Does Robert Kiyosaki Really Promote Network Marketing As a Viable Business Model?

Steven Spielberg

Robert Kiyosaki has been a best-selling author, speaker and investment guru for many years now. Probably his most known book is Rich Dad Poor Dad, where he explains the stark differences in the lessons that his real dad (Poor Dad) and his best friend’s dad (Rich Dad) taught him about money. If you want to know some basic fundamentals about understand the world and how to become truly wealthy I definitely recommend picking it up for a quick read, it will probably change your life…I know it did mine.

But on to the point of this article, what does Robert Kiyosaki really say about Network Marketing? Well, network marketing in society often gets a bad rap and I’ll address them later but what Robert Kiyosaki says is that network marketing is a good option to look at if you are interested in learning business principles. It is a place where you have very little start-up costs, at least when compared to more traditional businesses, and you have the opportunity to learn true business principles. Some of the principles he talks about are learning to sell and market, manage people, being rejected and to have money work for you even when you are working it.

So on to some of the reasons why Network Marketing has gotten a bad rap in society.

  • Startup Costs:
  • For some reason this is really frowned upon but when you compare the amount of these costs compared to what it would cost to start a traditional business, say a tire shop, the difference is staggering. They are literally a fraction of the costs.

  • No Work, No Pay
  • Network marketing companies model is basically one of a mini-franchise, meaning each new person is a distributor, consultant or business owner, and in a true franchise you don’t get paid until you sell something. This is also true for most network marketing companies, whether you are selling the product or selling a new franchise.

  • They are ALL Pyramid Schemes
  • This is probably the most untrue statement of them all. A pyramid scheme is defined as being a business model where someone is paid for simply enrolling a new person and offering no real product or service. There are network marketing companies that have been around for many years and I have many friends and family that still use the products that they companies offer (and are not buying them from me), not to mention they are happy with the product and how it works.

If Network Marketing is something you are giving an honest look at then you really need to do some soul searching as to what you are really wanting to achieve by doing this type of business. If you are simply looking for a quick way to get a buck then this is not the industry for you. You may make some money initially but if you are unwilling to help train others and unwilling to put in the time to help others be successful it will all come crashing down.

But if you are interested in being a true business owner and learning the principles that it takes to run a successful business then this is a great first step. To reach TRUE success you will need to put energy toward learning to how to sell, market, overcome objections and manage people. When you have mastered these you will not only be a great network marketer but possibly ready to move on to other more traditional business models if that is your goal.

Robert Kiyosaki is a true advocate for financial, business and emotional education and he does recommend Network Marketing as a great first stepping stone into the world of business.

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