|Received:||7/12/2006 2:59:37 AM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I am concerned about the proposed rule governing business such as Quixtar. I have owned my Quixtar business since its beginning and it is a large part of my income. I am in favor of controlling illegitimate businesses that are get rich schemes but the ruling should not cripple legitimate businesses. There are illegitimate ways of doing business in every field and I agree they should be controlled but not cripple an industry, a person's legitimate income or free enterprise as a whole. Small business in this country is part of its back bone and should be encouraged and not have undue restrictions put on it. I have owned several businesses such as construction and a flying business and know how much undue control adds to what a small operation has to overcome in trying to make a living and do it legally. Remember illegitimate businesses will not adhere or will get around some of the things listed and those of us trying to do the right thing would suffer. I was adequately informed before I registered and became a Quixtar distributor and have been supported and helped ever since. When I sponsor others I make sure they are informed before making their decision which is part of Quixtar's policy. They are informed during the presentation and in discussion that this is not something that happens overnight but takes work and that their business will only grow based on the effort that they put into it as well as following established guidelines and that their success is not guaranteed. For a new distributor to sign up with Quixtar it only cost about $125.00 and they are informed that they can get their money back if they decide to quit. Many of the proposals are more detailed and stringent than selling, buying, taking in a partner and the like of a multimillion dollar business; this is going to hurt the home based business. Protecting them with these measures only guarantees their failure which I believe is counterproductive to what you want to do. On your suggested requirement of a seven-day waiting period: This does not help either the prospect or the I.B.O. (Independent Business Owner). Why hinder someone from starting their own business if that's what they want and may be important to them to get started. Should we have to wait days to buy a plane ticket, buy a car, get married, or exercise our rights as a free citizen in a free country? In the process of starting a new distributor you have to travel to where they are to help them. Their schedule and mine would be made very complicated with this waiting period that further complicates any one that wants to start under them. If you had five people that wanted to start their business under each other the last one could not even get started for 30+ days. This is a hardship that would stifle business of each party. The requirement to provide references: What if you do not have local IBOs in the area where you are starting a new IBO? If you used IBOs from another line they are your competition and might want your prospect; this would not work. Prospects already have a chance to meet other IBOs in their line of sponsorship and if for any reason they want out they can. The requirement to provide a "litigation list": This proposal would not even be able to be kept up with and would not serve the existing or prospective IBO. This is a home based business and a burden like this would involve a staff and possible even lawyers. Is this what someone wanting to own and run their own business would want? The requirement for specific earnings disclosures: Quixtar requires us to show their SA-4400 which list the average monthly gross income of an IBO. A separate disclosure for every example would be a list a mile long. The requirement for financial substantiation: Every IBO makes a different amount based on how hard and long they work their business.