Friday, May 31, 2013

Why Join a Direct Selling Company

Direct selling or network marketing never appeal to me that much several years ago. I once thought of them as scammers. However, through time, witnessing the successes of many individuals and learning great products offered through MLM (multi-level marketing) companies, I was compelled to do a little study.

Robert Kiyosaki, the author of Rich Dad, Poor Dad and the inspiration among numerous groups advocating for financial education, believes that direct selling is the perfect business for people who are willing to work for it. Kiyosaki wrote an article discussing the benefits of direct selling. I will try my best to relay what I've learned in a concise manner.

In his book, Kiyosaki explains the cashflow quadrant.  The quadrants: E, S, B and I represents the four types of people who make up the world of business. Each quadrant is define by its source of income and its core values.

E stands for "employee". As we all know, this is for the type of people who are dependent of their salary. Whether the person is a janitor or the president of the company, this quadrant share a common core value, which is job security and benefits.

S stands for "self-employed" or "small business owners". They earn through commission, per project or per amount of time they spent in doing a job. Their core value is independence. They want freedom and they want to do things their own way.

B quadrant represents "business owner" defined as having 500 employees. Unlike S quadrant that wants to be the best in his field, B quadrant seek for the best people to join his team. People under this quadrant have powerful life mission. Concerning income, a  true B quadrant person can take a vacation or leave work yet still earning from his business.

Lastly, the I quadrant stands for "investor". They could invest in a lot of things like stocks, bonds, real estate, and businesses. Their core value is financial freedom. They let money works for them instead of they working for the money.

It is important to understand this cashflow quadrant to learn which quadrant gives more financial success. By simply looking at them it is easy to determine that the B and I quadrants gives you the best chance to become wealthy. Unfortunately, many people never realize that or they get trapped in their own values that they never move from their quadrant.

For an average person to enjoy financial success, Kiyosaki recommends starting your own direct selling company. Though he is not personally involved in one but through his study, he realized that direct selling company teaches the same business skills, principles, and mind-set similar to his "rich dad" who was actually the father of his close friend and his financial mentor during his early years.

He described direct selling as a revolutionary way of accumulating wealth. It can be a means of achieving financial freedom.

What is financial freedom? Financial freedom is different from financial security. As Kiyosaki explained in his article, people who wants financial security cling on their job or rely on their paycheck. The more secure you are, the less freedom you have. People who seek financial freedom developed different mind-set, attitudes, and skill-set. And like Kiyosaki, they show the absence of fear of being fired or worry about their paycheck because these do not matter. What matters would be opportunities and creating business.

Let me summarize the benefits of joining a direct selling company
  • Provides opportunity for all regardless of your educational attainment, work experience, how you look like, etc.
  • It teaches people to take charge of their destiny.
  • Gives real-life business training that would not experience from business schools.
  • Teaches you to build network and duplicate your efforts by training you to teach other like-minded people.
  • Provides you the support system to help you grow and succeed in business.
  • Letting you earn passive income, which is money coming in without you working on it.

Direct selling, however, only works to some people. It doesn't work for every one. At the end of the day, the decision has to come from you and your core values.

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