| Comment Number: | 522418-12640 |
| Received: | 7/17/2006 11:20:39 PM |
| Organization: | Kapelski & Associates, Quixtar.com-affiliated IBO |
| Commenter: | Kevin Kapelski |
| State: | IL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I have been an Independent Business Owner for nine years. I have been recognized for acheivment in business volume several times. The Quixtar i-commerce business model is a perfect fit for my family's lifestyle. It gives us the opportunity and flexibility to grow financially and personally. Before I registered, I was introduced to other active IBOs in my area and given an SA4400 business review. I do the same for prospective members to my team. As I explain my business proposition to potential team members, I stress that this is not a "get rich quick scheme." I tell them that if someone offers a way to make a million dollars with no effort, it is either not possible, or not legal! Our new team members spend only $138 for registration, product introduction pack, monthly publication subscription, business insurance and membership in the IBOA. This registration carries a 100% money back guarantee. I have happily refunded this amount on one occasion. The proposed seven-day waiting period for starting a Quixtar-affiliated business would be a great and costly hinderance. I spend time away from my family and incur costs to conduct business meetings. Adding a waiting period for a consenting adult to decide to spend less than they would for a good pair of shoes, or a nice dinner with their family is simply unnecessary. Our business model carries a money-back guarantee and has a solid reputation. The extra meetings that I would have to conduct as a follow-up would drive my costs up and my profits down. Because my business is built on nights and weekends, scheduling around an additional seven day waiting period would simply bring my productivity and profitability down. Besides, how much more information can one obtain by waiting? They have already been given the SA4400 and can access the website or other independent internet sources to learn as much as they deem necessary. In addition, would one need to implement a seven day waiting period for the purchase of excercise equipment to be sure that well-meaning consumers don't buy a stationary bike that only gets used to hang clothes from in their bedroom? I'm certain that most excercise equipment costs more that $138. Further, the requirement to provide references of potentially "competitive" IBOs would put my business growth in serious peril. How could any new IBO, even if legitimate, compete with an established successful "crossline" IBO? Just because a new IBO has less experience, doesn't deminish the value of the opportunity. In addition, I don't want to field calls and letters from unknown individuals who are trying determine if someone that I don't know is offering a legitimate business opportunity. I'm happy to do this for team members, but how would you like to receive unsolicited contacts with no return for your time invested? No doubt, as success levels increase, so would the inquiries. The additional proposal for disclosure of litigation is unwarranted. In our society, simply being named in a suit is no proof of guilt or wrongdoing. Futher, if someone affiliated with my supplier (quixtar.com) is sued for something, does that imply that I am also liable? I don't think so, and I don't believe that it is reasonable to assume that the vast majority of upstanding IBO need be judged by the few that break the rules. Finally, the proposed rules ask for disclosure of income. Every piece of literature or example our team produces carries the disclaimer that the average income of active IBOs is $115/yr. I make more that my sponsor. New IBOs on my team can earn more than me. Disclosing my private income level is not indicative of the income that others can achieve. If I make more or less, it doesn't matter. Each quixtar-affiliated IBO gets paid based on volume generated. Thank you for considering my opposition to the proposed rules. I believe that disclosure of information is appropriate for new IBOs, but not in the ways proposed