Business Opportunity Rule #522418-11926

Submission Number:
522418-11926
Commenter:
Prabhat Deosthali
State:
TX
Initiative Name:
Business Opportunity Rule
Me and my wife, Shubhangi have been in Quixtar business since its launch in September 1999. We were Amway distributors before that since 1991. We have seen great deal of success through this business opportunity and have reached the Founders Platinum level and also have a cuple of businesses within our business reach the Platinum level. When we first got started in the business we were given all the detail information about the business plan, the company and the products. We reviewed documents like SA-4400 which is an FTC approved document that describes the business plan and the income potential. We were informed that there are no guarantees and it requires work to put the business together just as any legitimate business would. We provide the same information to the new prospects we register and give them chance to review the information ask questions and register them only when both parties understand what is required to build a business that would meet their goals. They review SA-4400 in this process. Typically the new person registers with a startup investment of about $125 + tax, they know that all of that money is refundable within 6months of starting the business if they do not want to pursue the opportunity. In fact Quixtar lets them keep the products that they get as part of the startup and refunds all of their initial investment. The seven day waiting period is a long time to sit on teh information they have. Typically the prospect can review all teh information and get their qustions answered within 1-2 days. Those who are excited about the information and would like to get going with the business would not be able to do so and would have to do so with with others that they want to show the business to and thus would eventually delay their business growth and would lose out on some business and some prospects. Also, they would have to delay making retail sales and helping others to create sales. Providing references could cause situations where someone else could end up registering the prospect as they may feel more relatable. aThis would not be fair to the original IBO who did all the work. Also, people may not want to be a reference. The quixtar plan described in SA-4400 does show the income available and the average income of an active IBO. That information is more than enough. With the above explanation I feell that this proposal has a very serious impact on our business and I strongly recommed to not make this a law.