I'd like to offer A synopsis of the book by Robert Kiyosaki—The Business School
Chapter 1 Rich people build networks--All others work for a living.
The author begins with an example of the story of Thomas Edison—who did not invent the light bulb but did establish a system to allow you and I to use the light bulb—he built a network of employees, electrical lines and relay stations that made the light bulb commercially viable –that network was called General Electric. He understood that the system or network was more powerful than the invention itself.
Chapter 2-- There Is More than One Way To Become Rich
The 10 traditional ways to become rich:
1) Marry into money
2) Inherit money
3) Be cheap—save all you can
4) Hard work-over the years
5) Be gifted/talented/beautiful-movie stars
6) steal the money
7) lucky—lottery/gambling
8) investing—have money and knowledge
9) greed—Enron, etc
10) build a traditional business
Kiyosaki states there is an 11th way—build a NWM (Network Marketing) business
And he notes that the common thread of the 10 above ways—all have one person as the one who becomes rich—YOU
In NWM –you focus on helping others become rich-you cannot do it without
helping others—the perfect business model that you cannot cheat others!
Chapter 4 Life Changing Business Education
It is not about the money (compensation plan) nor the products as it is more about
changing your core values and therefore lifestyle. The number one reason Kiyosaki
recommends a network marketing business is for its system of education. It is a
real life business school as skills will make you rich—not theories as taught in a
traditional business school. All the traditional schools teach is the skills to be a good employee. Such is the reason this book is titled The Business School For People Who Like Helping People.
The author noted that the successful leaders in NWM have been trained to develop this ability to speak to the human spirit. They inspire you to be better than you are-To reach for higher goals that are attainable in a NWM business that are not there otherwise.
Chapter 5 Change Your Quadrants-Not Your Job
Kiyosaki draws out a formula that has 4 quadrants. He said his ‘rich dad’ told him that you will know which quadrant you are in from how the cash flows to you.
The quadrants are as follows:
Receive a regular paycheck from a business you do not own then you are in the ‘E’ quadrant - for employee who strives for security-
Receive your income from a commission or from each client or patient job—you are in the ‘S’ quadrant - for self-employed—strives for independence (lawyer, accountant, doctor, real estate) An S quadrant person is the smartest person on a small team.
‘B’ quadrant -- Receive an income from the business you own and has 500 employees or more then you are a B quadrant for business owner. –strives for placing people on his or her team (Henry Ford, Bill Gates) that are the best and smartest in their fields.
‘I’ Quadrant for the investor who strives for financial freedom as this person
generates a residual income off his or her investments which in NWM was
that person’s time.
Network Marketers want to enter the ‘B’ quadrant in order to get into the ‘I’ quadrant. Basically, you are changing your core values to obtain financial freedom
that is associated with the ‘I’ quadrant—income that comes in after you quit working!
But why is it very few get into the ‘I’ quadrant? First it takes time and determination and goal setting for a minimum of 5 years. Most will not have what it takes to get to the ‘I ‘quadrant. It takes years to build a Microsoft/ McDonalds/ Starbucks—all great networks. Most go for quick gratification -get rich schemes-quick money without realizing the basic fundamentals that goes into any great business.
Chapter 6 What Is The Value of A Network?
Any business can have a value with blue sky value tied to a profit and loss statement (P&L) statement. The economic value of a network goes up exponentially, not numerically. This is called Metcalfe’s Law and a simple example—a phone system has no value with one phone. Add a second and the economic value is now squared or now 4. add a third now it is 9.
In the 1950s a new business model emerged called franchising. In those days the John Wayne’s (the old thinkers) derided them as pyramids and illegal! We know they are an accepted form of business today. A franchise is a form of business made up of multiple business owners working together.
In the 1970s another business model emerged called network marketing businesses or NWM and instead to a network of franchised businesses NWM is a network of 'franchised individuals'. Today the 'John Wayne’s' still criticizes (isn't that one of those pyramid schemes?) yet the industry is presently growing faster than traditional or franchised businesses! And the reason we do not ‘see’ that growth—it is invisibly operated out of homes and small businesses. In fact many NWM businesses make far more money than most franchises.
What changed this authors mind was the number of large traditional businesses that operate a NWM division. Citibank (Prime America), Keller-Williams, Berkshire Hathaway, AOL Time Warner to mention a few.
In order to harness the power of Metcalf’s Law you must clone yourself and the moment there are two of you your economic value is squared going from zero to four. If two people you brought in duplicates- then their value adds to yours. Instead of you working hard numerically, your economic value grows exponentially.
Chapter 7 The Ability To Sell
To go into the B Quadrant ( build a business with 500 employees or more), one MUST
have the ability ‘to sell’. Scary? When one says ‘I cannot sell’ one is really saying he or she fears rejection. We all ‘sell’ in one form or another. To disbelieve that is to be functionally naive. Using credit card debt –we have been taught to be great buyers not great sellers for the fact in using
The ability to borrow—one is selling his or her tomorrow to buy something ‘today’!
Chapter 8 Leadership skills—the road to the B Quadrant
Leaders do what most people fear to do. Look at any B Quadrant business—only have one or a few leaders—most are followers.
Chapter 9 The Difference Between Money and Wealth
The rich do not work for money—the poor and the middle class do that. Wealth is
Measured in Time—Not Money! As an example say you have $1000 in a bank account and your expenses to survive costs $100 a day. Therefore the measurement of my wealth is 10 days. (That is why credit card debt is a thief of wealth) Sort of like a doctor stating you have 6 months to live-the Measurement of your health has been stated in a value of time. Perhaps by a balancing of income (now comes the importance of leveraged vs. linear income) to debt you can say I am 2 months behind in my wealth. Truly, you are living on borrowed time and money!
The author states that there are three types of intelligence:
1) Mental -- the measurement can be your IQ rating
2) Emotional -- it has been said that this one is 25 times more powerful
than mental intelligence. Prime example—delayed gratification
being the opposite of instant—the primary cause of most
financial problems.
3) Financial -- This is measured by your financial statement or how much money you make, you keep, how hard the money works for you and how many generations you can pass your wealth on to.
Why most smart people never become rich --they lack the emotional intelligence
required for wealth accumulation. They state before any analysis of the objective-
-I can’t sell
-I do not have any time
-I do not have any money
-I am too busy to study every thing that is presented to me
-I tried something ‘like that’ before
-They are all scams
-They are all the same
-Isn’t that one of those pyramid deals?
People that try and get rich quickly essentially lack a necessary ingredient – patience. They also start something-get bored and quit going from job to job or from new idea to another ‘hot’ idea without having any true stated goal. Also, many will earn money and quickly purchase items of little or no investment value (vacations, cars, pay off credit card bills, etc) So rather than build a business, they would rather work for themselves (lawyer, doctor, real estate sales) or be employed – all for security rather than financial freedom.
The author in this chapter points out that most fail in Network Marketing (again the
goal whether part or full time is to build a business with over 500 partners) that they fail to recognize that it takes time (Kiyosaki says 3 to 5 years) with a stated and set goal. The lack of emotional intelligence which is the willingness to delay gratification or have patience and have the discipline to follow a plan is the main reason fail to establish themselves in the B Quadrant.
Chapter 10 Living Your Dreams
Kiyosaki states:
‘One of the most important values I have found in good network marketing companies is that they stress the importance of going for and living your dreams. My rich dad said why many people do not even have dreams is because it costs money. ( Or time)
Why are dreams important? Goals are stated as ‘dreams with dates attached’.
My rich dad explained the importance in this way: “Being rich and being able to
Afford a big house are not important. What is important is striving, learning and doing your best to develop your personal power to afford the big house. It is who you become in the process of affording the big house. People who dream small or not at all will continue to live lives as small people”
SUMMATION
First—DEFINE WEALTH— The ability to have an income that allows you and your family to live on income without you working or maybe better said—on income from your investments whether it was an investment in money or time.
Second – MEASUREMENT OF WEALTH--- Measured in time not money
Third -- GETTING TO THE ‘I’ QUADRANT - More than a ‘change of mind-
you must change your core values. Understand to do so takes time (we all have 24 hours), patience, goal setting and the ability to follow through.
Fourth -- TIMING – Why a network marketing business today? American first began with the majority of the gross national product income was produced from farming, in the 1900s it was from manufacturing then in the 1960s we became a service oriented country
with the emergence of franchises. Today we see the emergence of networks.
SENDOUTCARDS DOT COM—Why does this network marketing company
stand out above all the rest?
Using the presentation of Kiyosaki THE BUSINESS SCHOOL
I would point out what facts exist today to show why SOC is the best business NWM vehicle to invest whatever time you can
1) We need to first understand the basic nature of the NWM business model.
a) there are multi-level pay-out systems (a car salesman sells a car and the manager ‘above’ him takes a portion of the commission one level payout) But that ends after the sale and you have to start over again-linear income.
b) There are multi-levels of people in traditional organizations that you are paid on (in real estate companies like Keller-Williams or Avalar, a broker is paid on seven levels of those he or she ‘recruits’) CitiGroup has a division called Prime America that pays on a multi-level basis.
c) MLM companies pay several levels down and then it ends whether it is a binary, fixed matrix or a breakaway. SendOutCards pays like a franchise in that you are paid on all levels-or better said-on volume.
c) Name any product or service sold by any MLM company—you can find that same product with any retailer at the same or lesser price. Try and find a 5X7 glossy greeting card with your own handwriting, with the envelope stuffed, addressed, stamped and mailed for you for $1.04! Any company will thrive if they have a price advantage!
d) Perhaps the most glaring difference with SOC is that cards have been around for many decades and in used in more countries than any MLM product out there. Pictures in cards are the universal language. Call on any lawyer, doctor or professional sales person and present a nutritional, skin care, travel or legal/tax service. Remember your ultimate goal in NWM is to have them duplicate what you are doing and do you think any of these professionals will take the time to sell vitamins or travel? . With cards—the very use of them is a neccessity in their business! Yet the very nature in using them is to sell them. That is the KEY to the success in generating an income with SendOutCards!
e) As to the potential income look at the financial geometrics of SOC as compared to those of other MLM companies.
1) Everyone that joins an MLM company is paid on the monthly consumption of products use of the service by those in the network. Simple arithmetic shows that
the amount spent monthly is uniform at relatively small amounts. About $100 to $150 a month in the juice deals, $50 a month in a travel one, and so on. Therefore one needs thousands in their organization to generate a worthwhile income.
2) With SOC there are businesses that use cards and send gifts in the thousands of dollars a month making it possible to generate a sizeable income on much fewer participants in one's network organization.
3) The business person analyzing any model of a network marketing business should find SOC a no-brainer in that you and I as franchised owners of our distribution network retains a percentage of not only all the cards mailed but the gifts for children, pets, holidays, gourmet foods, books, magazines, special occasions such as mothers day and fathers day gifts and never mind the endless occasions and holidays celebrated in other countries. Frankly, use your marketing imagination-it can boggle your mind!
4) Perhaps the last advantage SOC has is that the sending of a card changes the way a person feels. The very bedrock so says Kiyosaki of a NWM business is not
the financial plan or the products but how you change people’s feelings.
5) The company motto is to make a living through giving which is addressed in the
Law of Attraction.
https://www.sendoutcards.com/14341
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