Comment Number: 522418-11090
Received: 7/17/2006 1:56:19 AM
Organization: IBO associated with Quixtar
Commenter: James Freeman
State: TX
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

I am a young aspiring entrepreneur who lives in a small town and I own two businesses. One is an insurance inspection business and the other is a direct selling/networking business which is supplied through Quixtar. My inspection business was not doing well (mainly due to politics which is very common in a small towns. And I was looking for another business to start to supplement my income. I had been presented with a few networking businesses from some friends but chose Quixtar because when they presented the business plan they showed UP FRONT how the money was made, The gave me resources and websites to back up the information and they offered a 6 mo guarantee on everything including my registration. Coming from a business point of view and having friends and family try to involve me in different businesses (networking and non-networking) I found this refreshing because NO ONE had offered me a guarantee. These proposed rules In my opinion are only going to hurt the businesses that are operating with honesty and integrity. Where as allowing the ones who are not to flourish. Besides how is the FTC going to enforce these laws on the illegal one when they are so small? The 7 day wait period would greatly affect my business because most people in this world are swayed by people with opinions and before they are registered they are given much information to make a decision. If a new registered business owner is excited and then has to wait 7 days that gives them 7 days not to research the information, but to get on the internet and find negative web-sites (which have no proof in their accusations) or talk to friends and family who have no legitimate experience in this type of business. Besides from all that I have seen the legitimate businesses are the ones that provide accurate information that has been approved by the FTC and have a 100% buy back policy. In providing references: this gives away the privacy of other business owners who are legitimate business owners themselves. Also this might allow my prospect to register with a different Business owner other than myself. When I register a prospect the only way I can really legitimize my business to them is by having them come to a local meeting where they meet a team and see other business owners they can relate to. Calling them on the phone is complete rubbish because they dont know who they are talking to. And someone who is trying to scam someone could hire a friend to lie for him! Regarding the litigation list, If I wanted to do business with a new insurance company(in my traditional business I own) would I have to be presented with litigation list to see whether I wanted to do contractual work for them? If this rule was signed into effect then why is the FTC singling out only Networking businesses. Then this should encompass ALL businesses! Imagine if Wal-Mart wanted to do business with me? How absurd would a litigation list be? Imagine how big it would be? Yet people do business with them all the time. Regarding personal income disclosure: I have been with quixtar for about 5 years but have only been pursuing the business for the last year. I have had to juggle a hectic life and have not been able to focus all my efforts on my networking business. But I have mentors who have been very successful and have made allot of income through the opportunity. I use their credibility because mine does not relate to my prospects. Beside asking for how much someone makes is very unethical and unprofessional! How about if I start asking my prospects how much they make? Will that be ethical I may want to discriminate against poor people! All in all, These rules are just going to hurt the law abiding business owners. If these laws are passed then they need to apply to all businesses in the U.S. not just networking. Because people get cheated out of non-networking businesses every day Legally! These rules appear to be an effort from the FTC to do away with networking businesses