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    Who Stole The American Dream PDF

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    Anurag Kaushik

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    © All Rights Reserved
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    WHO STOLE THE AMERICAN DREAM? Why I Wrote This Book Have you ever made fun of ..,ridiculed...and abused... Until finally there came a time when you said, “ENOUGH IS ENOUGH" Wel. Icame that point in my life. 'm mad-and Tm not going to putup with any more! ‘So fm writing this book to tell you the truth. tll you what ‘you real chances are today to make itin conventional business that are closing their doors every day-and lying off people by the thousands! | finally decided that someone needs to tell the truth about how the average person could suceed in an industry that is revolution- izing the way the world does business called Network Marketing. Is Network Marketing a scam? ... A scheme?...Or the American Dream? ‘You deserve to know the truth. The whole trth. And nothing but the truth! Read this book...And you be the judge! Contents Acknowledgment wi Why 1Wrote This Book vl Inroduction. 1 ‘Phase One: TheAmerican Dream 1 TheMythofthe American Dream 18 2. Why?. 17 Phase Two: Who toletheAmerican Dream—AndWhy . 3 Pyramid Schemes 23 4 legal Pyramid Schemes 25 5 Legal Pyramid Schemes. 32 6 TherelsNo Security Anymore 44 7 Whatre Your Options? 38 . Phase Three : Why Traditional Ways ‘Aren't Working Anymore Paradigm—A$100 Word and a Million-Dollardea..$9 ‘Why Network Marketing? Ch... Ch...Ch... Changes 66 10 Whisper This Wordto Yourself "Distribution ew. 72 = Phase Four The Truth bout Newark Marking 11. WhatlsNetwork Marketing? ces 81 12 IfNetwork Marketing IsSo Great Why Haven't We Been Told the Truth About? — .«« 106 © Phase Five; Network Marketing and You 13. Why IsNetwork Marketing Exploding? 127 Acknowledgment This bdok would never have been possible without the relentless support of John Fogg and Steve Price, two dear ffiends and business partners whom I admire enor ously ‘A special thanks to my wife Debbie and my three boys, Burkie, Nathen and Spencer, for their continuing support, in every endeavor I dare to undertake. And to my mother, Maritza, and my step-father, Harley, for thei faith nme. My heartfelt appreciation to my Canadian partners and lifesong friends—Peter Webster, Sal Occhipint Henry Asmann, and Brian Parker AA debt of gratitude goes to economist Paul Zane Pilzer for giving us a new and more accurate way of looking at business and the world ‘Abig "thank you" to all my tearnmates at the Interna- tional Network Training Institute (INTI) for standing by me from the beginning. And a very special thank you and 2 big hug of gratitude to my invaluable assistant, Sandee Lorenxen, Finally, my gratitude and deep admiration to Ted von Schullick, a co-worker and good friend who passed away ‘hile thisbook was being writen, BH. Why I Wrote This Book Have you ever been made fun of.. ridiculed . . and abused . . until finally, there came a time in your life when yousaid— “ENOUGH IS ENOUGH!" ‘Wel, I came to that point in my life. 'm mad—and 'm. ‘ot going to putup with itanymore! ‘So Tim writing this book to tell you the truth... fo tell ‘you what your real chances are today to make it in con- ventional businesses that are closing their doors every day——and laying off people by the thousands! 1 finally decided that someone needs to tell the truth bout how the average person could succeed in an industry that is revolutionizing the way the world does busi- ress .. how you could be your own boss and earn any- ‘where from part-time income to an absolute fortune in an "unconventional business called Network Marketing. Is Network Marketing a seam? .. A scheme? ... Or the American Dream? You deserve to know the truth ‘The whole truth. And nothing but the truth! Read thisbook...and you be the judge! Introduction ‘America's Lost Dream' Cover of Newsweek, March 21992 Something was terribly wrong! ‘As I slipped my key into the front door lock, I had a strange, unsettling sensation. I could feel an almost ele- citi, tingling sensation on the skin of my arms and hands. My stomach was suddenly empty... I felt oddly hollow and sick T opened the door and cautiously walked inside. It ‘wasnt getting any better. Itactually hurt now. looked around. I was in te right house. Nothing was ‘out of place. It just didn' fel right—and the feeling was, {getting worse bythe second. ‘Then I saw it, There was a hole right under the tele- vision where the VCR used tobe. twas gone! ‘Ohno, thought, what else did they steal? Stop, Thieft Somebody had broken into my home, messed around with ‘my suff, rifled through and ripped off my private things — and my wife Debbie's things, too. And my kids—theyd even stolen frommy kids! Who Stole the American Dream ? this has ever happened to you, you'll probably never forget the feeling. I know I never will. As remember this incident now, even though it happened years ago. those "uncomfortable piysial sensations return immediately. twas awful—and it's still awful, I felt—dishonored personally violated... angry... and absolutely power. lesstodoznything aboutit! ‘That'show we feel when someone steals from us, ‘And those are the feelings we have about someone breaking into our home and stealing stuff—just material things, which in my case, I went out and replaced in less thana week Imagine how much more shaken, angry and powerless eid fel fsomeone sole so private and precious thing as ‘And tha'sjust what they've done, Somebody—or more accurately, a whole big bunch of somebodies—has stolen the American Dream. Right out from under our hard working noses ‘We've had our hopes and dreams ripped off, our fue tures stolen and fenced by a bunch of freewheeling felons Betting rich tourexpense The American Dream Has Become a Myth ‘TheAmerican Dream isafaiy ale Norbecause isnot real ‘Not becauseits thing ofthe past. [Not because ifs not possible to achieve anymore, ei- ther e hat MF Baas we dot deserve it. Able not Its become a myth because the way we've been brought ‘sp—and the things we've been taught at we had fo deo realize the American Dream_simply dont work anya Burke Hedges And wins more, that whole business of “Get college degee, work yout way up the compre Inder or sat our own stall buss dad achieve your reams.” oud be a seri Foran increasing somber of s,s tured int 9 con, scam ad shee the bigs power ic use to get us to work our ives sway Tding Too Mohn orautenough money jutomae hemi stthinking about it rings up the same feelings nme that had when ome wasbokenina Withone exception To fel peerless. Notanymore [founds way to getback the American Dream But before {te you my way~tbe average pesos way" letineaskyousome questions. Whatlls the American Dream? Is the American Dream going to college and getting a degree? Now, you know that works for some, but really — how many? And isn't it true that even for the doctors, lawyers, and Indian chiefS of government and corporate ‘Ameria, the furure isnt what itused tobe? How many college grads find work in their chosen fields today? How many are doing that same work ten ‘years later, or even five? ‘Not very many. Is the American Dream getting a good job? Working fora living? Can you get a job where you can earn what, ‘You're worth, where you'l get rich, find fulfilment, and fain freedom—trading your time for money? id you know that over half ofall first-time heart attacks occur between the hours of & AH and 10.AH Mon- ‘day morning? That tells me that people would rather die ‘han go back 0 work! ‘There's no loyalty in corporate America anymore—and there'sno security, either. According to Paul Zane Pilzer, Who Stole the American Dream ? & ytcenwned cami, we Bll 3 ch 2620 pecentunemploymentbytheyear2000 — meover$1,2milliontodoit! ee Did you know tat 90 percent fal smal businesses fallin the fs yea and 80 perce! of the sirvivors Close this dors nthe next five? And that 80 percent of thowe never see year 10? Is owning your ow comen- ona sal bases he way abe the Anan ‘Nownotce, ssi, “omvetonal” ToeTime We Liven ven unconventional ime, and they cll or uncon- ‘entonal ways of ding ings New andeserand ferent wars Teas that used o tke 50 years ob bo cars tobe bom, grow and ‘mature.now take only five. Everything's chang Jng—and Sharing ay hth get es os of a spetion sean spe sumed ing dom Hesancxanpl in srt ow owned a socesfel bones making recon and atbum in 1985, you were probably 8 very ch person Amillioaite many tines over Where wos 0 be oy, St afew years ter? Cant tapes and compact ike Tue the roost today. Almas nobody buys records any- Imore—yet ust afew shor yeas ago, ving records were ‘Areyoubeginning io see the pictxe?. Ladies and Gentlemen, tomorrow is happening, taday Ifyou cant see it, if you don't know what's coming, you're ‘Boing tobe left behind. Andnot justoneortwosteps. Burke Hedges behind either—miles behind! And things are moving sO fast youmay never catch up—ever! "youve not already athe top of lading edge carer track where your job is literally working in the future ‘hay, you've got no beter than one chance in 10,000 of (Rating it to the top of anything else, Believe me, is true Wihor’ leftover are the cheap, unfulfilling service jobs— leaning up after or waiting on the hot shots who are ‘where the actions. ‘Look around you. I'salready happening. ‘The Changing American Workplace ‘Do you think "big stzel" and U.S. heavy industries are foing to make a comeback? Who's going to replace a robot seine ne other error-free, automated machine that just feplaced 20 human beings for less than half the money they were being paid—and that docs a better job? Try ‘Working in Detroit... Pittsburgh. West Virginia ‘Lets facet, blue collar jobs are becoming extinct So, whatabout white collarjobs? ‘The answer to that is two words that spell disaster for shite collar employees: First—fechnology. And second— Profits. ‘Thirty-five percent of all white collar workers—and we're talking millions and millions of people here—will be ‘at of work, collecting unemployment (ill it runs eut), Sudly searching for the same kinds of jobs their former ‘employers just eliminated forever in some other company ‘that hasnt streamlined yet. How about the 70,000 people GM is laying off, or the 440,000 people IBM let go—or the 100,000 more IBM plans to let go by 1995? Where will they go for work? What wil they do? Goodluck, Who Stole the American Dream ? You must have seen the unemployment repos. Big corporations ze laying off peopl by the lens of owe Stods~more tan 700,00n 1082! Why? Changing times. those workers just arent needed anymore and who can ffordthem anyway? Look, jobs are being ct left and Fight and those com- panies a now accomplishing the same work--or more Worke—wih fewer people! The only thing climbing higher than unemployment isthe stock markt! During the fe. cent "recession the Dow Jones climbed from 2000 to S00: Why? Becaseiyou fire and layoffa whole bunch of mile management exectives making $35,000 to $100,000 in anal salves, you make more prfit—even if your ales areflat The rch ae getting rcher—and the poor. ? We all know te answer that! College, corporate carers, small busines, be cola, white colar whats left? Whats lft sa way of life and work called Network Merketing—the most powerful form of distibuion Of soods and services in history. A new and beter way Sf Stkng ad vig proven dy tt ep om crery wall of Ife are tuming (0. way forte average PeooioachievetbeAmerieanDream Thats what hisbookisabout YouDeserveto Know the Truth About [Network Marketing Why? Because it will be in YOUR future in one of three ways: 7 + You!llbe one ofthe people who's makingithappen; or, + Youll beone ofthe people who's watchingithappen; or, + You! beone ofthe people wondering "What happened?” Burke Hedges Its simple: Either you'l be one ofthe millions of ordi- nary men and women who achieve extraordinary lifestyles through Network Marketing—or youll be one of those Who wish they had guarantee you that in five to ten years, if you're not 1 Network Marketer, youll be one of those other millions of people throughout North America and the world buy- ing things from them... making things they buy... serving them or wating on them Bold talk? Yes—the boldest. And yes, 've eared the Thad the American Dream stolen from me—just as ‘many of you have. I've experienced those feelings in the pit of my stomach: broke, scared, knew I couldn't pay the bills, couldn't provide for my wife and kids, no vacation, ‘no fn, no future frustrated, angry and feeling power- less ‘tochangeit. ‘Then, I discovered Network Marketing. And, yes— pethaps like you—I was skeptical at first. It sounded too good to be tru. I fet it was just some sales scam—you ‘know, a pyramid scheme. But hey, it dia’ cost me anything to check it out—and ‘what if it was true? What if it really was my ticket to the Asmerican Dream? Icouldn'tafordto risk losing out! ‘The Mind Is Likea Parachute ‘They say the mind is like a parachute—it doesn't work unless it's open. So, I opened up my mind, I tucked my doubts and disbelief under my armand took alook. ‘What I found was that Network Marketing really was simple—even I could do it! It was fun, too. There were lots of people to help me do it.I got to make a powerful, positive difference in hundreds, even thousands of people's lives. And, yes, [made money, too—a fortune, in fact! Who Stole the American Dream ? But who cares what I did? Who cares what I think? ‘Thebig questions is— WhatDoYouThink? Is Network Marketing right fr you! Can you be successful iaNetwork Matketing wily? T dont know the answer that But do kotha you soso, positvely owe itt yourself eam the Sh sbout Network Marketing Timean--wbati? Whats ging to ake for you w lear the eth, the whole tuh abd nothing but tie tat? The cost of this Sookandacoupleofhoursoreading—mak Tell be me and money well nd wonderuly spent Thatsapromise You see, in my opinion, Network Marketing i the wavechbe hae Tay opinion, i called "the people's fanchise” fora good reason. ue My opinion ‘stat Network Marketing is puting the fteedomnback mt ee entespise Tes my opinion tht Network Marketing isthe very test way in the worlperaps the only way--for aver see le He you an me to Tne farbve avenge Butthat'smy opinion. In the classic novel Fathers and Sons, the Russian suthorivan Turgenev wrote: "share no man's opinion. Ihavemyown” So's elly your opinion of Network Marketing that See, it doesn't really mater wit my opinions ‘Youve gottoknow for yourself, dontyouBurke Burke Hedges ‘What really matters is what you think and feel about ‘Network Marketing. In short, you've got to know what's initforyou! T promise you ths: If youl just take the time to learn about who stole the American Dream— and then deter- imine for yourself if you can get it back with Network ‘Marketing — then youll know if Network Marketing is the right vehicle foryou. NoExcuses Now know some of you will make excuses for not inves- tigating this industry. Some people will say, "I don't have the time .." of "Its not for me .." oF "Tm too old to ty something new... "andsoon. "Al these half-baked excuses remind me of a guy who wanted to mow his grass, but his mower was broken. So the went next door to his neighbors! house and asked if he ‘coulduse theirlawn mower 'Sory,” said the neighbor, “I can't lend you my lawn mower because my wife is cooking beef Stwoganoff.” ‘Started by his neighbor's response, the man asked, "What does your wife cooking beef Stroganoff have to do with youlending me yourlawn mower” ‘The neighbor looked him square in the eye and replied, "IE don't want to loan you my lavm mower, any excuse will do!” low about you~ are you accepting just any excuse 10 ‘void finding out about this industry? Hey, if you've made all the money youll ever spend (and you have the time and freedom to enjoy it) .. you probably don't need to investigate the possibilities of becoming successful in [Network Marketing, But if you like most of us, you've got everything to tin and nothing o lose by finding out the facts about this Industry. Who Stole the American Dream ? ‘Ther'snobettertime to check tout than right aow! ‘And if you decide that Network Marketing is for you, youl look back on this moment in time asthe single most {mportantmomentin your ife! ‘This could be that special moment when you start to take control of your life again... the moment you begin to feel the freedom, security and happiness of the Ameri- ‘ean Dream—the moment you start to make ityour own, 10 PHASE ONE: -an DreamCHAPTER 1 ‘ CHAPTER 1 The Myth of the American Dream brea vt (oust wldkisthe Americin Dream?- 20 Weall have our ih nique versto Of what the As {cait’Dteamh means. Ask'a million people to deseribe thei ‘eats and youll have milion sepafte, distinct and Imniquely individual pictures. However, there are & manic ‘of things that lt our dream have! in common, no tterhow dfferenteach ofusis 271) Weal want eedom and security Tot ourslves ahd our ‘ies We want more money than we have now We ‘wadithbalth anid happiness. Basically, we want white dont hive. Is tthat rue for you? ‘o oT ad fat, fens of millions of pple arent ving {elecremsatal. acts? ‘The Truth About the American Drea Most of us aren't free to live where we choose Kind of house we want—because we sapien artnet "Wat else do we wan? & top note ede Tr ir FER. "teavel' and. vacations. ebertainmetk > Wee. ation. going outa dinner. new clothes sa B Who Stole the American Dream ? ities for real- whole host of other possessions and possi izing ourdreams. ‘So what happens? We finally get that special car that ‘we want—and then stay home because we cant afford to 0 out! Unfortunatly, we're forced to pick just one of the things we really want-and sacrifice everything else ‘We'vemade "settling for less" ahabit—a way of life! ‘Today, people aren't free to do for a living what they'd really ove todo—what they're really good at, what_ they could be good at if given the chance to lear. They're strapped to job they don't like (or worse, one they bate!) because they justhave tohave that paycheck to survive. Te done that—working for $5.50 an hour building boats for someone who was making a whole lot more ‘money than I was. Waiting on tables for $160 a week— including tips! Doing work I hated. Hanging out with my ‘buddies after work. Going nowhere inahurry. ‘That's when I asked myself, "Is that all thee is" Tused tohear that songin my sleep! Tt was the pits; yet I was too scared to leave and take ‘a chance on something better. I knew I was worth more than $5,50 an hour. But I depended on that pay-check— ‘and [hada family depending on me! ‘Sound familia? ‘You know, the truth is only one half of one percent of the people in America make over $100,000 a year. And ‘that's just about how much it takes today to even get closet financial security ‘The Bottom Line ‘The comerstone of the American Dream has always been financial freedom—enough money to do what you want, whenyouwantto doit ‘That's not to say that money alone is what we desire most Weall know it’s notthe money, but what the money “4 Burke Hedges weil ig: Ad one thing money des buy ina society ike Saris feedom ey bls churches and cols and pushes on ourchre' backs Aotr thing money can by today sb tite pole ae Nae ae hy dor a ese at prevent ilies an Gays, the investor cauld redeem the note for its full value An the days when banks were regulated to offer ovr Heth incest, Pona’s notes promised an extraordinary eum! ml st Pon's investors were dubious and risked only S10 or Sa However ler eaing 60 percent ites on Rese money a couple of times, they fet more secure 2 sea began to invest thousands, Ponzi also eut the time Ben EET to 46 days to sweeten the deal fr investor, (ra) es ao time at all, Pond’ empire grew to staggering proportions Onemilion cs would Tow inthis offices a » Who Stole the American Dream ? ‘every day! As his investors got rich and spread the word, Ponzi got even richer. He was hailed as a financial genius. He now owned a local bank (the Hanover Trust Company), lived in the posh suburb of Lexington, Massachu- setts, and was known farand wideas "The Great Ponzi.” Only one problem, Ponzi's "money machine" operated by robbing from Peter to pay Paul. He took the money investors sent in today to pay the money due tomorrow on previous inves- tors’ notes. It was a merry-go-round of money that seemed to work perfectly. The Intemational Reply Coupons that were supposed to be the source of Ponzi’s wealth building investments didn't exist. Ponzi never purchased more than $100 worth of them, ‘And one day in 1920, the merry-go-round stopped dead, ‘public relations man whom Ponzi had hired to handle the attacks from the Boston press took one look at what ‘was actually going on—and blew the whistle. Ponzi was convicted of mail fraud and sentenced to nine years in prison. He jumped bail, moved to Florida, sold swamp land in a realestate scam, got caught and was retumed again to prison. Eventually, he was deported ‘back oltaly. Ponzi died alone and broke in 1949, Round and Round and Round. The full amount of money lost inthe Ponzi scheme will never be known. Over $15 million (in 1920 dollars) was Paid out to "imvestors” before the “business” collapsed Carlo "Charles" Ponzi was the proud father of one of the most incredible inventions of all time—the illegal pyra- mmidscheme, ‘What made Pon's cam anillegal pyramid scheme was the merry-go-ound principle. As long 35 money was com- ing in, money would continue to gout. Investors wer pid nfl on time, andeveryone was happy However, 30 Burke Hedges es mane sipped coming neg wos wp. the money sOrPe append the amount of ONY i exami ° coming int hades le who svested late nthe subir 06) es ‘Some of them losteverything they had. koow, Sore ast iveen he -oa—youtso™, rere sec ny to pay Yesterdays bil rng et ave ee amor the RPE on, money wont be cased ntl sometime next week — soonandsoon so ar? Probably too fala Sea ee me tat whe bgp of te ee edeation and bis 158Y Tate tier caiFon di ocbelhe jae 31 CHAPTER S| Legal Pyramid Schemes 1 sa be ons you wy eal pe ees ae against the la. Hegal gambling, legal lt- teries, outright rip-offs that permit a select few get isideecensimany a ese ats ben human lave —legal rues which were acto potest ws aginst nie fo pa ul thes ance set of laws tal govern how h- nang lve and work, Natural lava” Gos iw Its these Iavstat Dr Dean Black is speaking aout when he sos Tatpyrmis collec wien ices no vale flowing down tobalancete poser ofthe dllarsor vores flowing up ‘The Biggest Pyramid Schemein the World The alarming truth is that there are many organizations and enterprises in the world that are without doubt pyramid schemes of the"highest (or more accurately, (ow- est) onder. In fact, the biggest pyramid scheme in entire world is legal! teary art Trsrunby the United States Government Iesctled Social evar. There's nota person unr SO years of age in America who should expect to oulet al of his or her Social Secu. Fy benefits ateement. Everybody knowsthe Soci 32 Burke Hedges security Adminstration will be broke by the time its sheirturn tocollect Realy, what is Social Security but & huge pyramid seheme! ene pay a percentage of your earings every month of ur working fe—and a prety big chunk i i, too Fear one day, when you retire (at what, 62 years old?) Jour geta monthly benettchecktilthe day youd Ness the US. goverment gets all this money from ‘everybody who works or eams money in America: and Sea ao they do. with it? They pay the people whose Tee ment are due now, just lke Carlo Ponzi I there's By extn, the government "loans" it to—guess whe? Fremsclves! The only thing youll see if you open up the BRET Security savings vault is bag full of ,0.Us signed toy Uncle Sam! ny UPS gh now theyre doing okay with this game, because feeween 1946 and the mid-1960s, 76 million kids were Boom into huge mege-gscup of humanity called the Baby Boom. All these millions of Boomers have been donating Roney into the fund all their working lives, and they'= Daring for those folks who are old enough to be geting Social security benefitsright now. ‘But what happens when it comes time forthe first of those 76 million Baby Boomers to start collecting which Should occur in about 2010? You guessed it. there won't ‘bpany money left! "After the Baby Boom came the Baby Bust, There have been nowhere near the same number of births since the Baby Boom-—and probably never will be again. So, there will be far ewer people "paying in money than there are faking it out Its already happening. In business terms that's called a “negative cash flow.” Too much month at ‘theend ofthe money! Did you Know that males who turned 30 in 1990 will ay over $200,000 more into Social Security than they will 3 ‘Who Stole the American Dream ? take out”No wonder 7 out of 10 families pay more in Social Security taxes than they do in income taxes! Talk aboutascam! ‘What's going to happen when the first wave of Baby Boomers takes out so much money that there's nothing left? The crash ofthe airplane game will be lke a ly going down the drain compared to the nationwide devastation ‘when Social Security crashes! ‘Youtell me: Is value flowing dojvn this pyramid? Doesntthis sound ltlike Carlo Ponzi seam? How the Rich GetRicher ‘The essence of al pyramid schemes—theilegal ones and the Tegal ones—is thatthe guys at the top get rich at everybody else sexpense Its like when corporate CEOs get paid millions and naillions in pay, perks and benefits. while the company and the stockholders lose money. Al oo often employees are forced to take pay euts while they struggle to make ends meet—or worse yet they get ado. "American chief executives make around 100 times more than the guys on the factory floor. That means the wage- caring, worker earns $30,000 annually while the boss toakes $3 milion! Compare tat to economic powerhouse Japan, where CEOs’ pay averages about 17 times what theiremployeeseam. If you're searching fora place to increase corporate profits in tough economic times—hiting CEOS pay isthe mother lode! ‘The bg three auto makers in Detroit collectively lost Dilions between 1991 and 1993. What do you think Lee Tacocca got paid? In 1990, a yéar when profits fell 17 percent for Chrysler, super-Lee got @ 25 percent raise! Figure thatone ot! * 2 ROS A SERN ee Burke Hedges Or how about he CEO of United Anes? He cared {a0 tne than wht anew High tenant made pe awh he companys profi la whopping 1 oie ce CBO! of fines Wares 100 FE sso we the company ts money! Un- believable! veh ao maybe those ae the tp ofthe pyramid But bat lt teat and ood guys who stall en Woe Roar rough he companys iereased produ Se peromance? Disney Michal Fine ears more 8 2 ey tan he opiel Diseylnd employe des n voor oo camcomakathapenedto"irlay" ye nayendo you know a deterines he CEO'S 2 i tejr corporations? The bond of deco. Beane wh te one enna tho has tbe este eu no gts ont boar? Youve gt ta Man beCLOhimalt urby hae business—is operon Mah yourcon eth busines agoernmen!? ing for Performance Tabng es it make sense to you w as the pay of Songresmcn an senators wave been cunning "USA. fhe sates rear a arin llaros!—foryeas? Then ear ou goverment ook in more money than tpent wes 1363and Gas nsely gua entry ago! ‘ips 1987 te dit as doubled And the peopl eson- ble foritCongrese gave themelves whopping 70 percent py rete of 852,100" Po, ey get fa pion far gencrcs them secre retrement even Hf they ervey one term! : Took youre stockholder” inthis country. Weal re Now do you feel abot te perfomance ofthe executes ad agers in pour goverment? Remember, these £09 ork for sl And rmembet to, these are the ope ‘ho buy hanes fo S650 andes fr 6000 35 Who Stole the American Dream ? Sad, but true—the only time they seem to be able to ‘make aprofitis when they use us to make their wars Doesallthismake sense oyou? ‘We pour in money (they call it “axes"), their perfor- ‘mance is at best questionable and they aren't accountable until the next election. So they give themselves a fat rise—w.ie the economy, national debt and balance of trade godown the gutter! tsa scam!—another pyramid scheme! And it’ finaly falling apart, collapsing, because the value has stopped flowing down tous! Remember Cheating Keating and Company—the whole S&Laflair? Mr Keating is the guy who was head of now bankrupt Lincoln Savings & Loan, which cost taxpayers $26 billion, to bail out. They finally put him in jail and then found him ‘guilty of 7countsof feud ‘And ob, by the way, Keating & Company also donated $13 millon to the campaign funds of five U'S. Senators — the same Senators who ignored the red flags popping up all over the S&L industry for years beforchand. What 3 ‘coincidence, huh? Hows that for money going up the pyramid and no ‘value coming down? Problemis, he's theleastofthe badnews! ‘More than $250 billion of our money down the drs to bailout the foiled banks (and more to come)... one or two scapegoats in jail (Keating originally faced 77 counts of fraud and racketeering), and we get to pay increased taxesto get us out of the mess they created! (What if we were to use just half of all the money thrown down the S&L bailout drdin to help the victims of Hurricane Andrew rebuild. the victims of the flooding in the Midwest get back on their feet?) 36 Burke Hedges 0 the government-—our governnent—takes over the piled SALS, Then they hire the big eight accountng fm [3 Coopers & Lybrand for $23 milion to elp clean up the @ fpess—and tha’s the same Coopers & Lybrand that the srament is investigating for "cookin® the books” 10 yer up the S&L scandal tn the first place! Now we're oki ‘ ter Talk bout pyramids collapsing’ 3h Remember, Ponzi was a banker. Wall Street and"Greed is Good!” ‘Bed hows Michael Milken doing? Remember Mike—King She junk bonds? We've alread abotihisman seis guy has made more than $530 million a year fats 1S milion a dp And what ithe do fr al at wey? He ripped people off selling them worthless paper Clow wae worthless They called “junk. bonds ere jut “ezaduated” from a Federal pen with $200 Rion of OPM. (that’s "Other People's Money") in his Ppacscr Would you be willing to spend two years in a Feder "country club" penfor$l00milionayear? Fw about th es ofthe "Mater ofthe Urs he “greed s ood” guys we saw in The movie Wal Ste Lor ike veal-hfe guys at Salomon Brothers or Drexel Buraharn Lambert? You remember, the Ivan Boeskys of the world? They tke our money-yours and mine—milions and [ition f dlrs of and gin anu, wi rety-paper garbage bond investment deals that lever > fee the leverage they leveraged from the leveraging of fe overage! Felis, the only ea! money involved is ours— thei The top guys make a killing and everybody else plays dead This s Monopoly fr real! Tele Wall Sueetisnt 0 Who Stole the American Dream ? crawling with pyramid schemes and ought seams— Andhow abouteducation—oh,ther'sagreat one! Ei, Tellme, where else can you invest $50,000 to $260,000, gad four years or more of your lite for apiece of paper tat PHoesa't even guarantee you a decent job? A diploma gets BO percent of all college grads into a career that lst, ob, Aiveto 10 years—max! Thats, they can find ajobatall ‘Who getsthe good jobsightoutofeollege? te. With the exception ofthe top jocks who tum 10 pro Sports, is those ver; very few a the top of thee elas in those few top univesites—the ones that costa frune 4 Sound a tad exchsive—kind of lke the aitplane game? 4 Weapyramid scheme! Colleges and universities are big business. And like aay busines, they should be judged by the quality and Sovcess of the praduct they produce in the marketplace. Butit90 percent ofall raduatesare not workingin 39 Who Stole the American Dream ? What they went t0 schoo! for in the first place, where's the value lowing down inthat pyramid? "Remember "value for dollars"? Do you know what the average college graduate makes today—if he or she can even get a job in his or her field of study? Only $00 bucks fa week. Now, there's a great retum on investment! And it gets worse—check this out: Since 1990, the income of the average college-educated male in his 20's has dropped over $4,000! ‘Takeaway the fat endowments—Harvard $4.65 billion, Yale $2.57 billion, Princeton $2.53 billion—are most colleges and universities profitable? If you made them ‘operate ike a real business, most would be bankrupt in a year! ‘Whata waste! Generals. Specific Education Now don't get me wrong, Im not knocking a college education. I truly believe that if everybody in North America had a college degree, we'd be living in @ kinder, ‘gentler, and probably more prosperous world, College definitely makes people more well-rounded More aware.-And usually more confident. As a good friend ‘of mine put i, "College gives you peripheral vision—you see things in’a larger context, you lea how to solve problems." ‘That pretty well sums it up. But as Napoleon Hill pointedautinhisclassic book, Think and Grow Rich: "There are vo kinds of nowledge. One is genera, the other is specialized. General knowledge, no mat terhow great inquantity or varietyitmay be, isof Dut lle use inthe accumulation ofmoney.” T went to collegeand I'm glad I did. But the real purpose of ageneral college education isto improve 40 Burke Hedges fsl vision and t provide a bridge—fet me repeat, a RRS between the home and the big wide word Tots face i after 18 years ros parents want thet = Pe car of the house so bad theyll even pay for het ren) rn salty, college isnot the best raining for a career 12 ts specialized training to become a doctor, eng Scooumtant or the ike, Thats why Network Market- ‘g'such a powerful vehicle for earning income. 13 2 se ned ante for wealth creation without a $40,000 spcstment and four years of hard work just to start easing your first dll! Mlusion vs. Reality Mout people are under the illusion that they) graduate fom college and walk right ito solid carer opports- {ior it like the sory of the man who died and went to “The archangel in charge explained tothe man tat he . doald choose Between going to Heaven or Hell, but once fie mnade the choice that was it The man asked if be ‘ould see them both before he made his final choice. The fecange sd, "Sure" ‘Wen they got to Heaven it was beautiful, Everybody was anuling Wt was peaceful and tengull—just perfect. E The people seemed content and so happy. It certainly Aooked very lovely indeed This Denlful the man said. "May T see the other “3 Row?" The archangel rook him down to Hell. 1 News imredeseoe pry! Pore weak Jing. and dancing, the music was ye wat 8 IiMish spread of magnificent food, everybody was drink: fg and’ carrying on, The man had never seen anything, flit iin bis te andhiseyeswereasbigassilver dallars 4 Who Stole the American Dream ? ‘The archangel leaned over to him and asked, “Wel, whichdo you choose?” "Oh, this one—this one!” suid the man excitedly. "L wanttobe in Hell.” ‘The archangel reminded the man that he only had one choice. "Are you certain you want tobe in Hell?” he asked him "Oh, yes—t'm positive." The archangel clapped hhis hands and in a flash, the music stopped, the party disappeared and the man found himself chained to a post with flames shooting a him from every direction. No!" he cried to another suffering soul. "Where did the party go~the people, the dancing all he food! "Oh," said the other soul, "you must have attended the ‘marketing presentation, Thisis what Helis really like ‘The Vora of the story? Things are not always what they appear to be—just ask the colleze graduates who had to mov. back home because they coulda’ finda job! What college is best at preparing people for is—you got it, more college. Get a degree, then another and another. You, too, can become a professional. student. In 1960, we graduated 9,733 Ph.D's—and today, more than 86,000 each year! Where do they all go? The academic lifestyle —it's a world unto itself. Really, where's the value flowing? Nowbere! Its all bottled up in the university where it stays because if they lett out— ‘we wouldn'tneed them anymore, would we? Once college professors work their way up the aca- demic ladder to the safety and security of "tenure," they get to do research and publish a book that nobody reads— ‘much less understands. And if you've been watching the ‘news lately, you'll se that if they're in any one ofthe high tech fields, they'll most likely be doing research for Hitachi ‘or Mitsubishi—sothat the Japanese get another patent 2 Burke Hedges Ba ami enn! No one on ne Tees men — gy’ Folks, it’s time we all took a reality check. oe ay cra a fees mn a i snce, youll find out what "B.S. really stands Speck to School’——because that's where youll head cea 2B CHapTeR 6 There Is No Security Anymore Why achapteronseaiy? Beenie scary is what people want most. All the research shows that it continues fap the tof ne People dese in thi carer for tee ples on pene bei faliesand fr eit The tanya of ein Amen today i hat sceuniy i sipping awayor gone—for most of ue A its going at an alarming rate. . — But secu the cometstone of the Aetcs Dream—isn't it? mea : The th thee is no ty in th toe sett inthe ol antiquated ay of doing business. The fais hen’ seeey 4b tnscuriy’ today"than at any time since the Ge Depression. Just ask the former employees of Hanes Aisies Or Fan Am. Or scores of tie workers have been laid off fom "bive chip? companies that Soler rstactung sen nthe fae ofthe most masive lays since Great Depression, people still think they fin curity ‘by working for a traditional busines it remi me sins. Itemid me of ¢ 4 Burke Hedges ‘7'm Sticking to My StoryS ‘Dpe night a guy decided to drop by a local bar after work jp have a drink with his friends, Everybody was having a time! Swapping stories ., singing along with the @ box...buyingrounds of drinks forthe table. ‘Before he knew it, he and his fends had closed the lace down. As he stumbled to his ear, he could see the sun freaking over the horizon. He glanced at his watch. 6:00, AM. "Oh, no, "he thought to himself. "T've done it again, 4 wife willkill me... promised her, no moreall-night ingest” i, Twenty minutes later he pulled into the driveway, ‘ebearsing the excuse he thought up on the way home, As Je stumbled through the front door, he looked up to see his ‘ite waiting forhim with herarms crossed. "Where have you been all night? she demanded. He ‘quaightened up, looked her right in the eye and slured, $h.got home just after midnight, and I didn't want to wake YoU. 50 I sept in the hammock outside.” His wife glared ‘him and responded. "Nice try... only one problem. ‘He took the hammock down two years ago!” ‘aq, The man gave her a started look and then blurted, Felt, shar's my story and Pmsticking it!” ‘My friend, people who think they can have the same pb security in the 1990's that workers enjoyed in the {4950's are just kidding themselves...they'e telling them- > belvesa ie. and sticking it. ke Inthewordsof US. Labor Secretary RobertReich, "No one's job is secure inthe new economy, from the corporate chief executive to the ordinary worker." gS There isno job security anymore. It's time to tell your- I the truth, prepare yourself to face the consequences-— geton with your life! Who Stole the American Dream ? Brave New World? Today, takes a least two incomes f Incomes fo us o achieve the tnd of living cr parents tad with ote pach And even tts Now: Pope ang ab recone any ings ae changing s fast nour word and workplace tat Jono ha nce posto ah scone jut ows ea ap ae of wok "The 1980's saw 30 perent of ll American ote 30 percent! Tey were at pel were mostly blue colar Gispced or replaced oy sfomaton and vanced ce oly nie nde vi esr) wer ans foe sing very the ed of sate, see 35 percent of existing white collar workers Tmnpepel ane Cneny ove TONMDO jot st Srey yer ta 2090 Jb edd ge ee sinets day! Wee. ling, monty ‘unemplyrne Figures of 130.0001 Remember what economia Plat ett pen sempre byt 2007 fost of us ean accep tha certain inure are born fom, prosper gst ld and evenly die. Thats just the tray its Andis foolish fo hang on the pas and ight a farmers. Ninety percent of the popult ws involved 2 pe ee ae Senn ee ptm rele tpprd Scarier io faen ciara chemical engineer and lawyersnot farmer, Why should certainly no opportunity. sf oF leon den hoon 46 Burke Hedges Eo. suec workers auto workers machinists the jobs of Set uaesmen at women upon whom ou e006 Beast 20 oF even 10 short years ago ae den mie i Tecnologicel advances leading 0 ighet in sutra lower costae rue for Frau storemaincompetveintoday'smatketplae. vce that hang onto workers they dont really eed cold sean as Kinde and geler— but that does rere mich good when tyre forced out of business oy ankrupey because they coulda compete meena gowns make sense to continue to pay thee 2 eS 00 a year each if they can be replaced by one were that cons 990,000 —a machine that never kes Ieacine cat go on Ske for higher wages. doesn See tenet pckage wha pension and will never Fae gaceualharassmentiave suit Ase ened vinyl records: Now there was a solid seein eg milige dollar business thal was on top of see a ut six or seven ears age, To tell you the the wort Ja tld you back in 1985 there would be no tra ait in 1050 —- youd have laughed me out Of are ould you? Tode. cassette tapes and compact ik navemade vinyl records vitally obsolete sThevuners, executives, managers, sharchold- as, dks. ps ll he Inwyers, insurance companies © Sheen manufacturers, onsiaction worker, supp; Sear crvce companies all the folks who depended Tete Sng ecard inst for thst livloods, eer Sean wer elie for work, of are out of work — OF ‘went out ofbusines ae bsiness selfs doing beter than Recording artists are flourishing, So are the “record” companies. GDshave doubedther sales dlias! Ove Ae 0 Who Stole the American Dream ? Burke Hedges Person's prosperity can often come at the cost of anothers security, ‘The "book of wisdom” that tells you how to achieve the © “American Dream doesn't exist many college library. Even if (Andy he way, incase youre thinking ofloking fori only avery fe college sens old be able 10 "job security” in the CD business, don't bother: Now 4) understand a word oft industy observers are saying that over the next few “The jo market for college grads isthe worst since the years, digital tape is going to make CDs and cassettes Great Depression! The Baby Boom that erated the most, obsolete tsvesome market for goods and services the world has ver seen. that created the most masive block of college Getan Edueation fadustes... also created the most cutthroat, com Going to college, geting » good job, providing a secure ® paitivejob market ever! future for youseif and your family isnt what it ued to be.ltsamyth isnt? GetaJob Sure they teach you lot in college. But what none of ‘We've lost as many 25a quarter of a mlion jobs in a single the profesor teaches you i how to become financially Bonthend that gre i desincd 1 get her and Secure. It reminds me of @ poem by Sicphen Crane the bigher-—and that doesn include the millions of people author of The Red BadgeofCowage:” ‘whose jobless benefits have run out... who've given up Tmetaseer andquitlooking for work! Heheldinhis bands “The umber of men and women changing jobs and The book wisdom, ‘areers every year now is astonishing! It used to be that Yyou'd get into an industry and there you'd stay tll you ‘tired. Maybe you'd make one change. But today, em- ployment experts expect people® to have 10 to 12 different Jobs in five or six diferent careers over the course of their ‘working lives! Where's the security in that? Even the U.S. military is laying people off Officers— lieutenants to generals—ate being offered cash pay- "Think not that Lamachild, Foralready [know much Ofthat which you hold ‘Ayemuch.” ‘ments to take early retirement. Why? Because the Army ‘doesn't need them and can't afford to pay them. Hesmiled, The cold war was hot business for the defense industry Then he opened the book But all the businesses that supplied weapons and uni- Andheld itbefore me— {forms and supplies to the military are paying a big price Strange thatIshouldhave + for peace—they're laying off thousands of workers! ‘grown so suddenly bind, How would you like to be in the defense industry to- 48 9 Who Stole the American Dream ? [No matter where you tum—with very, very few ex- ceptions—there simply is no more security in the Ameri- ean workplace today, Free enterprise is no longer free. Most people don't hhave that most American of all rights, a choice. They have to take what they can get. There's no freedomin that— and no sec" ity either. ‘The Wonderful World of Conventional Small Business Ownership emer, more than 90 percent of al conventional smal businesses fail wii the st five years, OF he 10 pee ent that make, very Tew will ever sce year 10, Howe many 10-year-old businessesdo you know oP? "The th is that most small businestentepreneuts oot own tee own businesses—thy awn thelr on obs Tknow [had my own busines when I was 24 years old. T got fed yp and quit working for someone ele and Wen to work for mjselt. Unfortnately. 1 gucky found out that [was ike the lawyer who has himsel fora lent Twas working fbr a erty person! Tp none fate year of 0 pusshour weeks. made a milion dlls. and spentalmostamilionanda quer dona. 'Nowthasanexpensivesducation! Tean eat you nov: "Maybe yu should havs gone to college Burke het . ‘Well, did hat too, Ive go college degree in crim ral justice to prove it Hey, you would happen to have 2 job for a ison srarden in trning, would you? Lets face it~woshing ss cop or probation oie snot the best vehiclefor becoming nancy independent! 30 Burke Hedges Franchising Fry peone today tum to franchising as an alterative eedng ei oom highiskbusines from sath *Togetint le tanchisebusines youpay money inthe form ofa licensing oe wa rants who hands you whats ered a umkey” business operation. venting, i Sieciy researched. developed, designed and setup for you~ srry advertising tothe proper equipment 10 use, You jean tow to tin your people, do your books, make your Reis ee your supplies, and so on. You just pay Your Prony, ir tie key and drive ont the sunset of sucess, seh? ‘Wrong Ore er problem. The sverage fanchise costs $85,000 fo gawd and hat normally does nor inclu the wae casing your space, remodeling it, buying the ‘Sruipment poying or iventry. Rita more you've gta seven-day week of 12-101 our days managing rev of minimum wage employees. TR it youre ver good, youl break even and be able to ‘Ran making. a profic—after thee to five years, Most ‘rrveroperted franchises today provide about a $50,000 {2°3e0.000 annual Income forthe over once the initia F Ttvestnents all paid offi the owner doesn't rly {00 hem onsupportmanagement taf "Voc cane more if you can alfred one ofthe bigger sand beter ones, MeDooslds franchises, for instance, ae ually fase though thats the exception, not the Thies Bat youll pay a steep price for your profits. A MeDonalés franchise costs more tan $1 milion dollar to feof ground—ifvoucangetone! “Aceondng to Jane Bryant Quinn business writer for Newawcck ont third of all franchises lose their sie fcr jstbeakeven..andonethirdmakea profi ¢ Pe sl Who Stole the American Dream ? In other words, 66 out of every 100 -franchses are CHAPTERT losers! It's beter odds than the lottery, but with the price ‘ ot ranch ticket averaging 85000, shouldbe! What Are Experienced, professional franchisees today will tll ions? you that unless youre going to own a string of five of Your Options? Tore successful stores—forget it. You might as wel save Yourself the headaches and heartaches and. stick with yourjob, ‘Thats, ifyouhaveone. Help! ‘The simple fact is, we cannot depend on help from the outside : ‘Somebody once said that "Hope is the expectation that y lets say that you accept the fact that there's no ‘oF somebody is going to come along and save iy inthe work worl. anymore,, and tha, I its Let's face it—there is no hope for most people. Yo be-it3 up to me.” Where do you go..? What ‘The institutions of education, goverment and business yougoingtodo..? ‘an no longer be counted on to provide us with the oppor tunity taccomplishou dreams. re Are Your Options: ‘We have to take matters into our own hands. And what Web: Thats the tading-time-for-money tcp we talked that means in the simplest of terms is i's meant tobe, ut before. No mater What you earn, there's neither itsuprome ty nor freedom in having a job. Thats puting your Forthings to change—youhave to change. For things to insomeoneelse'shands sgetbetter—youhave oget beter. Zig Ziglar one of Americas top sles motivators, once So, whatare you going todo? ibed the word JOB as "Just Over Broke.” And in Whatcanyoudo? 's changing work world, the only forsure jobs are few and far between ones atthe very top—or those ajo atthe very bottom, Df; And to tell the truth, neither one of those are truly pcure anymore ether! Employment: That's where most people will tum. ner as we've said, the odds are stacked agaist you even staring wpthe most modest of conventional 33 Who Stole the American Dream ? Burke Hedges small businesses, let alone keeping it open and making i F And before you say—or think—another thing, I want profitable. a ‘you 10 give me a chance... No—serach that—{ want If you're one of the few who make it past the frst YOU to make the chance FOR YOUR SELF to take a look couple of years, you've got a chance. You ean shift the at Network Marketing and see whatithas to offer you. colds in your favor with a franchise. if you've got the cash... or if you're willing to hook your parents house or t Everything to Gain Your first-born child and risk going info very deep, debt We've scen how our entre world today is filled with Either way—good luck you. ‘good ones, bad ones, legal ones and illegal ones Invesiments: This one works great. fs bow th rich got ural institutions-like schools, colleges, goverament Fich—and how they continue getting richer You can earn churches, even families~are ell multi-level pyramids an income of $5000 a month by investing about half a yousomething intresting? million dollars in the right places. A million or so bucks Good or bad has nothing to do with the fundamental invested in the right place will give you a $100,000 annual re or shape-—docs it? Ifs what people do with it— income. All you need is the cash capital to’ start with. they apply the natural pyramid principle of value Unfortunately, most of us weren't bom withthe last name of Powing down in direct proportion to power (nthe form of Rockefeller, VanderbiltorKennedy. Pdollarsor votes) flowing up that makes the difference. ‘What does that mean for you? Just this: Haw you make There's One More Way. Fis of whats available to you isyourchoice And it's the path to solid income that successful And | believe that the best possible option av authors, songwriters, musicians, actors and performing pyou today is Network Marketing. artists walk, You can find work that pays residual in. Ym going to tell you and show you what Network come, alsoknownas "passive income” or yallies" Marketingisand whatitisno. Sadly, very few of us have a best-selling record or FLowant you o understand this business. I want you to brian invention in us. Only a very elite group of people compare it to all the other ways of eaming a living we've have the God-given gift to be the next Garth Brooks oF felkedabout and sechow t measures up. Thomas Edison. T want you to Took at Network Marketing and see iit But you know what? There is a way that you—who will provide you the security and freedom you need to ‘ever you are, whatever your sex or race or family back. ‘capture and keep your American Dream. ‘ground or social status...no matter what your education &_ You've gotnothing to lose. ‘or past history of success or filure in any endeavor that ‘And if what I say about Network Marketing i teue— you can begin to earnenduring. residual income right think for just a moment about what you might have to now today? exin! Itscalled Network Marketing lable to 3s PHASE THREE: Why Traditional Ways Aren't Working Anymore CHAPTERS 8 Paradigm—A $100 Word and a Million-Dollar Idea p you know what « "paradigm" is? It's one of those $100, lege words that actually has a pretty simple meaning. digm is a point of view or a model, kind of like the ‘quo, the way we see the world around us—the ‘The American Dream is a paradigm—only for most of day i'sthe way itwas—not the way itis, ‘Here's a good example of what paradigms are—and they change. ‘Swiss Watch Paradigm ou remember what the slandand was—the operating igm—for watch-rsaking back about 25 years ago? Be Swiss watch, right? It was Rolex and the like: classic, arate, 17 jewels, a mainspring to wind up. tick-tick- tick tick, Now, one day this litle old Swiss watchmaker comes ing out of his shop jumping up and down about this new watch he'd just made. 0 Who Stole the American Dream ? Look, Wolfgang-—no mainspring nojewels. I's lighter andawhole lorcheaper to make, Its thinner ‘and younever have towind it And —it's.a hundred times more accurate! I's calledaquarte!" Well, the Swiss are a prety cautious and conservative bunch. So their first response was to lean back, puff On. their pipes and say, "Hold on now Fritz—not so fast. This quarts thing ‘spretty clever Butlook,ifwesiart making these {quartz watches then who's gonna want these big expensive 17 jewel jobs we make nov Well be comi- peting against ourselves. “We've got millions invested injewelsand gears ‘and prings and things. What are we going todo with ll ofthat stuff—throw it away? And what are me going odo withall hele old watchmakers- like you? Besides, we OWN the watch business nov We're the kings of the mountain. Why mess with suecess? Les no fiz what's not broken.” The Swiss Watch Paradigm —that'sthe way twas. See, the Swiss didn't think quartz technology would amount to much. So, instead of rocking their own boat, they oldit—to the Japanese, You remember the Japanese 35 years ago—those guys ‘who made all that cheap stuff that broke 10 minutes after you bought it? The guys who were suckers for any new fangled high-tech pizmo? "Made in Japan” —Ha, hah ha, indeed, Who owns the watch market now? ™ Japanese and their quart watches. ‘Wedidn'justswitch watches we changed paradigrms Burke Hedges ‘The last time the $ business was “Swatch” Cheap, light, cute, bright quartz! And they copied them from the Japanese! See a paradigm—she way it is—becomes “the way it was" when it doesnt work anymore. Or when somebody inventsanew, beter paradigm to take itsplace. Right now, for example, the old paradigm of the ‘American Dream has stopped working for all but a very, very few ‘You know that's true by answering one simple ques- tion: Do you have it? I it working for you? Are you living theAmerican Dream ightnow? Iyouite not, youre not alone. You'e part of group that's been piven anew definition of "middle You're inthe middle between arock and ahard place, [Now, don't get caught in the trap of saying something like, "Well, I just don't work hard enough." Or, "Tm justnot smart enough..." ‘Tell me the honest trth—if you worked twice as hard as youdo now, would that really make a difference? Would you be earning twice asmuch? ‘And do you really, need tobe twice as smart as you arc* right now to make itn this world—to be a success? Look around: The "A" students are working for the °C” stu- dents. Being two or thee times smarter isnt the answer, either. If intelligence were the answer, college professors ‘would be the wealthiest people in the world—and you, ‘know that's not the way its yout like most people I know, you probably believe the reason you don't have the American Dream is because you didnt take all the right steps you were supposed 10 take. You probably think you got off track somewhere— {hat you're missing something—and if youonly hat, iad a really big hit in the watch and mega lass— a Who Stole the American Dream ? you'd have your Dream and be able to live it, to. Is that tue? ‘Well, my friends, youare not missing anything. ‘What's missing isa new American Dream paradigm one that works. Because the old one has fallen apart. Who Stole the American Dream? Who stole the American Dream? The fat cats at the ‘op of corporate America—that's who. The CEO's who are making millions while their companies are losing money—that's who! The politicians who are voting themselves raises and generous pension plans aid for by your hard-earned axes—that's who! The reason you don't have the American Dream, and rillions of other people just like you don't have itt—the reason I didn't used to have it, either—is that there are a bbunch of greedy guys out there with a vested interest in keeping it all for themselves. And the best way to do that istomakesure youdon'getit, Look, if you were king of the mountain, would you really want to rock the boat? Would you risk being the one on top just to try something new? Or would you be like the guys who owned the Swiss watch business and hold tight until that foolish quartz thing blew over.” Remember, people generally resist change, And the ‘comfort zone is all the more comfortable when you'e rich snd famous—when you're the one who's king What Walt Disney was taking about when he said it took courage to pursue your dreams was having the eour- ‘age to accept change—the courage to climb aboard & and better idea before everybory else does... because you waittill everyone isdoing itistoo late! ‘The late Sam Walton's advice for success was to "swim. Upstream. Ieverybody else is doing it,” Samsaid, "there's a Burke Hedges 1 god canes you c i cppontediseton hink sb it By the ime regular people get into & hot realest market or bythe time fhe sock markt fs anew hgh te big mony’ sranty been mae, The exper are long gone and ll ha let forthe ordinary fupsandgalsare the crumbs "The pew and beter paradigm I'm talking about—the vay yo can get back the American Dreams mt the Coleg -caresrackpradigm ike itasedobe ‘ot the ob-vitheorport-Amerss paradigm ike usediote Antti cm cite ‘Believe; ed them al And dda make it inany of thm Tre Min Ga neo et ber pratgn of Network Marketing ole, coprae jobs, evn small business oune ship—theyc all pra sft Sviss wah, Dead tal dying dinomurh Is ine to swim Uptetir—or drown find your niche by going in exactly -your-own-smal-business paradigm, ‘The Technology of Network Marketing Network Marketing is the quartz technology of business today. Because Network Marketing has what's missing from conventional business ‘And what's that? Tnone word technology And what does that mean? Technology is simply "a new and better way of doing, something." ‘Technology isthe engine of change ‘Technology is what creates anew paradigm, ‘There was no such thing asthe PC (personal computer) business 15 yearsago. Today itis more thana$150billion 6 Who Stole the American Dream ? indsty—with anal sales bigger than OM, Fos Chrysler combined! al eee dy ochoogy iscasng ings hat odo ke 50 yeas to change Lappen monly fel Ad as very ood now bine fe Cy tne fore change for flter“a mc chage tht wil fs the ay tt ‘American the word does basins romnovon! CHAPTER9 Why Network Marketing? Ch... ch ... eh. Changes ‘The most fundamental fact of life in our world today is change. “And asa rule, people are rehuctantto change. We resist it thas to do with staying in our comfort zone, which is pertofhuman nature ‘But ils also true that what you resist, persists. And when you push against a change whose time has eome— itresistsbigtime! Enlightenmentys."En-darkenment’ ‘Throughout human history, as changes have come to light, People have run around blowing out candles and throwing the switches, demanding continued darkness. In almost every field of endeavor—the arts, scienees, medicine, pusinese-—-most new ideas have always met with ress tance and rejection at first. And the more unique and revolutionary the idea, the more sweeping and vast the. ‘ange, the louder and stronger people's opposition tit Who Stole the American Dream ? Now, you can understand why people in the Dark age or even in the 17th, 18th and 19th centuries were afraid tnd even ignorant about change. They threw Copernicus injail. Ridiculed Christopher Columbus. Laughed at Lpute Pasteur. Even mocked Edison and Einstein. And ‘know, eventoday, westil resist change. Let’ !a0k at Some recentexamples. ‘The Buying and Selling of America Once upon a time, back in the 1800s, America bought what it needed at small, family ovmed shops like the ‘general store. It was the butcher, the baker and the eandle- stickmaker paradigm, ‘Then, a man named W-T. Grant had a very bright idee ‘What if we combined all these separate, litle shops by ‘making them individual departments under one roof —in ‘one big store? Then, we put one store over here, then one there... offer our customers the widest selection at lowest Prices because we buy the, stuff from the manufactur ters atthe biggest volume discounts, and—bingo—the 5 & 10 pent department store chain was bom A new and better way of doing things. brand new technology creating ‘anew and better shopping paradigm, And people flocked ot Can you guess what happened next? Making Money the Old Fashioned Way The individual merchants who owned those other "old fashioned” retail stores were unhappy people, 10 sty the least. They saw their own business drop to next to noth- ing as more and more people sought the wider selection, lower prices and greater convenience of the local 5 & 10 (Cent department stores ‘The old-fashioned "mom and pop" stores were drop" ping lke lies 66 Burke Hedges ‘Well, those shop keepers didn't take it ying down—no, sir! They fought back. However, they didn't fight back With a new and better idea themselves. They held on to ‘the old paradigm and fought back politcal ‘Since there were thousands and thousands of them (with thousands and thousands of votes), they, lobbied hard and fast for their right to do things the same old way. And they got the local and state governments to outlaw Grant’s5 & 10 Centdepartmentstores Did you know that? Imagine, 5 & 10 Cent store chains throughout the country were illegal! Incredible! Eventually, Grant's department stores won out, Re- ‘member, what you resist, persists. You'd have better luck standing in ftont of an oncoming freight train than to fight against a change to a new and better way of doing things ‘whose time has come—especially when consumers love thei. Shopping Centers and Malls After the chain department stores took over the major ‘market share in consumer goods retailing—the smaller ‘merchants finally came to their senses and embraced the new technology. They began to look for innovative ways touseitthemselves. {As the automobile made growing suburbs out of neat city farm land, groups of merchants got together and collectively formed shopping centers—a variety of in- dividual stores all in the same, convenient location. And sure enough, the zoning battles that followed—fucled by all the shop owners who dich get into the new shopping ‘centers—were nasty, indeed, Eventually shopping centers, too, proliferated. And’ before long, developers enclosed them and put roofs over , them—similar to what the chain department stores had * done initially —and called them shopping" 67 Who Stole the American Dream ? ‘They becamea way oflifein North America Yet today, both department stores and malls are be- coming oldand dying paradigms. ‘As futurist Faith Popcorn says in her best-selling book, The Popcorn Report: "Like the corporation, the shopping experience ax we sow it has grown cumbersome, inefficient, a Violation of the trends. The big department stores fare discovering that is no longer possible to be all things 10 all customers. The shopping center is be- coming a dinosaur inthe grand scheme ofthings.” Department stores are now losing the batle they won 50 years ago. Specialty shops, discount stores and catalog. sales are eating their lunch, Visits to chain department stores went from 65 percent ofall consumers on a per month basis in 1974, down to 40 percent in 1993. The number of shoppers visiting discount stores was up 65 percent in the same period... and catalog sales had grown 2 percent since 1988, ‘Malls are suffering a similar fate, As retailers raise the profit per square foot through their own new and better technologies, the need for retail outlets is deereasing. The average profit per square foot for a retailer is $125. Yet specialty retailers are making $400 per square foot— that's over three time more profitable! Which means that the demand for traditional retail stores—like J.C. Penneys, ‘Sears and Montgomery Wards-—is decreasing. ‘Today, there are too many malls. And the ones that remain are ‘having to do more and more to attract, the same numberof shoppersas before. ‘What technology will retalars incorporate to make ‘malls new and better? How about the mall as a-theme park—shoppingasentertainment? Check out Century Burke Hedges City in L.A—or even better, Canada's Edmonton Mall the Disneyland of malls, ‘Lamenton Mali, Wow! A shopping mall that's 115 foot ‘all fields in size and houses the world's largest indoor Tusement pask, indoor wave pool and indoor golf course! There's a fleet of operable submarines bigger than the Coauaian Navy, a fullsize replica of Christopher Colum ae Santa Masia and—oh yes—nearly 1000 individual stores! How's that for power shopping?! That's what it takes to make a mall that works today, Unfortunately, even & SHollywood-comes-to-the-mall approach cant. guarantee success at last report Edmonton Mall is struggling ‘Watough tocompete when your-paradigm issinking. Franchising One of the most amazing innovations in, how America fs and sells what it wants was—and stil is—ffanchis ing ‘Youkrow.30 yeas ago fancisng wasa revolutionary new ung. car mew and beer way 0 real good, Food andseresa eons Pe did people buelt Resistance bigtime Arent and maguines shouted bold Headins abou aint scam and poll fanchising was. Stories of seat dics who fst thelr He savings fo some m= Is fanchise were everywhere Bam ie soph some very ig, wellknown FORTUNE 500 ot Shnganies were volved, those companies in 200 re he umes ote wed in ads oF aging sisted tha vou thir ovm franchises! Thee was ae eet a ery strong move to make franc fact, Franchising ‘actually came within 1 tnulawedby Cones votes of being Who Stole the American Dream ? ‘Today-—this once shaky, shady, so-called scam is re sponsible for over 34 percent of all retail sales in America Franchises sell nearly $800,000,000,000 worth, of goods ‘and services—thar's 800 billion dollars! (Gust think... 11 votes worth $800 billion today—that comes to $72 billion per vote. No wonder people don't trust politicians)" Franchising was simply a new technotogy. Clearly, a revolutionary, very powerful, and VERY successful tech- nology—a new and better method for the distribution and sales of goods and services, Is there a new, emerging distribution and sales tech- nology on thehorizon that will out perform franchising? 1s there # new next step in the evolution of our free enterprise system? Yes, there is ‘The New Technology of Distribution and Sales Itscalled Network Marketing ‘And even more than department store chains, shopp- ing centers, mails, and franchising that came before, [Network Marketing has been resisted. Its been misun- derstood, criticized, laughed at, lobbied and legislated against. ‘The Pioneers Just look at Amvay, the granddaddy of all Network Mar= keting companies’ Amway distributors have been mocked... laughed at. and derided since the company’ bburstonto the scene over thirty years ago. ‘Today, Amvay isa multi-billion doilara year company with successful distributors all over the world, Amway moves over abillion dollars worthof productseach year Burke Hedges Sea Ameo cae erie ar weve a mk auc net n CHAPTER 10 Whisper This Word to Yourself; "Distribution' In his landmark book, Unlimited Wealth, noted econo- mist Paul Zane Pilzer asks us to recall a memorable seene from the 1960's movie The Graduate. In the film Dustin Hoflman plays the part of Ben, a recent college graduate. One evening sta par an older wiser man pus Ben aside and promises to share the sce the fe ah Sim He whispers inhincarone precios word "Plasen* Inthe 190s, Pau Pile whispersadire, hough no lesprofoundandmagiewordin ou ers . "Diributon” Heresy ‘The Technology of Distribution ‘The most visible and powerful impact technology has had to date on the goods and services we buy’ in reducing the cost of making a product, And is a proven marketing law that when you lower the price, you sell much, much Not many Americans owned efleulators when they sold for$125, Once the retail price fell below $20, everybody got Burke Hedges ‘one—and then two. The same was true for digital watches ‘anda whole host of products, ‘Look what happened to VCRs. ‘When they were $1,000 plus, onl the rich people owned them. Today, at $300 to $400,68 percent of all households have one, By 1995 that figure is projected, to be 85 per- cent. And for your $350, today's VCRs have more fea- tures and a higher level of all-around quality than even, the mos sophisticated 1980s models. Pick a produet—any praduet-—and youl find the same thing has happened. Adjust the dollars for inflation, and today you've got six or seven times the value, quality, features, safety and longevity than you could purchase 20, oreven 10 short yearsago. ‘Atop model color TV, with automatic color contol and 4 15-inch sereen cost $300 in the 1970s, Today, $300 buys you the same size set, cable-ready, with remote contol, “lectronic tuning, and a far superior color picture, $300 in 1989 dollars would be about $120 in 1970's money—ad- Jjusting for inflaton. So today, not only do you get a far better FV set, butitalso costs 60 percent ies! Refrigerators, automobiles, computers... they're all the same, Advances in technology, ic. new and beter ‘ways of doing things (inthis case, of making things) have slashed the retail prices, and sales have increased accord ingly. ‘When the price comes down, then what was once a oxury all of a sudden becomes a necessity. Everybody hhas to have one. When TVs became cheap enough, every body wentoutand bought one, “The next step was having two—one for the living room and another for the bedroom. From 1960 to 1980, the ‘number of homes owning a TV set only increased from 90 10 98 percent, while those ovning two sets, rose from 11 1060 percent! Now, le'shave nein the kitchen, to. If Who Stole the American Dream ? that's not enough, some hotels have a LV. in every bath- Once you have all the TVs you need and want—whats next? Better quality ‘The one in the living room gets replaced with a big soreen, stereo job. And on and on it goes. From Sony ‘Walkman, to automobiles, to suits, shoes and cocktail dresses—first comes quantity, then ‘comes quality. And since technology is constantly producing new and better” ‘ways of making things—and new and better things them-, selves—there are always new and better products for newand bigger markets. ‘That, my friends, is what makes America—and what will ep America—the leader of the world. ‘We are the world's biggest market for just about every thing They ({he Japanese Germans and any other of them) may giggle behind our backs... make snide re- marks about "materialistic Americans," but never for t00 Jong. They not only know which side their bread is but- tered on—they know who's gotthe bread! But Why Does Everything Cost So Much? ‘Okay, now, how come some things haven't come down in price? Food, forexample. Great question—and foodis the perfectexample. ‘The cost of making most food products was lowered 10 rock bottom by new and better growing and production technologies many years ago. How much does it cost for the wheat in a box of Wheaties? Five cents—or less? But the dam thing is selling for $2.50 or more! That's because the biggest cost fof the product isnt in the manufacturing. And is notin the packaging, either, which only adds another dime. Its inthe disiribuionandsales. "4 Burke Hedges I used to be that a product's production cost was around 50 percent of its retail price. Not any more. Ad- ‘vances in manufacturing technology—all the way from the cost of farming or mining the raw materials dhem- selves through producing the finished product—has yowready?” Right here, right now, is the right time and the right place for Network Marketing Its interesting how resistant we are to change. Even When the handwriting is all over the wall—and the ceil ing, and the floors!—we want to stay in our comfort zones—even when we're the most uncomfortable... even ‘when we're miserable, Let's not sugar-coat it. For things to change, you have tochange. For thingsto get better, you have to get better ‘You can blame your parents, 'your boss, the govern- ‘ment and whatever, But one simple fact remains: when it bbecomesharder to suffer than change, yourwill change 104 Burke Hedges Like the Chinese say: "If you don‘ change your dree- tion-you'e boundio end up where you're headed” 10s Burke Hedges Cuarrer 12 Why woulda ha? : cases no in your bos intrest for you to lar If Network Marketing Is Hast eset a now anf bates way te ree So Great—Why Haven't ony that docant inciule the 9'o 6, tading ten We Been Told the Truth r omeone in command ofthe te ea as Sed About It? youd set There are lots of "someone elses” out there—lots of ! And it's not just your "boss’ at work I'm taking out. It's all the self-proclaimed "bosses" in gover ‘education, business, et., who think they know what's for you and me. Is it realy your best interests they're king out for..ortheirown? ertothe People truth is that most of the people in power today are cared to death. Thet overiing concern i the fer of "Before its Ie two paths—honesty and dishonest oss—oss of their own power! Everywhere they tum, The shortsighted embark on the dishonest path see the handtwritng onthe wall—and they don like the wise onthe honest For the wise know the truth be message. So what de they do? They shoot he messes ‘in helping. others we help ourselves; and in hurting others we hurtowrselves... Honestyisstillhe bestpolicy” Well, Network Marketing's message is "power to the ‘NyanDav, TheBetfeeceas Se apeme We've come a long way since the 196s, Remember be an-establishment movement? How so many of ws waned } change the way the world worked? Well, ose reason that olution” ddr? work was because we didnt have new and beter way of doing thigs to replace the old "Now wedo, Thats why more and more Network Mar- Keting companies are wearing bulletproof ves Remember how the Romans teated the Christians? them othe ions! Remember what the power-peope did with francis pg inthe beginning? They called tascam andascheme. ‘Why haven't we been told the trth about Network Mar being? Because the World is filled with not-so-wise dishonest people—shorsighted men and women who have yet (0 Eiscover that in hurting others, they hut themselves tnost of all Remember Caro Ponzi~the inventor of te Pyramidscheme? ‘Remember the subtle ofthis book? "Thebookyour boss doesn want you read 107 Who Stole the American Dream ? ‘They were threatened by the message, so they tied to Shoot the messenger fullofholes. Tt reminds me of a story about the frst time a movie was shown in a Colorado mining town. When the villain Was threatening the heroine, a prospector jumped to his feet and shot the movie sereen fll of holes. (Obviously, he should have shot at the projector...or the producer. orboth!) ‘Ignorance and fear—whata deadly combination! Like the prospector, the media powers wanted to kill the villain—so they searched forall the dirty stories about franchising they could find. Blew them up bigger than life andried to take franchising down. Why? Because they were already kings ofthe mountain, do- ing business with the other corporate kings—and these ‘upstart franchises were saying, “Go fly a kite. We're going tomakeourownmountain! And they did! Money Is Serious Business Now, how many millions of dollars worth of advertising space do you think those first franchise firms were buy ing—versus how many millions of dollars worth of all the advertising bought by the traditional manufacturers and their conventional retail outlets that the franchises threat ened with their new and better way? ‘Newspapers, magazines, radio and television do not make a profit on readers, subscribers, listeners and viewers The media make money from their advertisers. BIG ‘money. Outrageous money! And if you're not one of them one of those big ticket advertisers—you don't get the positive press coverage you need, much lest deserve ‘Why should you’ You're not making the media any money ‘And what if you're some upstart competitive marketer taking sales and profits away from those big ticket adverts Burke Hedges Do you suppose Howard Johnson's was thrilled to death at Ray Kroc and his McDonalds? Once MeDonalds got big enough to start taking market share away" from those ‘guys—and all the other established restaurants that ad vertsed heavily in newspapers, radio and TLV... it was ‘And whose side doyou suppose the media was on? Hey, even FORTUNE 500 companies who owned and invested in the franchise concept were afraid of telling the public the truth that chey were involved—they. went out of their way to avoid being identified as participants in the new franchise scene. Play it safe. "If this thing goes bust—nabody will know we blew it ‘Courage, guy. So, here's what happened: + Retailersputthe pressure on. They were sing sales.) + Manufacturers putthe pressure on... (Sa were they) + The media put the pressure on... Their advertisers ‘were being hurt—and the new guys weren't spending anywhere near what the good old boys were spending inadvertising) + Even the poltcians—tobbied by bigpsyroll employ- rs with big blocks of votes and even bigger campaign contributions—put the pressure on. They tied to pass lawsagainstit. They said franchising should beillegal! sawonderfrncisngsurvved, But it did survive—and it prospered because it was a new and beter ay of doing ings. and because what ‘you resist, persists, And persist it has: Today, over one third of everydhing we buy comes from a franchise —Taco Bell, Thrifty Car Renal, Sir Speedy Printing, Blockbuster» Video, Century 21,

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