| Comment Number: | 522418-07265 |
| Received: | 7/10/2006 7:58:26 AM |
| Organization: | Xango Independent Distributor |
| Commenter: | Clara Wallick |
| State: | MO |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am writing this letter because I am concerned about the proposed Business Opp. Rule R511993. I believe in its presented form, it would prevent the business I am starting as a Xango Ind. Dist., and would destroy my chances of becoming independent and being able to provide for my retirement. Even though I just recently became a XanGo independent distributor, I have operated other home based businesses for the past 20+ years. I have always made more than enough money to cover any startup costs plus provide some extra income necessary to supplement my budget. I have never lost money in a net-work marketing company. but, I lost a lot of money operating as an independent loan office that I had to pay a fee to start up, pay all my office and advertising expenses and they kept a portion of each commission as a reserve. They closed thier doors, sold out to another company and kept my reserve money. The only way I would not lose it was to pay the new company that bought them out an even larger amount for the right to carry on. But, I figured 'burnt once - twice shy' and I declined therefore losing all my reserves. I know there are fraudulent business opportunities out there. I have been to several "opportunity meetings" where they wanted as much as $495 to invest to start up. I agree with lowering the minimum investment requirements to protect consumers from these hyped up "opportunities". Or any others that promise enormous income potential with lots of hype and nothing to show for the investment but the right to say you are an 'independent contractor/distributor' of the company and once given the money, you are on your own. With XanGo, there is really no money needed to start. We do pay a $35 member fee in order to purchase the product wholesale and have the right to share with others. By sharing with others about the product (personal word of mouth advertising?, the company will pay us a commission on the purchases those people make and whick come with a 100% money back guarantee for new enrollees within their first 30 days. That is a longer thinking time than what is given when you refinance your home that could put you out on the streets. Plus, it is no more expensive than the member fee I pay to Sam's Club in order to get their member pricing but without the income opportunity for telling others what I am saving and how they can do it also. I love the XanGo product and would share it with others without any income potential, but there are many people introduced to the XanGo opportunity who are now operating a business to either supplement their income or as their only source of income. It is something anyone can do no matter what their sex, age or health condition. I personally need a way to be able to provide extra income in my retirement and XanGo offers that opportunity to me. I am 60 years old, have Dupuytren's contractures in my hands, and there are many things I cannot do, but I can operate a XanGo business. It is not easy to build and they never promised that it would be or ever told me how much I might make. Incomes of distributors are never discussed. But I do know that a small commission is paid on each member's purchases each month. It is only a small commission, but the numbers will add up and I know I will be able to supplement my Social Security for the rest of my life with this business, no matter what happens to my health. And the best part is that even when I die, the business I have built up will go to my kids to either continue or sell. So PLEASE do not put this rule into effect the way it is now. You will hurt a lot more innocent people than it will help; not only the independent distributors, but the whole economy. If we don't have the income, we can't spend to help other businesses be profitable; nor will we be able to take care of ourselves making it necessary for government/medicare/SSI or whatever to help us out. Please let me continue to be independent.