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What They STILL Don’t Teach You at Stanford GSB About Scamming

by Larry Chiang on December 5, 2011

Larry Chiang is an instructional humorist and has a PBA (Padawan in Business Administration). He will have you street savvy by Saturday. After a Harvard Business School event, they wrote:  “What They Don’t Teach You at Stanford Business School“. He spoke at a BASES event, did Q&A  via text message and now teaches us what the underbelly of business looks like in, “What They STILL Don’t Teach You at Stanford GSB About Scamming“.

Larry ChiangBy Larry Chiang

I remember learning negotiation from a school in Pennsylvannia.

There was a diagram where there were three axis. The Y-axis had negotiation experience high to low. The x-axis had tenacity. The z-axis had morality.  The conclusion I came to is that someone highly experienced, highly tenacious and had no morals would do the best. The Video Professor is that theoretical case study incarnate: they’re hungry to cheat, very experienced and had no qualms taking money from new victims.

Let me stress this point: If a business is hungry to cheat, experienced at cheating and ok with hurting people, they will temporarily do great.

TechCrunch’s Mike Arrington wrote about it on November 28 in a series on Scamville.

Other thoughts about scamming if you are a B-school student

-1- Gov’t protection: The FTC doesn’t have control over website that was a clear mandate to offer a free credit report. FreeCreditReport.com is a lead generation site but AnnualCreditReport.com actually offers free reports. Remember, if the FTC can’t get the URL, the true power lies in private industry.

-2- Getting a law passed and enforcing that law are two different things. Recently, Congress enacted legislation that bans the sale of a credit card to a college student. Enforcing that new law beginning in February 2010 will be interesting.

-3- Fair Credit Laws from the 70s. There have been laws written to protect Americans on credit. The amount of money allocated by the FTC to enforce the laws are a fraction of the money that the credit bureaus dedicate to pushing the boundaries.

-4- Greed. Guys that do lead generation either push the boundaries and cheat or make less by being honest. If you’re greedy, you have to love Scamville. If you’re honest, you can avoid Scamville.

-5- The FTC relies on self-regulation. It also relies on people voicing wrongs. Most people sit back and do nothing even when a crime is commited. Most people do not get involved. On the Internet, most will not write a complaint to post on Complaints.com or Yelp.

My next month’s post will be how to battle and bring down a Scammer company like Video Professor while getting yourself rich. It will take just 15 easy steps that only take 3-5 years. If you want the knowledge now, send $29.95 to my paypal account: larry @larrychiang .com. JK, just kidding, Just kidding.

But I am serious about the post next month. It is similar to how I started United College Marketing Services (UCMS) after On Campus Marketing Concepts, OCMC , kept scamming . Both sold credit cards to college students. Michael Pouls’, OCMC, is now six feet under.

I started UCMS because of my mentor’s company, IMG. Mark McCormack wrote the book, “What They Don’t Teach You at Harvard Business School“. It is available for $0.01 on Amazon.

UPDATE: Ok, I posted a rough mock-up of the 15 steps. I cranked this out on my Saturday over Thanksgiving so you’re welcome.

STEPS REQUIRED
-1- Work for the enemy.
-2- Set up a legal corp that your enemy pays. This is critical because you’ll be a super-affiliate. Don’t sign non-competes.
-3- Work for potential clients for free as a consultant
-4- Build relationships with auxiliary outlets or ANYTHING that will get you distribution
-5- Identify sales channels and attend every industry conference
-6- Make your enemy temporarily rich
-7- Claim you’re doing another line of work shortly and that you’ll quit (i.e. you wont be a threat because you’ll soon be a doctor, engineer, lawyer, or Ambassador to Timbucktoo)
8- Plot your exit
-9- Wage war and declare you’re going strait
10- Take the people that you were working for for free and convert them into paying customers
11- What do you stand for. Know this in your being. Know why you are rich
12- Wage a war with something larger than your evil enemy
13- Under-consume and save your money. This builds your war chest. You aren’t going to raise VC
14- Look into the abyss of darkness and refuse to become a scammer yourself
15- Keep under-consuming and keep your staff lean. Karma will reward you with something to turn this business into something bigger AND better.

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Follow me on Twitter @larryChiang or join my 5 person fan club on Facebook. Remember, my book’s chapters are reprinted free at a website called BusinessWeek. If you cannot sleep, watch NBC 8, KHNL or read How to Tip, Bribe, Comp and Tip your way past 100 Stanford MBA’s

Good luck working it and crash my Sundance AfterParty on January 28th in Park City Utah.

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