I thought that was great, since there is no restriction on who can join, that means that average regular people can make money in Quixtar. So when I sponsor others I let them know what the average IBO makes, and if they are willing to do more than the average person, they are not limited to that amount. I knew this would take work to build my business to a successful point, and I make sure everyone I share the opportunity with knows that. If I don't it actually hurts my business. If someone gets in thinking its a get rich quick scheme, then they will turn sour quickly when they find out it is not, and it will demoralize those who they registered. I registered someone recently who, no matter how much I told them it would take work, they assured me that they could get rich overnight without hardly any work. They paid the $225 to register and get the introductory products and educational information. Within three days, they called me and said that they wanted out. I refunded the money for the education system and called Quixtar who refunded them for the registration and introductory products, minus restocking (about $10, which I paid so they would not have any more negative of an experience with Quixtar). If the proposed 7-day waiting period were put in place, it would dramatically dampen the momentum of being able to register friends and family within days, and they would not see progress as quickly and loose interest. If there is a 100% money back guarantee, there should be no waiting period. Basically, they could return everything to me within a year of registering, and I would make sure that they would get 100% of their money back, thus with the people I register, they have a 1 year waiting period, but they can see success during that period also. I was really disappointed in the proposed requirement for 10 references. This would be like requiring a business to send you to 10 other stores before you could buy something there. I know this person and have a personal relationship with them. However, if I send them to someone else, that person may be able to excite them temporarily into registering with them. So I do the work of getting an appointment, sharing the sales and marketing plan and then send them off to someone who they may not know to register them and profit. That is just silly. Similarly the litigation clause is silly. I thought we were innocent until proven guilty. This would turn the tables on that idea. Anyone can (and usually does) file lawsuits, both frivolous and non-frivolous. The earnings and financial part was a bit misguided. We talk about the average income of someone at three different levels (average of all Active IBOs $110/month, Average Founders Platinum $50k/year, Average Founders Emerald $100k/yr). We also state that you could make more or less, depending on your ambition level and work ethic. I shouldn't have to pull out personal private financial data (unless there is some kind of investigation or probe and it is legally required). If someone wanted to know if a Founders Emerald really could make $100/yr, then they could look at my mentor's income, which is well over $350k/yr as a Founder's Emerald, but I don't want them to think that it will be as incredible. Please be reasonable.