What you need to know about Network Marketing?

This is coming from my recent reading, “Business for the 21st century”.  This is aimed at giving a summary of what the book suggests. Interested readers,‘Go on’.  For the rest, ‘Sorry to disturb you man’.

Robert Kiyosaki is one of the few people I really admire. Be it his ‘Rich Dad’ series or other books on business, none fails in communicating his passion and perseverance for his job.

According to him, each person falls into one of the following four quadrants,

  1. Employed: It denotes somebody like me working at a respectable company earning a monthly income and saving some part of it.
  2. Self-employed: It could mean a freelancer who is not really working for another company but for himself. This means that now his boss is his own self.
  3. Businessman: These are people who do business.  The difference between businessman and self-employed is small. A businessman has power over his source of income and it keeps coming even when he is working or sleeping (of course after a certain stage). For a self-employed person, the income stops as he does.
  4. Investor: This is a person who invests his earnings in order to get maximum return on his investments.

Each person has a mindset which makes him do what he does. An employee is a person who aims for security, self-employed people aim for independence, businessman aim for wealth building and investor aim for financial freedom. Wealthy and being rich do not mean the same thing. Being rich means owing a lot of money but being wealthy means owning enough that you live to the standard you aim to, till the date you want to without worrying about going to work.  Not every wealthy person is rich and not all rich people are wealthy.

Robert then shares what it takes to be an entrepreneur.  As he says, “It takes courage to discover, develop and donate your genius to the world”.  As per the statistics he shared, “It takes approximately $5 million to build a business, 90% of which fail in the first few years and every new business takes at least 5-10 years before the founder receives his first paycheck”. Phew! That’s asking too much.

What if I say that you do not need to start from scratch? The groundwork is already done for you. This is what network marketing exactly does. What do you think of an advertisement where one person sipping tea asks her neighbour to take that tea daily for good health? What happens when somebody comes to you for recommending a good toothpaste brand and you say ‘Colgate’ and then that person recommends the same to his friend who then shares it with somebody else initiating a chain reaction (as per any chemistry guy)? In terms of Robert, it’s called ‘Metcalfe law’, the power of multiplication.  You share something with 2 people and if they do it exactly the same way and this process goes on say for 10 times. There are already 1024 people who know about now. Whoa! It is quite a good number.

This is called network marketing.  Every advertisement where one person is recommending something to another person is trying to do just that.  ‘Why pay commercials such huge money?’ thought some smart businesses.  Why not distribute the money among people and let them do on the floor what they are trying to communicate through televisions? This gave birth to network marketing.

Network marketing as everybody things is not selling things. It is developing a network of people who share your ideas and values and trust in something with as much passion as you do. In network marketing, you are the source of contact for somebody interested to know about that thing. You represent that thing and most important of all, you believe in it.

Network marketing as Robert says is not a salesman job.  It is not a job where greedy could survive and it is not a job where ‘I can do it alone’ people can win the game. It’s the business for people who love talking, who love sharing and telling stories and who like people to grow with them.  More than above, Robert shares the eight assets you earn in the process of involving yourself into this business.  They are,

Asset 1: A Real-World Business Education: Mukesh Ambani dropped out of business school because his father told him that it’s not science. If he has to learn the business, he has to be in the playground.  This is what network marketing do. It provides you with real-world business education right as you pitch into this business.  No kidding, this like any other business needs a lot of time and effort to be successful.

Asset 2: A Profitable Path of Personal Development: Do you shy about talking to people, failing or hearing people saying ‘No’? This business is then exactly for you.  To be successful in this business, you have to be outgoing, an excellent communicator, a storyteller and a person who rejoins in rejections and learns in failures.

Asset 3: A Circle of Friends Who Share Your Dreams and Values:  It is an excellent opportunity to circle yourself with people who share your vision.  As Robert says in his book, you are the sum of the people who surround yourself with. 

Asset 4: The Power of Your Own Network:  In terms of Robert, “The power is not in the product, the power is the network”. An excerpt from books puts it perfectly, ‘

From the shipping magnates and railroad barons to Sam Walton, Bill Gates, and Jeff Bezos, the great fortunes of the world have been made by those who figured out how to build networks. Sam Walton didn’t manufacture goods for people; he built the distribution network that delivers the goods. Bill Gates didn’t build computers; he built the operating system that ran on those computers. Jeff Bezos didn’t go into publishing books; he created the online network Amazon that delivers those books.’

Asset 5: A Duplicable, Fully Scalable Business:  Why can’t salesman be excellent network marketers? They do not know how to replicate themselves in the other person.  This is the beauty of network marketing.  You can replicate yourself innumerable times in terms of your network.  McDonald’s did not seek people with a high level of expertise.  Instead, it developed the expertise right into the operation and in this way replicated itself so much that it is now present in 120 countries with more than 30000 restaurants worldwide serving more than 60 million people every day. This is the power of duplicity and scalability.

Asset 6: Incomparable Leadership Skills: More than above, it is not a business where you are earning and growing yourself.  It’s a business where your job is to help others grow and learn every day, be a teacher to your network and therefore build leaders for the growing network.

Asset 7: A Mechanism for Genuine Wealth: As you grow your network, so you grow you’re earning and as you earn and reinvest, earn and reinvest, you are building wealth.  This wealth, after you have built your network, will not depend if you are on office or a vacation, sleeping or playing baseball, the money keeps coming.  This is the power of genuine wealth creation. 

Asset 8: Big Dreams and the Capacity to Live Them: And yes, if you have all the above, you will have time to live your dreams and be free of the scary mornings where you brush up, go to the office, come home, sleep and again do the same things.  You will then go office because you want to and not because you have to.

I am not a promoter of network marketing business nor do I own one myself.  The idea of sharing it is the revolutionary shift in the culture where people step on each other to rise up the success ladder.  In this business, you will fall right on your back with this attitude. You can only grow together which makes it so great.

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