| Comment Number: | 522418-06523 |
| Received: | 7/6/2006 4:02:45 PM |
| Organization: | Quixtar |
| Commenter: | Kevin Chaffin |
| State: | KS |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Dear FTC, I am writing in response to the proposed Business Opportunity Rule R511993. I have been involved in a direct marketing business as an independent business owner (IBO) for just over 3 years through the Quixtar website. My experience in marketing and compensation has been right in line with what was presented to me when I was shown the opportunity and has been modified as necessary with inflation and business growth. In no instance has the compensation declined, rather there have been improvements. I was made fully aware that this was not a “get rich quick” scheme, but rather would require a certain amount of effort and that I would be compensated according to the results I generated. This opportunity is providing me and my family with a chance to retire early and above the poverty level. This early retirement will allow us to pursue the things we love and want to do. Working generally 6 days a week eats up so much of my time doing what I have to do that I don’t have time to do the things I need to, or the things I ought to, much less the things I want to do. I believe the proposed rule should include a standardized compensation disclosure to insure everyone hears the same message containing accurate information regarding what to expect. It should also allow for a reasonable cancellation policy. With this cancellation policy there would be no need to require a waiting period. I have found that most of my prospects, who do register, do so in 3-4 days. I have had no one ever ask to cancel or withdraw. I believe the waiting period would be redundant and would hamper my ability to build my business. I do not believe there should be a requirement to provide IBO references. This could open the door to loosing a prospect to another IBO. The way I am building (or expanding) my business is via team building. My prospects are introduced to the other members of my business support team almost immediately, most prior to registration. To the best of my knowledge the entire organization is using similar methodology because it provides accelerated business growth for all parties. I do not believe the rule should include disclosure of past litigation. In our day and age too many lawsuits are frivolous in nature and the disclosure of such would slow the growth of legitimate businesses and would likely do little to discourage the illegitimate ones, especially any new startups which haven’t been around long enough to be sued. I believe this would only cloud the waters for all leaving the prospect with no clear idea of what a legitimate opportunity really is. I do not believe the rule should include and disclosure of financial records. Firstly, this is because this information is private so any disclosure should be on a voluntary basis. Secondly, any IBO just starting out will be on the lowest end of the compensation and this disclosure could send an interested prospect to a more “successful” IBO, thus slowing or even defeating the growth potential of the new business owner. Thank you for your attention. Sincerely, Kevin Chaffin