The Business School

This man, Robert T Kiyosaki needs no introduction. Below are extracts from his infamous book...

Quote:

“The richest people in the world look for and build networks, whilst majority of the people look for work.”


Quadrant

In this book, Kiyosaki identified four teams of people, comprising

+  EMPLOYEE
+  SELF-EMPLOYED
+  ENTREPRENEUR
+  INVESTOR


The diagram shows the left group represents individuals working on own efforts whereas the right group operates as a team, forming their own networks for increased results.  Based on one’s own ability and time to perform has the disadvantage on income potential as compared to the latter group which can witness infinite wealth generation tapping on other people’s time, monies and efforts.

Network marketing

As it is difficult to move away from the EMPLOYEE and SELF-EMPLOYED status, one can remain in both quadrants and start a part-time business in the BUSINESS quadrant.  Network marketing is a viable option given the low cost entry and time flexibility.

To most employees, a regular income offers financial security and to most self-employed, it is the fear of not trusting other people that keep both groups trapped in their quadrants. For them, working for months without getting paid is unbearable.  Risk and delayed gratification disturb them emotionally. Thus, they need security badly and would only look forward to joining a well-built and successful business.

Firstly, choose a good networking company which should not come with a fabulous compensation plan or fantastic products only.

To be in the industry for a long time, examine its education plan and be ready for lessons.  Also check the credentials of the management if they have been successful in the real world.

The next step is picking the right mentor to take you through from the left to the right quadrant. Do not look for mentors who are only capable of developing sales skills (similiar in the Self-employed quadrant) and not in the total business concept to succeed in this area.  This is in line with most networking companies’ expectations to engage distributors in high pitched sales for aggressive growth.

At the company level, a good training system prepares you for a meaningful life not just from making more money.  The areas to cover should include:

1.  Emotional education - encourage you to make mistakes, correcting and getting smarter mentally and emotionally.  The leader’s focus is to work with those who are not doing well and encourage them to move up, not fire them.
2.  Physical education – take you by the hand and guide you to a life beyond fear and failing.
3.  Spiritual education – learning to speak from your own spirit and not emotions, thus surpassing our emotional, mental and physical limitations.

A successful system should incorporate great values like-

1.  Encourage you to leave the nest rather be a loyal employee;
2.  Have a program to support you during the period of fear, doubt and frustration;
3.  Driving force to follow mentors who have made the grade;
4.  No pressure of being fired and allow flexibility to work at a pace best suited to you;
5.  An urge for you to make it to the other side.

Pitfalls to avoid

+  Network marketing is more than direct selling or heavy use of words.  It should involve communicating emotions more than words.  In fact, an effective one-to-one communication should be 10% words, 35% emotions, 50% visual (or physical) and 5% variables.  As first impression counts much, be the healthy and physically attractive person for a better chance of securing a deal.

+  The expense of building a Business goes far beyond just money.  The trouble with most people moving from Employee/Self-employed quadrant is impatience, after failing to make money in the first few months or early years, and bad-mouth the industry. Statistics showed that for most people to realise the potential of networking, work assiduously for the next 5 years.  Learning and unlearning are physical processes that take longer than just mental learning.  This emotional learning curve first moves down, before heading up.  Most people are not successful in life because they are not willing to go through this period of personal doubt and emotional frustration.

Why Business/Investor works

+  In terms of asset acquisition, Business works to build whilst Investor works to acquire.  In return, both make the asset works hard to pay back to acquire more assets and get richer.  On the other hand, the Employee/Self-employed work hard for money and acquire liability instead of investing in asset.  In totality, the first group invest out of their surplus funds while the second group invest by borrowings.

+  The people in the Business/Investor quadrant fully understand that leveraging on others’ resources make the huge difference to success.  In network marketing business, they have to help others to be successful too.

+  Business and Investor have a choice when come to paying taxes by channelling surplus funds into investment vehicles for tax avoidance.  Employees do not have the choice and have little left after taxing to invest.

Pyramid structure

The traditional corporate system is ironically a pyramid because there are few Businesspersons and Investors at the top and a broad base of employees.  A networking system is a reverse pyramid, which means its primary focus is to bring up more and more Business persons to the top.

Who are suitable for networking business?

Those who dare to dream big and dare to take challenges are potential candidates.  Most people stop dreaming because dreams cost money.  Hence, poor people have given up dreaming.

Different types of dreamers-

1.  Dreamers living in the past
2.  Dreamers with small dreams
3.  Dreamers who have achieved their dreams and not set a new dream
4.  Dreamers who dream big dreams but do not have plan to materialise
5.  Dreamers who dream big dreams, achieve those dreams and go on to dream bigger dreams

The last group of dreamers have a strong core value of security.  They tend to see the 95% that fail and see the 5% that succeed in networking marketing system.  It is observed that these people are usually gifted with leadership quality and have high emotional intelligence, thus faring better than those with high academic intelligence but low emotional intelligence.

Leadership

One of the biggest values of a networking marketing business is the leadership training you receive that provides the education, time and opportunities to develop the most important business skills necessary for success in the Business quadrant.

In the Self-employed quadrant, the head of the business is often the smartest person.  However, in the Business quadrant, leadership skills are important simply because the Head has to deal with people who are much smarter, more experienced and more capable than he/she is.

Money always flows to the leader.  If you want more, simply become more of a leader!