Having just attended a Robert Kiyosaki ‘Rich Dad’ training for real estate investors; I read with particular interest the facts concerning the Chapter 7 Bankruptcy filing for Robert and Kim Kiyosaki’s Rich Global LLC. Ref Case 12-20834. Any reports that this is a personal bankruptcy filing are false.
Robert and Kim Kiyosaki’s personal net-worth is estimated at 80 million dollars. The Rich Dad books have sold an estimated 26 million copies worldwide.
I think it is both sad and a little annoying to see how quickly the media turns a darling into a devil at the first site of weakness or poor judgement. It happened when Donald Trump was upside down a few hundred million and it is completely predictable.
For Robert and Kim Kiyosaki this is a situation that I don’t feel they can afford to ignore because they are after all known in the marketplace as wealth creation gurus providing financial education… it is their brand. So what is a multimillionaire to do when the media is reporting you are broke?
Protecting Your Brand in 3 Actionable Steps
Step 1: Communicate your truth by sharing the facts with as many people as you can in as many places as you can by leveraging the social media and traditional media. Share the facts because every false media story starts with a thread of truth and you should own the facts around your truth and offer your perspective.
Step 2: Focus on the silver lining by using challenging moments as a teaching opportunity for your clients, customers, followers, and fans. A major public setback or all out failure can actually provide you with a huge opportunity to educate your base and focus the attention on the value you bring to the marketplace.
Step 3: Re-frame the messages surrounding your brand and resolve any valid issues within your control. Be proactive with PR and communicate openly with your market.
The worst action is choosing to stand silently on the sidelines and failing to control the message. You have a responsibility to protect your good name and brand value.
Ethical Considerations are Not Trivial
Beyond protecting your brand you also may be faced with ethical considerations as part of solving the puzzle. In the Kiyosaki case this should be an area of concern for them; as previously mentioned both are considered to be financial gurus and there is always sensitivity when large sums of money are involved.
Surely some will ask if the Kiyosaki’s were found to be in breach of their agreement and a court entered a judgement intended to make the prevailing party whole, is it ethical to use bankruptcy to avoid the judgement? These considerations are serious and failure to properly handle them could lead to long-term negative consequences.
Final Thoughts and Considerations
I don’t know all of the facts concerning ‘The Learning Annex v Rich Global, LLC‘ so I have no opinion as to this specific case or the details surrounding the bankruptcy filing.
I have a tremendous amount of respect for Robert and Kim and the education and value they provide through their work. No doubt they have helped tens of thousands if not millions of people by making them more financial savvy and inspiring others to take action.
Please feel free to post a comment and share your thoughts. I am here to help you success and invite you to connect with me and let me know how I can make a difference in your life.
(c) Copyright 2008-2012 and Beyond James A. Holmes All Rights Reserved
Contact James by phone at 303-523-9503 or email at james@AskJamesHolmes.com
Note: If you’d like to reprint this article on your blog or in your newsletter you have permission to do so as long as the copyright information and the resource box above remains with the article.