In my last post I discussed the three kinds of business systems as outlined in The Cashflow Quadrant™. Today I am expanding on Network Marketing as a business model, simply because I think it is the best. I did not always think that, and in fact my opinion was quite the reverse – simply because I did not really understand the system.
In his book Robert Kiyosaki says he recommends this system for reasons that include:People can get into a Networking organization for very little money and invest “sweat equity”.
- People can get into a Networking organization for very little money and invest “sweat equity”.
- Many famous franchises cost a million dollars or more to buy.
- There are established systems
- Most good organizations offer education
- To be successful in business you need to learn to overcome your fear of rejection – network marking teaches you this
- You learn to lead people – another key factor in being a successful business owner
My additions to this list include;
• No asset risk (you don’t have to borrow against your house to start it)
• Virtually risk free
• No employees, premises, need to carry stock or debtors
• You support and train independent business developers
• Low overheads
• You can have true time freedom
• The business will eventually work without you
• Lifestyle choices
• And the most important – Residual Income. Money that you make while you sleep
• This residual income is willable – you are building a legacy.
In the book there are 5 criteria for choosing an organization:
1. An organization with a successful track record, distribution system and compensation plan that has been successful for years.
2. Have a business opportunity you can succeed in, believe in and confidently share with others.
3. Ongoing education for you to develop as a human being.
4. Have a strong mentor program.
5. Have people you respect and enjoy being with.
Robert says once these 5 criteria are satisfied then it is time to look at the product. This point is an interesting one, some people say the product is not important and others think it is everything. For me it is very important. I totally agree with his other criteria however I personally could not promote a product I did not totally believe in so for me it is up there with the other five.
Do you agree with the criteria Robert suggests? Do you think the product is important? I would love to hear your comments.