| Comment Number: | 522418-06810 |
| Received: | 7/7/2006 3:23:24 PM |
| Organization: | Quixtar IBO |
| Commenter: | Melissa Knecht |
| State: | IN |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Hello, I have been a Quixtar IBO for 6 years now and I have some concerns about the new proposed regulations affecting direct selling companies. Let me proceed with this; owning my own Quixtar business has change my life. Because of the mentorship we have more friends, a network of people we can call on for help in all area's of life, and we have excelled in our jobs and our lives. We are healthier and so are our clients and we have enough extra money that I can be a stay at home Mom and not have to work part time. We have been taught principles that are helping us get out of debt and build a better future for our family. Now, on with the concerns. First, I feel as though the seven day waiting period would hurt all IBO's looking to register new people. It could really discourage a new person if they were getting started and we're unable to register people immediately leading to a major slowing of all upline business growth. We try to work hard and fast in our business to help our new people make an immediate profit so their business is not funded from there personal income for very long. Furthermore, everyone who wants to sign up is over 18 and can make a decision to spend 120$ -which is about the cost to get registered in our business with a sample pack of products- at a bar or club on a given Sat. night. So if one registers and decide not to stay an IBO they can choose to return their kit and get refunded. Second, providing our prospects of a list of references is not only unnecessary but also unfair. In my group we always introduce new IBO's to "the team" of local IBO's in the area anyway, but if you register someone who lives in another state or something, you may not know any IBO's in the area and you definitely don't know what they would say to your new person. They may do things differently than I would or may have a problem with their upline and may cause my person to reconsider based on whatever comments and opinions they share. Third, a litigation list? Does Walmart or Target or any other place have to provide this before hiring a new employee? Perhaps if you are involved in current litigation concerning your business practices, but a general list of people filing suit against another IBO for their practices does not have anything to do with what I may or may not do in my business. Fourth, we provide an earnings disclosure called an SA4400. It breaks down the potential income at each level of the business as it grows as well as lists what the average IBO makes and I find it a very useful tool. We are required by Quixtar to give one to every person we show our business to. Last, I would, under no circumstances, find it appropriate or necessary to disclose my personal financials to an individual whom I show my business too. It would offer an unfair advantage to the IBO's who are already making six figures b/c a new person may meet them and decide the want to sign up with the person making more money instead. It also violates my privacy and saftey. What if someone of a criminal background finds out how much I make and targets me for some form of theft, identity or otherwise. In our business we try to make it available to people from all walks of life and that can sometimes leave us vulnerable b/c we don't prejudge. If someone found out how much money an individual makes, I feel in some cases it could cause harm. Please hold these different varieties of business accountable to put there claims on paper and require a new person be informed, but please don't over regulate to the point that a person who may be considering their own business feels it would be too much of a hassle to even attempt. Thank you for your time. Melissa Knecht