| Comment Number: | 522418-10036 |
| Received: | 7/15/2006 4:13:23 PM |
| Organization: | |
| Commenter: | Laura McMains |
| State: | MI |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
RE:2006 R511993 Bus Opp Rule Notice of proposed rulemaking ..I am a current IBO with Quixtar. I support the idea of more info to be given to prospects. IE .. A seven day waiting period to register is a great idea, as long as the prospect is allowed to begin business activity during the waiting period - this puts the onus on the sponsor to actually spend time with the new prospect.. RE references: a good idea-ANY business should give their prospects at least 3 references with contact information-this does not prohibit confidentiality since permission should be obtained from the refrd...RE substantiation-an essential requirement I believe. Had I understood what I was getting into at the beginning, I would not have wasted my time with Quixtar. I am a go-getter, a confident person, and successfull as a financial planner with Ameriprise Financial Svc(for 20 yrs). I cannot make a go of it in Quixtar because of the ambiguous way people are recruited. I was told that anyone can make money in this business, Fact is, I have made the advertised average of $115 per month, but have spent close to $600 per month to make the $115. That was never explained to me. I was told that tapes and books are not mandatory - then I was make to feel like an idiot when I did not immediately sign up for the system, because (quote)no one ever made it big in this business without listening to tapes and reading the books(end quote). I was told this is a business where you can make a lot of friends-then I was chastized when I tried to make personal plans with someone who was not in my line of sponsorship because it was considered cross-lining. RE financial records: Essential I believe. I would very much like to know what other leaders are making in this business. We have speakers from the stage-we are told that different people have big business, and they are held up as leaders, yet when I do the math, the income doesn't seem to be there. I'm not sure individual personal finances should be given, but certainly the average income for each level, such as silver, platinum, emerald, and diamond should be given. Not as the model is shown in our presentation, but what is actually paid out on average. The model is pie-in-the-sky, not reality. The average income per IBO is diclosed, the average per each level of ACTUAL payout SHOULD be disclosed, and further broken down between monthly distribution, and bonuses. RE lawsuits and litigation Probably is a good idea. I haven't read a mutual fund prospectus recently, but I believe this information is provided about Ameriprise in the prospectus. I know the information about Ameriprise if readily available for anyone who wants the info-fact is, most people will probably not care to read the legalese. However, the whole issue around books and tapes is a sore subject to me (I think this is where most of the lawsuits are)-the only time I heard from my mentor was to find out how many tickets for the monthly meeting I wanted. We are always encouraged to get extra tickets because we may sponsor someone who needs them. The corporation makes it very clear that as sponsors we are obligated to help new people-in reality, that doesnt happen if the new person is not exactly on board with the books and tapes. I was always told to let the system take care of teaching new people.