Robert Kiyosaki, the famous author behind the Rich Dad, Poor Dad series of financial books has talked about network marketing as one of the most perfect business models on the planet. 

But why has one who has never been involved in network marketing seem to endorse it as a good business model? Some may claim that this is a hypocritical endorsement, but in reality, Kiyosaki’s findings are founded on solid business building principles and are hence, are valid observations. 

To understand what he means by a perfect business, you must understand the background of the E, S, B, I quadrant. 

E stands for employee, where you are under legal employment working for an employer getting a payroll. Kiyosaki claims that most employees are stuck in a rat race, where the employee constantly working to pay off his debts to the government, the taxation institutes as well as the banks. He finds that there is little freedom and to exit from the rat race, you must progress into the different quadrants. 

S stands for small business. He quips that it stands for solo businessman as well where in order to do things right, you gotta do it yourself! This quadrant of businessmen rarely leverages on others because they not only have the responsibilities of a business owner, they often need to double up as the worker and sales rep, the customer service rep and sometimes, even the delivery guy! 

B is the quadrant Kiyosaki wants to get people into where you run a BIG business by leveraging on people ‘under’ you. 

Lastly, the ‘I’ quadrant is where big business investors wind up. They use their money to earn MORE money. Kiyosaki describes the network marketing business model as the perfect business simply because he believes that you can easily jump from the ‘E’ quadrant directly into the ‘B’ quadrant without going through the hardships of the ‘S’ quadrant. 

When you start a network marketing business, the most important skills you will learn are business skills. Skills such as managing people, understanding the needs of your customer, how to invest your time and money wisely and lots of self-improvement, mindset changing awareness that will take your business skills to the next level. 

The most important aspect about being in a network marketing business is that you get to learn all these business skills at a very low investment (a couple of dollars to a few hundred dollars worth of product investment), the guidance and believe of a mentoring upline, and all the time in the world for someone to develop those business skills. After all, not everyone’s attitudes are alike. A network marketing business will help you to build those skills even if you are a slow learner – because you don’t have to worry about huge rental or inventory costs unlike a traditional business in the S or B quadrant. 

The facts indicate that what Robert Kiyosaki says is valid and true about network marketing indeed, being the perfect business.

By: Robin Rushlo