Posts Tagged ‘Robert Kiyosaki’

Like many others, I’m avidly following the case of James Arthur Ray. Whatever the courts find will have an impact on the billions of dollars currently being “earned” by the Law of Attraction gurus. Okay, so it might just make a tiny dent in the big picture. While I think the likes of Canfield, Robbins and Katie are avidly glued to their sets, I don’t think the typical student is even aware.

When I “fell” down my rabbit hole and landed in state of bankruptcy, my “teacher” (earlier referred to as Missus) made it clear that I was fully accountable for my own outcome. On the surface, I agreed with her as no one held a gun to my head and forced me to make the bad investments that I did. But something underneath bothered me. And slowly it boiled up and now it’s spilling over.

I’m now of the mind that education is a two-way street: The student agrees to be open (hence vulnerable) and the teacher agrees to contribute genuine knowledge delivered in the best interest of the student. The very nature of learning, after all, is suspending your disbelief and trusting your teacher.

Back in the day, I was a motorcycle instructor, and those two aspects (genuine knowledge and student safety) were embedded in our teaching philosophy. For example, some students were terrified of revving their engines. As teachers, we had genuine knowledge to the contrary, and consequently required the student to suspend her disbelief. Trusting us was imperative to her learning.  And we had to respect that trust and ensure safety, so we taught in in a safe environment — the parking lot — at relatively slow speeds. We had to minimize the potential for harm. (And should harm befall them, we were all trained in first aid.)

When a student could not perform effectively as a student (ie he couldn’t suspend his disbelief and rev his engines), we as teachers were then required to act in that student’s best interest and discontinued him from the course. It was our job as good teachers to monitor their safety. It was not their job as a student to choose their own situation. If we let them do that, we’d loose our job. They did not yet know what they didn’t know (to state the obvious) so they couldn’t make a sound decision in their best interest.

When CBC’s Marketplace found the Robert Kiyosak course practicing questionable teachings, it was because the contracted instructors were claiming false experiential expertise (claimed a tract of land was earning them passive income when in fact it was a dead investment) and consequently were not acting in the best interest of the student. Following their teachings could land them in the same dire straights as their teachers (who were, it seemed, using teaching as the tool to dig themselves out of financial despair).

I do agree that it was a tragic accident. It was never a planned event. However, categorizing it as an accident does not eradicate accountability (and landing it in the laps of the dead students is a travesty — and a slippery escape from accountability). I hope true accountability lands in the lap of James Arthur Ray (JAR). The students job is to be open; the teacher’s job was to protect their safety (this usually goes without saying) while imparting genuine knowledge.

Becoming a teacher is serious business. It can’t just be a money-making factory. It can’t just be loaded with “good intentions” (which, BTW I think JAR had). It also requires a tremendous amount of expertise that goes beyond the experiential background of just the teacher her/himself. And it comes with a very high degree of responsibility.

So while my “financial” teacher, Missus and her snake-oiled partner were teaching with good intentions, they lacked the expertise in BOTH their own experiential background and in light of the entire financial industry. I am responsible for signing the document, and they are responsible for putting the option in front of me in the first place, and for guiding me to the “learned” belief that these were good investments (they all failed, one by one by one).

The awful reality comes down to this. When it comes to dealing with the results, that lands squarely on the shoulders of the student. It is only me who can step forward with my current financial reality. The teacher remains untouched. Untouchable. I think the James Arthur Ray case is an attempt to make an ethically bad teacher (ie he failed to keep his students safe, and he failed in being genuinely knowledgable) be responsible for the outcome.

I wonder how many people, like me, sit in financial despair because of the teachings of the gurus. I don’t think that litigation is the answer. And I also don’t think regulation is either (since when is the government truly representative of the people?). I think  the real answer lies in awareness and education.

And this blog is my small kick at that big can.

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A lot of comments on my blog have been in reference to Byron Katie.

On the flip side, there’s been a resounding silence on the others, including Jack Canfield, James Arthur Ray, T. Harv Eker, and the “abundance” of Law of Attraction gurus out there. What’s up with that? Any ideas?

I followed Jack Canfield for awhile on Facebook, but dropped him after he commented that at a recent seminar he had one fellow come up to him and say that he had applied Canfield’s teachings for several years now and had exponentially increased his earnings.

Canfield actually had the audacity to brag about that.

Think about it. If their teachings were accurate and all you really had to do was change your thinking from negative to positive, then wouldn’t this comment be considered mundane? After all, pretty well everyone who attends these seminars (after dishing out thousands and thousands of dollars) has this level of success, don’t they?

Really?

Don’t they?

I suspect not. Else world hunger, poverty and war would be a thing of the past.

I’ve attended a four-day workshop given by T. Harv Eker. Well, not actually Eker himself but certainly a well qualified underling. I think he was well qualified. If magnetic means well-qualified.

Which is to say I endured the 30 minutes extreme hard sell infomercials scattered throughout the seminar. I, like many others, felt like an abject failure for not signing up, for not thinking with enough guts, for not really being committed to my financial success.

And if you study (ie read on wikipedia) the sales tactics taught by Robert Cialdini, you’ll recognize them at full strength at these events.

  • Reciprocity: Give your potential customer something for free (ie a four day seminar) and they will feel indebted to buy from you
  • Commitment: Get your potential customers to commit to participating at 110% (a mathematical impossibility by the way), then, well into the series, tell them that if they are really committed to playing “full-on” then they will continue to grow on this journey (ie sign up for a 8 thousand dollar course). An interesting application of this tactic.
  • Social Proof: Plant a few seeds in the crowd. Social proof would exist when you say that there are only 29 spots available for this particular deal, and only the first 15 who sign up will get the bonus gifts (whatever they are). How hard would it be to have a few volunteers in the crowd ready to make a rush for the back, inspiring those who are “thinking about it” to stop thinking and start rushing to the back with credit card in hand.
  • Authority: We’re all suckers for it. One of the worst offenders for this that I know of was an instructor for one of Robert Kiyosaki’s course (Rich Dad Poor Dad dude). CBC’s marketplace did an investigation on him, and all of the “investments” that he bragged about were actually abysmal flops or they didn’t really exist. If there’s someone on-stage telling us “this is so,” then we tend to believe them. By virtue of their job and their script, they have god-like authority. And they know it.
  • Liking: This is a measure of popularity. One of the first things that these seminar leaders are trained to do is to get you to vehemently agree with them two to five times in the first ten minutes of their presentations. One way they do it is to say that thousands had the opportunity to come here, and you were one of the few hundred who actually showed up. They make you feel special, so you like them. They’ll incorporate call-and-repeat chant’s (“I’m a money magnet”) to heighten your sense of success so you like them even more. And goddamnit of course you’re special. You special to their success, that’s why.
  • Scarcity: As mentioned in social proof above, you’ll often hear the “seminar special” being touted. But did you know that the seminar special typically happens at every seminar, not just the one in your town cause gosh-darn they love you? Or that you can phone their headquarters and “negotiate” (ie ask for) that same price.

Cialdini’s methods are all good. These gurus take them to extreme proportions to an exalted and exhausted audience. Indeed, you can blow the equivalent of a PhD’s tuition on these gurus, and not be further ahead than you are now.

I think it speaks volumes that Byron Katie inspires conversation while the other gurus inspire silence, both on the for and the against side. I’m not exactly too sure what it says, but it’s saying something important. Question is, are we listening.

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2
Jun

The Two Types of Cults

   Posted by: Britt    in My Story, On Wealth Seminars

I just finished reading a fictional novel by Kathy Reichs, called Death du Jour. It’s a really well written mystery novel based on a character is a forensic Anthropologist Temperance Brennan, who divides her time between Montreal, Quebec, and Charlotte, North Carolina. (K. Reichs is also a forensic anthropologist, PhD, who divides her time between Montreal and Charlotte.)

As riveting as the novel was, what struck me the most were the definitions.

I’ll let the fictional Red Skyler explain:

Cults are not just a group of crazies who follow weird leaders.  … [T]hey are organized with a set of common features.

… A cult forms around a charismatic individual who promises something. This individual professes some special knowledge. Sometimes the claim is access to ancient secrets … sometimes it’s an entirely new discovery to which he or she alone is privy.

… In a cult, it’s this charismatic leader who eventually becomes the object of devotion.

… And often there is a double set of ethics. Members are urged to be honest and loving to each other but to deceive and shun outsiders

… Cult leaders use a variety of psychological processes to manipulate their members. Some leaders are fairly benign, but others are not and really exploit the idealism of their followers.

… The way I see it, there are two broad types of cults, both of which use though reform. The commercially packaged “awareness training programs … user very intense persuasion techniques. These groups keep members by getting them to buy more and more courses.

Then there are the cults that recruit follower for life. … They are manipulative, deceptive and highly exploitative”[1]

A little later on in the book, Tempe runs into Sam again, and they continue the conversation, focusing on the former.

“Unlike the cults we discussed [for-life recruiters], these programs don’t intent to keep people forever. They exploit participants as long as they are willing to buy more courses. And bring in others. … The coercive influence that these so-called self-improvement programs exert is amazing. It’s the same old thing, behavioural control through thought reform.

… It’s known as large group awareness training.

… They’re packaged to sound like seminars, or college courses, but the sessions are scripted to get participants emotionally and psychologically aroused.

… Most programs last four or five days. The first day is devoted to establishing the leader’s authority. Lots of humiliation and verbal abuse. The next day pounds in the new philosophy. The trainer convinces participants their lives are crap and that the only way out is to accept the new way of thinking.

… Day three is typically filled with exercises. Trance inducement. Memory regression. Guided imagery. The trainer gets everyone to dredge up disappointments, rejections, bad memories. … Then the following day there’s a lot of warm fuzzy group sharing…. The last day is fun and happy, with lots of hugs and dancing and music and games. And the hard sell.

… You take the course, then you’re told that you’ve performed so well you’ve been singled out to go to a higher level, or meet the guru, or whatever.[2]”

When asked who falls for these things, “Red” replies that it’s those dealing with depression and “broken affiliations,” those in transition who are lonely and confused.

Have you noticed that we are in the midst of an economic meltdown? That an incredibly massive number of people are in transition, broken, who are feeling they have lost everything? Is it any wonder that we are chomping at the bit to the incredible promises made by these slick snake-oil salesmen?

[Ironically, in my email today was a note from Robert G. Allen telling the tale of Matt Morris, who only 12 years ago (he must’ve been nine at the time) was broke and desperate and living out of the back of his “red beat-down honda civic” — it’s those personalized details that clinch it! Anyway, in the email, my “good friend” Robert was saying that he discovered 7 closely-guarded online money making secrets (yeah, right, sent by mass mail to thousands NAY tens-of-thousands of us) and he’ll give it to us free in return for a name and email address. I registered (with a junk email I use for these very fine special occasions) only to get the message that he’s already over capacity but will contact me for the next series of freebies. HEY, wait a minute here! My good friend Robert just sent me this email… What’s up dude?]

The common pain is an economic one. Which is why it’s so goddamn easy for the likes of Jack Canfield, T. Harv Eker, James Arthur Ray, Robert Allan, Anthony Robbins, Bob Proctor, and Robert Kiyosaki (to name just a few) flourish in these times[3]. Have you ever noticed that their messages are exactly the same? Have you noticed that no-one references the others, and seem to imply that they have by whatever god-given decree stumbled upon this notion? That when one (James Arthur Ray) gets cooked up for a legal dinner the others don’t rally around their fallen star to help him back on his feet? That their berth is extremely wide from each other, even though they sing each others songs … ALL THE TIME[4]?

It’s getting really bad. At least in my world. Many of the people I know have dabbled in these courses. One I know has done exceedingly well. The others have all dribbled, then dropped.

Even worse, copy-cat courses are springing up all over. It’s what I fell victim to. It’s how come I, at 45 years of age, have to start all over again.

I’ve said it before and I’ll say it again. I don’t know what the answer is. I’ve never believed that the government is there to protect us. It’s there to collect taxes and run the world’s biggest corporations (aka countries). I don’t think that regulation is the answer. Education is where I’m putting my efforts.

Listen up folks, and do the math. The guru-led self-help industry is generating billions (yes, that’s BILLIONS) of dollars of revenues every year. Since they offer up the path to wealth, the stats say that in turn there should be at least millions (yes, I mean MILLIONS) of new millionaires created each and every month. Instead, we hear of the smattering of success stories. An oasis the size of a child’s bucket in a desert as big as North America.

Whether it’s a famous charismatic guru listed earlier in this blog or some copy-cat or some poor old schmuck who is genuinely trying to impart is misguided knowledge, know the signs.

And hold on tight to your wallet.

Oh, and thanks for asking … Kathy Reichs’ book was incredible! A writer who is both knowledgeable and articulate. She knows how to write a great mystery novel. Highly recommended. Nothing was given away in this little rant, don’t worry!


[1] Kathleen J. Reichs. Death du Jour. New York:  Scribner, 1999. p. 253-254.

[2] ibid, p. 310-312.

[3] Anthony Robbins released his first book, Unlimited Power in 1987;  On Black Monday of October 1987 a stock collapse of unprecedented size lopped 22.6 percent off the Dow Jones Industrial Average. The world mourned, and a guru kindly stepped up to the plate.

[4] Just a brief disclaimer here. I think that there is valuable information offered by each of the gurus mentioned here. Robbins has is “four classes of experience” (a handy word doc download available here) which I find extremely useful to personal growth; Ray has an excellent handle on marketing techniques (which all belong to Robert Cialdini by the way). But I don’t think that any guru has a singular claim on the whole truth (as throughout the times, it is up to the reader to sift through the claims to get at their individual truth), and I don’t think that it’s worth two to twenty (to infinity and beyond) thousand dollars to access the information. Nor should you need to walk on fire or walk into an arrow tip or suffer in a desert or a sweat lodge to get there.

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30
Jan

Robert Kiyosaki under the Canadian Gaze

   Posted by: Britt    in On Wealth Seminars

CBC’s Marketplace (Canadian Television) just did a secret video recording of one of Robert Kiyosaki’s Get-Rich-in-ReaEstate seminars. The short version is this: Go to a two-hour free info seminar and get sold a three-day seminar for only $1,000 BUT if you sign up in the next two hours it’s only $500. At the three-day seminar event, from the get-go you are told that there’s is NO WAY that you can ever learn all real estate trade secrets, and that if you are really and truly committed to your wealth (and you’re a loser if your not) you can expect to spend anywhere from $12,000 to $45,000 in the Kiyosaki educational system. Then, still in day one, you are challenged (and remember only winners take quick and decisive action) to call your credit card company and increase your spending limit to $100,000. After all, it doesn’t cost anything to ask.

Here’s a link to the video.

Turns out that Kiyosaki contracted out to a Florida-based company previously known as the Whitney Information Network. Apparently, they’re a dubious post-secondary Wealth Eduction institute, with a string of complaints in their past. In his interview with Marketplace, Kiyosaki says he’s not happy with the licensing agreement. It is also pointed out that were he indeed a savvy businessman, getting out of a contract would not be the world’s most challenging task.

It’s consumer beware folks. I’m sure that Kiyosaki’s information has helped some people make money. I remember one such get-rich-if-you-believe-dude touting on Facebook that he had one fellow come up to him after a presentation in front of several hundred with the “good news” that he followed the strategies and did indeed increase his income ten-fold over the past 10 years. Based on the energy and the absolute positive faith these gurus spout in their fail-proof methods, I would expect hoards of people to run up to shake this man’s hand. But no, he was proud of just the one positive report.

Many people I know have attended these types of seminars. Those who tend to make money from their learnings are in fact re-teaching what they have learned in these seminars. If you’re in this circuit, you will quickly learn that there are common teachings amongst all these gurus. There is no one key holder. They all make it up and spin it. And those who pick up the pulpit and preach it have learned this. And are getting their money back the only way they know how. By furthering the spin.

Since the James Arthur Ray fiasco, expect these gurus to be more under the media lens. It makes for good coverage.

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