| Comment Number: | 522418-04630 |
| Received: | 6/27/2006 6:14:35 PM |
| Organization: | Quixtar powered by Leadership Team Development system |
| Commenter: | Kirk Wettschreck |
| State: | MN |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| Attachment: | 522418-04630.pdf Download Adobe Reader |
Comments:
I have been a quixtar IBO for 15 months now, and it has been a blessing in my life. Best month in Business has been $380, and I average about $140, just above the average listed in all Quixtar material disclaimers. This business has brought so much more to me then money though, it has brought me a DREAM,dear friends and improved my people and relational skills that have made me a better husband, friend and worker. When I was registered I received a ton of information and had access to people I could ask questions to if I didn't find the answers in the materials that were given to me after I attended an informational class. Nothing was kept or hidden from me. When I sponser others I also offer them the same access to information I was given. It is always clearly stated by myself and by my upline and team exposing this business concept that this is by no means a get rich quick scheme, it is not something for nothing, and that there will be work involved to reach and achieve the goals outlined in the busniess plan presented. It is clearly stated in the business presentation that this is an opportunity and that there are no guarantees that you will make this income. I myself paid about $130 to get registerd and that was for my IBO number, some magazines from the corporation, some catalogs, and for some sample products, but it varies depending on what sample kits you wish to start with. Now generally we tend to register new IBOs with a kit that is $180, and most of that is sample product. Each prospect is given 6 months to 'try' out the business, and if at any point, they feel this is not an opportunity for them they are refunded their $180 after calling the corporation and writing a formal letter, and in addition to getting their money back they still get to keep all of the mags they have recived and thier sample products. So it really is a no lose, no risk situation, should the prospect choose to get registered and start a business powered by quixtar and the LTD system. In general I agree that this rule would be good to flush out any illegal systems and pyramid schemes, however there are a few spefic issues that I have that should be addressed before this Business opportunity rule is imposed. 1.) The requirement of a 7-day waiting period: In the case of my independant business powered by quixtar this could be detrimental to both my monthly profitablility and the profitiability of my downline. As it stands now, at least in the LTD system from the time they see the plan, it is usually 1-3 days after that we follow up with them to answer any questions that they can get registered. In other words we usually discourage people from signing up the night they see the plan, and if they do get super excited and sign up that night, it is usually a pretty rare event. Not to mention the fact that with Quixtar any new IBO has 6 months to change their mind and get their initial investment returned to them, so a 7 day waiting period really only handicaps a new prospect from getting started and becoming profitable. 2.)The requirement to provide references: This is what I would consider an invasion of privacy. Because not only would I have to give out my information to people, I would have to give other people's information out as well. Not to mention it would tie up a lot of my time having to take calls from people asking for references, that I could spend developing my own business. When a prospect comes, they get a chance to meet the entire team where I am, and they have a chance if they feel the need to ask other people about me. 3&4.)The requirement for specific earnings disclosures and financial substantiation: Quixtar clearly states the average earnings for IBOs. It would be to hard and time consuming to tell a person how much they will make, when it is dependent on what work they do. And people in the business should not be required to disclose their income. That is personal financial information. See Attachment for more details.