Most people who are in business know who Robert Kiyosaki is. He’s the famous author behind the Rich Dad, Poor Dad series of financial books and has talked about network marketing as one of the most perfect business models on the planet.
But why has one who has never been involved in network marketing seem to endorse it as a good business model? Some may claim that this is a hypocritical endorsement, but in reality, Kiyosaki’s findings are founded on solid business building principles and hence are valid observations.
Robert talk about the different quadrants and that is the fundamental understanding you must have in order to see how that relates to network marketing. The quadrants of E, S, B, I are discussed below.
E stands for employee, where you are under legal employment working for an employer getting a paycheck. As you know, most employees are stuck in a rat race, where the employee is constantly working to pay off his debts to the government, the taxation institutes as well as the banks. You are here looking for something different because you understand this. There s little freedom in this quadrant and in order to exit from the rat race, you must progress into different quadrants.
S stands for small business. Small business applies wot self employed men and women as well. Most self employed people end up doing the job themselves…all of it, from being the salesperson, the marketing and PR person, and to actually doing the job once you have a client or contract. This quadrant of businessmen and women is ok, but it lacks the leveraging of others.
B is the quadrant Kiyosaki wants to get people into where you run a BIG business by leveraging people ‘under’ you. If you have a team of individuals who each perform different parts of the business, you’re now in a place of leverage to grow and expand. I am in agreement with the following quote from Andrew Carnegie, “I would rather have one percent of 100 people’s efforts than 100 percent of my own.”
Lastly, is the ‘I’ quadrant, where big business investors wind up. They use their money or OPM, other people’s money, to earn MORE money.
So, where does network marketing come into play after learning about these quadrants?
Kiyosaki describes the network marketing business model as the perfect business simply because he believes that you can easily jump from the ‘E’ quadrant directly into the ‘B’ quadrant without going through the hardships of the ‘S’ quadrant.
When you start a network marketing business, the most important skills you will learn are business skills. Skills such as managing people, understanding the needs of your customer, how to invest your time and money wisely and lots of self-improvement, mindset changing awareness that will take your business skills to the next level.
The most important aspect about being in a network marketing business is that you get to learn all these business skills at a very low investment (a couple of dollars to a few hundred dollars worth of product investment), the guidance and training from a mentoring upline, and all the time in the world for someone to develop those business skills. After all, not everyone’s aptitude are alike. A network marketing business will help you to build those skills even if you are a slow learner – because you don’t have to worry about huge
rental or inventory costs unlike a traditional business in the S or B quadrant.
A good mentor will go a long way in helping you, not only with the mentioned skills, but with the right marketing. One that I’ve noticed is that most people are not skilled at marketing. If your mentor is not skilled at it either, than you won’t learn it from the start and that could slow you growth.
The facts indicate that what Robert Kiyosaki says is valid and true about network marketing indeed, being the perfect business. Now, it’s about picking the right opportunity for you and finding a mentor, hopefully your upline, who can guide you to truly having the perfect business.
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