Robert Kiyosaki about Network Marketing.

A home based MLM Network Marketing business is probably one of the most misunderstood business models by the public. Robert Kiyosaki, best selling author of Rich Dad Poor Dad dismissed MLM as a marketing scam and never seriously investigated MLM Network Marketing for 15 years.

After achieving his goal of financial freedom, Robert Kiyosaki wanted to share his knowledge with others and help them attain financial freedom also. He wrote Rich Dad Poor Dad and Cash Flow Quadrant to introduce people to the concept of financial independence. Robert began teaching people how to break free of the poverty mentality that keeps so many people enslaved to their jobs. He wanted to help others achieve financial freedom like he had attained.

Cash Flow Quadrant introduces people to the concepts of cash (money) flow and what really creates wealth and what keeps you from becoming wealthy. 

Robert explains that people in the E and S quadrants (Employed and Self-employed) trade their time for money. Even doctors, lawyers and other professionals are exchanging their time for money. The only way to make more money is to sell more of your time.

Robert then explains how the B and I quadrants (Business and Investments) are the only way to achieve financial freedom. This requires a change in how you think about wealth as well as developing new business skills.

How can the average person go from the E and S quadrants to the B and I quadrants?

Robert Kiyosaki began teaching others how he built his own businesses. Robert had experienced failures and realized that most people didnt have the stamina and skills needed to achieve success. The majority of people failed at breaking out of the B and S quadrants.

Robert had a friend who was creating great wealth in a direct selling MLM Network Marketing business. His friend explained that most people understood the concept of creating wealth, but were unable to invest in a conventional business because of a lack of money. 

Robert was intrigued to see that not only was his friend creating wealth for himself, but in doing so he was helping others create wealth also. Robert saw that his friend was a teacher, mentor and coach to his business associates. Robert saw that his friend was helping people create wealth in a way that he couldnt with his real-estate investing. 

Robert Kiyosaki researched the history and marketing model of MLM Network Marketing and saw that it is a legitimate, low cost system that allows the average person a way to have their own profitable business. 



As Robert Kiyosaki mentions in his book The Business School for People who Like helping People MLM Network Marketing offers the most practical way for people to move into the B quadrant and achieve wealth. But more importantly you create your wealth only by helping others also become wealthy. In order to be successful in MLM Network Marketing you must first help others by teaching them how to move from the E and S quadrants into the B and I quadrants.

MLM Network Marketing offers you a way to change your financial future. So if you are a person who likes to help others direct selling via MLM Network Marketing maybe the right business model for you. MLM Network Marketing levels the playing field and allows the average person to become financially free.

Read more: http://www.articlesnatch.com/Article/Robert-Kiyosaki--Why-Mlm-Network-Marketing-Is-The-Prefect-Business/529768#ixzz1F4m0lGdx 

What is MLM?

MLM is an acronym for Multi-Level Marketing, sometimes called Network Marketing.

As the name suggests, multiple levels of people are marketing a product to consumers. A sales representative (also referred to as a distributor, member, affiliate, partner or associate) gets customers and recruits and trains another sales rep to get customers.

Sales rep gets customers and trains another sales rep to get customers

Multiple levels of marketing are actually what all companies desire (both MLM and non MLM companies). If you’ve ever heard a traditional company announce, “Refer a friend and you’ll receive a discount on your next purchase,” this is multi-level marketing. Health clubs, real estate, telecommunications, and countless other industries use this technique. Professionals (doctors, dentists, accountants) live or die based on their customers telling others about them. All these businesses are simply trying to get current customers to advertise and market their product or service to potential customers.

The Traditional Company

In a non-MLM company, a sales manager and sales reps are hired by the company. The company is limited to the number of sales reps they can hire based on the financial resources the company has to pay salaries and on the traffic the sales manager can handle. Once a sales manager is overwhelmed, the company can hire another manager or convert a sales rep into a manager. This could be called “Multi-Width” marketing because it expands the organization horizontally as compared to “Multi-Level” marketing, which expands its organization vertically.

Traditional companies (non-MLM) use “Multi-Width” Marketing

The MLM (Multi Level Marketing) Company

An MLM (Multi Level Marketing) company “starts” by recruiting one person who gets customers and recruits sales reps (just as above in the traditional company). But each sales rep is also given the option to become a manager, who can also recruit sales reps. The MLM company only pays commissions, not salaries; therefore, there are no limitations on the number of sales reps or managers an MLM company can recruit. This is beneficial to the company because of rapid expansion by the number of trained sales reps. This is also beneficial to the sales reps because their income isn’t limited to only what they can sell - they can also earn commissions for having trained other sales reps.

MLM uses “Multi-Level” Marketing, which is similar to traditional marketing (see above illustration “Multi-Width-Marketing,”) except there is no limit to growth.

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