|Received:||7/17/2006 9:08:38 PM|
|Organization:||DBA SW3 Group|
|Commenter:||Timothy R Guenther|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I have been an IBO with Quixtar since 1999 and have reached my first goal of 7500 PV or a Silver producer. This is far above the average person's success in most direct sales businesses and gives me a certain level of expert insight to the potential problems with this proposed rule. The Quixtar model and the training system I have used to succeed have greatly improved my job, family and marital relationships also and I protect it's integrity very closely. I was satisfied with the registration and sponsoring practices that I was taught and can now clearly see the difference between this legitimate model and the scores of illegal models (KM.net)chipping at direct sales credibility. I have had prospects change their minds and they have had no problem getting a full refund of the approximately $120 registration fee. There are several issues in the proposal that concern me and I will cover them as specifically as I can. First, the litigation list issue. This is not fair unless all companies that sell products put a list of all the litigation against them on their boxes in the stores. This rule is equivalent to that and I don't believe Hostess will allow a (maybe unfounded) lawsuit about Twinkies or a lawsuit about unfair labor practices on their boxes. Second, the earnings disclosures Quixtar has now are very adequate and have been the basis for new legitimate direct selling companies for years. Would the FTC also require colleges, much more costly and equally risky endeavors, to give more meaningful and accurate success and placement rates in BIG bold letters in front of every applicant's parents. I'm sure they will not, yet colleges of today are really large companies churning as many wasted degrees as useful ones. I graduated from Central Michigan University in 1986 so I have expertise in this area also. Third, the reference requirement is just plain silly, companies and colleges do not give applicants references, it is the other way around. My time in this business is very valuable and when I interview prospects to join my team, I wish I could force them to give me references. It would have saved me many hours working with non-serious people. Also, not all IBO's are as honest and they may try to take a prospect after I have taken the time to educate him. Privacy of the proposed "referred" IBO's is another issue that I don't believe I need to explain to a government entity. The seven-day waiting period makes no sense at all except in crippling the excitement that I have had in finding like minded people who want to make a positive change in their life. Everything is in place if they change their mind and people should be able to start selling as soon as they register. In other sales positions like cars or new retail businesses, they can sell as soon as they want and we ARE simply a TEAM of sales people. As far as income substantiation, I will bring back to what you consider normal businesses like cars, real estate, or roofing. You will find out the potential income if you follow the program and get the training but they will laugh if you ask for their tax returns. Also, ask a college professor who has never done what he is teaching to show this kind of information; it would never happen because he's never done it but he is the expert teaching our children. That would sound crazy if it wasn't true. Finally, I would like to comment on the schemes I've run into. The FTC should focus on severe penalties for those starting these illegal programs and make it worth it for states to jump on them quicker. Michigan's AG has told me that they don't go after (obvious) illegal schemes until they get big enough to generate many complaints. Thank you for letting me voice my opinion and know that I want a rule that is level and fair for all Quixtar-like companies but does not overly burden me with unnecessary hoops that stifle my ability to grow my legitimate business.