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Network Marketing - The Perfect Business Robert Kiyosaki, the famous author behind the Rich Dad, Poor Dad series of financial books has talked about network marketing as one of the most perfect business models in the world today. But why is someone who has never been involved in network marketing endorsing it as a good business model? Some may think that he is being hypocritical, but in reality, Kiyosaki’s findings are founded on solid business building principles and hence, are real valid observations.
To understand what he means by a perfect business, you must understand the background of the E, S, B, I quadrant.
E stands
for employee, where you are under legal employment
working for an employer getting a stable payroll.
Kiyosaki claims that 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. He finds that there
is little freedom and to exit from the rat race, you
must progress into the different
quadrants.
S stands for small business. He quips that it stands for solo businessman who believes that in order to do things right, you have to do it yourself! This quadrant of businessmen rarely leverages on others because they not only have the responsibilities of a business owner, but often need to double up as the worker and sales rep, the customer service rep and sometimes, even the delivery guy! B is the quadrant Kiyosaki wants to get people into where you run a BIG business by leveraging on people ‘under’ you. Lastly, the ‘I’ quadrant is where big business investors wind up. They use their money to earn MORE money. Kiyosaki describes the network marketing business model as the perfect business simply because he believes that you can easily leap 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 believe of a mentoring upline, and all the time in the world for someone to develop those business skills. After all, not everyone’s attitudes 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. The facts
indicate that what Robert Kiyosaki says is valid and true
about network marketing indeed, being the perfect
business.
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