Comment Number: 522418-05556
Received: 7/1/2006 11:51:49 PM
Organization:
Commenter: Tom Murosky
State: PA
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

To start, I have been involved with Amway/Quixtar through the BWW organization. I have also examined many other MLM buz opps and am considered an active critic of BWW/Quixtar at www.bwwsot.blogspot.com. I have many details posted on that site as well as several articles at www.quixtarblog.com under the internet name "Xanadustc". I was involved from December 2000 to August 2004. In that time, I had gone into great debt at the counsel of upline particpants who kept saying that I was doing the right thing and success was right around the corner. I told the upline directly that I was not comfortable buying items on a credit card and intended to stop. They insisted that I keep it up because once I reach that certain level, I would be able to pay all that debt off in one month. With the influences of the 'training' system, the participants, including myself, believe this. I do accept responsibility for my actions. I could have tried to recoupe losses, ask for donations, or put ads on my website, however, I have not done so. That being said, the upline of that business also holds some responsibility, and I ask that they take responsibility of their own in the form of ceasing activity relating to sales of excess training materials. A brief note about training materials, I have over 380 tapes of which over 325 are nothing about 'training', but simply motivations. These were accumulated by participation in the Standing Order Program of which the team taught that failure to participate would mean failure in the business. Since I wanted to succeed and I knew very little about business, I listened to the upline causing a net loss in over $25,000 over four years. The breakdown is this: BWW / Business costs: $10,337.62 Quixtar Income: $1,044.76 Quixtar Shipping Fees: $466.16 (Note this only 2001-2003) Income from Customers: $158.73 Quixtar purchases (many purchases made to reach higher pin levels, most items of which are far more expensive than comparible items in a store):$15,003.88 After much study, I am led to believe that many of these companies practice either subtle or direct deception in recruiting. I need to set up the definitions that I would like to use: MP is the current participator of the MLM. Prospect is a person who the MP is talking to about the said business. I would like to propose: 1. MP fully discloses the name of ALL associated businesses. I say this because many of these companies or training organizations play a 'name game' to hide the company name they are dealing with. This is often called the 'curiosity approach'. 2. Full and actual income statements and earnings be submitted to Prospect for the entire upline which MP belongs. 3. For participants of motivational or training organizations, income from supplied 'training' materials be limited to no more than 10% of the income from the MLM company itself. 4. Give the prospect a 7-10 day MANDITORY period of time to review the materials about the business WITHOUT contact from anyone in the group (within reason). This is because many of the training tapes teach to never let the person go without seeing you or hearing from you for longer than 48 hours so that the excitement does not die. 5. Require that all MLM companies publically publish recruitment and drop out rates for the previous years. 6. Require that all MLM companies publically publish the income earnings paid out per level as well as the actual number of people at that level in that year. 7. Require that recruitment materials rely on information about the company, not an emotional presentation to stir up feelings of failure in the prospects. (All MLM recruitment meetings I have observed were about the failing of the American Dream until the MLM company comes and saves the day). Thank you, If you have any questions, my email address is: