Business Opportunity Rule #522418-12593

Submission Number:
Initiative Name:
Business Opportunity Rule
My wife and I have been Direct Distributors/Platium IBOs for over 20 years and have benefitted a very increased lifestyle from the AMWAY/QUIXTAR business. Although, we have not achieved our ultimate goals ( as if anyone ever does), it has not been because of the business plan but because our priorities and efforts have been in other areas of our lives.. We do know, however, that at anytime we decide to apply our efforts, much higher levels are available and can be achieved. As we register new IBOs( independent business owners) we explain that even though the cost is less than $200 (which about 80% is refundable) it is very similar to a traditional business, in that their success will be based on personal effort and time commitment. In all our years in the business, I can't recall the last time somebody asked for a refund. There are several proposed restrictions which really make very little sense and would greatly hamper new business owners in the development of their business growth. I see no advantage for a new IBO to be restricted from registering or being unable to start their business before a 7 day waiting period. In most cases there are 7 days from the time an individual sees the marketing plan, attends a second meeting (either a large hotel type workshop or smaller home meeting) where they will meet other business owners and then gets registered usually at a later date. In some cases that time period might be shorter, but in my experience most time frames are longer. It seems this requirement would hurt the new IBO more than the sponsor; after all this is free enterprise and success is based on personal effort not time on the job. Secondly, the idea of providing other local IBOs names and phone numbers to prospective new IBOs would be difficult at best and in all problibity illegal. Quixtar might know all the IBOs in the local area, but a indivdual IBO never would. As much as I dispise the ACLU, I think they would be all over this requirement. As I previously explained, most prospective new IBOs attend an event or two prior to registering, where they will meet many of the active local IBOs. Lastly, the requirements to provide litigation list and personal income statements appear to be extremely unfair and would only hurt the legitimate business models and the shamers would lie and cheat anyway. In this age of frivolous lawsuits which can be based on untruths or unfounded claims, it would be unfair to the sponsoring IBO as well as the prospective IBO to release such information. I don't believe private businesses are required to disclose earnings like public companies are required to. We provide an SA4400 which gives average incomes and most appear low in my estimation. In closing, we support the idea that prospective IBOs have enough data to make an informed decision: however, it appears that some of the proposed requirements would create an unnecessary burden on QUIXTAR IBOs instead of safeguarding against counterfeit deceptive business opportunities. It seems to make more sense to bring rules to an enforceable standard, which parallels the current QUIXTAR model of informing prospective IBOs. Since QUIXTAR IBOs are currently having sucess in the areas of concern,ie-the FTC,by following the QUIXTAR model of informing prospective IBOs, there would be a set of rules that would be enforceable and monitored for sucess. To penalize QUIXTAR IBOs in an attempt to stop deceptive opportunities not only burdens the newest IBO, but hurts the entire industry. It seems logical to bring the industry up to the QUIXTAR level of standards instead of creating new rules that currently have no measure of sucess or enforceability.