Quoting an excerpt from the book Rich Dad Poor Dad by Robert T. Kiyosaki:
Don’t you love the 1st day of every month ,when you check your account and the salary has been credited t. And then it hits you , a long month waiting ahead of you ,waiting like it was the end of time and to top it all-a long list of payments .
Now how would you like to get a paycheck every week.
MLM(Multi level Marketing)/ Network Marketing
Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a pyramid of distributors and a hierarchy of multiple levels of compensation.
It never ceases to amaze me the extreme polar views on the topic of network marketing and MLM.
Some people are passionate about it in the extreme.Yet, in many circles, you might as well declare yourself a leper as admit to believe in network marketing.
So, what is the problem with MLM and network marketing?
Maybe it's the pyramid structure? But you can't really take issue with the tiered compensation structure—almost every large sales organization in the world has that. Salespeople get commission, and sales managers get overrides or bonuses on top of that, and sales directors on top of that, and VPs on top of that.
Or maybe it's the fact that you have to pay to participate in it? But that can't be it—that's a standard franchising model. And I assure you, the franchise fee of most traditional franchises dwarf the sign-up cost of any MLM program by comparison.
Now certainly, there are illegal pyramid, or "Ponzi", schemes. This is where the money is all being made off of signing up other people, with little or no real product ever being delivered. But in spite of whatever perceptions people may have, the fact is that Amway, Excel, Meleleuca, PrePaid Legal, USANA, and many others have sold millions upon millions of dollars of products to happy customers. So, there may be a perception problem here, but if so, the perception is out of line with the reality.
But surely the bad reputation MLM'ers has some more basis in fact than the occasional illegal pyramid scheme?
The real problem with MLM is not MLM itself, but some of the people it attracts. Network marketing is just a business model, and it really amounts to "micro-franchising". Its upside is that it has a very low cost of entry, with the potential for exceptional revenue, and there are those who achieve that.
But those same things that make it attractive make it attractive to many who are NOT really qualified or prepared to become business owners. The salient characteristics of MLM make it attractive to people who:
- have not done well in their business or profession and have little money saved up to invest
- have no previous experience owning or running a business
- have no previous experience in sales
- have little or no experience developing business relationships other than that of employer/employee/co-worker
- are not satisfied with their current level of income
- have unrealistic expectations of the amount of work involved compared to the revenue realized
Don't get me wrong—I'm not saying that there's anything wrong with any of these things, or that this describes even a majority of network marketers—only that it describes a disproportionate number of network marketers, and that many of them never do anything about it.
As a result, many network marketers end up:
- over-selling the opportunity
- inappropriately discussing business in social situations
- coming across as desperate
- over-focused on new recruits and neglecting existing customers as a result
- being either inaccurate or deceptive when talking about their business
Again, I'm certainly not saying that this describes a majority of network marketers, but it does describe enough of them to tarnish the reputation of the rest. To pre-judge someone based on the basis of a small minority of people in that group is horribly unfair, but we must realize that most prejudices have some basis in reality, even if it has been distorted.
So what's the solution?
There's a first time for everything. And network marketing/MLM is a great opportunity for people to have their first business, their first sales role, etc. My point is this—recognize it for what it is: it's a business, and you are a business owner.
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Now I’ll show you how you can reap the benefits from network marketing.
Before going into much detail I would like to cite the example of a few Pioneers of business who conquered the world out of sheer grit, determination and hard work.
1. Sunil Bharti Mittal (born 23 October 1957) is an Indian telecom mogul, philanthropist and the founder, chairman and managing director of Bharti Enterprises.
A first generation entrepreneur, Mittal started his first business in April 1976 at the age of 18, with a capital investment of Rs 20,000 (U$500) borrowed from his father. His first business was to make crankshafts for local bicycle manufacturers.
Now, He’s the MD of India’s largest GSM-based mobile phone service with a turnover of US$7.2 billion .
2. Dhirajlal Hirachand Ambani, known as Dhirubhai, (28 December 1932, - 6 July 2002) was an Indian rags-to-riches business tycoon who founded Reliance Industries in Mumbai with his cousin.
Dhirubhai started off as a small time worker with Arab merchants in the 1950s and moved to Mumbai in 1958 to start his own business in spices. After making modest profits, he moved into textiles and opened his mill near Ahmedabad. Dhirubhai founded Reliance Industries in 1958. After that it was a saga of expansions and successes.
Today, Reliance Industries Limited is India's largest private sector conglomerate company by market value, with an annual turnover of US$ 44.6 billion and profit of US$ 3.6 billion making it one of the largest India's private sector companies, being ranked at 264th position in the Fortune Global 500 (2009) and at the 126th position in the Forbes Global 2000 list.
3. Sir Richard Charles Nicholas Branson (born 18 July 1950) is a British industrialist, best known for his Virgin Group of over 360 companies.
At age 16, Branson had his first successful business venture, publishing a magazine called Student. In 1970, he set up an audio record mail-order business. In 1972, he opened a chain of record stores, Virgin Records, later known as Virgin Megastores. Branson's Virgin brand grew rapidly during the 1980s—as he set up Virgin Atlantic Airways and expanded the Virgin Records music label.
He is the 212th richest person in the world according to Forbes' 2009 (Updated 03.10.10) list of billionaires, with an estimated net worth of approximately £2.97 billion (US$4.0billion).
Branson has dyslexia and had poor academic performance as a student.
And the list goes on and on and on….
Its time you give up the “getting up; going to work” routine and really started working for yourself. Why be a consumer? When you can become an entrepreneur.
The question that comes to mind now is “How can I be an entrepreneur?”
It’s not like everyone has a cash reserve to start a company in just a whim.
Everyday approx. $1.4 trillion (1,400,000,000,000 dollars) criss-cross the globe looking for a home. There is a ton of money waiting for excellent opportunities. If an individual knows hoe to take care of money, money will continue to flow to it.
The Cash Flow Quadrant (an important diagram presented and explained by Robert Kiyosaki.) will give you a clear picture of what I’m trying to convey.
Left quadrant is the type people who work to get money and in the right quadrant is the system which works to get money.
In the left quadrant, there are 2 kinds of job type, they are:
E = Employee
S = Self Employee
And in the right quadrant, there are 2 kinds of job type, they are:
B = Business Owner
I = Investor
In the business world there are E’s and E stands for employees. And the employees, you can always tell who they are by their core values. An employee will always say the same words. The words are, "I'm looking for a safe, secure job with benefits." That's what makes them employees because their core value is security."
The other one of the four is the S for the small business owner or the self-employed and again their core values will cause them to use the same words which are, "If you want it done right, do it by yourself." S means they are also solo. Generally one person act, they operate by themselves.
On the right side of the Cash Flow Quadrant are the B’s. The B stands for big business, like Bill Gates. For B’s define big business as 500 employees or more. And their words are different. They’ll say, "I'm looking for good system, good network, and the smartest people I know to help run my business." Unlike the S, they don't want to run the company by themselves. They want smart people run the company for them."
And then, the fourth of the Cash Flow Quadrant is the I. And the I stands for the investor. These are people who have money work hard for them. These people in the B Quadrant have people work hard for them. And these people in the E & S Quadrant are the people who work hard for the rich here in the right side of the Cash Flow Quadrant, for the B’s and I’s.
Here is the example of each type :
Employee, if we are an employee in a company, sometimes when we can’t work because of illness or something urgent, you will not get paid for that day.
Self Employee, let’s take for example you are a doctor, if the doctor can’t work he’ll earn nothing too.
Business Owner, the owner of Mc Donald, if the owner wants to take a vacation for a few months or years, the business will keep moving and that means he will always get earnings because the existing system and his employees keep moving.
Investor, when you deposit your money or assets in banks or real estate, and then you go to holiday, the assets will work for you. You can get your earning from your assets although you aren’t working.
The conclusion from this is:
Left Quadrant: if you are rich, you will be busier because you are the system or the assets.
Right Quadrant: you are richer; you will get more time and money because you have assets and system in your business.
"Why would you work hard for something you'll never own, and you can get fired from it right away?"
It’s Time to Choose what you want out of your life.
Security or Freedom/Financial Liberty
It’s time you change your life from the left quadrant to the right quadrant.
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