COPYCAT MARKETING 101

REVIEW NOTES

PO NOT Wealth·Freedom

·Freedon from a boss ·Freedon from sfress

Old Systemi for Success: HxN-I

(aho coled the "tme-for-money frap")H.(hourty wage)xN(ro.hours worked)=I(income)

New System for Success:Tx E'.$

(diso coled the "power of leverage")T(fme inested) xE (exporentid growth)-f (frareld( freedon)

Linear Growth: 5+5·10(linear,lmitedf)Exponentiol Growth 5-25(exporentidl-explosiel)

Which system do YOU want to copycat?tine-for-money trop_.or wealth creation&l 通

Burke Hedges author·opeaker*entrepreneur

"Copycat Marketing 101"is Burke's fourth book on free enterprise

and persondl development

Free Interprine/Wodith Creation

INTRODUCTION

If You Don't Like Your Results,Change Your Approach!

INTRODUCTION
If You Don't Like Your Results,

Change Your Approach

There are two things needed these days:First,for rich people to find out how poor people
live;and second,for poor people to find out how rich people work.

-John Foster

Omdtnr ngd manger smugsingtopary a financial expert.The manager makes an appointment

to meet with a well-respected financial advisor whose office was located in a swanky build-
ing on Park Avenue.

The manager enters the expert's elegantly appointed reception room,but instead of a
receptionist,the manager is greeted by two doors,

one marked "employed" and the other "self-employed."

He enters the door marked "employed"and is greeted by two more doors,one marked "makes
less than $40,000" and the other "makes more than $40,000."

He makes less than $40,000,so he enters that door,only to find himself face to face with two
more doors.The door on the left is marked "saves more than $2,000 a year,"and the one on
the right is marked "saves less than $2,000 a year."

The manager only has about a thousand dol-lars in his savings,so he enters the door on the
right-only to find himself right back on Park Avenuel

THE SAME DOORS LEAD To THE SAME RESULTS

It's painfully obvious that the manager in the story will never get out of his rut until he starts
choosing to open different doors.The moral of the story is that most people are like the
manager-they choose to enterthe doors of life that lead them right back to where they started.

The only way for people to get different results is to choose to enter different doors,isn't that
true? Like one of my mentors always
used to say."If you continue to do what you're always done,you'Il continue to get what you've
altoays gotten."

ARE YOU A 95%-ER?...OR A 5%-ER?

Just like the manager in the story,most people are caught in a rut because they're trapped in
an endless cycle of financial frustration.

Just like the manager in the story,95% of the workers in most indlustrialized countries are
employed_they make less than $40,000per year...and they save about $2,000 per year.

At first glance,these figures look pretty im-pressive,especially to people who make less than
$40,000.But the truth is,95% of the people in this world aren't gettingahead-they'rejust
getting by.Take a look at the financial condi-tion of the "average" U.S. citizen at age 65:

100 TYPICAL AMERICANS AT AGE 65

How about you? Are you opening financial doors that will lead to you becoming a 95%-er?Or
are you opening the doors that will lead to financial independence,or even wealth,like the 5%-
ers?

I've got to believe that most people want more for themselves...more for their families ...than
being dead,dead-broke,or still working to make ends meet by age 65.I've got to be-lieve that
if more people understood the full benefits of being a 5%-er,there would be a lot more people
choosing to open different doors in their lives.

IMAGINE FOR A MOMENT...

Imagine for a moment that time and money weren't an issue in your life.

Imagine being able to walk your kids to school every morning_.and never having to miss a
school play or soccer game because you had to work.

Imagine planning your work around your golf...instead of your golf around your work.

Imagine going on a vacation and coming back when you want to come back,rather than when
your boss says you have to come back.

Imagine paying off your car loan...paying off your mortgage...and paying off your credit
card bills at the end of every month.Imagine that you are one of the 5%-ers,financially free to
come and go as you please.

Finally,imagine that by investing one hour of your life reading this book,you will dis-cover what
you've always been searching for -the key to wealth creation!

THE PURPOSE OF THIS BOOK

Suppose you had the opportunity to become a 5%-er-would youtake advantage of it?I
sincerely hope the answer to that question is "yes,"because that's what this book is all
about.In the coming pages you will learn that the secret to financial freedom is knowing which
doors to open.

Copycat Marketing 101 will make you aware that most people are 95%-ers because they've
been taught to copy people who are opening doors that lead to salary caps,dead-end jobs and
financial dependence.In short,most people are copycatting the wrong plan!

In this book you will learn that the current system most people copycat is designed to cre-ate
temporary income-not true wealth-be-cause it's based on linear growth of trading time for
dollars.

You will learn that the key to true wealth

creation is leverage,and you will learn about a dynamic form of leverage that wealthy people
have been copying for centuries called exponen-tial growth.

You will learn that the "secret"to wealth creation is available to virtually everybody,including
people like you and me,because it's,based on something that we already know how to do
well-copycatting. CHAPTER 1

Best of all,you wilI learn how average people can break out of the time-for-money trap by
copycatting a simple,duplicatable system of wealth creation that will open the door to
financial freedom,once and for all! We Live in a World of Copycats

CHAPTER 1

We Live in a World of Copyeats

Children have never been very good at listening to their elders.But they have never failedto
imitate them.

-James Baldwin,author
One of the first books I remember reading as a kid was a joke book. I can still re-member one
of the corny jokes that used to crack up my friends and me: It takes money to make money-
you have to copy the design exactly.

Hey,I told you it was a corny joke,didn't I? But the sentiment is dead serious.

Why haven't we found a way to copycat cre-ating wealth?

Think about it-we copycat everything else in our lives, don't we? But the one thing we haven't
learned to copycat is treating true wealth! Let's take a few moments to talk about the power
of copycatting.And then we'll look at some of the reasons most people haven't found a way
to copycat wealth creation.

ONE THING WERE ALL GOOD AT Is COPYCATTING

Each of us is blessed with certain talents and gifts that make us one-of-a-kind individuals.Some
people are great dancers,while others can't tap their feet to the beat.Some of us have a talent
for art,while others have trouble draw-ing a stick figure.Some of us are great athletes.while
others can barely walk a straight line with-outstumbling.

But the one thing each and every one of us is good at-WITHOUT EXCEPTION-is copycatting.

Have you ever thought about how good we are at copycatting? When it comes to copycatting,
we're all gifted. We're copycat geniuses!Copycatting is one trait we all excel

at and that we all have in common,no matter where we live,no matter what our individual
talents are. It makes no difference whether we are rich or poor...black or white ...male or
female...the one thing we're all great at is copycatting.So why haven't we found a way to
copycat creating wealth?

COPYCATS FROM THE CRADLE TO THE GRAVE

Copycatting starts the day we are born.We copy the language we speak...the food we eat ..the
way we wear our hair...the way we walk..the way we dress.When we enter school,we learn to
read and write by copying letters in the alphabet.If you were born in a western culture,you
copycatted the system of writing from the left side of the page to the right. If you were born
in parts of Asia,you copycatted writing from the right to the left.

As we grew older,we learned to drive a car by copycatting, didn't we? The instructor showed
us how to check the rearview mirror .turn on the turn signal...push slightly on the gas
pedal...drive the speed limit...and come to a full stop at intersections.The better we were at
copying our driving instructor,the easier it was to pass our driver's test.
WHEN IN ROME, DO AS THE ROMANS Do

We're so good at copycatting the people around us that we are often shocked by the customs
and habits of people from different cultures. That's what the expression"When in Rome,do
what the Romans do" is all about.It's a plain way of saying that we need to honor and respect
different cultures,especially when we are visiting other countries.

But,that's a lot easier said than done.We get so comfortable with copycatting the customs
around us that we're often amazed and amused when we hear what other cultures are
copycatting.This short list of the favorite snacks of TV watchers around the world will show
you just what I mean:

United States-popcorn

China-chicken feet

Japan-tea sandwiches

Mexico-ears of roasted corn

India-mutton sandwiches

Korea-sun-dried squid

Did you think to yourself,"How could they eat THAT? Sun-dried squid?...Chicken feet?You've
got to be kidding! But guess what you'd probably be snacking on while you

watched TV if you grew up in Korea...that's right,sun-dried squid.

COPYCATTING THE WAY WE WORK

Here's my point:There are countless differ-ences between cultures,but the one thing
every,single culture has in common is the way we go about learning the customs we practice-
we copycatl We copycat so much that we take it for granted.Copycatting is so prevalent that
it's second nature to us,like breathing air.So I ask you again,Why haven't me found a may to
copycat creating wealth?

Make no mistake about it,copycatting is the most powerful learning tool known to
humans!Copycatting impacts virtually every single phase of our lives,from our smallest habits
to our biggest life-altering decisions.

For example,we spend a big part of our lives at work.Did you ever stop to consider how you
learned to perform the tasks you perform at work? How did you learn to write a letter on the
computer?How did you know what to wear to the office? And how did you teach others who
were new on the job? By teaching them to copycat what you did, isn't that true?The
psychologists call it "modeling and mirroring."I call it being a professional copycatl

No question,we copycat our way through life from the cradle to the grave because copycatting
is easy to do...we don't have to keep creating everything from scratch all the time...it
works...and we're born geniuses at it! The expression"Monkey see,monkey do"could just as
easily be "People see,people do."

That's why I say we live ina world of copy-cats.If there's one thing every,single person in this
world is good at-it's copycatting!

A SHORT HISTORY LESSON ON COPYING JOBS

We even go so far as to copycat how we earn money.For thousands of years children of

farmery copycatted their parents and became farmers...children of shoemakers become
shoemakers. That's why so many of our last names come fromthe trades, names like
Farmer,Smith,Carpenter,Tailor,and so on.

With the advent of the Industrial Revoluation,millions of children with last names like
Farmer,Smith,Carpenter and Tailor broke away from the family trade and headed to the city
to copy-cat a new concept of work-the job.

Copycatting the job worked pretty well for several generations,especially in America,the
undisputed king of the Industrial Revolution.Because the first half of the 20th century was

overshadowed by two world wars and the Great Depression,most people were overjoyed to
copycat their family and friends and work a nine-to-five job. And as long as people's
expectations didn't exceed their standard of living, people who copycatted the "gotta-get-a-
job"mentality were content with what they had.

THINK BEFORE YOU COPYCAT

Like most everything in life,there's a flip side to copycatting.Just because we copycat

something doesn't necessarily make it good...or efficient...or productive.Unfortunately,all too
often copycatting is an excuse to get lazy in our thinking.It reminds me of the story about the
old shopkeeper on Main Street who placed a grand-father clock in the front window of his
store.Over the years the shopkeeper noticed that a distinguished-looking man would walk by
the store every day at noon...pause in front of the grand-father clock_..puall out a pocket
watch ..and carefully set the time.

One day the shopkeeper's curiosity got the best of him. When the gentleman paused in front
of the grandfather clock,the shopkeeper ran out of the store and asked the man why he set
his watch each and every day.
The man smiled and replied,"I'm the fore-man at the town mill," he said."I blow the quit-ting
whistle at 5:00 each day,annd I tant to be sure it goes offexactly on time."

The old shopkeeper gave him a startled look -anid then burst out laughing. The man stepped
back and asked indignantly,"What's so funny?"

"I'm sorry,"replied the shopkeeper."Ididn't mean to be rude. But I just had to laugh. You see.all
these years I've been setting my grand-father clock to your 5:00 whistle!"

This story is a perfect illustration of the downside of copycatting. We copy others others copy
us...and all too often we assume that the people we are copying have the "right answer."I
repeat,toe ASSUME we are copying the right people!

That's exactly what happens when we take a job without really thinking about WHY we took
the job.I think most people assume that jobs are the best way to create wealth,when in
fact,jobs don't create true wealth-jobs create temporary income.And there's a big.BIG differ-
ence between the two.

LET'S RE-EXAMINE COPYCATTING THE JOB

Like I said earlier,copycatting is the most powerful learning tool known to humans.But

every now and then we have to step back and examine our assumptions about what we are
copying-and why-to make sure copycatting will,indeed,give us what we think it will give
u5.Throughout this chapter I've repeatedly asked the question,"Why haven't te found a way
to copycat creating wealth?" The answer is painfully obvious-most of us have been copycatting
the job track instead of the wealth creation track.

Why?Because most people assume that a job is the only way to actualize their financial
dreams. Perhaps they are unaware of alternatives to the job.Perhaps they don't believe there
are other sources of wealth.Or perhaps they don't think they are capable of creating true
wealth by working outside the job routine.

Whatever the reason,the result is the same.Most people become 95%-ers instead of 5%-ers
because they are copycatting the job track and creating temporary income instead of true
wealth.

What about you? What are you choosing to copycat? Are you choosing to be like 95%of the
people who are copycatting the job track?...Or are you choosing to be like the

5% who are copycatting the wealth creation track?

GET OFF YOUR ASSUMPTIONS

As a wise person once observed,"Your mind is like a parachute. It only works when it's
open."Today,more than ever before, it's imperative that we open our minds and become
aware that jobs are a system for income creation,not CHAPTER 2wealth creation.

I believe that ifpeople are serious about get-ting ahead in life-instead of just getting by -then
they have to get off their assumptions What Is“True”Wealth?and open their minds to
alternative ways of creating wealth!

I believe that the 95%-ers-that is,people who continue to enter the door marked JOB-will
continue to end up right back on the street where they started.

I believe,however,that if we are TRULY sincere about getting different results and be-coming
5%-ers,we need to startentering doors that will open to wealth creation.

In the next chapter we'll talk more in depth about the difference between income creation
and wealth creation-and we'll learn why true wealth is more attainable today than ever be-
fore in history!

keeps his job as CEO of Microsoft because he HAS to...or because he WANTS to? I think it's
safe to say that Bill Gates has enough money and enough time to do what he wants,when he
wants,because Bill Gates has created true wealth,not just income.In a word,true wealth is
freedom.

WEALTH MEANS FREEDOM TO CHOOSE

Chuck Feeney is in the same financial league as Bill Gates. As the founder of hundreds of duty-
free shops in airports all over the world,Feeney is worth billions. Or I should say,he WAS worth
billions.In 1984,Feeney donated 99.5% of his $3.5 billion fortune to a charitable
foundation.Today he is donating his time and his money to worthy causes all over the world.

Both Bill Gates and Chuck Feeney under-stand that true wealth means having total free-dom
to choose how to spend your time...and your money.Gates is choosing to spend his time
creating more wealth,while Feeney is choosing to spend his time giving his fortune away.The
common denominator that enables these two men to make two very different choices is true
wealth.

SPEND YOUR TIME WISELY

Most people think true wealth is having lots

of money so you can buy material things.But the wisest people understand that true wealth
isn't so much about buying more things as it is about having more time to do what YOU tant
to do.Think about it. When you are old and gray.sitting on the front porch of a nursing
home,contemplating how you lived your life,what are you most likely to regret-not buying a
more expensive home?....Or not spending more time with your kids when they were young?

What are you most likely to regret-not working around the clock for that promotion at the
office?....or not spending more time with your parents and your friends when they needed
you?Time is our most precious commodity-far more precious than gold-because once it's
gone,you can never get it back! If you wreck your car,you can always buy another car.If you
lose your job,you can always get another job.If you lose money in a bad investment,you can
always make more money.But you can never,never get back the time you've lost or
misspent,can you? Once it's gone, it's gone forever.

An ancient Chinese proverb says it best: Bet-ter to throw all of your fortune down a deep

well than to squander one moment of time. That's why I say true wealth is having enough
money AND ENOUGH TIME to do what you want,when you want.Without a doubt,the biggest
benefit of true wealth is having the freedom to choose how you spend your time.

INCOME CREATION-THE TIME-FOR-MONEY TRAP

Have you ever known any hard-working doctors or lawyers who make upwards of $150,000
per year-but they feel trapped? Are they creating true wealth? According to my definition of
wealth, the answer is "no!"

Here's why.Even though many highlypaid professionals have the money to buy and do what
they want,most DO NOT have the time because they HAVE TO keep working at their jobs,day
in and day out. In effect,they HAVE TO work to create income so they can maintain their
lifestyles.People who are locked into their jobs-no matter how much or how little they earn-
are victims of income creation,not wealth creation.

With income creation,you trade time for dol-lars,which means you don't earn the money until
you personally do the work.Whether it's a garbage collector earning the minimum wage of
$5.15 per hour...or a heart surgeon earning $5,000 per hour-income creation is still

trading a unit of time for a unit of dollars.With income creation, 10 hours of work equals
10hours of pay.Unfortunately,income creation is an endless treadmill.That's why I call income
creation the time-for-money trap.Worst of all,when the treadmill stops,the income
stops.Which means that workers who fall victim to illness...or in-jury_.or long layoffs...or
burnout...are in-come-less.

WHEN THE OUTGO EQUALS THE INCOME

Let's take a look at a typical "rich" profes-sional-let's call him John Smith,M.D.-with an annual
income of $ 150,000.Now,by almost everyone's standards,$150,000 a year is a lot of
money.But when highly paid professionals become dependent on their incomes to support
their lifestyles they become unwitting victims of the time-for-money trap.

"TYPICAL"MONTHLY EXPENSES FORA

PROFESSIONAL EARNING $150,000 A YEAR

Gross Income. $ 150,000

33% tax bracket. S 50,000

Net Yearly Income. $ 100,000

Monthly Income. $ 8,500

(Contieand on neat page

Monthly Expenses

Loans for 2 luxury cars........ .5 1,000

Mortgage on lakefront home.....5 2,000

Insurance:life,health,car.....S 500

2 kids in private school. S 1,000

Dining out,entertainment;

season tickets. ..$ 1,000

2 family vacations per year.......s 1,000

Clothing,jewelry,furniture... $ 500

Church,charity.. 500

Country club dues. ......$ 500

Savings. S 500
Total monthly "outgo"........s8,500

Monthly Income. 8,500

Money left over..... S -0-

SLAVE TO TEMPORARY INCOME

As you can see,Dr.Smith lives a pretty nice lifestyle. We'd all love to have the money to join a
swanky country club...to take expensive ski vacations in Colorado or leisurely cruises in the
Caribbean.Sure,Dr.Smith may have a lifestyle most of us only dream about,but he's paying a
dear,dear price for that lifestyle be-cause he's mortgaged it with his freedom!

You see,Dr.Smith has temporary income,but

he does NOT have the freedom to come and go as he pleases.He's chained to his job because
he's become a slave to his lifestyle.Dr.Smith has to go to the office every day,whether he wants
to or not.If Dr.Smith doesn't show up.he doesn't get paid. And if Dr.Smith doesn't get
paid,neither does the mortgage...or the car loans...or the credit card bills...or the tuition to
private school.Is it any wonder that so many professionals fall victim to early heart attacks?

AN ACCIDENT WAITING TO HAPPEN

Where would the high-paid doctor be if he developed arthritis in his hands and could no
longer create income because he had to stop working?More to the point,where would YOU
be if you could no longer create income because you had to stop working? For most of
us,that's the ultimate nightmare!That's the problem with income creation-it's temporary.If
you stop working,the income stops,too. And if you don't have any income stream other than
your job,you'reheading for disaster!

According to Business Week magazine,"It takes the average worker half his lifetime to
purchase a home,accumulate some savings and retirement benefits. It takes about six months
of

unemployment to lose it all.

Scary,isn't it?

FREEDOM THROUGH RESIDUAL INCOME

Wouldn't it be great if you could enjoy all of the benefits of Dr. Smith's lifestyle without the
liability of having to go into work if you don't want to? That would be the ultimate dream
come true,wouldn't it?

Fortunately,there is another kind of income other than temporary income.It's called residual
income,and unlike temporary income,residual income keeps earning money whether you
show up to work or notl Residual income doesn't fall victim to the time-for-money trap
because it is NOT dependent on trading time for dollars.

To see how residual income is created,let's look at another fictitious professional.We'll call him
Joe Jones,CPA.Like,Dr.Smith,Mr.Jones has a thriving practice.But unlike Dr.Smith Mr.Jones fully
understood the power of residual income.For the last 40 years of his prosperous
career,Mr.Jones saved 10% of his grim income and invested it wisely.

Now retired,today Mr.Jones has $1.5 mil-lion invested in mutual funds earning 10% per
year,which gives him residual income equivalent to Dr.Smith's temporary income-

$150,000.Even though the incomes are the same,what each man has to do to earn it is very
different,as the chart below indicates:

TEMPORARY Vs. RESIDUAL

INCOME INCOME

you trade time you leverage

for dollars your time

money grows money grows

linearly exponentially

income stops if income continue

you're disabled indefinitely

you're not creating you're creating

true wealth true wealth

time is not total time

your own freedom

you're just you're getting

getting by ahead

when work stops, income keeps

income stops coming in

Now I ask you,which income would you prefer to receive-temporary income?...or re-sidual
income? The answer is obvious.

CREATING TRUE WEALTH

Wealth creation-as opposed to income cre-ation-isn't limited by the time-for-money

trap because of a concept called leverage.The only way to create true wealth is to leverage
your time,money and efforts so that 10 hours of work equals 100 hours of pay...or even 1,000

You see,the rich get richer because they take advantage of leverage by investing their money
over time.As I pointed out in my second book,You Can't Steal Second with Your Foot on
First!,the typical millionaire earned his fortune by saving 20% of his income and investing it
wisely for years and years. That's the way the rich get rich and stay rich...by putting their
money to work for them by investing it over time.

That's the big difference between income creation and wealth creation.Income creation is
temporary-you have to do the work or you don't get the income.Wealth creation is
permanent-you escape the time-for-money trap by putting your money and your time to work
for you.

LEVERAGING YOUR TIME

Now,I understand that very few people make enough-or are disciplined enough-to do what
Mr.Jones,CPA,did and leverage his monthly savings into a million and a half
dollars.Fortunately,leveraging your money is NOT the only tried-and-true way to create true
wealth.

The other way to create true wealth is to lever-age your time by investing it,instead of wasting
it.We've all used the expression,Time is money,haven't we? Well,due to the power of lever-
age,that axiom is truer today than ever before!It's obvious that we do NOT all have the same
amount of money.

But it's equally obvious that we all DO have the same amount time. Now, I want you to un-
derstand that this book is NOT aboutinvesting your money to create wealth. It's about invest-
ing your time to create wealth because time equals money when you invest it properly!
The key to wealth creation is NOT creating more time, which is impossible. The key is to take
full advantage of the time we have,wouldn't you agree?

Fortunately for all of us, today there is a way to leverage some of our time (which we all have
an equal amount on to create true wealth,instead of leveraging our money(which most of us
have very little of).

Fortunately,today there is a leveraged sys-tem where you cantrade a little time for a lot of
dollars...instead of a linear system where you trade a lot of time for little dollars.

Fortunately, today there is a simple.duplicatable system for leveraging your time and efforts
that virtually anyone can copycat.

ARE YOU COPYING THE WRONG SYSTEM?

Let's face it, most of us weren't born with the last name of DuPont or Rockefeller.We aren't
born geniuses,like Bill Gates and Chuck Feeney,And we don't have the talent of Michael Jordan
or Tom Cruise.

All too often we assume that wealth creation comes from winning the lottery of life-it's only
meant for super-talented people...or super-blessed people... but it's certainly not meant for
average people,like you and me.THAT'S NONSENSE!

We must not buy in to that line of limited thinking.That's garbage thinking,and we need to
throw that kind of negative thinking out with the trash,starting right now!

The truth is that most people assume they can't create wealth when,in fact,they can! The real
reason most people don't create true wealth is because they've never been made aware of a

wealth-creating system they can copy.In other words,most of us have bought into copycatting
the wrong plan.Because we aren't aware of a wealth-building model to copy,we copy what
everyone else we know is doing-we take a job! We do what most people do_and as a result,we
get what most people get!

NOT KNOCKING JOBS

Please understand that I am NOT knocking jobs.I'm knocking the RESULTS we get from working
at a job. If jobs created true wealth,I'd be the first person to tell you to follow the job track.
But they don't-that's just the cold,hard reality of it all!

COPYCAT EXPONENTIAL GROWTH,NOT LINEAR GROWTH

Truth is,you will never create true wealth as long as you are copycatting the income creation
system because it's based on linear growth as opposed to wealth creation,which is based on
leveraged growth.

In the next chapter we will take a closer look at the limitations of linear growth,and we'll
discuss why we need to start copycatting leveraged systems if we are sincere about becoming
totally free by creating true wealth.

CHAPTER 3

Linear Growth

Trading Time for Dollars

Heseldom gets time off,and when hedoes,he's too tired (or too broke) to enjoy it!

Here's the worst part of working for in-come based on linear growth:Gary only gets paid once
for the work he's done.Which means once he gets his last paycheck,he's back on the time-for-
money treadmill.

PROFESSIONALS:NOTHING MORE THAN HIGH-PRICED HOUSE PAINTERS

Now let's go back and revisit John Smith.M.D.,who earns $150,000 a year in his medi-cal
practice. Dr. Smith is a general practitio-ner with his own private practice.Although two of his
four full-time employees are registered nurses,Dr.Smith must see his patients in person.So he
works eight hours a day,six days a week attending to patients...then spends two additional
hours a day filling out paperwork...and spends two Sundays of each month on business
matters.
The only way Dr.Smnith can increase his income is by increasing his hours.But because he's
already working 10-hours a day,by the time he geis home he's too exhausted to help the kids
with homework or attend his son's

soccer games-much less add more time to his work day.

A SLAVE TO His Jo8True, Dr Smith makes a lot of money.But the trade-off is he's a P.O.W.-a
Prisoner Of Work! He feels trapped! He's frustrated...angry...and unhappy...but he doesn't
know what to do about it.So he just keeps going back into the salt mines,trading time for
dollars,hoping that things will get better-but knowing in his heart they won't!

That's the problem with income based on linear growth-if you're not personally doing the
work, the work doesn't get done. If the work doesn't get done, you don't get paid.And the
only way to get paid is to keep doing the work over and over again.Heaven forbid the painter
or the doctor ever gets sick or in-jured and can't go to work!

WHAT DOES YOUR TREADMILL PAY?

What about you-are you on the time for-money treadmill? If so,how much does your treadmill
pay? Below is a list of oeeu-pations and their average yeariy salary,as reported by Paride
Magazine in its annual report."What People Earn."Take a look at

how your yearly compensation compares to other occupations:

1996 AVERAGE SALARIES FOR JOBS IN USA*

Occupation Annual Salary

Hospital Janitor.. $ 17,000

High School Teacher. 5 33,500

Corporate Attorney.........s 85,500

Secretary ---------- $ 16,000

Sales Clerk.... 10,000

President of United States........s200,000

Newspaper Reporter. -$ 32,000

Travel Agent. .. 28,000

Physician........... $141,000

Minister............ $23,500

Accountant.. $ 39,000

"Aomage household income for family in U.5-538,962

Were you surprised at how your income compares to the incomes of other jobs around the
country? Well,you're in for an even bigger surprise when you compare your yearly salary to
the compensationfor a CEO of a large com-pany.

Just take a look at how CEO pay compares to the pay of an average worker in 1996:

WAGE GAP BETWEEN CEO AND WORKERS

Worker Pay:

CEO pay: $20,000

3.7mllion

1996 CEO pay=53.7 million worker pay=$20,000

ratio=187 to 1
Isn't it amazing how one person at a com-pany can be worth $3.7 million,while the rank-and-
file worker at the same company is worth only 520,000? How can that be? You may ask
yourself.

BREAKING THE TIME-FOR-MONEY TRAP WITH LEVERAGE

I can answer your question in one word-LEVERAGE.You see,when a typical worker trades his
time for dollars,his income is grow-ing in a linear fashion.One unit of time equals one unit of
money.The worker is earring 100%of his own,singular efforts.

The CEO,on the other hand,leverages his

time and talents through his employees.Instead of getting paid 100% of his singular efforts,he
makes a percentage of all of his employees'ef-forts.That's what J.Paul Getty was getting at
when he said, "T'd rather earn 1% of 100 men's efforts rather than 100% of my own."That's
why leverage is so powerful-you earn a littlebit from the efforts of a whole bunch of people.

A classic example is the Hershey candy bar.Hershey's net profit on each candy bar is only a
penny or two, at most. But they sell billions of Hershey bars worldwide each and every
year.That's why the makers of Hershey candy bars,Mars,Inc.,is able to post profits of a billion
plus dollars a year,year in and year out.And that's why the CEO of Hershey makes big,BIG
bucks!

THE HERMIT AND THE CHAIN SAW

The concept of leverage is like the story of the hermit and the chain saw.One day an old hermit
came down from his cave in the moun-tain to buy a saw at the local hardware store.

“I'm movin' out of my cave and building myself a new log home,"the hermit proudly
announced to the young sales clerk."I need the best saw you got-and price is not an ob-ject."

The young sales clerkdisappeared into the warehouse for a moment before returning with a
gleaming new chain saw. This is the best sawe on the market," the sales clerk said
confidently.It will cut throught trees like a knife through butter.I guanantee it will cut a month's
worth of lumber in a day-or I'll personally refund your money from my paycheck!"The excited
hermit paid the clerk,grabbed his gleaming new chain saw by the handle and headed back up
the mountain.

Exactly one month later the young dlerk was busy stocking sheives when he heard the hermit's
voice crack through the air like a whip."Hey,Sonny,I've come to return this saw and ger my
money back, like you promised."
The clerk looked up to see the oid hermit-but was shocked at what he saw! The hermit looked
likehe hadn't slept in weeks.Hfis clothes were shreaded and stained with blood and sweat. He
looked like he'd been worked haif to death.

"Wh Wh-ahat happened to you? the clerk stammered."You lonk terrible!"

The old hermit summoned all his strength and lifted his chain saw onto the counter,grum-
bling,"It's this dadburn sawe you sold me. You said it'd cuf a month's morth of tumber in a
day.Well, T'ee been using this cortraption for 30 days

now,and I ain't even been able to cut a day.'s worth of lumber in a month. I want my money
back!"

The startled clerk apologized and said,"Sure,a deal is a deal. Just let me have a look at this saw
for you.Maybe I can figure out what's torong."

The clerk gave the pull rope a quick yank...and the chainsaw exploded into a roar-"B-R-R-R-R-
R-R-R-R-R!!"

The hermit jumped back from the counter like he'd been shot,shouting over the roaring
saw,"WHAT'S THAT SOUND?"

A LESSON ABOUT LEVERAGE

Can you imagine trying to cut down a tree with a chain saw that wasn't even turned on?No
wonder the hermit looked beat up and worn out.The story brings home the point that leverage
is an awesome tool,but only if we put it to use.

The chain saw is obviously a great tool for leveraging time and effort. If you've ever tried to
cut up a big tree limb using a hand saw,you know exactly what I mean.The irony of the story
is the hermit had in his hands a powerful tool for leverage.He just didn't know how to use itl
In other words,his failure didn't result

from a lack of talent or effort. His failure re-sulted from a lack of knowledge!The same can be
said for the average per-son. Through the power of leerage,we can accomplish our goals in a
fraction of the time with a fraction of the effort.We can,in effect."cut a month's worth of
lumber in a day." But in order to take full advantage of leverage.we have to have the
knowledge that it exits.Oth-wise,we'll end up like the hermit-we'll st 1try to get ahead working
harder trading time tor dollars,instead of working smarter by leverag ing our time and efforts.
Isn't this why by age 65,the average person will be dead...dead broke...or dependent on the
state,family or church-too many people are copycatting a linear plan instead of a lever-aged
plan?

KNOWLEDGE IS THE FIRST STEP

By copying the right kind of leverage in the right situation,we can move mountains...and we
can make millions.

The question is,"What system of wealth cre-ation do you tant to copycat?"

Do you want to continue to copycat the linear system of wealth creation and end up like the
old hermit,trading lots of effort for very little return?

Or would you like to be like the young clerk and learn how to turn on the chain saw of lever-
age?

That's what you will learn in the next chap-ter-proven ways we can leverage our time and
efforts so that we break out of the time-for-money trap-FOREVER-and claim the financial
independcice that we deserve.CHAPTER 4

Leveraged Growth:

Working Smarter,Not Harder

regional company into an international house-hold name.Candler decided his comnpany could
make more money with less time and effort by introducing a unique form of leverage-bot-
tling!

THE SECRET TO COKE'S INTERNATIONAL SUCCESS

There's a fascinating story behind Candler's decision to bottle coke. Legend has it that a good
friend burst into Candler's office one day and procinimed that,for a hefty fee,he would let
Candler in on the socret for vastly expand-ing Coca-cola's profits.

The two men bickered back and forth for a good part of the day until Candler's curiosity
eventually got the best of him,and he wrote his friend a check. The friend graciously accepled
the check and then leaned forward and whispered in Candler's ear two simple words that
launched a global dynasty: Bottle i Fortunately,Candler had the vision to take his friend's
advice.And the rest,as they say,is history.
LEVERAGING TIME AND LOCATION

Botte it!

Just think for a moment about the power of these words.Before Coke came in bottles,you had
to go to the local soda fountain to order a

Coke-or you had to go without.Before bot-tling.Coke sales could only grow as the num-ber of
soda fountains grew.Bottling changed all that.The consumer didn't have to go to the soda
fountain to enjoy a Coke because,in effect,when a consumer bought a six-pack of coke, the
consumer brought the soda fountain home with him!

As a result,today virtually anyone in the world can enjoy a refreshing drink of Coca-Cola in the
convenience of their home,anytime of the day or night. All because the Coca-Cola Company
had the wisdom to leverage time,ef-fort and location by bottling their product.

WHAT IS LEVERAGE?

The root word of leverage-lever-comes from an old French word meaning "to mnake
lighter,"which is an apt description of the power of leverage. By wisely using certain levers or
tools,difficult tasks can be performed in a lot less time with a lot less effort, thus making them
"lighter."Consider the effort it would take to replace an engine in a car without taking
advantage of leverage.How many strong men do you think it would take to lift an engine out
of your car-5?10?More?

Now think about how your local car mechanic

could perform the same task in a fraction of the time with a fraction of the effort.First he'd
position a well-oiled hoist on a sturdy beam above the engine.Next he'd secure the engine
with ropes and chains attached to the hoist.Then he'd attach the pull rope to an electric-
powered fly wheel.With a flick of a switch,the engine could be lifted out of the car in a matter
of seconds.That's the power of leverage-it increases productivity by maximizing time,effort
and money.

HOW CORPORATIONS USE LEVERAGE

For centuries enterprising people have been making their jobs "lighter"-that is,more pro-
ductive and more profitable-through the con-cept of leverage. That's really what increased
productivity is all about-working smarter in-stead of harder by finding a way to make a lot
more money in a lot less time.
100% of the profits. But he knew he'd only be able to build a car or two each year working
solo.Ford was smart enough to leverage his time and talents by teaching his employees to
copycat his system.By taking advantage of the power of leverage,Ford built thousands of cars
each year-and became one of the richest men in history!

GETTING REAL SMART SELLING REAL ESTATE

Reai estate companies have been taking advantage of the leverage concept for years,but
instead of leveraging employees,a realtor leverages a team of independent contractors (better
known as real estate agents).Let's look at how a hypothetical realestate professional named
Ted uses leverage to make more money in less time.Ted has been selling real estate for 20
years or so. When he first started out, he was lucky to sell one house a month.But over the
years Ted got better at his job.After five years in the business,he would sell 50 houses a year
on average.

But no matter how hard Ted worked,it was impossible for him to sell more than one house a
week by himself.After all,he could only show so many houses in a day.He could only go to so
many closings in a week.So he decided to open

an office.

Ted recruited someof his realtor friends to work out of his office. Over the years he assembled
20 top-notch real estate agents.Each one of those agents sold 50 houses a year,which meant
his office was selling more than 1,000houses a year!

Now,just look at what leverage has done for Ted.On his own,Ted could sell 50 houses.By
leveraging the time and talents of other agents,Ted could sell 1,000 houses-which would be
impossible if he were still working alone.By using leverage,he is 20 times more productive
while working fewer hours.That's what the expression "working smarter,not harder"is all
about!

LEVEHAGING THROUGH FRANCHISING

Franchising took the concept of leverage to an even higher level than a real estate
office.Although franchising has been around for years,it wasn't recognized as a
"legitimate"business concept until the early 1950s,when a milk shake appliance salesman
named Ray Kroc bought the rights to franchise a fast-food restaurant called MeDonald's.

Ray Kroc didn't invent franchising.But he sure perfected it.Kroc understood that the key
to a successful franchise was duplication.So he went about setting up a fool-proof system that
spelled out every detail of a successful fran-chise.He even went so far as to spend $3 mil-lion
to research the secret of consistently per-fect french fries.When someone bought a
McDonald's franchise,all they had to do was connect the dots. It was a copycatter's dream
come true!Think about this-when you enter a McDonald's,where is the french fry machine?On
the left, isn't it? It doesn't make any difference whether the franchise is in Moscow,Idaho,or
Moscow,Russia,the french fry machine is on the left. And you better believe every other detail
of the operation is spelled out and in the right place,too.

DUPLICATION: THE KEY TO SUCCESSFUL FRANCHISING The concept of franchising works so

well because it is so simple-brilliantly simple.It's a classic win/win situation where both the
franchisor and the franchises come out way ahead.

Through trial and error, the franchisor develops a duplicatable business model built around a
proven product(like Domino's pizza.)or a needed service (like Kinko's copier service).

The key to becoming a successful franchisor is to develop a successful system and then record
what needs to be done in detail so that the model can be taught to somebody else.If a model
is proven and can be copycatted by the average person,then it can be success-fully
franchised.If,however,the success of the model depends on the talent of a one-in-a-million
"star," then it can't be successfully franchised because the star can't be duplicated.

-STARS' ARE NOT DUPLICATABLE

The reason the actor Tom Cruise can command $20 million a picture is because he's the
essence of a star.In Hollywood terms,he's "bankable."When Tom Cruise stars in a movie.it's
almost guaranteed the movie will make money-BIG money!

You can't,however,franchise the product "Tom Cruise,"because he's not duplicatable.The

average person can't copywhat Tom Cruise does and expect the same results.That's why you
can't franchise creative endeavors,like writing a best-selling book or singing a hit ong.Because
they depend on the star factor,hey are unique and can't be copycatted.Some products and
businesses,however,are asily duplicatable.Pizza is the perfect example.

The ingredients are plentiful and inexpensive.It only takes a few minutes to turn out a perfect
product.And virtually anyone with a high school education (or less) and a desire to get ahead
can learn to copycat the franchise model for Pizza Hut or Domino's.Let's face it,a fran-chisee
doesn't have to be a rocket scientist.But he does have to be a great copycatter of a proven
system.

FROM ZERO TO HERO

Does the concept of leveraging time and money through duplication work? To answer that
question,all you have to do is look at what has happened to franchising over the last
50years.When Ray Kroc started duplicating his operation,most people considered franchising
a "scam."The United States Congress even tried to outlaw it.Ironically,the perception of
franchising has taken a 180-degree turn since the early days.Experts estimate that today
anywhere from 34% to 60% of the goods and services in America are distributed through
franchising.and savvy investors all over the world are paying millions of dollars for the right to
copycat a proven franchise.

The brilliance behind franchising's phenom-enal success is the concept of duplication

through copycatting.The downside to franchis-ing,however,is the start-up cost.Let's face

it,very few people have a million dollars to plunk down for a MIcDonald's franchise.To compli-
cate matters,you must own and operate mul-tiple franchises to become truly wealthy in a
franchise system.

THE ALTERNATIVE FRANCHISE:TM

THE ULTIMATE COPYCAT SYSTEM

Suppose there were a franchise-type concept with a very affordable start-up cost of $500 or
less.And suppose this "alternative franchiseTM took advantage of the most powerful form of
leveraged growth known to humans-exponential groweth through compounding.What you
would have is the ultimate copycat system to create wealth,wouldn't you?

Today there is a way for the average person to copycat the wealth-building system of history's
richest people.

Today there is a way to get paid 1,000 times for the work you do once,instead of getting paid
once for the work you do 1,000 times.In the coming pages you're going to learn more about
exponential growth,a proven sys-em for wealth creation that average people like you and I
can copycat.And you'll learn how

the combination of exponential growth and the franchise concept can empower you to create
more personal wealth in less time than any other income system available today!

later,Oseola was still working as a washer-woman.

She charged $1.50 to 52 a bundle-that's a week's worth of laundry for a family of four-until
the end of WW II. After the war she increased her price to $10 per bundle. Eiven in her best
year,working 10 hours a day,six days a week,Oseola never earned more than $9,000.

SMALL SAVINGS MAKE A BIG DIFFERENCE

Oseola was 40 years old when she was finally able to start saving money.She squirreled away
pennies and nickles at first_.then quarters...and eventually dollarbills.She put her savings in a
local bank and never touched it. Over time.her savings added up,and the principle and interest
on those savings kept building and building.

In the summer of 1995,Oseola McCarty-the elementary school drop-out who never earned
more than $9,000 a year-donated $150,000 to the University of Southern Mississippi!

COMPOUNDING:8TH WONDER OF THE WORLD

How is it that an average woman with below average education and income can accumulate
a small fortune?In Oseola's own words,"The secret to building a fortune is compounding
interest."

Webster's defines compound interest as "the interest paid on both the principle and the accu-
mulated unpaid interest."The key word in this definition is "accumulated."If the principle or
interest is spent instead of reinvested, the power of compounding is diminished.

Also known as the"doubling concept,"com-pounding has created more fortunes than any
other single investment vehicle in history.With compounding,your money is working for
you,even when you're not working.Albert Einstein,a man who knew a thing or two about
mathematics, went so far as to call compounding "the 8th wonder of the
world."Indeed,compounding is the wealth creation principle that drives Wall Street and the
banking industry.

EXPONENTIAL GROWTH=EXPLOSIVE GROWTH

What is it about compounding that makes it the"8th wonder of the world?"What property of
compounding enables it to turn meager sav-ings into small fortunes? The answer is expo-
nential growth,the ultimate tool for leveraging time and money!

In Chapter 3,you'll remnember,we talked about the limitations of linear growth.To best
understand the dramatic difference between exponential growth and linear growth,let's take
a
moment to review some basic principles of arithmetic that we first learned about in middle
school.

Linear refers to certain functions of basic math,like simple addition.A typical linear equation
would look like this:

5+5=10

Linear gets its name because the growth occurs in a straight line, step by step. That's why we
refer to linear equations as calculations in "the first power only."

Exponential,on the other hand,refers to a more sophisticated form of multiplication known as

"squaring." A typical exponential equation might look like this:

5=25

(vs.the linear equation5+5=10

Exponential gets its name from the small number placed above and to the right of another
number to indicate how many times the root number should be multiplied by itself. That's
why we refer to exponential equations as calculations in "the second power" or "third
power,"and so on.

The bottom line is this. Linear growth is in-cremental and gradual.Exponential growth is

drastic and dramatic.Here's a simple equation to always keep in mind when you are investing
your money_..or your time:

"Linear Equals Limited.

Exponential Equals Explosive."

THE RULE OF 72

To better understand the awesome power of exponential growth, let's lookat a doubling
concept called the Rule of 72. The Rule of 72 is a simple formula for figuring out how long it
will take for an investment to double.

Here's how it works:To calculate how many years it will take for your investment money to
double,first you determine the annual interest rate.Then divide that interest rate into 72.The
number you end up with is the number of years it will take for your investment to double.

For example, let's say you invest $1 0,000 in a stock that pays you an annual return of 10%(the
average annual return in the stock market for the last 50 years).
RULE OF 72 INACTION

$10,000 original investment

10% return on investment

Therefore, it will take 7.2 years for your investment of $10,000 to double into $20,000.

The Rule of 72 is certainly simple to calcu-late,but the results of the formula are nothing short
of miraculous.The chart below compares a $10,000 investment growing linearly
vs.exponentially at 10% per year(remember,at 10%,$10,000 will double every 7.2 years).

Linear Growth Exponential Growth (simple addition concept) (doubling concept)

Investment: $10,000 S 10,000

ufter 7 yrs: $10 K+10K=$20,000 S 20,000

after 14 yrs:520 K+10K=$30,000 $ 40,000

after 22 yrs:530 K+10K=$40,000 $ 80,000

after 29 yrs: 540 K+10K-$50,000 $ 160,000

after 36 yrs:$50 K+10K-$60,000 $ 320,000

after 43 yrs:$60 K+10K=$70,000 5 640,000

after 50 yrs:$70 K+10K=$80,000 5 1,300,000

This chart is a vivid illustration of the power of exponential growth-and it points out the
serious limitations of linear growth.The first few years the growth is about the same.But
because exponential growth occurs geometri-cally,the growth of the investment becomes
more and more explosive overtime.The final total telis the tale-$80,000 generated by lin-

ear growth,as opposed to $1.3 million generated by exponential growth!

That's why I call exponential growth"the formula for building a fortune."Exponential growth
enables your money to grow in mul-tiples,instead of growing in a measured,step-by-step pace.

COMPOUNDING YOUR WAY TO WEALTH

A perfect example of the power of exponential growth through compounding is the
investment fund founded by one of the world's richest men,Warren Buffett.If you had invested
$10,000 with Buffett's Berkshire Hathaway Fund in 1956 and reinvested the interest and
dividends year after year,today your investment would be worth $80 million!Sounds
impossible,doesn't it?...An $80million return on an investment of only $10,000!But that's the
power of taking advantage of compounding by letting your investment grow year after
year.Just look at a few of the companies that have grown 100-fold over the
years:Xerox...Kodak...IBM...Wal-Mart...Microsoft...just to name a few.If you had the
foresight_..the patience...and the money to invest with any one of these companies 25 years
ago,you'd be a millionaire many times over today.

LEVERAGE FOR THE LITTLE GUY

Oseola McCarty is a classic example of why I call compounding "leverage for the little guy."The
two other kinds of leverage I talked about in the last chapter-employees and franchising-are
certainly powerful tools for leveraging. But you need either lots of money or lots of talent to
put them to use.

On the other hand,virtually anyone can take advantage of the awesome power of com-
pounding.Compounding is the backbone of the exponential system of wealth creation,a
dynamic way for you to leverage your time,talents,efforts and money.

The copycat system you're going to learn in the coming pages eliminates the two biggest
drawbacks to compounding-time and money. Let me explain.Most people today don't have
$100,000...or $50,000....or even $10,000 lying around to invest. And even if they did, they
aren't willing to wait 40 to 50 years for it to grow exponentially.With the cost of living going
through the roof,two-income families can barely make ends meet,much less invest their hard-
earned money in the hopes of living long enough to enjoy a cushy retirement.

TIME ISs MONEY

So the question becomes"How can you cre-ate wealth through exponential growth without
having to incest thousands of dollars...or with-out having to wait a lifetime while your small
nest egg doubles itself into a small fortune?"The answer to that question can be found in an
affordable,duplicatable concept that combines franchising with exponential growth.It's called
Network Marketing.It's true that most people in this world don't have much money.But one
thing we all have is time.Let's face it,all of us can reorganize our day to squeeze out a few more
hours if we're serious about using that time to start creating true wealth.

Here's a simple formula for success in the coming decades:

T= time invested in duplicating a copycat model(franchise concept)

E= exponential growth $=financial freedom

TxE=$

In the pages that follow,you are going to learn how Network Marketing will enable you to
copycat your way to wealth by investing your

stand in line at the ice cream booth two doors down.Emest would spend his long days watch-
ing the ice cream vendor rake in money hand over fist.Talk about adding insult to injury!

On one especially hot,crowded afternoon,Emnest's fortune took a sudden turn for the bet-
ter.The ice cream was selling so fast that the vendor ran out of dishes. In desperation,he ran
down to Emnest's waffle stand,begging for extra plates.

A MARRIAGE MADE IN HEAVEN

Ernest didn't have any plates.All he had were stacks and stacks of soft,sweet Persian waffles
that he couldn't even give away.Sud-denly,Emest had an idea.Maybe he could roll one of his
waffles up into a cone that would hold a scoop of ice cream.Sure enough,the cone worked like
a charm-and that was the beginning of the world's love affair with the ice cream cone.

Ice cream and Ernest's waffle cone went together like a horse and carriage. It was a marriage
made in heaven.The ice cream cone became an ovenight sensation and the hit of the 1905
World's Fair.Nearly a century later.ice cream cones are still the world's favorite dessert.

The ice cream story is a great example of the concept of synergism. That is,the combi-nation
of two different products or concepts is often greater than the sum of its parts.The ice cream
cone is creative synergism in action:

Ice cream tastes good.

Waffles taste good.

Put them together-THEY TASTE GREAT!

THE AWESOME POWER OF CREATIVE SYNERGISM

History is filled with incidents where the synergism of two distinctly different concepts created
breakthrough products...incredibly profitable enterprises_.and huge opportunities!
One of my favorite synergism stories led to the best-selling product in the history of a major
Fortune 500 company,the 3M Corporation.A 3M employee was looking for a way to keep his
bookmark from falling out of his hymn book during church choir practice.He explained his
problem during a brain-storming meeting at the office.A chemical engineer remembered a
failed experiment with a new adhesive,and suggested applying it to the back of a notepad.
That unlikely marriage between a notepad and a failed adhesive ended up becoming the Post-
It Note@,a product that

produces billionsof dollars in revenues for 3M each and every year!

THE SECRET TO SUCCESSFUL SYNERGISM

The key to a successful synergism is to create an entirely new product or service by combining
two seemingly unrelated concepts.Many times synergisms are a matter of luck,as was the case
with the invention of the ice cream cone.Other times synergisms are the result of some very
creative people thinking "out of the box." Whatever the cause, the effect of a successful
synergism is powerful...unexpected .explosive...and life-altering.

Let's take a brief look at four modern-day synergisms that have dramatically impacted the lives
of people all over the world:

The Automobile-If a worldwide survey asked people to name the invention that most
symbolized the 20th century,most people would likely say the automobile.By synergistically
combining the horse-drawn carriage with the internal combustion engine,Karl Benz in
Germany and Henry Ford in America chauffeured in the modern age.

The Fax Machine-Can You imagine doing

business without a fax machine? WVith the exception of the telephone,the fax may be the
single most affordable and efficient busi-ness tool available today.The fax is the per-fect
example of creative synergism,a com-bination of the telephone and the copier.What a great
concept...and what a marvelous convenience.

The Personal Computer-The PC is the ulti-mate synergistic product, a brilliant combi-mation

of the calculator and the typewriter.In the early 1960s,Steven Jobs,co-founder of Apple
Computer,had a vision.He saw a day in the not-too-distant future when there would be a
small,inexpensive,incredibly powerful computer sitting atop every desk in every
home,office,and school in the world.The PC is synergism at its best!
Franchising-It could be argued that franchi-ing is the most successful business model the 20th
century.Franchising is the,synergis tie combination of the successful chain stor.like Sears,and
the small business ounter.The concept has been so successful over the last 50years that today
some experts estimate more than 1/3 of all the goods and services sold in

the U.S.are moved through franchises.

These four successful synergisms have im-pacted the world in a big way,that's for
sure.Certainly each of these synergisms has helped countless people create huge fortunes.
But it's safe to say that only the last one on the list-franchising-is a viable means for the
average personto copycat their way to wealth.

FRANCHISING: A COPYCATTERS' DREAM COME TRUE

Let's face itvery few people have the money or the brains to design and build a new com-
puter...or to own and operate a car dealership or a retail store selling fax machines.You can't
really copycat these enterprises because they require special skills, lots of money or both.

That's the beauty of franchising.By defini-tion,franchises are duplicatable models. If a product

or service can't be duplicated,then it can't be franchised.

Franchising has been a real boon to consum-ers,because with a franchise,a successful prod-
uct or service can be duplicated in hundreds or thousands of different locations all over the
world.Again,McDonald's is a perfect example.The first restaurant was located in only one
city,San Bernardino,Califomnia.Most everyone who

ate there loved the McDonald brothers'low-cost hamburgers and fries.But prior to
franchising,only local people could enjoy their food because there was only one location.

Through franchising,McDonald's was able to make their burgers and fries available in every
city in the country. To date there are 21,000 McDonald's restaurants in 101 countries,and a
new one opens somewhere in the world every two days!

If consumers are happy about the concept of franchising,just think how franchise owners and
operators feel-they must be ecstatic! Obvi-ously,for thousands of business owners,fran-
chising is a copycatter's dream come true!

FRANCHISING:HOW IT WORKS

In effect,franchising is a proven way for people to copycat their way to wealth by dupli-cating
a successful business.Franchising is the classic example of a successful partnership.The
umbrella company-or franshisor-expandIs its market share by selling a proven,profitable
system to an investor. The investor-or fran-chisee-buys a turnkey business,thereby mini-mizing
his risk by avoiding the costly mistakes that inevitably occur with any new start-up business.It's
a win/win situation.

Franchising is perhaps the greatest business success story of the 20th century.When
McDonald's opened its first franchise in the mid-1950s,franchising was misunderstood and
perceived by most serious investors as a scam.Today,only 50 years later,franchising is a world-
wide phenomenon.Amazing!

NETWORK MARKETING:THE ULTIMATE SYNERGISM

Imagine for a momnent, that you were in charge of creating the ultimate synergism for wealth
creation-a synergism so awesome,so powerful,that it would touch every person on the planet
and improve and enrich their lives in the process.

Your synergism would be so duplicatable that anyone could copycat it.

Your synergism would be so affordable that anyone could get involved.

Your synergism would grow exponentially,instead of linearly.

Your synergism would be available all over the world.

Your synergism would touch both men and women...young and old...rich or poor.

Your synergism would be the ultimate copy-cat system to create wealth.

Well,I'm delighted to report that there is such

a radical synergism! It's a match made in heaven .the creative combination of two of the most
powerful wealth-creating vehicles in the history of the world...the marriage of franchising and
exponential growth.

The result is a concept I call the Ultimate Synergism-Network Marketing. What a brill-iant
synergistic concept-a franchise that grows exponentially!

Network Marketing is synergism at its best.It's the ice cream cone...it's the automobile...it's
the fax machine.And mark my words,if you thought franchising was big-you ain't seen nothin'
yel!

CHAPTER 7
Network Marketing:

The Ultimate Copycat System!

these two concepts before learning how they combine to create the ultimate copycat system
for wealth creation-Network Marketing!

PARABLE OF THE UNPROFITABLE SERVANT

As we pointed out earlier,exponential growth (also known as "compounding"and "the

doubling concept") is a time-honored,wealth-building concept that rich people have been
taking advantage of for thousands of years.

Even the Bible recognizes the importance of taking advantage of compounding,as evidenced
by Jesus'parable of the "Unprofitable Servant."The parable goes like this:

The master of a large estate was preparing to leave on a longbusiness trip.He summoned three
trusted servants and gave each a sum of money for safekeeping.The first servant received five
talents;the second servant,two talents;and the third servant,one talent.

The first two servants invested the money they were given, and when the master
returned,they had doubled the principle and were praised by the master for their wisdom.

The third servant,however,was afraid of losing the money,so he buried it in the ground.He
returned the single talent to his master,and nothing more.The master chastised the servant

for not investing the money with bankers,and angrily dismissed him on the spot!

PUTTING YOUR MONEY TO WORK FOR YOU

The parable points out the importance of making wvise and productive decisions,whether
they be financial decisions or spiritual ones.It's not enough to be blessed with opportunity..or
money _or talents ...or abilities...or a soul.The real issue is what you do with those blessings-
whether you bury them in the ground,so to speak,or invest them wisely so that they grow and
multiply.The power of exponential growth is obvious -you can put your money to work for you
so that you double...and redouble...and redouble your money again and again.With
compounding,your money is working for you -even while you're sleeping! Einstein knew what
he was talking about when he called compounding the "8th wonder of the world!"
TIME IS AN ISSUE

There's a catch, of course. Otherwise.everybody would be copying the exponential system for
wealth creation and everyone in the world would be rich,isn't that true? There are two
challenges to traditional compounding-

and for most of us, they are MAJOR CHAL-LENGES.

First,in order to invest money,we must have extra money left over after we pay our bills!
Unfortunately,that's seldom the case.As a comedian once put it,"Most of us have TOO MUCH
MONTH at the end of the MONEYI"The average person is lucky to put away $100 a month-
and $1,200 a year isn't much of a nest egg.

Second,growing your money through com-pounding takes time-a lot of time! It would take
more than seven years for $1,000 to double to $2,000 if it earned 10% a year in the stock
market.The doubling concept doesn't look so attractive when you only have a few hundred
dollars-or even a few thousand dollars-to invest.

Frankly,most people are just too busy get-ting by to get rich through compounding.But thanks
to Network Marketing,today there is a franchise-type system that enables you to create cealth
and freedom exponentially in months and years,instend of decades!

THE SYSTEM IS THE ANSWER

Because Network Marketing is so duplicat-ble,it's the ultimate copycat system for wealth

creation. It's an affordable,franchise-like concept that leaves nothing to chance.To succeed in

Network Marketing,you don'thave to possess "star" talent-like Tom Cruise or Whitney
Houston-and you don't have to be a born genius-like Albert Einstein or Bill Gates.

Unlike the entertainment industry,Network Marketing is NOT builtarouand a star.It's built

around ordinary people getting EXTRA-ordi-nary results by copycatting a proven system,and
then teaching others to do the same (Network Marketing has been described as "average
people making above-average incomes").

But instead of spending hundreds of thou-sands of dollars to start a franchise,you only need
to invest hundreds of dollars to start your Network Marketing "franchise"! That's why some
experts are calling Network Marketing the "People's Franchise".and why I call it
the"Alternative Franchise."TM

COPYCATTING THE RIGHT PLAN

The key to building a large,profitable fran-chise and to building a large,profitable Network
Marketing distributorship is the same-you need to take advantage of your God-given abil-ity
as a master copycatter,a talent we agree you already possess. The only difference is,with

Networking you'll copycat a franchise-type concept that creates true wealth,as opposed to
copycatting the job track, which only creates temporary income.

When you invest money in a franchise-or when you invest time in a Network Marketing
business-what you are really investing in is THE SYSTEM.Instead of trying to create from
scratch a multi-billion dollar enterprise like McDonald's,doesn't it make more sense to fol-low
their blueprint for success?

More,than anything else, what the McDonald's Corporation offers its franchisees is a goof-
proof system.People may laugh at the name of McDonald's state-of-the-art training center-it's
called Hamburger University-but at McDonald's headquarters,training and education are
SERIOUS business!

In order to be awarded a MeDonald's fran-chise,you have to attend Hamburger U.and learn

to copycat their proten system... asystem that has been working like a charm for 50 years!If
you aren't willing to copycat the system,you don't get a franchise. It's that simple.The last thing
McDonald's wants is a failed franchise!

FRANCHISING IS A WINNER

I think it's safe to say that duringthe 1980s

and '90s,franchising was the world's hottest business concept-and the industry is still enjoying
phenomenal growth.According to Entrepreneur magazine, in 1996
540,000franchise;worldwide rang up sales of 5758billion.THAT'S RIGHT-$758 BILLION!

Considering that franchising was thought of as a scam only 50 years ago (and was almost
banned by the U.S.Congress),it's amazing that today the industry enjoys a great reputation.

How NETWORK MARKETING COMPARES TO FRANCHISING

Network Marketing companies assume a role similar to successful franchises.The Networking

company supports its"franchisees"(better known as distributors) by ofering quality products
and a turnkey system backed up by tried-and-true marketing and educational materials,such
as brochures,flyers,tapes,and such.
The system is the key when it comes to both franchising and Network Marketing.Your suc-cess
depends on your ability to duplicate-not innovate.The better you are at copycalting the system
that already exists,the more successful you will be.

No matter when you join a Network Mar-keting company,you are aiways the head of your

own company...and each of yourindependent distributors is head of his or her own company
It's literally a network of CEOs.

ADVANTAGES OF NETWORKING OVER FRANCHISING

Although franchising and Networking are both copycat systems,Networking enjoys sev-eral
key advantages over franchising.Take a look at this chart comparing these two proven copycat
systems:

FRANCHISING Vs.NETWORK MARKETING

Average franchise fee is $85,000 →Start up for 5500

or less

Trade time for money

(linear growth) -Income grows

exponentially

YOU PAY 3%-10%

monthly franchising fee Company PAYS YOU 3%

28% of your organiaation

Hire & fire employees →No employees

Overhead grows as

you grow →Home-based

business

Store hrs. are your hes. →Set your own hours

Restricted territory National I global territory

Building somcone clae's dream! Building your own dreuml

As you can see,Network Marketing takes the best from franchising-the concept of a
duplicatable system-and leaves the rest.As
a result,Networking takes Copycat Marketing to a whole new level,which is why some ex-perts
are calling Network Marketing "the next step in the evolution of free enterprise."

FRANCHISE WITH EXPONENTIAL GROWTH

Like a franchisee,each distributor in your network owns their own business,distributing

products and building a network of distributors. But unlike franchisees, as a Network Marketer
you do NOT have to stay in the role of a franchisee.You can choose to play the role of the
franchisor by sponsoring other people into your business and teaching them to copycat a
proven system for wealth creation.In other words,franchisees will always be locked into linear
growth,no matter how many franchises they own.Let me explain by describ.ing a couple of
scenarios.

In the first scenario,let's assume you are the owner of six franchises. This is what the linear
growth chart for your franchise-based business would look like:

Franchisee

Frenschine Franchise Frandhise Frandise Franchise Franchise

(grows lineariy)

No matter how many additional franchises you acquire,the growth will always be linear.Which
means you can never earn more than the total profits of your six franchises.

In the second scenario,let's assume you're heading up a growing network of independent

distributors. Over a period of time you have sponsored six key distributors and duplicated
yourself by teaching them to copyeat you by sponsoring six key distributors. Each one of these
six key distributors copycats the system and sponsors six key distributors,and so on down the
line. This is what the exponential growtht chart for your Networking business would look like:
As you can plainly see,by sponsoring six distributors and teaching your new people to copycat
what you did throughout your organization,you'd be leveraging your business with hundreds
of "Altemative Franchises"TM (versus only six traditional franchises).

And that's only the tip of the iceberg!When the doubling concept of exponential growth starts
to kick in,the growth becomes explosive.Because of the power of exponential growth,some
Network Marketers have organizations that number in the thousands-even the hun-dreds of
thousands!

Imagine eaming an override commission on the wholesale product volume generated by each
of those distributors.It's little wonder that some Network Marketers live lifestyles of the rich
and famous!

YOU GET PAID FOR RECOMMENDING!

Weall know that the best kind of advertising is word-of-mouth advertising,isn't that true?It's
something we do alI the time. If we see a great movie,like Forrest Gump,we recommend it to
our friends.But do we get paid when our friends go to see it? NO,of course notl

Same goes for recommending a great restau-rant. We tell our friends and family when we eat
at a terrific restaurant-but does the owner give us a commission on our friends' dinner tab?NO
WAY!

In Network Marketing,you get paid a com-mission for recommending products and ser-vices
that you use and recommend anyway.It's

a win/win situation-and it's the most effec-tive, most ethical kind of marketing in the world.

HOW NETWORK MARKETING WORKS

You know,McDonald's didn't start off with 20,000-plus restaurants all over the world.They
started off with just one restaurant-and then opened another restaurant just like the first
one.And that's how you can start creating exponen-tial growth through Network Marketing-
you start with just you and one other person.

Do you think it would be possible for you to find just one person each month to join you in
your business? Just one partner who's inter-ested in more freedom,recognition,happiness and
security...one partner who's interested in improving his life,and the lives of his family?

One good person a month-that's all it takes!

HOw ONE PERSON A MONTH CAN GROW TO 4,096

Once you "sponsor" that person into your Network,you become his or her coach.You don't
need to concentrate all your efforts on selling your company's products.You must teach and
coach your new person to effectively copycat the system.

Now,in month two,you teach your first new

person how to copycat what you did and spon-sor one person,while you sponsor another new
person.So,at the end of month two,you've personally sponsored two people and your first
new person has sponsored one,as well.Now you have a group of four-you and three
others,isn't that correct?

Then you keep copycatting your sponsor's success system and teach your new partners to
copy you,too,for month three...four...five and so on. By the end of your first year,you'll have
personally sponsored 12 people-one each month.And each one of them has spon-sored one
person each month,as well..and so on.

Now,at the end of one year,let's look at how the tremendous power of exponenatial growth
combined with a simple,duplicatable franchise-like concept called Network Marketing has
explodled your business:By sponsoring just one person a month-and by having each of them
copycat your efforts and sponsor one person a month-by the end of 12 months,your
organization would have 4,096independent businesses in the form of Alternatice Franchises!

Here's the really exciting part-the com-pany pays you a percentage of your organiza-

tional sales volume.If the Network Marketing company only pays 3% to 28% in sales com-
missions,you would ear between $12,000 and $20,000 PER MONTH-or more!

That,my friend,is HOW TO COPYCAT YOUR WAY TO WEALTH!

THE UNDISPUTED FACTS ABOUT NETWORK MARKETING

We've talked a lot about the theory behind Network Marketing.Now let's look at some of the
facts about this dynamic industry.First of all,Network Marketing,like franchising,is a 50-year-
old industry.It's a powerful,efficient method of distributing products and services from the
manufacturer to the consumer.

Today Network Marketing is an established way of doing business in 125 countries,and world-
wide approximately 20 million people are independent distributors with a Networking
company.

FOLLOW THE LEADER

In evaluating any industry,you need to look at the leader,because the speed of the leader
equals the speed of the pack:Microsoft in com-puter software_..Coca-Cola in non-alcoholic
beverages...and so on. Both of these compa-nies are loading their industries into phenom-
enal growth cycles.

In Network Marketing,the industry leader is far and away the Amway Corporation of
Ada,Michigan.Amway has more than 2.5million renewing distributors in over 75countries and
territories,with foreign sales accounting for two-thirds of Amway's total sales.Amway Japan is
the fastest-growing foreign-owned company in Japan,second in size and profitability only to
Coca-Cola.Worldwide,Amway did $5.3 billion in 1994;$6.3 billion in 1995;$6.8 billion in
1996,and is currently growing at 19% per annum-that's more than $1 billion per year!

How big is Amway? In the giant household and personal products industry,Amway ranks
second behind Proctor & Gamble in annual rev-enues-and ahead of Fortune 500 mainstays
Colgate-Palmolive and Johnson &Johnson!

It's obvious-Network Marketing is no longer a theory. It is no longer controversial.Today

Network Marketing is where franchising was 20 years ago-it's a "people's franchise
concept"that grows exponentially,and it's just entering its peak growing phase!

GROWING BY LEAPS AND BOUNDS

The industry has enjoyed phenomenal growth during the past few years.When I first started
writing about the industry in the early 1990s.

Networking was a $20 billion dollar a year busi-ness.Since that time it has grown at a rate of
10% a year,and it reached worldwide sales of $100 billion in 1996. And the best news is the
BIG GROWTH is still ahead,as illustrated by this graph:

NETWORK MARKETING GROWTH CHART

As this growth chart clearly shows,today we are just starting to enter the Golden Age of
Network Marketing.Networking is today where franchising was 20 years ago-which means the
best is yet to come! I predict that because of Network Marketing's exponential advantage, the
industry is poisedto surpass franchise sales sometime during the next decade.

This is more than a major trend-this is a worldwide MOVEMENT! I call it the E Move-
ment.E'stands for"Exponential Entrepreneur,"and Network Marketing is perfectly positioned
to take advantage of a tidal wave of home-based entrepreneurism that is sweeping the globel
The question you need to ask yourself is this:"Am I going to be one of the people who watches
Network Marketing explode over the next decade?...Or am I going to be one of the people
who helps make it explode-and profits in the process?"

CONCLUSION

It's Your turn!

they've been known to follow each other,one after the other,end-to-end,for miles at a time.

Years ago a scientist in France conducted an informal experiment to test the strength of the
Processionary Caterpillar's herd instinct.He placed several caterpillars on the rim of a large
flowerpot filled to the brim with the caterpil-lars' favorite leafy food source and an abundance
of fresh water.

Sure enough,the caterpillars began follow-ing the lead caterpillar around and around the rim
of the flower pot.They marched ahead without pause ...hour after hour...day after day.

Amazingly,food and water were inches away from the caterpillars.Yet their instinct to follow
was so strong,not a single one of the Processionary Caterpillars would break forma-tion.After
seven days of endless marching,all of the caterpillars died from exhaustion.
WHO ARE YOU CHOOSING TO COPYCAT?

Like the Processionary Caterpillar,we humans have a strong herd instinct,too.That's why we're
such great copycatters.Fortunately for us,our herd instinct is counter-balanced by our ability
to think.Because we can think and reason,we can make choices,whereas insects are totally at
the mercy of their instincts.

Unlike the Processionary Caterpillar.humans can choose to break away from the herd.We can
choose to stop copycatting people whose system will lead us to
debt...dependence...doubt_..and,for all too many people,DISASTERI Or we can choose to start
copycatting people whose system will lead us to prosperity and abundance.

What about you? Are you like the Processionary Caterpillar,blindly copycatting the plan of the
caterpillar in front of you until you end up like 95% of the "human Processionary Caterpillars"-
dead...dead broke...or barely getting by on a government pension?

Or are you willing to break away from the herd and become a 5%-er by copycatting a proven
plan that could lead to true wealth?

WHY COPYCAT A SYSTEM FOR WEALTH CREATION?

Why should you break ranks and copycat a system that creates wealth? That question1 can be
answered in one word-FREEDOM!

Freedom from debt,once and for all.

Freedom from a boss looking over your shoulder.

Freedom from taking part-time jobs to make ends meet.

Freedom to set your own hours-and your own vacation schedule!

Freedom to build your dream,instead of someone eIse's dream!

And freedom from full-time stress caused by too much work for too little money.

True wealth,you'll remember,is having enough money and enough time to do WHAT you
want,WHEN you want.

True wealth puts the word FREE back into FREE ENTERPRISE.And that,my friend,more than
any other single reason,is why we must copycat a system for creating true wealth.

IT'S YOUR TURN

You can do it-you have all the skills needed to succeed in Network Marketing because you
were born a master copycatter! It's time to choose to break ranks with the 95%-ers and start
copycatting a system that creates wealth for YOU,instead of continuing to copycat the
caterpilars going around and around in an endless circle.

It's your turn to break out of the pack and begin creating true wealth-and total freedom!

The simple truth is,you're not required to do anything that you're not already doing!You're
already an expert at copycatting,isn't that true? So don't you think it's time to copy-

cat a system that will help you realize your dreams,instead of a system that makes you
compromise your dreams?

It's obvious!

WHAT ARE YOUR REAL FEARS ABOUT THE FUTURE?

There's nothing to fear about copycatting a system that creates true wealth. THE REAL FEAR is
ending up like 95% of the people in this world-dead,dead-broke,or dependent on
family,church or state.The real fear is to retire in your "Golden Years"on a poverty-level
pension.

The real fear is to settle for living a life of mediocrity,when you know in your heart that you
are capable of so much more.The real fear is giving up on your dreams because you've chosen
to copycat a plan that can never make them come true.

My friend,you must NEVER let negative people steal your dreams! Negative people are like
Processionary Caterpillars-they will in-sist you copycat their system,living from pay-check to
paycheck,even if it leads around and around in an endless circle.

OPPORTUNITIES ARE NEVER MISSED...

It's your turn to be free by creating true

wealth,but you have to start copycatting a dif-ferent plan. Always remember, you have to seize
opportunities when they are presented to you,not when you think you are ready for them.

Like I always say,"Opportunities are never missed.Someone else just takes advantage of them
first!"

Don't let this opportunity pass you by.This is your chance to grab the brass ring.You can do it.
You're already a great copycatter.Give yourselfa chance to cash in on the greatest eco-nomic
movement since franchising.Networking is today where franchising was 20 years ago-it's a $
100-billion-per-year busi-ness that is destined to explodeto $700 billion in the next decade!

Don't wait any longer! There has never been a better time to get involved! Today you can
position yourself at the beginning of a world-wide movement.It's your turn to become a 5%-
er.So take advantage of this opportunity before someone else does.

You're a great copycatter.You have the skills it takes to succeed.

The timing couldn't be better.You deserve it.

It's your turn ...to copycat your way to wealth!