| Comment Number: | 522418-12529 |
| Received: | 7/17/2006 10:34:25 PM |
| Organization: | |
| Commenter: | Robert Peterson |
| State: | VA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
(1) Personal Experience: I've been an Independent Business Owner (IBO) for more than 10 years. So far we have built the business ourselves and with contacts we've made in the US, Thailand, Australia, Singapore and the Philippines. We have so far 2 "legs" that have reached the Quixtar Platinum status. Our next goal is to reach the Emerald status here in the US. I have never been involved with a more honest, ethical group of people as I have with those in the Quixtar business. The people, especially the leaders are honest and ethical. When I registered I was sceptical as I was about all businesses as I was looking to start a franchise. Quixtar met my needs. I received plenty of information and recommended source to make an informed decision about whether to register. I do the same when I sponsor others in this business. My prospects understand that the Quixtar business opportunity is not a "get rich quick" plan because we cover that when we explain the business. My prospects usually spend between $50 and $150 to register for the initial registration fee and depending on how much they purchase of other products; 100% is refundable if they decide not to register for 6 months after they get started. We are NOT trying to make money getting people started. The business doesn't work that way. (2) Specific Issues: The requirement of a seven-day waiting period: This would not have a disasterous affect on my business, but why? I don't have to wait 7 days to buy a house, and they WON'T give my money back after I close; with this business my prospect has 180 days to change his/her mind. Where's the risk? A seven-day waiting period would just slow down the opportunity for the new business owner. Do you make someone who opens a store wait seven days before they can sell to the public? Ridiculous! Think how it would slow down the business for those that wanted to work it if they had to wait 7 days between registering a new IBO? And with a 100% money back guarantee, what positive purpose would that serve? The requirement to provide references: There a hundreds of success stories in Quixtar. Why do they need references? They are already available. There is always a risk that my prospect might register with one of the references provided instead of me, and that would not be fair? Again, what purpose would that serve? I do not agree that I should have to provide my name, address, and phone number to prospects. That would violate my privacy? And what if they didn't register? My prospects almost alway meet other IBOs in your group before they register and always right afterwards. This is how we explain how this business works and how a prospect can learn about the experiences of others. For example, I always introduce my prospects to my mentors and upline Emerald. The requirement to provide a "litigation list" is ridiculous. I'm not a lawyer. And besides, if a person is that skeptical, what makes you think that he/she would belive what I gave them anyway? That won't work and is counter-productive. Plus, would I be liaible for providing potentially defaming information if I was wrong? This is not a good idea. The requirement for specific earnings disclosures: I disclosure the income potential of a Quixtar business that is described in the SA-4400. It would make no sense to provide a separate disclosure for every example I used in explaining the income potential of a Quixtar business to a prospect. We cover generalities - after all, if I could predict the future, I could provide an exact number, but that's not possible so we keep it to general info. The requirement for financial substantiation: I provide general information to my prospects about my personal income from my Quixtar business. I explain what the general profits are for specific examples; my personal income is not their business. Thank you, Robert Peterson