Monday, October 3, 2011

The Other Side of Network Marketing Business

In his book "Rich Dad Poor Dad" and "The Cashflow Quadrant", Robert T Kiyosaki, said two type quadrant of peoples can make money, the left quadrant and right quadrant. To know more clearly about left and right quadrant, you can purchase the book at the local bookstore. The point that I want to highlight through this article is whether to build a business empire with network marketing system (right quadrant) can guarantee your financial condition 5 or 10 years a head.

network marketing business
This article is a purely personal opinion and does not intend to discredit certain parties. This article looks at a network marketing business from the other side.

According to Kiyosaki, the fastest way to build a business empire is to join a network marketing business. Easy, small capital and supported by systems that have been tested are some advantages of network marketing model.

 Many people are tempted by the bonus offered by network marketing companies, but few of those who work hard to get maximum results. This pattern eventually led to a negative impression for the network marketing business. I often find some network marketing company developed rapidly within 1-2 years, but then slowly distributor leave it.

The distributor’s leader then diverting all the people who joined in the network to other fresh companies to make more benefits. The question now is what if you are a person who is under the system of network marketing aka you are in the lower position. Of course, you are a "victim" of a network marketing system.

Robert suggested, you must have your own network within 5 years and generate passive income every month that can meet your daily needs. In other words, if within 5 years you cannot generate passive income through network marketing business, then leave it and find another.

Robert's theory seems does not work well when there is a group of distributors who take advantage and disadvantages of network marketing system, active distributors. Imagine if you are a distributor who led 5000 active distributor and you can freely move them to jump from one company to another company. You must be rich.

The behavior like this can be boomerang for a network marketing business. Network marketing business should running consistently in order to generate passive income rather than short-term income. Look at closely where you join the network; do not be stuck with pattern distributors “ticks” that just want to make quick profits.

image courtesy knowledgebringsmoney.com

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