Why does Robert Kiyosaki feel that Direct Selling is the Perfect Business Model?

Mon, Jul 5, 2010

Business Buzz

Robert Kiyosaki is famous for saying “if you want to be rich you need to learn to think like the rich, learn what the rich know and most importantly do what the rich do.”

For the first time, I started studying the rich as Robert suggested and he was the first.

Robert has devoted his life to teaching anyone who will listen that to become rich you need to first change the way you think about money because your thoughts lead to your actions that lead to results.

If you were raised poor or middle-class, chances are that you were not taught the fundamentals you need to become financially free for life.  Two fundamental concepts that Robert teaches are a “can-do attitude” and “fearless entrepreneurship.”

Robert laid the foundation for us with his book Rich Dad Poor Dad, then he went on to teach more! In Robert Kiyosaki’s book, The Cashflow Quadrant he identifies four different types of people that make up the world of money, business and investing.

Cash flow Quadrant is an Icon or diagram representing money, investing and choosing a career path in life. Cashflow quadrant is about these four types of people:

E for Employee.

S stands for self-employed or small business owner.

B is business owner.

I stands for investor.

The traditional advice that kids get are to go to school, get good grades so what you can to get a safe, secure job with health benefits.  The rich teach that E quadrant is a place to be secure, and is also the hardest quadrant to become rich in – reasons are discussed in his book Cashflow Quadrant.

Robert teaches us how to convert earned income into either passive income or portfolio income that will provide the cash flow to live the life we want to live. We need to not rely on government programs or social security benefits.

Robert said that the best way to get ahead is to become a business owner.

Until recently, my husband was the only bread-winner for our family.  He has had a wonderful career but recognized it as just a job. Like Kiyosaki said, he realized that being a business owner is where the wealth is.

In addition to his full-time job, Rob went on to start a business.  He is incredibly smart and created a report writing database for public safety organizations.  This system that he created originated from the need that he was feeling with his report writing responsibilities at work. He figured out how to make the task easier for himself and others and created it.

When my children were in high school I was ready to go back to work.  My husband understood what Kiyosaki taught and encouraged me to start a business of my own instead of getting a job.

I could see the benefit of being a business owner, but I didn’t have the skills, money, or even desire to start a business.

When I heard Kiyosaki say “If I had to do it all over again, rather than build an old style type of business, I would have started building a network marketing business.” I decided this was I would do.

Robert Kiyosaki was closed to the idea of MLMs for a long time.  He had experiences that made him skeptical.  It wasn’t until a friend of his, who had already joined the ranks of the rich, joined an MLM that Robert looked into it.  When questioned why, his friend explained that when involved with the MLM he would be able to share his information and teach others to become wealthy. After extensive investigation, Robert realized many benefits of Direct Sales that fit right into everything he was taught by his rich dad.

Robert started to see Direct Sales as a revolutionary way to receive wealth. He now favors direct selling with a network marketing company as the best way for the average person to move from being poor to rich.

The reasons why Robert sees MLMs as the best option include:

1. Anyone can join an MLM. Starting a business through Net Work Marketing is not dependent on prior qualifications, degrees, looks, race, or sex. Anyone who is willing to learn and work can join.

2. Low cost. With most MLM there is a low cost to start a business, so money isn’t a limiting factor.

3. Teach fundamantals. MLMs have a Strong Foundation of Financial Education and Training that empowers the business owner to achieve their financial goals. They teach the fundamental skills of how to successfully duplicate your efforts by training you to teach other like-minded people.  They put you in charge of your own destiny.

 4. Stay at your side. The company will work with you for as long as it takes for you to get the business skills to make you rich.

 5. Passive Inclome. Robert Kiyosaki sees the beauty of direct selling in the passive income or, as he call’s it, “freedom money” you can earn.  Just as a property owner receives rent money from a rental he owns, that can someday allow you to finally quit your job and devote 100 percent of your effort toward your business. Passive income is money coming in without you working for it.

Just like those business owners in the “B” quadrant who can earn money without having to go to work, the same goes for the income earned from your direct selling business.

So in essence, by owning your own direct selling business, you can join the “B quadrant of business magnates like Bill Gates from Microsoft, who also has highly successful people working under him to produce income for him, whether he goes into work or not.

“Always Remember it is not money that makes you rich, it’s business skills.”

So I ask as Robert asks, “Is direct selling the perfect business for you?”

It depends on YOU!

If you think direct selling might be the perfect business for you, how do you know?  Multi-level Marketing

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14 Responses to “Why does Robert Kiyosaki feel that Direct Selling is the Perfect Business Model?”

  1. Peter Fuller MBA Says:

    Wow, fantastic post Linda.

    If one can aquire the business mindset and acquire the necessary business skills then there is nothing stopping them.

    Thanks for the post Linda.
    Peter Fuller MBA recently posted..Brand yourself online with your own “Nerve” CenterMy Profile


  2. Allison Clark Says:

    Being part of an MLM is something that you work for as if it was your own business. The reason why most people join and fail is because they are first blinded by the money they could earn and get disappointed when things don’t turn out as they expected. As much as most MLM companies provide enough motivation, the success really lies on the person if they are willing to learn and live the skills for this.
    Allison Clark recently posted..Sleep Apnoea And Stealing 25 Million DollarsMy Profile


  3. Joseph Hipolito @ Travel Wisconsin Says:

    I think because they are going to buy and sell bussinesses, I’ve encounter like this before my I have a Friend to that he is always making and website and he is going to sell it into highest price, and he will buy again and will sell again that’s why I think this is what i’m thinking.
    Joseph Hipolito @ Travel Wisconsin recently posted..Rifle partsMy Profile


  4. Joseph Hipolito @ Travel Wisconsin Says:

    Wow is that real Linda thanks for the update I will check that so I can see and take some new idea.
    Joseph Hipolito @ Travel Wisconsin recently posted..Know Some Helpful Ways on How to Get Out Of DebtMy Profile


  5. check my credit rating Says:

    Let me just start by saying that your articles are very well written; straight to the point, concise and accurate.

    I think that Robert has been successful with what he has because he’s confident that it sells and it drives people to follow him.
    check my credit rating recently posted..Check My Credit Rating and Other Credit FAQsMy Profile


  6. Eloise@black hat software Says:

    i run a review blog publishing opinions of the most up-to-date in computer software mechanization, that is almost certainly likely to be of appeal to readers of this article. nice post


  7. Candice Michelle Says:

    If for certain, money is not a problem, then it is reasonable to say that there are no reason for us not to grab this wonderful opportunity. It would surely be a good idea if we will go into direct selling since the financial rewards are worth it.
    Candice Michelle recently posted..Baby EagleMy Profile


  8. Nick@decisive fitness Says:

    I like Robert Kiyosaki’s first book the best. It’s called, “If You Want to be Rich and Happy, Don’t Go to School.”

    It never became as popular as the “Rich Dad” series, but in my opinion, this was his best writing. It really goes into depth about how the current educational system is broken and doesn’t prepare our children (or us) properly.


  9. Carol Foster Says:

    The only book that I read on how to be rich is Kyosaki’s Rich Dad Poor Dad and I really believe that with hardwork you can get the result that you wanted.
    Carol Foster recently posted..WoodlandsDivorceLawyer.com LaunchesMy Profile


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    Hi there, I enjoy reading through your post. I like to write a little comment to support you.
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