What’s the real financial scam – Orrin Woodward and the LIFE Compensation Plan or Mark Zuckerburg’s Facebook Shares?

All too often I hear people bleat “That sounds like a scam!” in reference to an idea which they have not adequately investigated. It seems that people are all too eager to follow the sheep-like masses. After all it relieves them of the burden of thought and the effort of investigating an idea. I have heard people bleat this response at the mention of Orrin Woodward and LIFE. A few direct questions reveal that the proclamation has no basis in an analysis of the LIFE Business Compensation Plan which the founders of LIFE carefully constructed to pay for individual performance (read “performance;” think “work”).
The basic business model of developing compensated communities, exclusive of the generosity of the LIFE Business Compensation Plan, provides a rational business proposition. For those willing to consistently engage in their LIFE business, the model opens an opportunity for a considerably higher rate of success and return on investment than most commonly recognized business models (think franchise opportunities). It takes an honest mind to look past the messenger (perhaps the shy, quiet mechanic from the shop across town) presenting a “business opportunity.”
Dan Hawkins, a onetime shy, quiet mechanic from “across town” and now an enormously successful community builder and founder of LIFE, correctly outlined Orrin Woodward’s “whistleblower” response to problematic issues within the compensated community business model. A whistleblower is a person who, upon seeing an inequitable or improper practice within a business organization, brings the issue to light.

The Federal Government gives special protections against retaliation by the wrongdoers who have been revealed against whistleblowers revealing fraud within the Federal Government and its contractors. Individuals in the business world usually act at their own peril. They often find themselves financially ruined, alone and vilified. The vilification may even come to the point of being labeled a “scammer” for revealing the “scam” ( You are right if you are thinking “Huh?”). Realize the role of vilification is to turn the truth on its head!

Most people (including a considerable number in large businesses) are unwilling to recognize the character and integrity required to make the difficult stand of pointing out the truth of a situation in the face of certain vilification. Orrin Woodward, having personally weathered the storm of being a whistleblower, has responded by spearheading the development of the LIFE Business Opportunity, along with the keystone product known as the Mental Fitness Challenge (“MFC”). The stated goal of LIFE and the MFC is to help others develop positive changes in all areas of their life – including the development of integrity and character – and to contribute those improved lives to the greater community.

The attributes of character and integrity developed through the LIFE products naturally extends to the LIFE Compensation Plan. Honest, old fashioned hard work should be financially rewarded — it is through LIFE. The Plan is perhaps the most generous compensation plan available to persons willing to work and to change. In combination with the proven effectiveness of the TEAM business training system, anyone willing to work and change themselves through the LIFE/TEAM business opportunity will find that their finances will concurrently change for the better. You will know the tree by its fruit. Those unwilling to work for the fruit will invariable speak of “sour grapes.”

In retrospect and contrast, I posted a blog I flippantly titled “Did your Facebook friends get rich on Facebook stock?” I did not know at the time that it was foreshadowing what has now been referred to as a debacle for future technology initial public offerings. Had I reflected on time honored principals, I may have adduced that something for nothing begets nothing. A company founded on selling targeted advertising based on “free” information collected from the connections and posting whims of hundreds of millions of people seems destined for hardship.

Ominously, Facebook shares were initially released at $38.00 per share, giving Facebook a market value in the realm of $100 Billion (recall that Google bought 1% in a private offering for $1 Billion. Hmmmm. . .any big surprise here?). The shares dropped precipitously in the week after the release. It seems nobody’s friends got rich on that deal – except Mr. Zuckerburg and the people who invested with him before the IPO. I’m certain those fortunate folks didn’t “unfriend” him on Facebook after the stock debut.

The questions surrounding the handling of the Facebook IPO concern the price and earnings projections (read “expected compensation”) with respect to the offering. The offering price was set at the high end of the offering range, but for reasons not yet clear, the investment banks working the offering (the “underwriters”) lowered their earnings estimates late in the process, directly effecting the expected future value of the shares (CNN Money 5/23/2012 Online article “Facebook IPO What Went Wrong?” http://money.cnn.com/2012/05/23/technology/facebook-ipo-what-went-wrong/index.htm?iid=Lead).
Sounds like an integrity issue somewhere in the process. Lest we are remiss and forget, you shall know the tree by its fruit. No room for sour grapes here!

Lawsuits now allege that the investment banks were “in the know” and quickly realized that they had bought into a deal which had been overhyped and thereby overvalued. They must have seen the classic definition of inflation played out—too many dollars chasing too few shares. On May 31, 2012 Dan Caplinger reports in AOL’s Daily Finance column:

Facebook’s [IPO] was a highly unusual IPO in that many ordinary investors were able to get their hands on the initial offering of shares. When those shares didn’t produce the pop that many other IPOs have experienced on their first days of trading, many concluded that the Facebook IPO was just another Wall Street setup designed to take money away from the little guy.
http://www.dailyfinance.com/2012/05/31/dont-let-the-facebook-debacle-damage-your-retirement-plan/ Note the obvious and interesting lack of the “scam” bleat.

I implore the reader not to mimic the mindless sheep, but to DO THE WORK TO BE INFORMED (NOTE: this Blog is not meant to be, nor should it be construed in any way to be legal or investment advice). Perhaps people just expect this type of debacle in finance; perhaps it is too complicated to fully comprehend; or perhaps the financial world is simply immune to get rich scams.
The final analysis probably comes down to the timeless wisdom conveyed by Claude Hamilton– if you take the easy way out your life will get harder; but if you take the hard way out your life will get easier.

Best Wishes

Christopher VanDevere

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  1. #1 by James Pyka on June 1, 2012 - 7:38 pm

    Chris,

    What a great post. It really adds perspective on things. Thanks for leading

    James

  2. #3 by nathanfoxblog on June 2, 2012 - 5:49 pm

    Great post Chris, awesome reference in the Orrin Woodward’s “whistleblower” article by Dan Hawkin’s, because he had the guts to call out a big corp. he is called a scammer, even though Team Life pays out more percentage of their revenue to the field than any other company I know of, (over 70%) Compensated Communities are the businesses of the 21’st century as explained in Robert Kiasaki’s book titled Business of the 21’st century. That is probably why Donald Trump just started The Trump Network as a vitamin company and Warren Buffet bought Pampered Chef.
    I personally am honored to have been in business with Orrin Woodward since 2008 and am excited about a great future with Team Life. People can try to get rich buying Facebook stock all they want. I hope that works out for them. Personally I’ll opt for building a business with a system based on helping others.

    Keep up the great work,

    Nate

    • #4 by christophervandevere on June 2, 2012 - 6:01 pm

      Thanks Nate! Great analysis in your comment-it is a testament to your dedication in further developing a business mind and perspective. Keep stroking!

  3. #5 by nathanfoxblog on June 5, 2012 - 4:30 pm

    Reblogged this on TeamFox.

  4. #6 by amvandevere on June 6, 2012 - 3:37 am

    Too bad people don’t recognize true community when they see it, but then character and integrity don’t seem to be popular these days — just the almighty dollar at anyone’ expense but their own. Where did our traditional American values go? We must begin the revolution one person at time – change the individual, change the family, change the country, change the world……

    • #7 by christophervandevere on June 6, 2012 - 3:59 am

      Thanks Amy – the individual changes as his or her character and integrity change. Up or down, forward or back, we each decide. And in so deciding, we decide the fate of our society.

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