The type of exchange you use determines your financial success. Nothing else you do has a greater impact on your income. L. Ron Hubbard outlines the four types of exchange.
1. First consider a group which takes in money but does not deliver anything in exchange.
Examples of this first condition of exchange:
— You pay a $1,000 deposit for a new car. The dealer goes bankrupt. You get no car and no refund.
— A plumber loosens a pipe, shows you the “leak,” tightens the fitting, makes noise, charges you $159.
— Someone in your office avoids doing work. Lots of excuses, lots of smoke screen, no work, full pay.
This first exchange condition is basically theft. The second exchange condition is cheating.
2. Second is the condition of partial exchange. The group takes in orders or money for goods and then delivers part of it or a corrupted version of what was ordered.
— County fair booth promises to show you a two-headed cow, but actually shows an odd-looking skeleton.
— The “$99 Dream Vacation Package” turns out to be a smelly motel room by the freeway.
3. The third condition is the exchange known, legally and in business practice, as `fair exchange.’ One takes in orders and money and delivers exactly what has been ordered.
Most successful companies and individuals use this principle. Examples:
— You pay for a dozen fresh eggs, you get a dozen fresh eggs.
— A $10-per-hour employee works 40 hours of normal work and is paid $400.
4. The fourth condition of exchange is not common but could be called exchange in abundance. Here one does not give two for one or free service but gives something more valuable than money was received for.” “This fourth principle above is almost unknown in business or the arts. Yet it is the key to howling success and expansion.
Individuals and businesses who use this fourth method of exchange flourish when others are in trouble.
— You pay an artist for a painting who then frames it for you at no extra charge.
— You invest with a real-estate group expecting a 12% return each year and get 15% instead.