| Comment Number: | 522418-09407 |
| Received: | 7/14/2006 2:03:27 PM |
| Organization: | Quixtar |
| Commenter: | Brinkley-Clayton |
| State: | NC |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I have been a Quixtar IBO for many years and have reached the 4000 pv level. I have thoroughly enjoyed my business and the associates I work with. Both of my parents owned traditional businesses. I am thankful for this opportunity that allows me to have a successful business without the risks, overhead, and long hours they experienced. My sponsors have been there for me through all the years and have always been honest, upfront, and extremely helpful. We always tell people up front that this opportunity is not "get rich quick" and that it does take work and effort to succeed. We also give prospects information on our business, including the SA-4400, which Quixtar requires us to give out upon presenting the business plan and representing incomes. The SA-4400 includes typical IBO earning and represents sample businesses. The cost to get an IBO business up and running is less than $150 and includes a product pack that the IBO chooses. If the IBO decides this opportunity is not for them, all of the money is refundable. We also tell the IBO upfront that we have optional training materials and seminars available. We then take our time, energy and expertise to go to work for the new IBO, free of charge, to get their business up and running. We are very upfront on everything that will affect the IBO because we want them to be successful. Other industries don't require a 7 day waiting period and it isn't necessary for our business system. If you are buying a car, house, or other business and investing thousand of dollars, you don't have to wait 7 days. The cost of doing business for the sponsoring IBO would increase. For example, if working out of town, the waiting period would require a 2nd trip to register the IBO and get them started. The new IBO would also possibly be losing a week's worth of income that could be generated.The solution is a money-back guarantee fro the new IBO, which we already offer. Our weekly meetings provide an atmosphere where a person can discuss with anyone there their experience as an IBO. This provides the "references" but keeps them in control of how much private information is given out, such as address, phone number,etc. This provides a neutral location such as a hotel conference room and does not encourage trying to recruit the prospects there for personal gain. As a female building this business as a single person, I do not feel comfortable with IBO's giving out my personal information to prospects that I haven't had a chance to meet yet. Since our businesses are run from our homes, I don't want just anyone having my address, phone number,etc. I would not feel comfortable passing out other IBO's personal information without their permission for the same reasons. It would also be a gross invasion of our privacy to have to disclose all financial information to prospects as well as a potential safety issue. It would hurt the new IBO who is just starting his business and has no real income to show yet. As stated earlier, the prospects are provided with the SA-4400 already, which lists the sales plan, business earnings, and average monthly gross income. We don't provide specifics about gross monthly income or yearly income but are happy to draw out additional information based on the sales plan if the prospect has specific questions. We will describe lifestyle and can provide copies of bonus checks such as the Q-12 $10,000 bonus check, etc. to back up claims. As far as litigation lists go, filed cases with no merit would wrongly influence prospects and be completely disruptive to our business. There are numerous frivolous lawsuits filed weekly from people that are trying to get something for nothing. Every profession has a bad apple including doctors, lawyers, home builders, etc. None of these have to provide a litigation list. This requirement would hurt the vast majority of IBO's that are running a honest business. Founding members have been on the Nat. Chamber of Commerce and set the model for the FTC.