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Robert Kiyosaki and Multi Level Marketing Exposed As some regular readers know, I wrote about Mona. Vie, a multi level marketing company MLM, a few years ago and the post has received 6. Over that time, Ive come to learn quite a bit about the multi level marketing industry none of them good. Today, Id like to share some thoughts on the business of MLM and pair that with well known personality Robert Kiyosaki, co author of Rich Dad, Poor Dad. As you can tell from the title, this is going to be a little harsh on Kiyosaki, but keep in mind that Rich Dad, Poor Dad was major motivation for me to begin this blog. Why Robert Kiyosaki and MLM In my MLM articles like the aforementioned Mona. Install Apache2 On Solaris 10. Masters Programs Clinical Psychology Georgia more. Vie 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 does not. 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Autoship 9 2 Crack Mind' title='Autoship 9 2 Crack Mind' />Theyll read Rich Dad, Poor Dad and become greatly motivated to find their financial freedom. It isnt that simple. There are a few things that people should know, starting with Robert Kiyosakis History with MLMOne of things that many people dont realize about Robert Kiyosaki is that he got his big break due to MLM. This letter relates the story in detail. BSwloNmbM/hqdefault.jpg' alt='Autoship 9 2 Crack Mind' title='Autoship 9 2 Crack Mind' />A dark chocolate with the texture of milk chocolate, ChocoNuvo 74 combines the hearthealthy benefits of Dark Chocolate with Mother Natures most powerful and. Short version is that a top person at the MLM company Amway, Bill Galvin, found Kiyosakis book, Rich Dad, Poor Dad, at a car wash before it was published. In fact, Kiyosaki had trouble getting published. It was Bill Gavin of Amway who was able to pull the strings and use the MLM culture to get the book its best seller rating. Kiyosaki also sold tapes at 6 to tens of thousands of distributors. It is fair to say that Kiyosakis owes the MLM industry a great deal by embracing his products. In addition to the above, Kiyosaki joined Amway under Bill Gavin, but it appears he was a failure at it. Youll never hear him talk about his Amway rank or the money hes made from it. If Kiyosaki believes that being an MLM distributor is a good business opportunity why isnt he active in the business Finally, if you read Rich Dad, Poor Dad, youll see that there is no mention of MLM at all. FIFA-Manager-11-Patch_2.jpg' alt='Autoship 9 2 Crack Mind' title='Autoship 9 2 Crack Mind' />This makes sense it was written before MLM played a major role in Kiyosakis life. In fact, youll find that the philosophy of the book is to avoid liabilities, which would include most MLMs due to their required autoship policy. It is clear that Rich Dads advice would be to avoid MLMs for this very reason. 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. Robert Kiyosaki and the Cash Flow Quadrant. Many distributors dont know that above history. Instead they have just watched a video from Kiyosaki talking about his Cash Flow Quadrant. Heres one version of the video The video is big on marketing and it tells people what they want to hear Heres a way out of the rat race. Thats powerful motivation. A lot of people are apt to believe Kiyosaki. Who wouldnt want a solution their money problems The promise of passive income is appealing to just about everyone. However, lets examine the Cash Flow Quadrant in more detail. You might want to jump to 2 4. 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. Kiyosaki seems to claim that being an MLM distributor is a B in the quadrant. It is not. It is on the line between the E and S with the major disadvantages of both. Let me dig a little deeper and explain why. Why being an MLM distributor is an E in the Cash Flow Quadrant. Though it doesnt seem it, an MLM distributor is really an employee of the MLM company. In most MLMs, the company can fire the distributor by terminating their business at any time, for any reason just like any employee. If you look at S, B, and I, none of those people can be fired by anyone. Also, if the MLM company goes out of business, the MLM distributor has lost his job through no fault of his own. Employees have that same risk, but the other quadrants do not. 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. Why being an MLM distributor is an S in the Cash Flow Quadrant. MLM has some of the characteristics of being a small business. Distributors work their own hours doing as much or as little as they want. However, the MLM company strictly dictates how MLM distributors run their businesses. The MLM company restricts the avenues of selling the product as most wont permit sales on Ebay. The MLM company control the products that you have at your disposal to sell as most prohibit you from selling a product from another MLM company even if the products dont compete in any way. The MLM may even prevent you from having your own website to promote your business instead forcing you to use a cookie cutter website. This prevents the distributor from differentiating their business from their competitors other distributors of the same product. 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 9. One of the reasons why people choose a small business is because they want to call the shots and be in control of their destiny. The MLM distributor doesnt get to call the shots and the MLM company controls their destiny. Why being an MLM distributor is NOT an B or I in the Cash Flow Quadrant. The video explains that Bs are big businesses like Microsoft and companies with 5. Clearly thats not an MLM distributor. No MLM distributor has had an IPO. MLM distributors dont generally have employees. Maybe a few of the ones at the top of the pyramid have a couple of employees, but that is the exception and mathematically this is limited to something like. MLM distributors since they have to have thousands of people below them to make the money to necessary to pay an employee. The MLM company itself could be considered a B. Some have gone public. Money Remittance Software. If you were the CEO of Mona. Vie, instead of a distributor, youd be in that B quadrant. They are looking for the good system and good network in the words of Kiyosaki. For them, this system is to get a bunch of distributors, to work as employees Es, but use the small business Ss categorization to avoid paying them like employees. Instead they pay a very small number at the top well and use that as a carrot stick to lead the ass to motivate the distributor. Theres really is no I in this of MLM discussion because it is about investing in businesses that make money and thats not done in MLM. You can pay money to get started in an MLM business, but it is paying an application fee to start from scratch with no customers and no sales. That is not an investment in businesses.