| Comment Number: | 522418-06989 |
| Received: | 7/8/2006 12:44:00 PM |
| Organization: | Quixtar |
| Commenter: | Tim Odening |
| State: | CA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
As a Quixtar IBO I would first like to say I support and applaud the FTC's desire to protect potential business owners from scams and fraudulant businesses. My experience with Quixtar has been that full disclosure and integrity are of the highest priority. I was not pressured to sign up, and I follow that same guideline with my prospects. We work hard to give them all the time and information they need to make an informed decision. We want long term business relationships not just registrations. I have been an IBO for a little over 2 years. Legitimate direct selling or network marketing businesses like Quixtar are a great opportunity for people like myself to improve their financial future. I do have some concerns with the proposed changes that would create unfair burdens to legitimate business owners. I think the requirement of 10 references is a bad idea. It is first of all an infringement of privacy. Secondly prospective business owners often times meet other business owners when they attend business meetings etc. The opportunity to talk with others while in the decision making process is already available. Why make it more cumbersome. The leadership in a legitimate business is already highly visable and transparent. A prospect has many opportunities to see them, hear from them and meet them before they make a decision. I am most concerned about the requirement to provide prospects with personal financial statements. Again it seems to be an infringement of privacy, but it is really not even relevent. An individuals succes in a direct marketing business does not predict the success of another. My personal financial statements would not help to paint a clear picture of what is possible in this type of business. There are no guarantees of success in any business and looking at someones personal financial statement is not helpful. Does the same requirement exist in conventioal franchises? Does the success or failure of one coffee house or pizza franchise predict the success or failure of another? It is a requirement that is just not even helpful. Quixtar does however in one sense already do this. First before I registered it was explained this is not a get rich quick business. It takes time and effort. Secondly it was disclosed the average monthly amount a typical business owner makes. It was less than $200.00 per month. However, the potential to make more exists for everybody. Examples of people achieving success in the business are given as people are awarded publicly for reaching certain goals etc. I know that people are successful in this business because I have personally met them and do not need to see their financial statements. There is an appropriate time, place, and purpose to provide personal financial information. A discussion with a prospect is not it. Once again I support the FTC's general objective. I hope in the effort the FTC is making to eliminate the charletons in this type of business they do not overly encumber the legitimate businesses like Quixtar. I have the opportunity to provide a quality of life for my family and help others do the same that I would not have otherwise. Thank You