Comment Number: 522418-05742
Received: 7/3/2006 12:19:56 PM
Organization:
Commenter: Leah Makuch
State: MA
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

I have been a business owner powered by Quixtar for almost five years now. I first saw the business plan from my sister when I was still in college. I was thrilled with the opportunity. While I haven't built my business consistently, I have made some monetary gains, and the personal development I've received has been invaluable. My team has always encouraged me to become educated about business and to continue to grow myself, and I can honestly say that I wouldn't be so successful in my chosen career if it weren't for the personal development I constantly receive as a Quixtar IBO. I work very hard as an IBO to make sure my prospects understand that I am not trying to "sell" them into anything, and that this is not a get rich quick scheme or an overnight success. In fact, I've turned down a prospective business owner who was only looking for a quick fix to his financial issues, and recommended that he look for a different option. I give my prospects references of credible websites, including the BBB, so they can gain information for themselves. Since I am dedicating a lot of my time to helping them be successful, it would be foolish to trick them into registering, as there are no registration bonuses. I currently provide prospective IBOs with information about the average gross income of an IBO, as well as the cut-and-dry fact that if they aren't willing to do any work, they won't make any money. Period. I don't want people on my team that aren't willing to work, and I want people to be educated. This information is sufficient, and I shouldn't need to provide my own personal financial statements, since I am not a determinant of their success. I let people know that I am not financially where I want to be yet, but giving them copies of my financial statements is completely inappropriate. I can tell them exactly how much they can make with the business and what they need to do to make that money, but my own business is irrelevant to that information. I do not like the proposed 7-day waiting period for registration for a business such as Quixtar that offers a money-back guarantee. Such a waiting period undermines personal choice, implying that adults are not mature enough to make their own financial decisions. Do we require a 7-day waiting period when purchasing a car or a home, purchases with no money back guarantee? The pitiful 200 dollars someone may spend to registar with Quixtar, including a complete product pack, all of which is money-back guaranteed, is nothing compared to hundreds of thousands of dollars that may be spent on a home. I also disagree with the proposed requirement to provide references. How is any one person's success or failure a determinant of your potential success or failure? I would not feel comfortable giving my personal information to people I don't know. There are plenty of professional references to the success of the Quixtar enterprise without needing to offer individual names and phone numbers. I support most of the FTC's current proposal. The network marketing business model is credible and valuable, and enables people without business experience to become business owners and gain back the freedom they sell for an hourly wage. It's important to eliminate the scams that undermine the legitimacy of true network marketing businesses. But in doing so, we cannot cripple the network business model itself, or it would be biting one's nose to spite one's face, so to speak. Please remove the aforementioned aspects of the proposal, and create a fair and equitable proposal that does not undermine personal choice and yet still promotes guidelines to eliminate illegitimate businesses. I wouldn't be where I am today without Quixtar, and I'm thankful every day that I saw the business plan. I am dedicated to giving others that opportunity, and allowing them to make their own decisions