Robert Kiyosaki, author of Rich Dad Poor Dad and New York Times bestselling author explains the cash flow quadrant, has shared his revolutionary wisdom with millions all over the world. So, why is this relevant? Well, as we all know, online network marketing can be a very lucrative type of marketing when you’re committed to the journey.
The story of rich dad poor dad is really a story of two different fathers with two different sets of values and completely different sets of advice. Robert explains that his poor dad would encourage Richard to get good grades in school and therefore a high-paying job whereas my rich dad said that following those values will help very few people get rich.
His principles are very simple but incorporating his ideology into your network marketing business plan will send you on your way to success!
Understanding the cash flow quadrant
The cashflow quadrant, shown to Richard by his rich dad, is made up of the four different people who make up the world of business.
The four types of people include:
- E – employees will always say they are looking for a safe and secure job with benefits.
- S – small business owners or self-employed individuals believe in operating by themselves.
- B – a big business of 500 employees or more who are looking for the smartest people to run their company.
- I – investors have people work hard for them.
Richard’s poor dad had core values of an E or employee, as he believed you should work hard and have job security, whereas his rich dad believed that you should only work hard for something you own, therefore his core values aligned with B and I.
That’s one of the big differences of the quadrant. On one side these people work for security and on the other side, these people want freedom. Where online network marketing is concerned, creating a lifestyle that you’ve been dreaming of and building passive income means you need to think like a business owner or investor.
Can you achieve passive income with network marketing?
The beauty of building a business and learning how to invest, is the passive income that you can generate. One of the reasons that Robert considers a direct selling business like network marketing a perfect business is because the company will work with you to get the business skills you need to become rich!
It’s not money that makes you rich, it’s the skills you have. Being consistent is a major factor of any successful network marketing business plan and part of that is bettering yourself in any way you can. According to Robert, network marketing offers a win-win scenario – low start-up costs and lifetime skills.
Online network marketing is not a get rich quick scheme, far from it. If you’re genuinely motivated to achieve passive income that will change your lifestyle, starting your journey will open your eyes to the possibilities of the industry. You’ll have the time you need to change your values, as explained in the cashflow quadrant, from employee to business owner.
Changing your mindset
Mindset, mindset, mindset is something I always tell people when they ask about how to succeed in network marketing. For Richard, he focuses on the importance of changing your values and overcoming the hurdles that you will ultimately face in the beginning. Incorporate the four main beliefs of network marketing into your mindset and start thinking as a go-getter!
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