Comment Number: 522418-02328
Received: 6/15/2006 12:34:05 PM
Organization: Distributor for Neways
Commenter: Jeff Zadzilka
State: OH
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

RE: "Business Opportunity Rule, Matter No. R511993" Most people that go into any business have a difficult time succeeding. The hardest thing to do is to generate customers. A Network Marketing business generates new distributors who are also customers. Adding additional burdens to distributors will do nothing but make it even harder to succeed in generating customers and new distributors because having to add this additional info to the marketing makes it more difficult for a potential recruit to read thru the information and creates doubt. Success in this business is developed by creating belief. At the current time, we are already restricted from telling a recruit what our successful distributors are earning. We can't even imply income potential without getting in trouble and prospective distributors want to know what our successful distributors are earning because they plan to succeed, not fail. In an effort to protect consumers, this new proposed law will only create more statistics of business failure rather than success...and I don't think that's good for our economy or good for the potential recruit of a business opportunity. I do believe a good compromise would be that information on success and failure rates, income percentages, etc. should be available to any recruit of a business opportunity who asks for this info, but I don't think it should automatically be required as part of a presentation. What other business is required to make a presentation of their failures along with their successes when presenting info to customers. I believe it is enough to provide a comment with any business opportunity that says income depends on the efforts and results of each individual and cannot be guaranteed. Thank You! Jeff Zadzilka