If you are someone who is always learning and looking to continually improve your financial intelligence, you would have heard of famous author Robert Kiyosaki, the mastermind behind the Rich Dad, Poor Dad series of financial books and the Cashflow board game.
As Kiyosaki himself says, when he first heard about network marketing, he was against it. However after opening his mind to him, he began to see advantages that few other business opportunities offer. He now talks about network marketing as one of the most perfect business models on the planet.
You may be wondering why Kiyosaki considers network marketing to be a perfect business when he has never been involved in this industry. To understand this, you must understand that Kiyosaki’s conclusions are based on his years of experience and observations, as well as his ‘cash flow quadrant’.
In his book The Cashflow Quadrant, Kiyosaki discusses the four different types of people that make up the business world. Employees (E), freelancers (S), entrepreneurs (B), and investors (I), commonly referred to as quadrant E, S, B, I.
E stands for employee, where the employee trades time for money and is often caught in a rat race and has no escape as he always goes to work diligently to pay various expenses including government and numerous taxes. According to Kiyosaki, the average American today works five to six months for the government before earning enough to cover his taxes.
S means small business and individual entrepreneur is well aware that things are well done, has to do it himself. On rare occasions, the small business can take advantage of others, because it has to bear a heavy burden on their shoulders to assume the responsibilities of the owner of the business and assume the role of the employee service to the customer, sales and even delivery personnel.
B represents business owners and Kiyosaki firmly believes that in order to be a successful big business owner, he or she must have an important personal skill, which is leadership. Kiyosaki places a network marketing business in the B-quadrant as long as you are able to tap into the people ‘in’ you.
Last but not least, Quadrant I is where the big smart business investors use their money to make more money.
Kiyosaki loves the network marketing business model for the fact that a true network marketing business is the exact opposite of a traditional business model. The network marketing business is designed to get you to the top and not keep you at the bottom.
Several other points in that network marketing a perfect business model include low cost investment to start the business, increased tax breaks due to the fact that a person with a part-time business can take more tax deductions, meetings with like-minded people and being able to take advantage of a system that is already in place.
At that time, Sami, the network marketing company, will invest in you, for as long as you are willing to spend time, for your personal development. You will learn various soft skills, such as people management, to help you brush up on your business skills. At that time, Sami will also have guidance and training from his upline.
Thus, after opening his closed mind, Kiyosaki finally sees the unique benefits of the network marketing industry and believes that it is the perfect business.
