Friday, March 12, 2010

Why Do You Recommend Network Marketing?

Robert Kiyosaki's Answer:

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.

What if you're in the E or S quadrant 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 of the toughest challenges a person can take on. The reason there are more people in the E and S quadrants is simply because those quadrants are less demanding than the B quadrant. As they say, "If it was easy, everyone would do it."

Personally, 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, regardless of whether it is a network-marketing business, a franchise or an entrepreneurial startup.

An important personal skill required for any B quadrant business is leadership. Are you able to overcome your own fears and have others overcome their fears in order to get the job done? This is a skill the Marine Corps taught me. As Marine Corps officers, it was imperative that we be able to lead others into battle, even though we were all terrified of dying.

I meet many people in the S quadrant, the specialist 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.

As mentioned earlier, 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 vial for the B quadrant.

Where could 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 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 of me, ready to come out?" If the answer is "Yes," start looking for a network-marketing business that has a great training program. I would 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 I do what is expected of me? If I am successful, and keep expanding my business, will my income increase with my success and hard work?

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 CEO, and everyone else below. The following is an example of a typical corporate pyramid:

(A Normal Triangle)

Compare that to a network-marketing business system:

(An upside down triangle)

A true network-marketing business is the exact opposite of a traditional business model. A network-marketing business is designed to bring you up to the top, not keep you down at the bottom. A true network-marketing business does not succeed unless it brings people up to the top.

Additional Points Worth Mentioning

The following are some other 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 employees can. For example, you may be able to deduct car expenses, gasoline, some meals and entertainment. Obviously, you need to check with a CPA for exact rulings on your situation. And the cost of your CPA is tax-deductible. In most cases, an employee cannot deduct CPA expenses. In other words, the government will give you a tax break for advise on how to pay less in taxes.

2) Meet like-minded people. One of the advantages I had is that my friends also wanted to be in the B quadrant. When I first started out, most of my E quadrant friends thought I was nuts. They could not understand shy I did not want a steady job or a steady paycheck. So an important part of becoming a B is to surround yourself with other people who are Bs and 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.

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 are not successful.
In the corporate world, if you are not successful in six months to a year, you are often fired. In the network-marketing world, as long as you are 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.

Leverage the systems that are 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 system 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.

My comment: People just don't understand the concept of Network Marketing yet they feel they are wise to give comments on it. Imagine you are a chef and you give comments on Theory of Gravity. Perghhh.. Read books and understand the essence, give yourself the experience in the field, then you are welcome to give such comments!


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