This is one of the most widely read and controversial essays written by
Stansberry & Associates founder, Porter Stansberry.
I'd like
to make you a business offer.
Seriously. This is a real offer. In fact,
you really can't turn me down, as you'll come to understand in a moment…
Here's the deal. You're going to start a business or expand the one
you've got now. It doesn't really matter what you do or what you're going to do.
I'll partner with you no matter what business you're in – as long as it's legal.
But I can't give you any capital – you have to come up with that on
your own. I won't give you any labor – that's definitely up to you. What I will
do, however, is demand you follow all sorts of rules about what products and
services you can offer, how much (and how often) you pay your employees, and
where and when you're allowed to operate your business. That's my role in the
affair – to tell you what to do.
Now in return for my rules, I'm going
to take roughly half of whatever you make in the business each year. Half seems
fair, doesn't it? I think so. Of course, that's half of your profits.
You're also going to have to pay me about 12% of whatever you decide to
pay your employees because you've got to cover my expenses for promulgating all
of the rules about who you can employ, when, where, and how. Come on, you're my
partner. It's only "fair."
Now… after you've put your hard-earned
savings at risk to start this business, and after you've worked hard at it for a
few decades (paying me my 50% or a bit more along the way each year), you might
decide you'd like to cash out – to finally live the good life.
Whether
or not this is "fair" – some people never can afford to retire – is a different
argument. As your partner, I'm happy for you to sell whenever you'd like…
because our agreement says, if you sell, you have to pay me an additional 20% of
whatever the capitalized value of the business is at that time.
I know…
I know… you put up all the original capital. You took all the risks. You put in
all of the labor. That's all true. But I've done my part, too. I've collected
50% of the profits each year. And I've always come up with more rules for you to
follow each year. Therefore, I deserve another, final 20% slice of the business.
Oh… and one more thing…
Even after you've sold the business
and paid all of my fees… I'd recommend buying lots of life insurance. You see,
even after you've been retired for years, when you die, you'll have to pay me
50% of whatever your estate is worth.
After all, I've got lots of
partners and not all of them are as successful as you and your family. We don't
think it's "fair" for your kids to have such a big advantage. But if you buy
enough life insurance, you can finance this expense for your children.
All in all, if you're a very successful entrepreneur… if you're one of
the rare, lucky, and hard-working people who can create a new company, employ
lots of people, and satisfy the public… you'll end up paying me more than 75% of
your income over your life. Thanks so much.
I'm sure you'll think my
offer is reasonable and happily partner with me… but it doesn't really matter
how you feel about it because if you ever try to stiff me – or cheat me on any
of my fees or rules – I'll break down your door in the middle of the night,
threaten you and your family with heavy, automatic weapons, and throw you in
jail.
Regards, Uncle Sam
That's how civil society is
supposed to work, right? This is Amerika, isn't it?
That's the offer
Amerika gives its entrepreneurs. And the idiots in Washington wonder why there
are no new jobs…
This applies in the UK too!
This applies in Norway too - even though the percentages taken by the "partner" probably are much higher in Norway.
