Robert Kiyosaki All Books
Denisha Padley
In my MLM articles like the aforementioned MonaVie one and my Nerium one, many MLM supporters say that Robert Kiyosaki is a big supporter of MLM and that justifies getting involved in MLM as a distributor as being a sound business choice.
It seems to be that Kiyosaki and MLM have a symbiotic relationship. The MLM industry provides Kiyosaki with a steady set of customers for his products; Kiyosaki provides the MLM companies his support that it is a good business venture.
Kiyosaki describes the Cash Flow Quandrant as having four areas: E, S, B, and I. These are the four types of ways people earn income. E is for employees. S is for small business owners or specialists (doctors for example). B is for big businesses. I is for investors.
With MLM, distributors get all the disadvantages of being able to be fired at the drop of the hat without the benefits of a steady income and or benefits such as health care and disability. In addition, the distributors are required to pay for their own training by buying various tools and going to conferences.
In some ways, the distributor is able to determine his income, but this is greatly limited to the mathematics of the compensation plan that in almost every case dictates that 99% of people will lose money.
When it comes to his businesses it seems that Kiyosaki is scamming people himself. This investigative report shows that Kiyosaki has free seminars designed to get people pay more for expensive training (classes that cost up to $45,000). Part of that training included asking people to raise their credit card limits, which Kiyosaki admitted was poor advice.
In the mean time, I was searching around the internet and found an article pointing out many of the issues you bring up. I was reading through a few comments and ran across a defense of Kiyosaki from Lazy Man and Money (comment #18).
-robert-kiyosaki/
I did not want to scam anyone else so I stopped immediately. And I was setting up an Online sales funnel that had the potential for me to bring a lot of people into my company (which has a very high start up price). It makes me sick to think about how many people could have been scammed. :/
There are many, many real world cases where we rely on external perspective instead of real life experience. If someone were say that the ramifications of jumping off a bridge generally involve serious injury or death, would you ask that person if they have real life experience of jumping off a bridge? No, you would use common sense from an external perspective and evaluate the ramifications before being a part of it.
You want to have understood about MonaVie MLM?
Your article proves that you have not MLM itself (business model, business law) nor the practical reality of the MLM industry understood nor the approach of Kiyosaki.
Only the completely false statement that contractors are employees of MLM businesses is absolutely wrong and absurd. And so there are many more with misrepresentations. A poorly researched, journalistic miserable article without value
I do quite well for being Lazy. Being smart can often trump working hard. If I can succeed by being Lazy, imagine what you could do if you combined your work ethic and making smart decisions (not getting involved in MLM which associated with pyramid schemes in which 99% of people lose money).
I read rich dad poor dad also and I believe its quite a good book. Its not really a formula.on how to invest or how to make money, the book will just give you a generL idea about financial management.
Here is what I get from MLM: Distribution of products, marketing, sales, flexibility, hard work and the zeal to work on my own business outside of MLM. I see it as another way to do business if individuals in the industry are just upfront with how these businesses operate.
Many MLM companies state that we are business owners. However, I believe that consultants buy in to companies where the one to the top makes money off the ones to the bottom just like all other organizations out there.
I enjoyed the book, because I like freedom in working for myself and not being caught up in the rat race. My 18 year old son said to me that not everyone who goes to school and work hard on 9-5 is in the rat race. We actually know people who work hard and live really well.
Pretty cool kid. Kiyosaki can be motivational, which is great. Rich Dad, Poor Dad was even partially responsible for me starting this blog. However, once you learn a little more, you realize that he simply gives terrible advice as it has been well-covered in the media.
Apart from the fact that RDPD is unvarnisch BS, still MLM does not belong anywhere on the diagram, it is not something that holds a middleground, or even combines the worst of both E and S categories. Unfortunately, it is simply a financial fraud (pyramid scheme) disguised as a direct sales business. It does not even belong in a discussion about business. Hilarious that he got his popularity via Amway.
In short I do believe the right MLM (and by right I mean, legal and ethical) can open a few doors for you, but it is not by any means THE way to get rich and or financially independent, but done right, it can be really helpful both for you and anyone you recruit.
3) I have yet to see a discounted product in MLM. Usually the product is a lotion or potion choosen purposely because it is of subjective quality. The pricing is 5, 10, even 20 times MORE than something else of similiar quality. The person joining the MLM may save 25% off that higher price, but then is still paying 3,6, or 15 times more than they should.
I started this blog nearly 10 years ago after reading Rich Dad, Poor Dad. I realized later that it only had about 3 pages of substance, the ones talking about assets and liabilities and putting your money into assets to buy freedom. I think it 60-62 in my version of the book.
In fact even comparing MLM to small business in any way is erroneous because an MLM distributor owns precisely nothing. The MLM can close; revoke a distributorship arbitrarily; or simply change the terms of the deal at will. The MLM participant has zero control.
If I had not been open to network marketing, I would be like most people out there: broke and settling for living paycheck-to-paycheck, barely getting by. That would have been with two college degrees and no debt from that huge financial investment.
I truly love the products and the company. This company does more good for the world than 99% of businesses/people I know. That is a big part of why I love this company. I was a teacher for 18 years and witnessed more corruption, abuse, and unethical practices than I have ever witnessed elsewhere. Ever hear of the Common Core? People are making millions of dollars off of this scam and off of our children. Why are people not in an uproar about that?
I quit my teaching job after 18 years. I did not even bring home 3K a month take-home pay at the top of the pay scale with a Masters degree. I also worked 50-60+ hours a week and missed out on time with my own children.
Just know that not all network marketing companies are that way and that there are many people who have done well. They have steadily worked at it, though. You cannot sign up and expect to make a full income in the first 90 days. Maybe part of the problem is people treat a network marketing business as if they are an employee. Too many people have the employee mindset instead of a business mindset.
LOL, I do know what you are referring to, but please use the correct terminology. Network marketing is when NBC/CBS/ABC shows you a commercial. Or it could be me marketing a product my network of readers. Neither is an MLM, which is the topic of this discussion. Your MLM must not have educated you well.
He does not praise the MLM industry as much as he touts the training system that some of those MLM companies have. He never said join an MLM to get rich. He says to join the MLMs to get involved in their training programs to help teach you how to run a B type Business.
Just like any business opportunity, most are crap. Game stop and block buster come to mind. But just because there is a lot of crap ideas in that business space you cant just rule out the entire industry. The industry has some of the best business training you can ever get.
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