Why Does Robert Kiyosaki Call MLM or Network Marketing “Perfect Business.”
What is Network Marketing? What is MLM?
Great question; & one that many have a complex time explaining.
Did you know that in just a few hours a week, you can create a major second income that continues to increase over time? In fact, with persistence & commitment, this income could shortly replace your current full time income. It could even create a lifestyle of the rich & famous.
That is MLM.
What if it worked for you like it has worked for so many others, including me?
When was the last time you recommended a satisfactory book, restaurant or movie to a friend? How often do you do that? Probably pretty often, right?
But, when was the last time the publisher, restaurant or movie producer sent you a “royalty” check for the referral?
Well, despite the way things usually are, the idea behind what is now the fastest growing home based business trend in America & around the world, Network Marketing, is that if you obtain paid for recommending things you like, use & believe in, you’ll do this more & more! And, you’ll probably find some others that want to do the same thing.
That’s it in a nutshell.
Take approximately 20 minutes & watch a movie that explains thoroughly what Network Marketing >>>>>
What if you found a tremendous product or service & you loved it so much you decided to go into business marketing it?
You earn a small commission for the ongoing purchases of those you pertain to this product or service, & you’re moreover paid a small commission when you introduce this concept to others, & they pertain people.
Pretty ingenious, huh?
And, the best part is that this concept can create true, passive, residual income for you & your family. And, you can touch the lives of hundreds & even thousands of other people.
Many people just don’t understand the concept of Network Marketing. Let me explain the way this works & then think approximately this a little as you evaluate your options within our industry, or, as you explain the concept to others.
The concept of Network Marketing consists of three major components.
TIME LEVERAGE RESIDUAL INCOME SYSTEM OF DUPLICATION
This is the ability to obtain paid month after month on the work that you do one time.
A satisfactory analogy that you are already familiar with is the franchising industry. In franchising, the franchisee, or one who purchases the rights to do business using a well-known business name such as McDonald’s, pays a royalty fee every month to the franchiser, or parent company. It’s always a percentage of the profits earned.
The parent company, or McDonald’s, has incredible time leverage. The more McDonald’s stores they have around the world, the more money they make.
But, the parent company certainly doesn’t do all of the work. If they have 5,000 stores, each open 18 hours a day, 90,000 hours are worked daily on their behalf.
The concept works in much the same way with our business system, except you don’t have to pay a royalty fee each month!
For instance, let’s say you start your own Network Marketing business & commence by investing five hours per week into your business. You introduce your business system to Mike & commence working with him. He moreover puts five hours a week into his business. You now have 10 hours per week working on your behalf, although you are only putting in five hours yourself.
If you & Mike each bring in a new partner, who each commit to five hours, you will shortly be benefiting from 20 hours per week. Remember, your actual time involvement is only five hours each week.
By the end of the first month, you have forty hours each week working on your behalf. At the end of the second month, over 640 hours will be invested into your business each week, yet not all by you. You are only putting in five.
Do you see the beauty of time leverage?
In network marketing, we are paid for opening “outlets” & teaching those “outlets” to be successful.
And, remember, franchising was thought to be a scam in the ’70s, when it first began.
Now, let’s talk approximately residual income.
This is the ability to obtain paid over & over for the work that you do one time. It’s moreover called “royalty pay.”
There are very few businesses or industries today that pay residual income.
Musicians, authors & insurance sales people are a few professions that do earn a residual income.
If you were to write or record a popular song, each time that song played on the radio, or a CD was sold, you would receive a commission, or royalty payment.
Residual income in Network Marketing is income you continue to earn based on efforts you put forth initially. This income is based on the sale of products & services. And, these products must continue to generate repeat sales.
This is one reason why “consumable” products are the most effective in Network Marketing. Consumable products are those items that are bought, used up & then replaced, over & over again.
If you are marketing a product that is a one time purchase product, you will have a harder time generating residual income.
Residual income is desirable in Network Marketing, because this is what allows you to put forth a lot of effort in the beginning, & reap the rewards of that for months & years to come!
And, by building an organization of people working toward a usual goal, you can ensure a strong residual pay-out that will last for years. This is why it is significant that you understand this pay advantage, & invest your effort, energy & time in other people.
Earning residual income requires a few things – first that you take action to obtain momentum going in your organization.
Second, you continue building on that momentum, & teach others to do the same.
Finally, you learn & develop leadership skills that will provide the foundation that supports your entire organization.
People follow people, & leadership skills are developed. Leaders are created, not necessarily born.
In the beginning, you have the “privilege” of working lots of hours for a little pay. In the end, you have the “joy” of working little hours for lots of pay.
People ask me all of the time how much I made my first month in the business. The answer is – “I don’t know. I don’t know because I still obtain paid each & every month on the efforts I put into that very first month.” That’s the power of residual income!
Get started & then build on your efforts each & every month. Be a leader of others & watch the residual income roll in.
Duplication & Geometric Growth
Finally, we are at DUPLICATION AND GEOMETRIC GROWTH.
Another thrilling concept, & probably the most thrilling concept!
Have you heard the “Penny a Day” story? This is a satisfactory illustration to obtain you thinking approximately the power of this geometric growth.
Let’s say you start on the 1st day of the month with 1 penny in your bank account. Now, you are going to double it every day for the rest of the month.
Any guess approximately how much you will have in your account on day 30, or, day 31?
Well, here you go –
Day 1 – 1 cent Day 2 – 2 cents Day 3 – 4 cents Day 7 – 64 cents (hmmmm) Day 14 – $81.92 (getting a little more interesting) Day 21 – $10,485.76 (getting A LOT more interesting!) Day 30 – $5,368,708 (I’m unquestionably interested!)
and you can do the math on Day 31!!
See the power of geometric growth & duplication?
Duplicating yourself means teaching someone else to do what you do. When the two of you each teach another person, you duplicate it again, only twice. And so on, & so on, & so on!
Now, I am not trying to say your business will grow like that daily. But, what if it followed this pattern over a 5 year time span?
Network Marketing success (I mean six figure incomes) typically take two to five years to grow. Plan on that!
(Remember that shampoo commercial approximately telling two friends, who tell two friends? I know, I am dating myself, yet that truly is what we do!)
That’s Network Marketing!
Take a Look At The Business That I have built over the years.