|Received:||7/17/2006 12:35:40 AM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:Dear Sirs, While I agree with the spirit of the proposed Business Opportunity Rule--to keep people from being defrauded by false claims about business opportunities--I am very concerned about some of the specifics. The proposed seven-day waiting period would seriously hinder my business because most people who make a decision, especially one that involves work and/or discomfort, must act upon that decision within 48 hours, or else they won't act at all. We call this "the law of diminishing intent," and it applies in all areas of life: business, relationships, physical fitness, diet, etc. (There's a reason that New-Year's resolutions start on Jan 1, and not Jan 8.) I don't LET prospects register the same night that they see the opportunity, but I do try to help them register and get started within several days, for their OWN success. If a distributor thinks they have gotten the hard-sell, there is ample opportunity to "un-register" after the fact and get a full refund. I've had more than one distributor do this. When I finish with the opportunity presentation, I advise my prospects to do research with the Better Business Bureau, FTC, US Chamber of Commerce, Attorneys General, etc. If the prospect wants to find out about any lawsuits against the corporation, they will have plenty of opportunity through this list of resources. While the number of lawsuits against the Quixtar Corporation is very small, considering the size of the organization, how are distributors supposed to keep up with the latest legal news AND build their businesses? Also, if we are required to disclose any lawsuits filed against the "seller," who exactly is the seller? Is it the corporation? The sponsor? The sponsor and any of the upline distributors? Or would I have to also disclose a lawsuit (with or without merit) filed by someone I don't know against someone else I don't know, both of whom are in a totally separate part of the organization and have nothing whatsoever to do with my business? As for disclosing my own Quixtar income to my prospects: My own income is irrelevant to their chances of success. I ALWAYS tell my prospects what the average "active" distributor earns, as documented in our literature, as well as what the average distributor earns at various levels within the business. For me to disclose my own income, whether it is higher or lower than the average, would give the prospect an unrealistic expectation. I also disagree with the idea of providing prospects with references (other distributors). I leave materials with my prospects that include some general financial disclosures and also information on where to go for further research (see the list above). I've already pointed out that my own financial success has no bearing on what the prospect can achieve; the financial success of a disinterested 3rd party would have even less bearing. Consider this possibility: I'm forced to disclose to a prospect the fact that I'm making a certain amount of money per month and then I'm forced to provide another distributor as a reference. If that other distributor says he makes LESS than I do, that fact might make the prospect think that my own success is a fluke and thus diminish the business opportuinity in his eyes. If the distributor says he makes MORE money than I do (whether that's true or not) that fact might well make the prospect choose to register under the OTHER distributor. I don't like to think that this could happen, but given the size of the organization and the fact that the corporation will let virtually anybody who is interested "get in," I know that there are some distributors who would steal other people's prospects. For your reference, I have NEVER had a prospect take home my packet of materials and then tell me that they didn't have enough information. Again, I very much appreciate the idea behind this proposal, and I am grateful for the opportunity to provide feedback on it.