| Comment Number: | 522418-12786 |
| Received: | 7/17/2006 11:59:45 PM |
| Organization: | Quixtar / Paquette Marketing |
| Commenter: | Ron Paquette |
| State: | VA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
We have been active independent business owners (IBOs) with Quixtar for 5 years. During that time we have a wonderful experience with Quixtar & our IBO team. Through the Quixtar opportunity, I am now able to stay home with our child. With the income we have earned, which continues to grow & the financial advice of our mentors, we have paid of thousands of dollars off credit card debt & off our cars. While we still have many goals to meet in the Quixtar business, we have always progressed at the rate which our business mentors indicated we would, based on the amount of work we devoted to our business. From the beginning it was made clear that Quixtar was not “get rich quick” & like any legitimate business would take time & true effort to be successful. We are very pleased with the success we have earned. We have been taught to properly educate everyone we work with on the potential benefits that can be earned, as well as the investment of time & financial resources reaching certain levels will take. Every prospect is invited to a seminar where properly trained IBOs in our business present the Quixtar Business Plan & given FTC approved literature. Each is encouraged to review it & ask questions before registering. Because we receive no financial reward until they are successful & often invest our own resources in helping them start their business, we want to insure each prospect is making a well informed decision before deciding to work with us & Quixtar. The $170 registration investment is 100% refundable within 6 months. In regards to the proposed new business regulations, there are a few elements we feel would have an unnecessary negative impact on our business, as well as the success of the prospects we are working with. First, the7-day waiting period will only slow down the growth of their business, not provide additional business knowledge. New prospects will go 3-4 meetings before they are registered. In many instances, prospects move through the process of starting a team so quickly that they are able to be profitable in there first 30 days. A 7 day waiting period would make that almost impossible. Second, the requirement to provide references is unnecessary. Prior to registration new prospects meet not only the registering IBO’s business mentors, but are also encouraged to meet our entire business team in an open setting. They can ask & discuss the relevant experience of others on the team. Additionally, in the wrong hands, providing lists of IBO references could also be used by potentially less creditable business opportunities as a contact list – a terrible invasion of privacy. Third, the requirement to provide a "litigation list" caused a prospect to consider often irrelevant information. Virtually every major corporation in this country has some form of pending litigation against them. Some true, some mere ridiculous allegations. While, I believe Quixtar & business teams that work with them operate in only the most legitimate & ethical way, I also know there are some litigations against them. Most of that information is very complicated & would not aid in making a good decision. This would be similar to making a shopper at Wal-Mart review a complete list of their lawsuits before allowing someone to enter their store to purchase. The new proposed requirements add only additional work and unnecessary steps in helping people join the Quixtar business. While these steps, if implemented, may help someone decide not to join a “pyramid scheme” or other illegitimate / illegal business model, in most cases those types of businesses aren’t going to follow these regulation anyway. Therefore leaving the burden on Quixtar and other fully legitimate and long proven business models to “prove themselves” while leaving other less legitimate models free to thrive. If they aren’t acting ethical to begin with additional regulations are not going to change that. Thank you for your time and consideration.