Comment Number: 522418-10842
Received: 7/16/2006 11:06:51 PM
Organization: Smiths Development Group
Commenter: Greg Smith
State: IA
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

I have been a Quixtar IBO (Independent Business Owner) since 1997. At that time of registration, which was done on paper (filled out registration forms), the description of the plan for our Independent Business was complete and very understandable. We were informed at the very first, before the opportunity for registration was even mentioned, that to reach the level of Diamond, an effort of 3 to 5 years would probably be required. It could be done faster, but also at any speed that I wished. We were also given information, in printed form, that described in detail how to build your business to that level and how to construct it properly. Today we do the same thing, although the methods of delivery may have changed, and the style of the Quixtar business has changed as well (Quixtar.com), the information is still delivered to prospects in mostly the same manner...with the information that it will probably take between 3-5 years to reach the Diamond level. Obviously not a get-rich-quick scheme at all, and it takes a lot of work. Our sponsored IBO's probably spend between $50-$150 to get registered, depending on what additional business support materials they wish to purchase as well as starting products. All products are 100% guaranteed...if they are not satisfied with them or wish to quit, all of their money will be returned. If we had to wait seven days to register an IBO who wanted in, then, in turn he/she had to wait another 7 days to register their friends, most likely many of the prospective IBO's might not wait. It would distinctly damage the feel of the opportunity as well as any relationship developed with the client. And what would the prospective IBO gain from this 7-day waiting period? Nothing. He/she should read all the information that they are given during the meetings discussing the plan, ask more questions if they have any, and be fully informed in a very short order. To enforce a 7 day waiting period would most likely curtail an IBO's ability to make his or her business profitible. Which is exactly opposite of what this business is about. To provide a prospective IBO with a list of my local IBO's names and numbers would be a gross invasion of privacy. I do NOT want my upline passing out my IBO number to anyone who MIGHT become an IBO. That is nearly criminal in this day and age of identity theft. If a prospect comes to a meeting where there are other IBO's, then it is the choice of those existing IBO's to give him/her their names, IBO#, etc...not me. As a matter of fact, it is encouraged that IBO's talk to new prospects, regardless of the sponsors, to share their experiences in the Quixtar business. As for the litigation list requirement...that is asinine. How many potential employers inform their prospects of all the suits they are/were involved in? Dumb. All potential IBO's are given information about how to earn income and structure their businesses to be successful. Specific examples of income levels are given, along with the bonuses at specific levels of business. Anything additional would be a waste of time and most likely distract or confuse potential IBO's. If I wish to, as an additional incentive to the prospect, I do discuss my benefits from being an active IBO in the Quixtar business. However, this is strictly voluntary, and dependent upon how comfortable I am with giving this information to a prospect. To do otherwise (as in, REQUIRED TO ) would be an invasion of my privacy. My business is just that...MY BUSINESS. Please take this information into consideration before constructing a rule that, in it's intent, might be good, but in actuality probably destroy or harm more than it helps. Thank you for your time. Sincerely, Greg W. Smith