Comment Number: 522418-10405
Received: 7/16/2006 12:32:57 PM
Organization: Quixtar
Commenter: James Patton
State: IN
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

I have been a Quixtar Independent Business Owner for 3 years. I have been able to use that vehicle in conjunction with my other business activities (I provide coaching services for independent financial services professionals) to help work toward all of my personal goals. As a small business owner, I find it critical to be able to conduct business in a manner that is unburdened by extra administrative requirements. I had all the information I needed to make an informed decision when I became a Quixtar IBO. I also make it a point to provide full disclosure of all of the pluses and minuses of this business opportunity when I present it to other potential IBOs. Particularly, I find it essential to point out to them that it is a 3-5 year business venture rather than a get-rich-quick scheme. The material provided by the company provides them ample information to make an informed decision about the applicability of the compensation plan to their financial goals. The requirement for a seven-day waiting period would place an undue administrative burden on my abilities to conduct my business. In this, as well as any other small business venture, the key is to be able to be nimble without being hampered with bureaucratic regulations. I also do not have the support staff to effectively implement this requirement. Additionally, when given all the information that I provide, the potential IBO can make an informed decision at the time of presentation of the business plan. I don't have any particular problem providing references. I would prefer it be an "on request" action rather than a requirement with each transaction. One of the first actions when a new IBO registers is to acquaint the IBO with the rest of the "team" quickly, so this is somewhat superfluous. I have a great deal of objection to the requirement to provide a litigation list to potential IBOs. This is a very misleading, biased look at a business in a litiguous society where people can introduce litigation with little or no grounds. Likewise, specific earnings disclosures are misleading and do not contribute to making an informed decision. My experience is that income potential is a function of the individual IBOs personal work ethic, drive and effort; not a function of a document that dilutes the effort and non-effort of everyone who has entered into the business. This would be the same as telling everyone who wanted to start a small business that decision should be made based on the statistic that 85% of small businesses fail within 5 years. I would violently object to being required to diclose my personal financial records to potential IBOs. That is information that is between me, the IRS and my accountant. What I make is a matter of my personal effort in the business and what a potential IBO could make is a function of his/her personal effort; goals, and how the Quixtar business integrates into his/her bigger business plan. To compare my income to a potential IBOs income is truly an apples-and-oranges comparison.