| Comment Number: | 522418-11967 |
| Received: | 7/17/2006 5:06:21 PM |
| Organization: | Quixtar |
| Commenter: | Donna Pliska |
| State: | MN |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
My husband and I are IBOs with the Quixtar organinzation. We have been IBOs for over 4 years. We stayed in the business using the products but not really building the business for the first 4 years and have just recently begun to seriously build an organization.We tell new prospects this when we show them the business. We tell them this is not a get-rich-quick scheme (obviously!) We have the prospect set their own money and time goals and we work out a plan according to their own time line. The registration to get into their own business is approximately $200 (most of which goes for a product kit that they can use themselves or use as samples to their prospects) and is totally refundable. We feel that a 7 day waiting period would cripple the business owner and the prospect. So much of the success of this business depends on excitement and momentum that after 7 days the excitement is gone (not to mention most of the information given to the prospect). Also, if we had to wait 7 days between each person we brought into this business, it would take a rediculously long time to build. Requiring a list of local IBOs to be given to the prospect would work if you were at a higher level in the business and had a well established organization. It would however, hurt the new business owner who had no one yet or perhaps some who were doing nothing with it (like us for 4 years). Because this business is built solely on each individual's drive and work ethic, the amount of money one person makes in this business has no bearing on what another person can make no matter where they are positioned in the organization. Also, what would preclude the new IBO from signing up with one of the IBOs on the list instead of the IBO who had shown them the business and invested their time and perhaps money. Is this fair? The new prospect has many opportunities to meet the other IBOs in their business line when they attend the local Business Building Seminars, training or product information sessions. Also, I am not sure I would like my name and number to be given out. As far as litigation disclosure, Who is the seller? Is that for the IBO personally or (in this case) Quixar and does that include cases filed without merit? Would that be fair? Nothing precludes the prospect from asking for an earning disclosure now (and they do). We are very up front with them about the time we have been in this business and what we have done, or more specific, not done. The income potential is there for everyone but the effort needed to tap into that income potential is individually specific. In our case, we have done more in the last 6 months to build our business than in the last 4 years combined. We needed that time to grow personally. If we had to justify the first 4 years with income statements, not only would it undermine our credibility with our new IBOs, but noone would want to be in business with us. The opportunity for success in this amazing business should not be hindered by those (like my husband and me) who by choice, decide not to spend the time and effort we knew it would take to get to where we wanted to go. The future of the multi-level marketing businesses will be decided by these issues. We hope that your decisions will be made by people who are either involved themselves in reputable multi- level businesses or who have taken into account what we, who are involved, have said. Thank you for your time. Sincerely, Donna Pliska