Robert Kiyosaki
If you read the Robert Kiyosaki books, Rich Dad, Poor Dad, The Cashflow Quadrant, Rich Dad's Guide to Investing and Retire Young, Retire Rich you can gain some understanding into the difference between active and passive income.
Working in the "E" quadrant (Employed) and the "S" quadrant (Self-employed) produces only active income and have many associated drawbacks.
We really recommend people read his books to evaluate the logic for themselves. The "B" and "I" quadrants (Business and Investment) are where you can make serious long-term money (with less problems for the recipient). We think most people would agree in principal with this logic.
The problem for the average person unfortunately is that they will not be able to easily get into the "B" or the "I" quadrants.
However, a network business does allow a person with no money, little spare time and no experience (but with a desire to succeed) to do this. The reality is that after participating for almost 30 years in different small businesses, we have not found any other way for this to happen for the average person in the community.
We acknowledge that many Associates (also known as 'distributors') do not make huge amounts of money in the industry, but that is true with most small businesses. Again the reasons for this are outlined very well by Kiyosaki.
However, we believe that with true due diligence this should not be the case. For this reason we strongly recommend that you read two books about the networking industry: You Can Get Rich... Starting Now and You Can Succeed.
They give a very good overview about the network business and what to look for and how to evaluate the business.
These are the four things that you should evaluate when looking for a good networking business:
- The Company
- The Products
- The Marketing Plan
- The Line of Sponsorship
- Let us expand on this.
Let us expand on this
The company should have cash flow and longevity. The "quick buck" companies or the "get in now" companies are not likely to be the best.
Too many companies go under (the statistics in the industry are disgraceful). So good advice is not to gamble with your company. Choose one that has good cash flow and is debt free. Certainly it also needs to be managed well (we do not feel this means it necessarily needs to be a public company).
The product needs to be good and the right price. It's no secret in this network industry that you only make money if you move products (unless it is a scam).
There is more nonsense spouted about products in networking than in probably any other industry. Therefore your evaluation has to be objective and not subjective (although clearly you need to be happy with the products also because you need to be happy to recommend them).
The marketing plan has to give fair reward for reasonable effort. Otherwise the business will not work. We are not in favor of unilevel plans, although we acknowledge that they pay well in the early stages. We are against binary plans because they are very difficult to work efficiently and effectively. We have our doubts about breakaway plans although we realise they pay well later in your career. For these reasons we tend to favor a "hybrid" plan - which swiftpages.com's plan is.
More importantly, we believe that the company should pay at least 50% back to its distributors (but still have fairly and competitively priced products) swiftpages.com pays 56% back to Associates.
We feel that it is reasonable that distributors should expect and get (on average) about 10% commissions on the gross volume flow through their business and that they do not drop back to "zero" percentage every new calendar month.
The line of sponsorship is critical. Your upline must be prepared to help and coach you. It cannot work otherwise. There must be a proper (non-profit) training system that allows you to get training even if your upline is geographically not accessible.
Most importantly, there must be a marketing system that everybody can use. The major deficiency in networking (and the reason for the high failure rate to date) has been because the industry has expected distributors to make a dramatic personal change in their lives if they are to succeed.
This is unreasonable and unwarranted. Most distributors will not get out of their comfort zone, so the marketing system must suit the new distributor (rather than the distributor having to change to suit the marketing system).
Without this, our experience has been that people will either fail, or their success will impede dramatically on their time (business, personal and family).
Such a negative effect on your time is totally unacceptable and makes a mockery of all the traditional claims that the networking industry says about being "successful" in networking.
Lastly, it can not be over looked that to succeed in a network business (or anything) you must have a real desire to succeed.
You will never succeed if you simply join and sit quietly in your room and do nothing. Try succeeding in anything by doing that - it simply will not happen.
Our point here is that networking is only a chance for people to change their lives if they refuse to be victims of their circumstances.
They must want to change their situation. Networking is of no use if you volunteer to be in your circumstances. The difference is possibly subtle, but very important.
You must CHOOSE to change your life, because if you do not want to, then the industry will not reward you.
Join Swiftpages as an Associate Now!
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