Today I would like to share with you a video of Robert Kiyosaki, entrepreneour and self-made millionaire. His Cashflow Quadrant message had a profound impact on my thinking of money and people. As you will see on this video there are many ways to earn income and build wealth. I would like to review one in particular Network Marketing. I know what you are thinking right now, SCAM!. Well, Network Marketing like any other business model has its validity and I will share with you my views on it.
I had my first experience with MLM industry back in 1989 when I was in the university and I was presented this wonderful business that would make rich overnight. As you can imagine it was a total failure and I lost my initial investment. I have discarted all MLM since then and considered them scams myself, so I understand your feelings when people talk to you about MLM. Then a couple of weeks ago I was approached again with another network marketing opportunity. Now older and wiser I decided to study the reasons why many time people fail at this business model and the validity of the model. Based on my observations of the reasons why people fail on the Network Marketing Business Model are:
1. The choose the wrong businesses to promote. Not all of the networking marketing programs are designed equal. They do not do enough research about the company and the products before they get involved.
2. Lack of understanding of how the products work. You do not have to be an expert of the molecular composition of the products you are selling. I think you need to have a clear understanding of the benefits of the products and why the potential customer should buy this product as opposed to the competition. For example, become a consumer of the products first. Become a believer of the product before you sell it to others.
3. Lack of understanding of how the compensation plan works. After all we are doing this to make money, we all need to understand how we will be compensated for our efforts. I have read the last couple of days many MLM Hate blogs and websites, criticizing the fact they did not make the money they expected, blaming the company of lying. I am certain that many of them did not ask the right questions and did not have a clear understanding how they were to be compensated. It is easier to blame others for our failures than accept responsibility for our actions.
4. Unrealistic expectations. People get excited at first with the illusion of becoming a gazillionaire in 30 days and dreaming of the new car you will be driving. Like any business, network marketing requires faith, effort, desire, dedication, passion, and perseverance.
5. Lack of business skills. When you start a network marketing business, the most important skills you will learn are business skills. Skills such as managing people, understanding the needs of your customer, how to invest your time and money wisely and lots of self-improvement, mindset changing awareness that will take your business skills to the next level. You need to work at improving your skills to become successful at it.
6. They do not want to spend time on the business. They want everything to be digested for them, the work to be done for them, and to be compensated to do nothing. Please be real, if someone sold you that idea of the “Lazy Man Get Rich Quick Program” and you bought it and failed at, it you deserve it.
7. Thinking that MLM is easy. Once again, network marketing is simply a business model that facilitates your success.
Robert Kiyosaki, the famous author behind the Rich Dad, Poor Dad series of financial books has talked about network marketing as one of the most perfect business models on the planet. But why has one who has never been involved in network marketing seem to endorse it as a good business model? When he first heard about network marketing, he was against it. However, after opening his mind, he began to see the advantages of the business model. Some may say that this is a hypocritical endorsement. I found that Mr. Kiyosaki's findings to be solid business building principles.
I invite you to see the video and make your opinion about it. I would like to hear your opinion about the information on the video and your thoughts of network marketing.
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