| Comment Number: | 522418-10896 |
| Received: | 7/16/2006 11:45:12 PM |
| Organization: | J.A. Rider & Associates, a Quixtar Independent Bus Owner |
| Commenter: | Jack Rider |
| State: | MN |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Personal background: I have been an Independent Business Owner (IBO) first with Amway and later chose to switch my business to Quixtar in 1999. One of the beauties of these two organizations is that the optional transition did not mean loss of business, as my organization was mirrored in the second business. Also, both had the same compensation plan – which is an extremely fair plan designed so that those that perform are rewarded for their efforts. Position itself does not matter as someone you bring in can make many times more than you and is limited only by their personal efforts. Finally, the IBO’s have a huge significant voice in any changes to the compensation plan, which is unique to this industry. Although I still have not reached all of my personal financial goals, I have been rewarded not only financially but in many other ways. The optional personal development program available to me through my line of sponsorship has greatly added to my personal growth in many areas. Financially I have been rewarded commensurate with my efforts. I am exactly where I should be for the work I have done to date. Concerns: Although something needs to be done about the many bogus and illegal “business opportunities” out there, I feel that some of the rules proposed will only hurt legitimate businesses like mine and will not deter the ones for which regulation is really needed: 1. 7 Day rule: Most states including MN have a 3 day right of rescision on any contract signed – be it a real estate agreement or a major purchase. These laws already apply. If the opportunity (like Quixtar, with a nominal registration fee) provides that a prospect can get his money back including a 100% buyback on any products purchased, plus 100% satisfaction guarantee even on products already consumed, a 7 day rule would do nothing except stymie any growth potential. Common Sense: If I buy a new car, product or groceries, does it make sense for me to wait 7 days to have that product and start using it? 2. 10 Refs Rule: Even within the Quixtar umbrella, people offer many different patterns and philosophies regarding building a business using the same compensation plan and the same supplier. If working in a new area, I would have to send my prospect to competitors, some of whom would gladly lure someone away in whom I have invested time and money. Common Sense: In any business, when hiring a new sales person, or even a chemist, you would not want to have to then send them to competitors as references. Nor if you were 3M would you want to send these same new sales people you were hiring to interview those who have quit or been fired. 3. Disclosure is good, if it is reasonable and representative. There is no guarantee in anything in life. We always make it clear that this takes work and effort, but we will help you if you let us. And we provide a simple, clear document provided by Quixtar that provides a detailed worked out example of how the compensation works, the average gross income for active IBO’s, as well as averages at specific achieved levels of success, which is more than adequate. American business compensation schedules for employees are closely guarded secrets, and disclosure is often grounds for dismissal! I never tout my personal income, as they can make more or less – their choice. 4. Past litigation: Every legitimate company gets sued all the time, more so with increased success. When 3M hires someone, they do not disclosure current or past lawsuits or accusations! The new bogus companies have no track record under their current name, and would ignore such regulations anyway, and that’s where the problems are coming from anyway. I did my own due diligence – Better Business Bureau, etc. before I got involved. Focus your regulations on 100% refund & 100% buyback of products, materials, within 30 days, and ban any “head hunting” or pay for recruitment – whether direct or indirect. Use common sense.