| Comment Number: | 522418-07524 |
| Received: | 7/11/2006 1:06:26 AM |
| Organization: | Quixtar |
| Commenter: | Vivek Chokhani |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am a Software Support Engineer and my wife is an Application Specialist (Microbiology) and we are using the Quixtar opportunity to help us develop an additional source of income. We have recently started pursuing this business with serious part time effort of about 15-20 hours a week. Our goal is develop a business of about $250,000/year in the next 12 months. We would like to appreciate and thank you for doing the work to set rules to protect individuals from fake business oppurtunities that make false claims. The Quixtar oppurtunity with BWW support has created a culture where we have always been led and we have always led others to think of this as a long term business. We always and always let prospects know that this is a minimum of 2-5 year effort to make reasonable returns. We let them understand during our presentation that all credible and sustainable businesses are never built quickly. We also specifically talk about the kind of effort it takes such as how many people and clients to discuss the business & products with every month, how to educate and train yourself to develop the skills required. The registration fee (about $150-$300) for starting a business of this type is refundable upto 6 months and we let our prospects know about this before registering them. WE HAVE SOME SERIOUS RESERVATION ABOUT the "proposed 7-day waiting period": --- Most of the people (including myself) are so busy in our routine that they would not remember most of what they learned after 7 days because they are consumed by their current tasks. --- People in our kind of business, including us, have developed a good expectation and motivation in the first few months because of the ability to sponsor and bring some of the friends and family into the business quickly. If we had to wait 7 days for everyone sponsored to have them further sponsor people, they would have never taken off (developed the initial expectation) and would've lost their focus. We believe the initial success, however small, goes a long way in developing confidence and self-belief in individuals. This rule would limit the ability to develop this feeling and thus the success of the individual. THE PROPOSED RULE FOR "The requirement to provide references"-- -- We believe this requirement definitely creates a huge possibility of someone else using our prospects to influence them to be in their business. -- Secondly we may be called upon to provide reference to lot of other individuals whom we are helping and this would prevent us from using our time constructively in developing our personal business. -- We already show the opportunity to prospects in Opportunity meetings in Hotels where large number of exsiting business owners are present and available to talk to. THE PROPOSED RULE about "Financial Substantiation": --- How can my success or lack of it (in terms of income) help determine a new business owner's success. This would seriously inhibit their ability to develop a goal for themselves as they would measure their success against mine. --- This would help only make successful people increase their business further, where as individuals like me, who are still developing their business would not be able to attract new business due to our current limited success. -- All new companies & people create success not based on what they have already done but what they are capable of doing. To force Business owners to reveal their current income is making prospects think in terms of working with only "already successful" people and is violation of privacy THE PROPOSED RULE about "Providing Litigation List":- --- The rule does not specify if the list is for all IBO's (business owners) or the company itself --- A litigation could be made with no merit