| Comment Number: | 522418-10408 |
| Received: | 7/16/2006 12:43:20 PM |
| Organization: | |
| Commenter: | Tim McNeal |
| State: | IN |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Network marketing has been under attack for many years., I know many people who have been successful in Network Marketing. There is a move to require MLM companies to post the percentage of people who sign up and are successful to to the total number of those who sign up. Since there are no restrictions on "signing up", that number would not be reflective of those who are actually active in the market place. The majority of the people who "sign up" do nothing beyond that point. Any business involves risks and operational costs. ALL businesses will fail if the person starting the business does nothing. I used to sell Insurance. The biggested difference between insurance and MLM is, if you don't produce in insurance, you lose your connection with the company to sell. You also forfeit any future commissions that you "earned". MLM lets you be more independent. If the insurance companies included everyone who signed up, I would not be surprised if the success rate were below the success rate of Network Marketing (MLM). Insurance companies are set up similar to MLM structures. Look at a Wal-Mart parking lot and observe the purchases. Then, study a teaching on what the rich, middle class, and poor buy on payday. When looking at an MLM, I first look at is this a product I need or desire? Would I be happy with this product if no one purchased it from me? If so, then would I be happy to receive compensation for someone else using the product? MLM is another word for "sales". Thank you, Tim Thank you