Robert Kiyosaki and Network Marketing Systems

Robert Kiyosaki talks about in his book Rich Dad, Poor Dad that there are four quadrants each of us needs to choose from.

There is the E quadrant (Employee), the S quadrant (Self-Employed), the B quadrant (Business) and I quadrant (Investor). If you are self-employed as a coach, consultant or trading “time for dollars”, you are in the S quadrant. However, to really leverage your time and create leveraged income in your business, you need to be in the B quadrant.

Short of inheriting several million dollars, most people feel that creating a B quadrant business with hundreds of employees, a large office tower and having a massive corporation, is impossible. Not true. Here’s why.

According to Robert Kiyosaki, here are the specific qualities of a B quadrant business:

1. Leverage: Can I train other people to work for me?
2. Control: Do I have a protected system that belongs to me?
3. Creativity: Will the business allow me to be creative and develop my own personal style and talents?
4. Expandability: Can my business grow indefinitely?
5. Predictability: If I am successful, and keep expanding my business, will my income increase with my success and hard work?

Kiyosaki says that the B quadrant qualities of network marketing qualify it for the list. Here’s why.
In network marketing, people have the ability to build what is known in the industry as downlines. A downline are people who leverage your time and energy. They duplicate your efforts and for that, you get rewarded monetarily. So no longer are you trading time for dollars. You may invest in a person, train them, help them get established and they can continue to earn you money for years to come.

Many network marketers have built powerful teams and basically “retire”, possibly building other B quadrant businesses or going on to live the life of their dreams. What is impossible in the S quadrant becomes very doable in the B quadrant as you are no longer trading time for dollars with no leverage.

You have the possibility of creating financial freedom through the systems available in Network Marketing. People with no degree or formal education, severe health issues, single parents and even people with language challenges can succeed in network marketing. This is an arena where anyone can go for the gold – literally! There are no glass ceilings, no limits and no time constraints.

It´s true that entrepreneurs learn to get more money for their services than an employee. In the S quadrant, you will charge more for your services than someone in the E quadrant who is used to being paid a wage or salary. However, even better would be to leverage your income by duplicating yourself through MLM.

In most cases, with a small investment of less than $500, you can buy the opportunity and the system to build yourself a B quadrant business. Some people earn high 6 and 7 figure incomes in network marketing within 5 years of starting their business.

I don´t know many jobs that allow you to do that and I know few entrepreneurs who reach those levels of financial goals. As a matter of fact, I recently heard on a teleclass with a millionaire that, according to her findings, less than 6% of Americans earn a six-figure income, and less than 1% make more than $365,000 a year.

If you thought that only the Dells and Microsofts of the world, the Virgin enterprise or even the local grocery store chain qualify as a B quadrant business, think again. When you consider that the most important element of a B quadrant business is that you own a SYSTEM to create income, then it´s prudent to seriously look at how you can grow a B quadrant business through network marketing.