|Received:||7/7/2006 6:32:37 PM|
|Organization:||EcoQuest International, Inc.|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:Sirs: Thank you for your careful review of abuses that take place within our profession and the industry of direct sales. Many unscrupulous have created questions that need taking another look. The vast majority of established direct sales companies, are honest, provide valid and affordable opportunity for a home-based business consisting of purchasing product from a manufacturer and selling it at a profit to the end user. This is the foundational business model that we apply daily to our own efforts and teach it to our associates. The bonus structure in direct selling is for assisting others (sponsoring) and is simply a profit override not unlike any traditional business or service. To apply such overly demanding,onerous regulatory language as suggested will hamper our work, hamper our growth, and hamper (if not destroy) a strong, well established business model that provides personal income through personal hard work. Truly, we see thousands of such direct selling businesses, with honorable intent come into existance. And fail. I can see from my porch a strip shopping center, recently built, being leased to small businesses, and 80% of them will fail in 3 years. We also see direct sales companies with dishonorable intent come into being.. and to encumber the honest to the point of extinction because of the the dishonest is a path that must not be taken. Enough law to prosecute the lawbreakers already is in existance. Punishment for the law abiding is unconscienable. As a Realtor for many years, my broker profited from my hard work, I was paid referral fees, finders fees, shared commissions with co-workers and other Realtors. Is there any effort to impose such restriction of trade upon the Realtors of America as are suggested in these regulations? Would that industry survive such grave regulations imposed upon it? As the General Manager of a cluster of radio stations, I hired and trained people to sell advertising (air!) The sales person was paid commissions, the sales manager got an override for the training and production he could encourage, my salary was augmented by bonuses for income produced in these endeavors. Could I have hired and trained and made profits from these professionals had I had these exact restrictive demands placed upon my industry? I can assure you, no industry could endure such! Wal-Mart is sued every 4 seconds. How many times has CocaCola been sued? When presented with a legal agreement to represent a direct sales company such as ours, a reasonable man will understand the opportunity, responsibility, and potential for success (or not). In 17 years in broadcasting I interviewed several hundreds of sales applicants. I hired and trained and fielded hundreds. I fired many, many quit. The ones who stayed numbered less than 100. The number who prospered well? In 17 years, less than 10. Did the radio station get sued? yes. Were salepersons names and contact information public? yes. Were any Brokers I worked with sued? yes. Were the Realtor Associates names and contact information public? yes.What impact would the proposed regulation have on those industries if applied? I can assure you, disasterous. Thanks for your efforts in our behalf, kindly do not allow the over-regulation proposed to bring our industry to it's knees.