| Comment Number: | 522418-06091 |
| Received: | 7/5/2006 12:29:02 PM |
| Organization: | Quixtar |
| Commenter: | Monica Alderson |
| State: | AR |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
To Whom It May Concern: My husband and I are Independent Business Owners through Quixtar and have been since 1994. Although we have not yet reached the "highest" levels in this business, we have benefitted fully from association with the highest quality products and people as well as additional income. Over the years, we have developed many lasting relationships with our associates. Before registration over 10 years ago, we sat down with our prospective mentors, and they answered all of our questions about income potential and how the business plan worked. They were very forthcoming to give us no guarantees, explain that all product and registration purchases are optional, and have a 100% money-back guarantee within a certain time frame as well as answered questions about the company's history. They also supplied us with literature regulated by the FTC to back-up their words containing the average Quixtar IBO income and a print-out of the Quixtar business plan which we could take home and peruse at our leisure. At registration we spent approximately $150 including about $100 worth of products to sample. All of which had a money-back guarantee. Today, those options are still available and utilized for every prospect interseted in starting their own independent business powered by Quixtar. In addition, prospects are encouraged to get further information from websites such as thisbiznow.com and quixtarfacts.com. On average, our newly registered IBO's spend about $125 on registration and products with the knowledge that they can get their money back within 6 months if they choose. They understand that this is not a "get rich quick" scheme, and it relies on their own efforts to succeed their own financial goals. In specific response to the proposed rule, I have these comments. First of all, will any of these proposals actually be followed by dishonest companies? Honest companies, such as Quixtar and it's IBO's, will be bogged down in legalities and red tape due to others' criminalistic schemes. The rule, as proposed, has the potential to cripple honest business owners, which in turn, will affect the economy in the long run. The 7-day waiting period: No prospect is required to register within a certain number of days after seeing the business plan. However, most do want to register before 7 days and usually have friends and family ready also. This creates an almost sure means of income their first week in business. Provide references: Our prospects go thru a three-step process before registering. A brief overview, a presentation of the Quixtar IBO plan at which they meet local IBO's and receive literature to take home, and a follow-up in which we answer any questions they may have. I feel written references are unnecessary as well as pose a privacy violation for individuals. Litigation Lists: I believe only cases of merit with substantial convictions, if any, should be required. Earnings disclosures: I believe our SA-4400 form and our literature given before registration is sufficient. We make no claims or guarantees of income, there is only income potential provided by Quixtar. Financial substantiation: I do not tell my friends and family my income made at my job, nor do I expect to disclose what I make in a business of my own. I believe this is an inappropriate gesture. Thank you for your attention. I sincerely hope you take these and other comments into account when making your final decisions concerning the rule. Sincerely, Monica J. Alderson