|Received:||7/3/2006 5:43:56 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:As a newly beginning Independent Business owner, I applaud the efforts of the FTC to address the fraudulent business opportunities that have grown so much since 2002. I have been involved with Quixtar and the business opportunity since 2002. Although I have not yet achieved great success yet in the business financially, I have grown personally a great deal since I first became involved. Participating in Quixtar has provided me with an opportunity for personal growth that has affected every area of my life, physical, emotional, interpersonal and yes, even financial in my other endeavors. When I was first introduced to the quixtar Marketing plan, I believe that I saw the business for what it was and never expected the business to be easy or quick. It was however, laid out simply enough for me to understand competently. Any questions that I had about the business were answered through audio materials and business information packets provided by my sponsor. When I personally present the busness plan to others, I make sure they have access to all of the information that they need to make an informed decision, and they have every right to ask more questions and I will answer them to the best of my understanding or seek information from my upline if I do not know. In my presentation I openly inform them that this business plan is a 3 to 5 year plan, and that it does require some commitment to achieve significant success, much like any other worthwhile business, and compared to other opportunites, the start up costs for this business are minimal-approximately 250.00 total for registration, registration product pack and introductory product pack (which are important in developing an understanding of core-line products). Although I have not yet encountered anyone who decided to leave the business within the first few months. I understand that if they opt to discontinue their relationship, they would be entitled to the full registration fee in return less the consumable products. (approximately 60.00) Some of the specific concerns that I have about the proposed rule are the following: a. seven day waiting period prior to registration. Since direct marketing is closely linked to timing (24-48 hours in most cases) this standard would make success in even the best direct marketing businesses extremely difficult and in some cases impossible. I would suggest that if the business offers a 30(80%)-60(50%)-90(30%) day refund program for independent business owners who decide to discontinue their business or if the initial registration fee is less than 200.00 then the seven day rule should not apply. Many of the get-rich quick opportunities request thousands up front before you could even participate in the program and those who invest take major hits. That is not the case in this business. b. Provision of ten local references: Providing references about other local independent business owners (10) in my area would be difficult, for although I am aware that there are other organizations operating in the Valley I do not have direct communication with them as they do not belong to my particular organization and I do not have ten known IBOs in my area in my organization. What would be problematic about this is that since I am not already earning thousands of dollars a month through Quixtar, if there were any more successful IBOs working in the Valley with less moral standards they would take th opportunity to register those that I introduced the business plan to. Or my prospects, seeing that the others were currently more successful than I would choose to register under the reference sources and my opportunity to achieve would be undermined by simple perception of others.