Comment Number: 522418-10843
Received: 7/16/2006 11:07:24 PM
Organization: Quixtar
Commenter: Don Nystrom
State: NJ
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

I'm an Independent Business Owner with Quixtar. After reading some of your proposed rules for Direct Sellers in the USA , I find several problems with this new regulation. I have been doing this for several years now and although I have not built a very large business yet, I still see a bright future ahead. The proposed rule seems to assume a fraudulent environment which is definitely not the case. This is an honest business and we try very hard to disclose all aspects of this business from the very first presentation. It is not a get-rich overnight business and it requires quality time and effort and training to eventually succeed and this is pointed out in several ways each time it is presented. Here are some of the problems I see with the proposal: Waiting seven days to register a new business owner. If you are not able to show a new owner that they can build immediately they quickly become disinterested. Not signing for seven days, then they not being able to sign others up for seven days means they will be growing so slow in the beginning and not see the potential of this business. Instead, if they can cancel with a 100% refund up to seven days if they have a change of mind but we can still register them within 24 hours that would be a better solution. Disclosing all lawsuits and legal claims for the past 10 years is very anti business. What if IBM or Microsoft or any other company had to do this before employing any one. No one will be willing to listen to all the wonderful things they can accomplish if they first have to hear the negative. I have read many of these claims and find them to be almost always without merit. Instead if we could give them a copy of Quixtar's latest Better Business Bureau Report that would at least be fair to both. Requiring 10 references in the area with names addresses and phone numbers has several problems. I would not want my name, address and phone number given out indiscriminately to people I don't know. Also when expanding in a new area as is often done there would not be 10 names to give out. If a new prospect asked for a reference I would not have a problem giving them a couple of references to call or bringing them to a meeting where they could meet as many as they would like. This is a wonderful and honest business and does not need any tricks to get people started. I look only for those who are already looking and then I explain all the pluses and minuses. I want their reaction to the minus side of the business since I am trying to qualify them as they are trying to see if this is an opportunity for themselves. If they are not happy they won't build. I don't mind honest regulations for good reasons, but they shouldn't be punitive or anti business. Sincerely, Don Nystrom