Killing Sacred Cows Blog

By Chris Miles

One of my clients recently asked me a question regarding whether or not someone needed passive income to truly be financially free. I believe that many of those striving for financial excellence have asked this same question and debated it.

In response to this question, I would ask "What is passive income to you?" How you define passive income will determine whether or not it can really exist and sustain itself.

Passive = No Direct Value Creation

Many believe passive income to be earning income on investments without having to do anything to earn it. Or, in other words, provide little or no value to receive a lot of value. However, if one owns a rental property and gets paid rent, is that really "passive?" Did you really do nothing for it? If you do nothing, will the income last?

Consider having a business as another example. If you provide tremendous value in a business for months, or even years, so that you create conditions to make money while you sleep, was that a passive event, or were you active in creating it? Do you still have to maintain it?

Do you think Garrett Gunderson put minimal time or value into Killing Sacred Cows to help it sell? If he decided to put little effort and time into it by cutting corners and using no research, what kind of "passive" income do you think he would receive from book sales?

On the other hand, if passive income means working smarter and leveraging your abilities, passions, and talents (Soul Purpose), and others' as well, could that kind of income continue for a longer period of time?

The Law of the Harvest

We violate the Law of the Harvest (sowing and reaping) when we believe that we somehow can reap where we have not sown. If one ever feels that they are getting paid to provide little to no value, that income will not likely last. As a result, it becomes a state of bondage due to uncertainty of the returns rather than financial freedom.

When I have had income streams in the past where I was not certain why I was receiving so much income for providing little or no value, the passive income never lasted longer than a few years. The only income streams I have been able to count on are the ones where I have significant control and contribution.

Some may consider maintaining control and applying one's human life value bondage, but is it really? Who is paid more -- one who provides value for others in a way that few can or one that gets paid doing virtually nothing and has a difficult time understanding why they get paid so handsomely?

With regards to passive income creating freedom, did our Founding Fathers say, "Once we are ‘out of the rat race' then we will begin to fight for freedom?" They declared their independence when they were still subject to King George's rule.

What is Financial Freedom?

Is freedom a state of having or a state of being? Could one ever have enough money to buy freedom? Can freedom be purchased with money? Is it possible that many that have passive income could be slaves to doing investments or businesses that they do not enjoy ? If you do real estate investing only to make money, how is that different than a job? Would you call doing an investment or business only for money "freedom?" If that were the case, couldn't one work a typical full-time job and still be free?

I do not believe that living financially free can be purchased. The only ones I have met that believe this theory are the ones that have never had money. I have had times where I have felt more enslaved with more money than living paycheck to paycheck.

Granted, our minds can be put at ease if we are wise stewards with our resources. We may choose to create conditions that cause more stress and worry, such as living on more than we have means. However, the only way to have financial freedom is to live a life of based on purpose, not a life based on our pocket books.

Freedom is a state of being, not a state of your account balance.

I challenge each of us to put money in the proper perspective as a tool to be used to serve others through our soul purpose rather than money being a master that will command us when we will be free.

To hear more, listen to my podcast about this.

How To Influence the External Economy With Internal Decisions

Every expert in America agrees that our economy is under serious strain. We even hear speculation that the U.S. is headed for another Great Depression. The government bailout of Fannie Mae and Freddie Mac will cost taxpayers $5.3 trillion. The proposed $700 billion bailout of other notable financial firms is a Band-aid approach to a gaping-wound quandary.

So what is the long-term solution? Does the current crisis represent the end of America as we know it? What can you do to contribute to a more secure and prosperous economy? Is it possible for you to prosper in economic downturns?

The first step to identifying solutions is to accurately diagnose the problem. While the reasons are diverse, our current predicament is the product of three primary factors, on three different levels: 1) the government manipulates the economy with the money supply, creating artificial demand and warping natural market forces, 2) corporations have been guided by shortsighted greed, and 3) average Americans consume more than they produce.

Since corporate behavior and government policy represent individual action, the only long-term solution to America’s economic woes is for individuals to be the change they wish to see in the world; to focus more on their internal economy than on the external economy.

Internal v. External Economy

The external economy represents everything outside of you: GDP, the Federal Reserve, international trade, supply and demand, manufacturing, etc. Your internal economy is the sum total of the value you offer to others minus the factors that limit your production. It is your human life value—your knowledge, skills, abilities, relationships, confidence, etc. It is what happens within you that determines your material and spiritual prosperity, or lack thereof.

Our pressing crisis hasn’t happened in a vacuum; it’s the result of a steady shift in culture, based on personal, internal decisions. We can blame the government and corporations all we want, but government agents and corporate executives are common Americans like you and I, doing common things. There’s little you and I can do to influence government policy during this crisis, but there’s an infinite number of things we can do to ensure security and prosperity regardless of what happens in the external economy.

Do you want to learn and grow, or complain and wallow in the misery? If you choose the former, then it’s time to grow your internal economy. But how, exactly, is this done? Your personal economy will be strengthened and vitalized by living the following five principles:

1. Entitlement is the enemy of prosperity.

Stop waiting for someone else to solve your problems and give you economic security. Contrary to New Deal lies and cradle-to-the-grave propaganda, the only things you’re entitled to are life, liberty, private property, and the pursuit of happiness. The government owes you nothing but the protection of your unalienable rights. Corporations can give and take benefits as they please.

Your suffering during hard economic times will be directly proportionate to the degree to which you feel entitled to “security” and benefits from any person or institution. You’re entitled to the fruits of your own labor and ingenuity—nothing more or less. Don’t abdicate your responsibility to prosper to funds that you don’t understand, investments that you can’t control and that are not collateralized, and managers that you don’t know. Take full responsibility for your money and your life.

2. Produce more than you consume.

The average American—while complaining about the federal budget deficit—spends more than $1.20 for every dollar that he earns. Contrary to the crippling myth that “consumer spending drives the economy,” production drives the economy. Production—creating value for others in a way that they compensate you for it—is what gives any individual or entity the ability to consume.

You can’t control government spending. But you can control your own. Spend less than you earn. Never, ever borrow to consume. Pay off consumer debt as fast as you are able. Cut up your credit cards if that’s what it takes. Increase your production through education, better marketing, a career change, etc. Save and invest ten percent of your income. Do whatever it takes to ensure that your home economy produces more than it consumes; this is the best way to fight inflation.

3. Value creation comes before desire fulfillment.

Who has more money—you, or other people? Obviously, other people. How can you get others to give you money? By providing something to them that they value more than their money. Greed and selfishness are at the basis of so many of our current problems. The wise understand that they can only get what they want by first focusing on what other people want; they are still self-interested, but they are not selfish.

What do you have to offer that other people want? What suffering exists in the world that you have the ability to alleviate? What do other people need and how can you provide it efficiently? Dollars follow value—creating value for others is the only legitimate way to meet your own needs.

4. Integrity is worth its weight in gold.

Corporate executives are being caught in lies like flies to honey. But what about you? Are you going to unfairly take advantage of others in the name of “Everyone else is doing it?” Or will you take the road less traveled and be a person of your word, a person who others can trust in and rely upon? Does your private life reflect your core values?

When times are hard, people look for stability. Integrity provides stability of character, drawing others toward you. Integrity alone is a magnetic marketing tool and will boost your ability to influence and serve others, and therefore profit in spite of crises.

5. Find and live your Soul Purpose.

Soul Purpose is your unique set of talents, abilities, values, and passions applied productively and effectively, making tremendous impact upon the world and bringing the highest levels of joy and fulfillment to you and everyone you touch.

You were born for something wonderful. Are you doing it? Do you love to get up every morning? Are you energized by your career? Does it continually stretch you to achieve your fullest potential? Are is it time for you to choose something different?

Prosperity is much more than dollars, investment accounts, and toys; it’s the internal joy that you experience by applying your best work to pressing problems. Soul Purpose is the best long-term investment.Find what you were born to do and do it—your prosperity will increase exponentially.   


The problems we face are big—which means that there’s now more opportunity than ever to create value by alleviating suffering. Big problems require bigger solutions, and bigger solutions pay bigger dividends. The positive side of the financial meltdown is increased awareness; there is now enough pain for us to course-correct and overcome the economic myths of the last century.

The solution isn’t to elect new leaders any more than changing drivers on a broken car makes the car run better. The solution is for common Americans to reform the economy from the inside out by eliminating the entitlement mentality, producing more than we consume, creating value for others, developing impeccable integrity, and living Soul Purpose. If you don’t know what to invest in—especially during hard economic times—your best bet is to invest in yourself through education. After all, the external economy is nothing but a reflection of the aggregate of internal economies.

Our last blog post introduced a recent book review by Helen Huntley, the personal finance editor of the St. Petersburg Times.

This is the first response of a series.

 

Deception Vs. Value Creation

Helen begins her review by writing, “I don't ordinarily do book reviews, but I often read portions of the books that publishers send me. Sadly, quite a few of them are little more than thinly-veiled sales pitches for the author's business. One of the worst of these promotional books just came across my desk, Killing Sacred Cows: Overcoming the Financial Myths that are Destroying your Prosperity by Garrett B. Gunderson.”

She makes the implicit—and valuable—point that there are often very negative aspects of salesmanship which cause people to take faulty action and spend unnecessary money. There are many unscrupulous individuals that use deception to prey on naivety in order to make money.

We join with Helen in condemning this insidious practice.

Page 120 of Killing Sacred Cows has a long section on why deception is so destructive, including the following excerpt:

“[Money is the receipt that says that we have either created value for another person, deceived them into thinking we have, or coerced them into giving it to us anyway. Of course, deception and coercion destroy human life value, our own and that of the people whom we deceive or coerce…Deception and coercion are the opposite of freedom and lead to poverty, misery, and dishonesty.”

As we write in the book, the only moral way to make money is to create value for others, to give them a reason why they should value what you provide for them more than the money they give you (see pages 120-129). On page 39 we write, “…in a world of cause and effect, value creation is a cause, and money is an effect…Money is never manifested and exchanged until value is created, and thus is an expression of value creation.” We also give our definition of value, which is, “anything of worth or service that, when provided to another, creates joy for both parties.”

To be clear, the promotion of Garrett’s products and services throughout Killing Sacred Cows, such as the Producer Power Hour and the Freedom FastTrack, was never intended to be “thinly-veiled”—it is deliberate, calculated, and very transparent. For most non-fiction authors, the entire point of publishing a book is to establish their credibility in their particular niche and to market their businesses.

For example, Mark Victor Hansen and Robert G. Allen promote the Enlightened Wealth Institute through The One Minute Millionaire. Stephen Covey promotes Franklin Covey through The 7 Habits of Highly Effective People and others. T. Harv Eker promotes Peak Potentials Training through Secrets of the Millionaire Mind. Robert Kiyosaki promotes a wide array of products through his books. Michael Gerber promotes his entrepreneurial institute through The E-Myth. Seth Godin uses all of his books to promote his businesses such as Squidoo. Ken Blanchard promotes his consultation business through his books. Steven K. Scott promotes his mentoring programs through his book The Richest Man Who Ever Lived and others.

All of these authors are doing amazing, uplifting, and inspiring things in the world. They have much to offer beyond their books, and their books are an excellent way to market their value to society. With as much good as they are doing, it would be irresponsible of them to not market their products and services through their books.

If Garrett or any of the authors mentioned above are using their books to deceive people in order to make money, that would be worthy of a scathing review indeed. However, hundreds of testimonials from ecstatic clients attest to the fact that Garrett is creating value for others, not deceiving.

We warmly and openly invite anyone reading this to take advantage of the fabulous programs that Garrett has created to help you implement the principles you are learning in Killing Sacred Cows. No deception or coercion—we simply invite you to make the personal choice of whether or not they create value in your life.

An excellent place to start is with the Producer Power Hour Membership. In fact, we encourage you to click here to take advantage of our offer to receive one month of the membership for free. If you find that the membership does not create value for you, simply cancel your membership at any time.

Every person and business wants to and should profit from their efforts. In the absence of deception or coercion, profit is evidence of value creation—it is the hallmark of every successful and worthwhile individual and business. Furthermore, not only should every individual or company that creates value in the economy want to profit, but they also have a moral obligation to market their products and services as effectively as possible in order to reach and serve as many people as they can.

There's nothing "sad" about using a book as a sales pitch for one's business, provided that the business creates value rather than deceives or coerces. If a person is creating value for others--helping them to achieve more, be more, become more wealthy and fulfilled--then not only is it smart to use a book to promote their business, but it is also their duty to do everything in their power to reach as many people as possible. In this case it would be sad if an author created value for people in a book then did not provide further resources for readers to continue their education and tools for practical implementation.

Mrs. Huntley is right on the money if an author has deceitful intentions or if they are not creating value for others. Deceitful sales pitches are the worst kind, and many legitimate individuals, companies, products, and services are negatively impacted by those who perpetrate them, and we thank Mrs. Huntley for raising this valid point.

| Book Review | Response #2 |

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I recently had an opportunity to apply the lessons that Garrett and I teach in Killing Sacred Cows.

I've been studying affiliate marketing lately to see if it is a viable opportunity with a solid value proposition. Online affiliate marketing means to market the products and services of others in order to earn a commission from the product creator.

On the surface it sounds like a great model--you don't even have to create your own products, all you have to do is market, and you can supposedly earn great money. However, the deeper I dug the more I realized that there are significant problems with the industry and individual practices. Mind you, there are undoubtedly ways to go about it that are ethical, legal, and aligned with Soul Purpose, yet from my intense research it appears that there are very few such cases.

So what were the problems I uncovered, and how can it apply to your own life?

1. Backwards Motivation. For most people, the primary motivation for getting into the business is to make money, not to create value. They go into it asking the question, "How can I make more money?" rather than "How can I better serve others?" or "What does the marketplace need that I can provide?"

If your primary motivation is to make money, you'll be chasing money for the rest of your life. Even if you end up making a lot, you'll live in scarcity because your primary concern is money, not value creation. You'll be plagued with the worry of losing it. You'll be less inclined to be generous. You'll attach more value to material things than to people.

2. Problematic Value Proposition. As Garrett and I write in Killing Sacred Cows, "A value proposition is simply the identification of how value is created for others through specific actions, investments, business proposals, etc. A good value proposition comes in the form of a very clear and concise statement that explains how value is being created and how it will be sustained...One excellent way to analyze opportunities and mitigate risk is to ask and answer the following five questions:
1. Is this in alignment with my passion and values?
2. Will it increase and/or utilize my human life value?
3. How will it benefit others?
4. How will it benefit me?
5. Is it based on sound economic principles?"

One could say that the value proposition of affiliate marketing is that it creates value for product sellers by increasing their reach and duplicating their efforts, while creating wealth for those willing to share their product. The problem comes when we take it a step further to ask if it's creating value for the ones paying for the entire process-the end buyers.

From what I can see, most affiliate marketers--including the creator of the methodology I studied, one of the most popular on the web--simply go to Clickbank , a broker of online products, choose a product that looks like it will sell, then promote it without knowing if it's actually benefitting end users. They're not even using the product themselves. The main things they study about the product are its commission rate and popularity, not its value to society and end users.

To be clear, I'm not saying that there are not great products out there that are in reality creating value for buyers. The problem is that affiliate marketers, those promoting the products, don't know for themselves if the products are valuable or not. They're not in it to create value or to identify a solid value proposition; they're in it to make money regardless of any such considerations.

3. Unethical Practices. There's one insidious practice that got my blood boiling. It's a common practice for affiliate marketers to identify three products in a particular niche, then create a "review" site, such as this one , showing the pros and cons of each. Again, it sounds like a potentially great service--end users can ostensibly benefit from the research performed by the marketers and choose the product that best fits their needs.

So what's the problem? Based on my research, it seems that most "reviewers" are rarely reviewing anything--they're making it all up and choosing three products that will pay them a good commission. If you're an affiliate marketer who performs solid research and actually purchases and uses the products you're reviewing, please don't take this personally. I believe that there are such out there. But after reading all of the materials from the most popular affiliate marketing promoter on the web, and reading his direct instructions of how to simply copy other reviewer's websites, I'm fairly certain that I'm on track with this.

Also, every user of Clickbank, the product broker I mentioned above, agrees to certain terms and conditions when they create an account. Agreeing to an online form is just like signing your name--your integrity is on the line. In the case of the company I researched, the creator of it admits outright that he is a liar and that his word doesn't count for much.

After describing a technique he promotes, he writes, "Technically, this is against Clickbank’s terms and conditions, but I know of plenty of affiliates who do it (many of whom make $300 and upwards per day – see if you can draw a causal link). I have only heard of a few people being told to stop offering bonuses by Clickbank, and I have never heard of a single case of an affiliate being banned for doing so. I do it myself, so that should tell you where I stand on the issue." Two pages later, after describing yet another deceitful technique, he says again, "Now once more, this is against Clickbank’s policies (and I have anecdotal evidence to suggest they dislike this more than the bonus offer), but I do again know of some $500/day affiliates who do it. I have tried it myself on two occasions with moderate success..."

In other words, as long as everyone else is doing it and as long as you don't get caught, it's all right. Anyone else see a problem with this?

Such practices are not built on solid economic principles and so they will always fail. There will undoubtedly be a few who make good money doing it, but most people will find nothing but heartache pursuing these types of businesses. And even those who do make money aren't truly prospering anyway. No amount of money is worth your self-respect and the talents that will be uncovered when you set out to serve others, talents that remain largely undiscovered if your primary concern is how to make more money.

Unless you're really creating value for others, serving them, providing them with what they really need in a principled fashion, you will never find prosperity. I'm not saying to stay away from affiliate marketing--I'm saying that if you're going to do it, then do it right. Actually research and use the products you're going to promote. Promote products that align with your passions and values, that aid you in living your Soul Purpose, and that contribute to a sustainable economy and society. Never, ever lie--even if no one else will ever find out.

Conclusion

Follow these four simple steps any time you are presented with a business opportunity to discover if it is the right thing to do:

1. Start by asking, "How can I serve?" and "What does the market need that I can provide?" as opposed to "How can I make more money?"

2. Identify the value proposition, and trace it back through every level down to the end user. Look beyond the hype and sift through your feelings of scarcity. How is the business/investment creating value for others, for the economy, and for society at large? Is it truly helping others, or just selling them? Do you personally know how it's helping others, or are you just believing the hype presented by the seller?

3. Never engage in unethical or illegal practices, no matter how many others are doing it. Keep your word. Live the spirit and the letter of all of your agreements. Be a person that others can trust and you will always prosper. You reap what you sow--reap lies and you will sow mistrust and eventual failure. Reap truth and honesty and you will sow trust, loyalty, and prosperity.

4. Never spend time, effort, and money on anything--no matter how much money you can make--that does not align with your passion, values, and Soul Purpose. Find what you love to do and do it in the service of others.

 

“I know of no more encouraging fact than the unquestionable ability of man to elevate his life by conscious endeavor.” -Henry David Thoreau

In our last post we defined consumers and producers and made clear that the one choice to become a producer is the single most important factor in determining your prosperity.

Booker T. Washington was an extraordinary producer from whom we can learn many valuable lessons. He was born a slave in Virginia, was freed after the Civil War, then set out to become educated. He arrived at the Hampton Institute determined to gain admittance. This story is a perfect illustration of how a producer approaches life and its challenges.

In his autobiography he wrote, “I presented myself before the head teacher…After some hours had passed, the [she] said to me: ‘The adjoining recitation-room needs sweeping. Take the broom and sweep it.’ It occurred to me at once that here was my chance…I swept the recitation-room three times. Then I got a dusting-cloth and I dusted it four times. All the woodwork around the walls, every bench, table, and desk, I went over four times with my dusting-cloth.

"Besides, every piece of furniture had been moved and every closet and corner in the room had been thoroughly cleaned. I had the feeling that in a large measure my future depended upon the impression I made upon the teacher in the cleaning of that room.

"When I was through, I reported to the head teacher…She went into the room and inspected…When she was unable to find one bit of dirt on the floor, or a particle of dust on any of the furniture, she quietly remarked, ‘I guess you will do to enter this institution.’

"I was one of the happiest souls on earth. The sweeping of that room was my college examination, and never did any youth pass an examination for entrance into Harvard or Yale that gave him more genuine satisfaction. I have passed several examinations since then, but I have always felt that this was the best one I ever passed.”

What challenges do you face in your life? Are you approaching them as a consumer, or as a producer? As a victim, or as a hero?

“The difference between a warrior and an ordinary man is that a warrior sees everything as a challenge, while an ordinary man sees everything as either a blessing or a curse.” � -Carlos Castaneda

Being a producer means finding ways to become empowered when you feel that your options are limited. It means finding a way to succeed when everyone around you sees nothing but defeat and discouragement. It means possessing and enduring and vibrant belief that everything will always work out as long as you are committed to creating as much value for others as possible.

Follow the example of Booker T. Washington in every aspect of your life. No matter what you're currently facing, approach it with a mindset of determination and a desire to serve others. An abundance of opportunity and wealth exists for those willing to persevere in spite of obstacles and criticism.

Billionaire investor Warren Buffett was once talking to a group of college students and told them, “I am really no different than you. I may have more money than you do, but money doesn’t make the difference…

"If there is any difference between you and me, it may simply be that I get up every day and have a chance to do what I love to do, every day. If you want to learn anything from me, this is the best advice I can give you.”

If you’re unhappy with your life, the chances are that you are not providing a fraction of the value that you’re capable of. Happy people who focus on developing their unique gifts always produce more value for others and alleviate more suffering in the world than those who are routinely unhappy.

What will it take for you to live the life you love? What will be the effect in your personal life? What will be the effect on the world at large? How many more people can you impact by living your ideal life and doing what you were born to do? How many problems exist and how many people are suffering if you're not?

Do you serve people as they want to be served, or as you would like to be served?

A young boy and his father were once shopping for a Mother's Day gift. The boy eagerly found toys and asked his father if they could buy them. "No," came the reply, "We're shopping for a gift for Mommy today." The boy quickly answered, "I think Mommy wants an action figure!"

Too often we project what we would like onto others. The Golden Rule says to treat others as you would like to be treated. But the Platinum Rule says to treat others as they would like to be treated. To live this higher law we must get outside of ourselves to ascertain the needs and desires of others.

Value follows value, but if we want this principle to apply in our lives we must give to others the value that they want to receive, not the value that we want.