Comment Number: 522418-04305
Received: 6/26/2006 1:40:40 PM
Organization:
Commenter: Hasan
State: TX
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

I'm a quixtar Independent Business Owner(IBO) and have been pursuing the business for a few years, while working as software engineer. When this business was presented to me it was obvious that required hard work, and commitment to make the income. It was not presented as a get rich quick scheme. I understood that my income was based on my performance. I also understood that there were no gaurantees of success and no obligations on my side if I wanted to leave the business. Infact I understood that all the products and business support material had 120 days before I can get my 100% refund if I choose to return. I was able to assess the opportunity in a very fair way. After I saw the presentation, I got an approved marketing plan(SA-4400), with averages of active IBOs. I was able to then sit down with my referring IBO, where he was able to answer any details that I needed to make an informed decision. There was no pressure. I decided with clear facts to pursue this opportunity and have been very happy with the results. We use the same procudure and have been having a very successful experience with anybody we introduce to the business. I do understand that there might be individuals and companies that might not work ethically, and do frauds, and there should be laws that must prevent this from happening. I do understand that the new rules proposed are to prevent any fraud of this kind, but I can say for an absolute fact that this will only effect negatively to the business owners who are following the rules and working their buisness ethically. Even though the intention is great, but the rules are going to make it very difficult and even impractical for honest business owners to pursue their dreams in this free enterprise country that we love. Firstly the requirement of 7day waiting period is not practical because the prospect know that they can get their refund and quit the business without any obligations for 120 days. So this rule for waiting period only hinders people to move forward as a business owners. For example when you go to buy a car, and the dealership says I know you want to buy the car that you test drove but you need to go home and think about it and come back after 7 days before buying this car, and then you can become a car owner. Its completely impractical. Secondly, the requirement to provide references, is extremely impratical, since there will be IBOs who just dont know that many other IBOs in the area, also I dont want others to be using me as references, and finally if I do find 10 other business owners for references I will be constantly worried if all the work will be wiped by them registering them in the business. This will cause more unfair and unethical practices, opposite to what we want. Thirdly the requirement to provide a litigation list. Again how would we get a comprehensive list, and if I was starting as a new business owners most of these litigation will totally confuse me and would be totally irrelevant to me. All I would like to know if this is a registered company at BBB or a legal company, and the average income of an active business owner. I can make a decision then if I understand the marketing plan. Fourth, I was given and explained a document that has an example of compensation plan called SA-4400, with the average gross income. That was a great example that was fair, and understandable for a non-business person like me. I really did not need to see more example, or other specific earnings disclosures. Lastly I also believe offering personal financial substantiation of somebody specific is really irrelavant to the new prospect. For the following reason: If the business owner has made good income, the prospect might think that he will be making the same amount, not knowing exactly how he worked hard to create that income. Viceaversa, if the business owner was unable to engage in the business for certain reason, that is also irrelevant to the outcome of the prospects business.