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Why Network
Marketing?
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FOR
THOSE OF YOU WHO MAY NOT BE FAMILIAR
WITH MY PREVIOUS BOOKS, In Rich Dad’s Cash Flow
Quadrant, the second book in the Rich Dad series of books,
I go into why some people find getting rich easier than others.
Rich Dads CASH FLOW Quadrant is the
most important of my
books for people who want to make changes in their lives. Some of
the terms used here will refer to the letters in this Quadrant:
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E
-stands for employee
S
-stands for small-business person self-employed or specialist
B
-stands for big-business owners such as Donald Trump
I-
stands for investors
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Why Network Marketing?
When I first heard about network
marketing, I was against it. But after opening my mind. I began to see
advantages that few other business opportunities offer. Long-term,
Success in life is a reflection of your education, life experience and
personal character. Many network marketing companies provide
personal-development training in those key areas.
Most schools train people for the E or
S
quadrants, and that is great if those are the
quadrants in which you want to spend your
life. Most MBA programs are training students
for high paying jobs in the corporate world as an
E,not a B
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Network marketing:The Industry for People Who Want to Change
Their Lives
What if you're in the E or S quadrants
and you want to change? What if you want to be in the B quadrant? Where
do you find the education that trains you for that quadrant? I
recommend a network marketing business.I recommend the industry for
people who want to change,and get the necessary skills and attitude
training to be
successful in the B quadrant.
Being an entrepreneur and building a
B-quadrant business is one
the toughest challenges a person can take on. The reason there are
more people in the E and S quadrants is simply because those quad-
rants are less-demanding than the B quadrant.As they say,"if it were
easy, everyone would do it."
I had to learn how to overcome my
self-doubt, shyness and fear of
rejection. And I had to learn how to pick myself up and keep going,
after I failed. These are some of the personal traits a person must
develop if they are to be successful in a B-quadrant business, whether
it is a network marketing business,a franchise or an entrepreneurial
start up.
An important personal skill required
for any B-quadrant business
leadership. Are you able to overcome your fears and have others
overcome their fears to get the job done? This is a skill the Marine
Corps taught me. As Marine Corps officers, it was imperative that we
were able to lead others into battle, even though we were all terrified
of dying.
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Donald's
Trump's Response
Marketing is a powerful tool,and
network marketing can increase that power, provided you're
self-motivated. In a simple visual, see a product and remove the
advertisingagency from it. It's up to you to do the marketing and
advertising.
That's a big job, but it can be done
if you're
passionate enough to get going on your own, and to keep the momentum
and motivation going at a high level. It requires an entrepreneurial
spirit, and
that means focus and perseverance. I don't recommend network marketing
to people who are not highly self-motivated.
Another important aspect of network
marketing is that it’s
inherently social, so if you're not a social or outgoing person, I d
think twice about going into it. Sociability is a requirement.
Just like in advertising, there's no
point in having a fantastic
advertising campaign if the product is unequally fantastic. Also,
keep in mind that if you decide to become a distributor, you'll be
legally responsible for the claims you make about the product,
the company and the available opportunities But above all, make sure
the product is worth your energy and total devotion. Otherwise, you
could be energetically spinning your wheels.
Robert mentions the importance of
going beyond your comfort
zone when it comes to network marketing. He also mentions
giving yourself enough time. These are good points to consider.
I agree that leadership qualities are critical for success. You
definitely have to have a take charge, can-do attitude.
As with any other undertaking, know everything you can about
what you're doing before you began. Network marketing has proven
itself to be a viable and rewarding source of income, and the challenges
could be just right for you. There have been some remarkable examples of
success, and those successes have been earned through diligence,
enthusiasm and the right product combined with timing. As with so many
issues. There are tangibles and the intangibles involved, but success
is not a total mystery, and that applies to network marketing as well.
Most people have heard of focus
groups, a research tool
advertising agencies use. When they're testing a new product
they go to different locations and simply ask everyday people
what they like and don't like about new product. It's best if you
can keep the focus group idea close at hand when deciding
about a product. Just because you like it doesn't mean everyone
else will. Finding a common denominator in product appeal will matter.
My advice about network marketing is to do your research. and put
everything you've got into your product. Genuine enthusiasm is hard to
beat, and the odds will be with you.
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I meet many people in the S quadrants,
the specialists or small-business owners, who would like to expand, but
they simply lack leadership skills. No one wants to follow them. The
employees do not trust their leader, or the leader does not inspire the
employees to better themselves.
Forbes defined a big-business owner, a
B-quadrant business
owner, as a person who controls a business with more than 500
employees.
This definition is why leadership
skills are vital for the B quadrant. Where can you find a business that
will invest the time in your education, your personal development and
building your own business? The answer is most network marketing
businesses.
Network
Marketing Is a B-Quadrant Business
Building a B-quadrant business is not
an easy task. So you need
to ask yourself, "Do I have what it takes? Am I willing to go beyond
my comfort zones? Am I willing to be led and willing to learn to
lead? Is there a very rich person inside me, ready to come out?
If the answer is yes, start looking for a network marketing business
that has a great training program. I will focus less on the products
or the compensation plans, and more on the education and personal
development program the company offers.
A network marketing business is a
B-quadrant business because it meets several criteria I look for in a
business or investment. Those criteria are:
- Leverage:
Can I train other people to work for me?
- Control:
Do I have a protected system that belongs to me?
- Creativity:
Will the business allow me to be creative, and
develop my own personal style and talents?
- Expandability:
Can my business grow indefinitely?
- Predictability:
Is my income predictable if l do what is
expected of me? If I am successful, and keep expanding
business, will my income increase with my success and
hard work?
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ISN'T NETWORK MARKETING A PYRAMID SCHEME?
I am often asked if network marketing
is a pyramid scheme. My reply is that corporations are really pyramid
schemes. A corporation has only one person at the top, generally the
CE0, and everyone
else below.
A true network marketing business is
the exact opposite of a traditional business model. The network
marketing business is designed to bring you to the top not keep you at
the bottom. A true network marketing business does not succeed unless
it brings people to the top.
ADDITIONAL
POINTS WORTH MENTIONING
1. Tax
breaks increase. By starting a network marketing
business in your spare time and keeping your regular job, you
begin to gain the tax advantages of the rich. A person with a
part-time business can take more tax deductions than employ-
ees can. For example, you may be able to deduct car expenses,
gasoline, some meals and entertainment. Obviously, you need to
check with your CPA for exact rulings on your situation, and the
cost of your CPA is tax deductible. In other words, the govern-
ment will give you a tax break for advice about how to pay less
in taxes
2. Meet
like-minded people. When I started out. most
of my E-quadrant friends thought I was nuts. They could not
understand why I did not want the steady job or steady paycheck.
So one important part of becoming it B is to surround yourself
with other people who are Bs-and I want you to become a B.
3. Give
yourself time. It takes time to be successful in any
of the quadrants. Just as it takes time to climb to the top of
the corporate ladder as an E or become a successful doctor or
lawyer in the S quadrant, it takes time and dedication to become
successful in the B quadrant. It took me years before I built a
successful B-quadrant business. So give yourself time. I'll allow
at least five years to learn and develop into a B-quadrant person.
4. Network
marketing companies are patient. One of the beauties of
a network marketing business is that it will invest in you, even if
you're not successful. In the corporate world, if you're not
successful in six months to a year, you are often fired. In the
Network Marketing world, as long as you're willing to put in
the time, most companies will work with you in your development.
After all, they want you to get to the top.
5. Leverage the systems already in
place. These systems are already
tried and proven, which allows you to hit the ground running;
instead of trying to build the internal systems of a new company.
In Conclusion
After opening my closed mind, I could
finally see some of the unique benefits the
network marketing industry offers people
who want more out of their lives.
Generally, it costs much less to get
started in a network marketing company
than to build a business on your own.
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This article is an excerpt from Robert and
Donald’s new book
Why We Want You to Be Rich. It is published with the permission
of Rich Press, an imprint of Rich Publishing, L.L.C.
by Donald J. Trump and Robert T. Kiyosaki. All rights reserved. |
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Donald
Trump
The very definition of the American
success story.
A graduate of the Wharton School of Finance, his real estate
developments are the most prestigious, nationally and internationally.
Among them are the world-renowned Fifth Avenue skyscraper, Trump Tower,
Tramp Park Avenue,
the historical Mar-a-Lago Club in Palm Beach, Fla., and the Palm Trump
International Hotel and Tower in development in Dubai. His four
award-winning golf courses, and one soon to be developed in Scotland,
reflect his passion for golf. As the Emmy-Nominated star and
co-producer of the reality television hit-show, The Apprentice. and
author of seven best-sellers, He is truly a media giant.
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Robert Kiyosaki
Author of Rich Dad And Poor Dad, the
international runaway
bestseller, is an investor and entrepreneur specializing in mining and
real estate and educator whose perspective on money and investing fly
in the face of conventional wisdom. Rich Dad and Poor Dad published in
1997, has held the
top spot on the New York Times best-seller list in nearly 6 years.
Translated in 46 languages and
available in 97 countries. The Rich Dad series has sold more than 26
million copies worldwide and has dominated the best-seller list in
Asia, Australia, South America, Mexico, South Africa, and Europe. He
has virtually single handedly challenged and changed the way tens of
millions around the world think about money.
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