Comment Number: 522418-07236
Received: 7/9/2006 11:58:50 PM
Organization: Quixtar IBO
Commenter: Patrick Tatro
State: MA
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

I have been an IBO over 5 years and have enjoyed all the positive aspects the oppurtunity has given me. It has totally changed the track of my life for the better. 1.Having a prospect HAVE to wait 7 days could severly hurt their profitability. We have found that many times prospects are very excited following seeing the oppurtunity and often want to get started right away. However I have never seen anyone be pressured into getting involved and always recommend getting more info, if they are questioning getting started, from Dunn&Bradstreet, The BBB and other reputtable sources. Allowing new IBOs to build their businesses fast is the best way to be successful and making them wait 7 days to get started would slow things drastically allowing many less people to be successful. 2.Sharing financial records w/ prospects would hurt all businesses of people who have not had extreme & immediate success. For example, what I make has no baring on what one of my prospects may make and they may make more than me (in our biz IBOs are allowed to build their biz as fast or slow as the wish.) We share average incomes for each level and also share the average income for active IBOs. From my experience incomes we share are scaled down and not up to WOW the prospect. It is also emphasized to the extreme that no money is made with out EFFORT. 3.Forcing sponsoring IBOs to give names and contact info of other IBOs to prospects would not help the prospect or current IBOs. Currently 9 times out of 10 prospects meet several IBOs before getting started usually at oppurtunity meetings. Meeting IBOs not in their potential line of sponsorship could hurt their possibility of getting involved and some prospects may be swayed to get involved with another IBO. 4.I always recommend checking our company out w/ reputable sources, but listing all legal allegations against Quixtar would certainly hurt all prospects who saw them. Anyone has the right to suit anyone else for almost ANY reason and so many times people do. In our case,if a prospect saw those suits it would only hurt the prospect. Most of the proposals in the Business Oppurtunity Rule would probably be more relevant to business oppurtunities requiring an initial investment of over $1000. Our start up investment is under $200 and if the prospect feels they made the wrong decision by getting started the can get almost all their investment back. A reasonable cancellation policy provided by the oppurtunity is a great way of eliminating risk of investment and I believe that is why these rules are being proposed. Please consider differentiating between oppurtunities requiring an investment of under $1000 and those over $1000.