This is not a perfect word so can expect that a lot of things will not be what you expect them to be. There are times when you think that you have found the right network marketing program but in the end, it will just turn out to be one of those online scams that offers you the moon and the stars. Even though you tried so hard to avoid these bogus companies, there may be times when you will be forced to deal with then not knowing that they are actually frauds. However, even if these fraudulent companies have had you, you should never be discouraged. Finding the right network marketing program may take a lot of time but when you do find the right network marketing program, you could actually earn a lot of money.
Choosing the right network marketing program would take a lot of handwork on your part. Note that since there are so many networking companies that are advertising their products online, you may sometimes feel a bit overwhelmed by all the information that you get. However, you should note that when it comes to choosing the right network marketing program, there are only four basic things that you must always remembers, first, the company is stable and reliable as proven by their track record, second, the company have good products and is continually improving the products that they already have to suit the need of the clients, third, the company have a good business plan that is easy to follow and fourth, the company have the good support system.
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Monday, February 12, 2007
Choosing The Right Network Marketing Program
Two Men - One Message
Why We Want You To Be Rich is a book written by a billionaire collaborating with a millionaire; Donald J. TRUMP and Robert T. KIYOSAKI. I am sure you guys have heard their names before from the megahit TV series The Apprentice and the New York Times Bestselling book Rich Dad Poor Dad.
These two men collaborated to write one book, addressing the problems (though focusing on finance) we as a world are facing today, especially in America. The world is facing many challenges and one of them is financial. The entitlement mentality is epidemic, creating people who expect their countries, employers, or families to take care of them. Donald Trump and Robert Kiyosaki, both successful businessmen, are natural teachers and have joined forces to address these challenges. They believe you cannot solve money problems with money. You can only solve money problems with financial education. Trump and Kiyosaki want to teach you to be rich.
They each could have written a book on the subject, but they chose instead to write a book together because of their shared passion for education and their desire to bring emphasis to the importance of financial education. In addition they have designated a portion of the profits from each book (Why We Want You To Be Rich) to be donated to charitable and educational organizations that also support financial education. They will not give a portion of the profits to charities because they believe it will only create a poverty as they will always rely on the rich people to give them food.
Saturday, February 10, 2007
Schooling Can Leave Us With Limitations
School can incubate our passions to achieve. Like these valedictorians. But it can also instill self-limiting patterns of thinking and behavior.
Robert Kiyosaki recalls his early school years: "Today I don’t use much of what I learned after the fifth grade. But that’s not to say school didn’t leave its permanent mark on me. The fact is, I left school with several behavioral traits I hadn’t walked in with."
Writing in the book Einstein's Business: Engaging Soul, Imagination and Excellence in the Workplace, he continues: "Engraved in my mind was the belief that making a mistake, or 'screwing up,' got me ridiculed by my peers and often my teacher. School brainwashed me into believing that if a person wanted to be successful in life, he or she had to always be right. In other words, never be wrong.
"School taught me to avoid being wrong (making mistakes) at all costs. And if you did happen to make a mistake, at least be smart enough to cover it up. This is where all too many people are today—not allowing themselves to make mistakes and thus blocking their own progress."
This urge toward perfectionism can deeply affect us, he notes: "The symptoms of this 'disease' are feelings of boredom, failure, and dissatisfaction, although most of us never come to understand why we feel this way. After having it drilled into us for so many years, it's hard to imagine that being 'right' could cause such unhappiness."
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Network Marketing Online A Perfect Home-Based Business
There are few better ways to make a living than sitting at your computer in your bathrobe and slippers with nothing except your bank account telling you how long and how hard you need to work every day. Being able to operate your own network marketing online business gives you the freedom to set your own hours as well as determine how much effort you want to put into the venture.
There are many companies offering the opportunity to earn an exorbitant amount of money in a very short time doing practically nothing and following those opportunities will usually allow you to do very little and make even less. A very few have made big bucks on line very quickly, but the typical home business opportunity will take time and effort from which to realize an above average income.
Network marketing mainly involves placing advertising for others on internet sites. No, you are not becoming an advertising agency and do not need the training that goes into being one. What you can be doing is matching internet businesses with other sites to successfully advertise what they have to offer. Whether it is a product or a service is irrelevant as the concept is the same. How you accomplish that is a matter of learning what the business offers and who the projected customers are.
It will take the desire to operate your own business from home as well as adequate training to perform the function right. It will also take the self-discipline of running your own business to make sure you can get the job done in a timely manner. It is not the proverbial cakewalk of opening a network marketing business and getting rich. It will take additional effort to recruit others to help you to grow your business so as to create an income sufficient enough to live the lifestyle you desire to live.
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Discover How To Build An Internet / Web Business The Right Way
Starting a business on the web is not unlike starting any other business. The odds are against us that we will not succeed and because it is easier/cheaper many times to start on the web, it makes way for a lot more competition.
However, if you do it correctly, you can set yourself up for a wonderful lifestyle where you can work from anywhere in the world, make as much as you want, and have the freedom you deserve.
So, let's take a look at some of the types of businesses you can start and how you should set it up so you aren't spinning your wheels and become one of the large percentage of people that does not succeed.
Types of Web Based Businesses This may not be an all inclusive list as creativity, imagination, and knowledge will help you stand out and come up with new/great ideas.
1. Service business: If you can create a service-type business, this in my opinion is a great way to build a business. Some say you are limited, but not in most cases. If you can automate the process, use the right tools, etc, then a service business is great. If you have to be involved (such as a Lawyer), then you may be limited to how much you can make per work hour. An example is a web hosting company that collect monthly "rent" from various web sites.
2. Product based: If you want to open an online store and carry or dropship a product, then this would be your way to go. There are ups and downs to having to deal with products, but if you can design an efficient system around your business, then the processes will be easy and you will make more money. One difference between people who make a lot of money and those who don't is the systems they have in place.
3. Information products: This is very popular and a great way to start your business. Everyone has knowledge in something or at least can do some research to find out what people are interested in learning about. Ebooks, CD's, etc. are high in demand because people come to the web to find information. They are easy to produce and have great profit potential.
4. Affiliate Marketing: This is where you promote other people's products. There are entire books written on this subject and it is another easy/great way to get the ball rolling.
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Man of Substance
Robert Kiyosaki, author of Rich Dad Poor Dad — USA Today’s #1 Money Book for two years running and the international runaway bestseller — is an investor, entrepreneur, and educator whose perspectives on money and investing fly in the face of conventional wisdom. He has, virtually single-handedly, challenged and changed the way tens of millions, around the world, think about money.
In communicating his point of view on why ‘old’ advice – get a good job, work hard, save money, get out of debt, invest for the long term, and diversify – is ‘bad’ (both obsolete and flawed) advice, Robert has earned a reputation for straight talk, irreverence, and courage.
Rich Dad Poor Dad ranks as the longest-running bestseller on all four of the lists that report to Publisher’s Weekly – The New York Times, Business Week, The Wall Street Journal, and USA Today – and has held a top spot on the famed New York Timeslist for over five years. Translated into 46 languages and available in 97 countries. the Rich Dad series has sold over 26 million copies worldwide and has dominated bestsellers lists across Asia, Australia, South America, Mexico, and Europe. In 2005, Robert was inducted into the Amazon.com Hall of Fame as one of that that bookseller’s Top 25 Authors. There are currently 13 books in the Rich Dad series.
Robert writes a bi-weekly column – ‘Why the Rich Are Getting Richer’ – for Yahoo! Finance and a monthly column titled ‘Rich Returns’ for Entrepreneur Magazine.
Enjoying Success With Network Marketing
One of the reasons that so many people are not successful with network marketing is because they give up too early. Now don't get me wrong it can appear to be a tough business at the beginning. Recruiting, training, selling, promoting, it can seem like a huge learning curve of "things to do" and when you are not used to running a business in that way it can be easier to give up than go on.
Below are 11 steps you can take to ensure you enjoy success with network marketing, stay on the road to success and avoid potential pitfalls.
1. Be prepared to handle rejection.
Who said that any kind of selling was easy? But it all comes down to attitude. If you can understand that a rejection of the opportunity that you are so excited about is not a rejection of you as a person, then you are on your way. "No" must be interpreted as "next". This is easier said than done but it's the price of success.
2. Be realistic in your expectations.
All new businesses take time to develop and grow. If you go into a network marketing opportunity and raise your bar to a level you can't reach you will soon become disappointed. By the same token I never want to dampen a persons enthusiasm if they truly believe that they can achieve high numbers in a short time. However, many times unrealistic expectations are set and disappointment often follows.
Would you work out in the gym for an hour and then expect to have rippling muscles? Then why expect a business venture to be off the ground and earning you money within a few weeks? Give it time, this is a new born baby, it takes time to nurture and grow. The potential results are worth the initial effort.
If your attraction to a network marketing company was the sales page that mentioned the salaries of their top recruiters find those people and ask them how long it took them to build their business and how much money and time they had to put into it. This information will give you a clearer picture.
3. Be in it for the long haul
Once you find a reputable company be prepared to stay for the long haul. As mentioned above building your business takes time. The most successful people in life have gone through very trying times but they stuck with it and left a legacy behind. It is often said that tough times don't last but tough people do. The same is true for those seeking to build a solid residual income. You should commit yourself to at least 3 years before making a decision either way. Yes! That's right. AT LEAST 3 years. Jumping from one opportunity to the next only shows a lack of decision and stability in your planning.
4. Listen to those who have been successful
Learn from the pros and stick with what works. When you first join a network marketing company it is really easy to "pick holes" in the way things are done. Perhaps you see a b etter way to achieve something. Well before you rush off and try it contact the "heavy hitters" - the successful people within the company and ask them if it has been tried already. If it ain't broke then don't try and fix it.
Be a learner for your first year. Just listen, learn and apply. After you are more established you can always pick up on your idea and if it is a good one then you will have the backing of experience to help you put it in place. Being in a new network marketing company is learning enough for anyone, don't complicate things by trying to do things your way.
5. Empower your downline members ASAP!
Leveraging other people's time and skills is the powerful system that lies behind Network Marketing.
Teaching is an important part of the game of building a strong team but some marketers make the mistake of doing too much for their downline members. This often backfires, however, because the downline members be come comfortable and depend too heavily on their upline and never grow strong enough to build their own teams.
So it is important that you train your downline members and empower them to take the plunge towards getting going as quickly as possible. Avoid doing too much for them, or making them dependent on contacting you for every little thing.
6. Arrange group rather than one to one discussions
Whenever possible arrange to talk to a group of people at once rather than focus on talking to everyone individually, which will be very time consuming. The best network marketing companies will already have group presentations that you can invite people to attend but you may also want to consider running your own. Other things to try include hosting an online chat room, setting up a toll free number with a recorded message that invites callers to leave their details so that you can return the call.
7. Look for people in need of extra income
Many small businesses are in need to extra revenue to help with cash flow problems. If they offer services they may also be interested in establishing a business that provides passive income - especially if it fits into what they already offer.
The biggest advantage is the fact that you are targeting people who are already motivated and understand what it takes to run a successful business. These individuals will also be networking in their businesses and therefore may be in a position of influence. Professionals that come in contact with a large number of people also make good distributors. The more 'business minded' your prospects are the more likely you will recruit them.
8. Make a written plan with all your goals
As a life coach I understand the importance of writing goals down as a way of working towards them. We are more likely to commit to something that is written down, plus you can hang it up within your sight to remind you of what you are working towards when you are in need of motivation. I recommend your top six goals are written out daily and/or read out.
Every business owner should have a goal to which they are aspiring to. If you aim for nothing you are likely to strike it. If your plan is to get to a residual income of $30,000 per month then you should set smaller goals on your way there.
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7 Steps to Winning the Network Marketing Game
Network marketing, also known as multi level marketing (mlm) involves the process of distributing products through a team of independent business distributors, and has in its time been tainted with some very negative publicity.
But despite that, network marketing has survived and is a fantastic business model when you find the right company. It is one of the few business industries where the opportunity to earn money is only limited by your own mind! But the difficult question to answer is always "What company should I become a distributor for?"
Below are 7 very important aspects to consider when thinking about becoming an independent distributor for a network marketing company. If they can tick all the boxes mentioned here then chances are they will make a great company to become involved with.
Due diligence is important before you start because nothing is worse than finding yourself involved with a company that doesn't last, or finding yourself ready to give up because you did not get the support you require.
1. Look at the experience of your sponsor
I have placed this first because it is even more important (in my opinion) than looking at the company. You can join the best company in the world and get no support, or a small network company and have constant daily support that helps you to achieve your financial goals.
The thing to look at is the experience of your sponsor in helping you with this business. Many people will be working full time while building their business, or they may be a sole proprietor earning extra revenue. Take a look at what they do or did in their main job and how those skills can help you when you are building your business.
You also want to find out how accessible they are. Can you easily get hold of all their contact details? How long does it take them to respond to your calls or emails? Of course this ma y not be an indication of how they will help you after you join. They may start off attentive until you are in their team. But it can also be an indication of a supportive sponsor.
Do they offer any activities or business building resources outside of the normal company ones? Maybe they run tele-seminars for their team, or provide worksheets that will help you plan your business.
You can succeed without an attentive sponsor, but it makes life so much easier, and really shortens the learning curve when you have one.
You should seek to align yourself with an experienced leader and learn as much as possible from his or her recruiting methods. Be sure to investigate your sponsor because that can be the one factor that determines success or failure for you. It is said that misery loves company; so does success.
2. How Stable Is The Company?
Now take a look at the company. Have they been trading for more than 5 years? Do they have solid financial backing? Excellent management? Training and Resources? A 'distributor first' philosophy? These things are important. You have the advantage of being able to choose from a huge range of network marketing businesses, so why choose one that doesn't care?
You want to make sure that learning how to make money as a distributor is easy to understand, and you want to make sure that the company has been doing it long enough to believe they will be around for a while.
You know the saying that the proof of the pudding is in the eating; just so the proof of the stability of a Network Marketing company is in the duration of survival.
3. What customer support is available?
What support is offered for new distributors as they learn the ropes? How are established distributors looked after? You want to know this not only for you, but for everyone that you will introduce into the business. If you introduce someone who becomes unhappy with the lack of support they will give up and leave very quickly. It takes a lot of work to build your team, don't let lack of customer support ruin it.
Usually as a distributor you are also the customer, so what support is offered on that end? Is customer support for your potential customers easy to get hold of and do they have a policy for answering questions quickly?
4. What products are available?
What you are looking for here is quality, it is a tough enough job to spend your time recruiting new distributors without having to deal with unhappy customers. High quality (unique if possible), reasonably priced products or services.
It has been a tradition of network marketing companies to produce high end, great quality products because the thousands saved on advertising is instead used in product creation and distributor training.
5. Compensation Plan
I have already mentioned that a successful MLM company will have a "distributor first" philosophy. In no other place should this be exhibited more than in the compensation plan. It takes only some simple arithmetic to see how many sales or distributors you need in your organization in order to be in profit. Most people don't take the time to do the math and sometimes are "deceived" by the fancy potential income charts that are put out by the company.
Take a good long look at the whole compensation plan, do not skim through this because it seems "boring." Also avoid getting taken in by claims of 60% compensation and other large percentage claims.
Many companies provide training and promotional materials for their distributors but it is often difficult to strike a balance between product promotion and distributor training. And distributor training normally takes a backseat (which is why a great sponsor is important - see No1 above). You should be wary of companies that charge exorbitant prices for their promotional materials. You are investing your advertising dollars so the company should not seek to make a profit from you here-although many do.
6.Terms and Conditions
Of equal importance to the compensation plan are the terms and conditions. Look to see whether you are tied in for a certain period and whether you are willing to comply with that. Check out whether there is anything stopping you from immediately leaving the company. In the company that I am a distributor for you are paying for a package. They provide a monthly option for those not able to pay the full price upfront, but you cannot turn around a few months later and decide to leave (although a settlement fee is available).
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Something About Robert Kiyosaki
About Robert Kiyosaki
Wisdom in a Nutshell
FINANCIAL LITERACY = FINANCIAL INDEPENDENCE
A true tale of two dads one a highly educated professor, the other, an eighth grade dropout. Educated dad left his family with nothing, except maybe some unpaid bills. The dropout later became one of Hawaii's richest men and left his son an empire. One dad would say, “I can't afford it” while the other, asked,“How can I afford it?” Rich dad teaches two boys priceless lessons on money, by making them learn through experience. The most important lesson of all is How to Use Your Mind and Time to create personal wealth. Free yourself from the proverbial “rat race”. Learn to spot opportunities, create solutions and “mind your own business”. Learn to make money work for you, and not be its slave. Rich Dad's Words of Wisdom: You are what you Think. A job is a short-term solution to a long-term problem. A highly paid slave is still a slave. Why climb the corporate ladder when you can own the ladder?
What the Rich Teach Their Kids About Money- That the Poor and Middle Class Do Not!
Retiring at the age of 47, Robert continued with his love of investing. It was during his "retirement", he wrote Rich Dad Poor Dad, the #1 New York Times bestseller. Robert followed with Rich Dad's CASHFLOW Quadrant and Rich Dad's Guide to Investing - all 3 books have been on the top 10 best-seller lists simultaneously on The Wall Street Journal, USA Today and The New York Times. In January 2001 Robert launched Rich Kid Smart Kid.
Robert T. Kiyosaki
The rationale for teaching people financial literacy comes from the fact there is no real job security these days. Even after years of toil, the poor and middle class may find they do not have sufficient funds for their children's college education, or their own retirement. Why work for a corporation, the government, and the bank all your life? Awaken your financial genius and gain financial independence and freedom!
At age 9, Robert Kiyosaki and his best friend Mike asked Mike's father (Rich Dad) to teach them how to make money. After 3 weeks of dusting cans in one of Rich Dad's convenience stores at 10 cents a week, Kiyosaki was ready to quit. Rich Dad pointed out this is exactly what his employees sounded like. Some people quit a job because it doesn't pay well. Others see it as an opportunity to learn something new.
Work to Learn.
Next Rich Dad put the two boys to work, this time for nothing. Doing this forced them to think up a source of income, a business scheme. The opportunity came to them upon noticing discarded comic books in the store. The first business plan was hatched. The boys opened a comic book library and employed Mike's sister at 1$ a week to mind it. Soon they were earning
$9.50 a week without having to physically run the library, while kids read as much comics as they could in two hours after school for only a few cents. They don't teach this at school.
The growing gap between rich and poor is rooted in the antiquated educational system.
Maximizing The Effectiveness Of Your Network Marketing Advertising Dollars
It is common to assume that you want to advertise to get leads or prospects to look into your network marketing program and potentially have these prospects join your organization.
What is not commonly known to most networkers is that they can maximize the effectiveness of their advertising dollars by getting their money back either when their prospects join or do not join their program.
While this method can easily be done online, you can find a way to do it offline as well.
For the sake of this example, let's assume that you have an online MLM to start with.
1. Your network marketing program as a back-end profit
Your intention is to quickly recoup your advertising cost before your prospects even take a look at your network marketing program.
You can do this by selling quality infoproduct, such as an ebook - educating your prospects about network marketing in particular or the products or services your network marketing company has to offer.
For example, if your prospects are internet marketers, it makes sense to tell them how internet marketing and network marketing can work together hand-in-hand nicely to further increase their income. If they have not looked into network marketing yet, it could be their big mistake as network marketing industry is not the same as it was before ten years ago.
So, creating an ebook about the topic above will probably be a good choice to introduce network marketing concept to internet marketers in general. Then, make sure you suggest a company (your network marketing company) for them to check out.
In this case, you already made upfront profit from selling your ebook, and if your customers join your network marketing program, it will be a bonus residual income for you.
What if you couldn't create an ebook?
Try creating an e-course or starting a newsletter. Then, charge a small fee for your e-course or newsletter subscription. That will work too.
2. Your network marketing program as a front-end profit
This is a direct approach with a little twist.
You advertise your online network marketing program but before you let your prospects know more about your products or services, make sure you get their contact information first.
Their contact information could be their names, emails and phone numbers.
Then, get this information into your autoresponder or your mailing list software.
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Thursday, February 8, 2007
Robert Kiyosaki's Take on Entrepreneurship
If you think that you don't need to know what Robert Kiyosaki (and who is he by the way) thinks about entrepreneurship, well I would say that you need to first ask who Robert Kiyosaki actually is. Have you heard people talking about the book Rich Dad Poor Dad, which is coincidently the longest running best seller on the New York Times, Wall Street Journal, USA Today and Business Week? If the answer is yes, let me tell you that Robert Kiyosaki is the author of this best seller Rich Dad Poor Dad.
I sincerely hope that you would now be more interested in finding out Robert Kiyosaki’s take on entrepreneurship. After all he has been instrumental in initiating thousands of people into being entrepreneurs. The next question could be the reason for turning entrepreneur. You have a very good job, you are earning good money and your life is secure and stable. What more could you want? There is something which is called ambition and there is something which is called realizing your full potential. Don't you think if you are good enough to be valuable for your employer, won't you be good enough for yourself?
The basic difference between an entrepreneur and an employee according to Robert Kiyosaki is the mental set up. Employees as per Robert Kiyosaki are more concerned about resources while entrepreneurs are more concerned about opportunities. Let me ask you a question. Suppose you find a very good piece of real estate, what would be your reaction to it? Would you leave it just because you don't have the cash for it or would you tie up the property first and look for money later? Believe me the answer is very important and very pertinent to our current discussion.
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Wednesday, February 7, 2007
Tips to Network Marketing Success
All network marketing leads are not created equal. If you buy leads you do not know how many times they have been sold or how fresh they are. The mlm lead company will give you categories like 1 day old, or 30 days old, or 90 days old. The older they are the less they cost. The older they are the more they have already been worked by your competitors.
How you get around that is by using the internet to get your own leads for you. This is called prospecting. In the old days prospecting meant going out in public and handing out business cards. You should still do that in a natural way throughout your day. But the internet can allow you to do so much more.
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Top 10 Tips For a Successful Network Marketing Presentation
As network marketers, we often have important information to impart and our role in doing so is a major one. Many, many times I have had the pleasure of having people approach me to say how hearing me speak literally changed their lives due to the powerful message and the persuasiveness of the delivery. Most people in MLM are not trained presenters or salespersons but there are a few steps everyone can take to make sure their message has the best possible chance of being well received. Here are my top tips:
1. KNOW YOUR AUDIENCE: Not every pitch will work for everyone so before you go to present the products or the business, whether it’s to just one person or to many, do a little research to ensure you’re presenting at the appropriate level. If your presentation is too lightweight, you’ll bore them; too in depth, you’ll confuse them. Either way, they will switch off and your vital words will fall on deaf ears.
2. WIIFM: Yes, that old chestnut, but it’s worth repeating as it’s so often forgotten. Bearing in mind tip no. 1, what are the challenges faced by this person or this group of people? How does your business opportunity or your product solve their problems? Focus on answering these questions rather than trotting out the mechanics of your offering. Your audience must feel you’ve prepared your presentation specially for them, even if it’s essentially the same one you’re giving all the time.
3. CONTINUALLY LEARN AND PRACTICE PRESENTING: One of the most important skills any network marketer can hone is that of becoming an accomplished speaker. It impacts so many other areas of your life as it massively increases your self-confidence. The more professionally you can deliver your message, the more readily it will be received, the more lives you will touch and the more money you will make in your business. Learning to present well is an investment in yourself and can give you the greatest return on the capital you’ve invested.
4. HANDLE DISSENTERS WELL: One of the major fears I hear from network marketers is that of being faced with doubting prospects or those who dispute what they’re being told. Unfortunately, the tendency is to dig in and fight your corner but this can turn the discussion into an argument and work against you, especially if you’re giving a presentation in front of a group. When you’re faced with negativity, always start your answer with “That’s a very good question…” and continue with your viewpoint. Wherever possible, turn things around to make your audience right.
5. SHOW, DON’T TELL: Show the products you’re talking about. Let people feel, smell and see for themselves instead of just hearing what they are like. If you’re making a presentation about the business opportunity, remember that your company has probably done a lot to make things easier for you. Make sure you get the prospecting materials they offer, show the pictures of the top distributors, talk about them as if they are real people.
6. LET YOUR GUARD DOWN: People buy from those they know, like and trust. How can they do any of this if you won’t let them get to know the real you. You don’t have to be perfect, you can talk about your own challenges, beliefs, family, hopes and dreams. Doing so gives your prospects more opportunity to identify with you so you can use the similarities to build rapport.
7. STORIES INSTEAD OF FACTS: When we get excited about our products, we often delve into the features of the products, what works and why. This is all very exciting once you’ve had your first wonderful product experience, but it doesn’t make for a very exciting lead-in to your presentation. People want to know about results. They want the bottom line. There’s plenty of time to get to the detail later but to start this way could send most of your prospects to sleep (apart from the professors in the audience, of course). The best way to illustrate what your products or business opportunity can do is through telling stories. Use your own story or a case study of someone you know. Use emotive words. Remember, not just the facts, the feelings too.
Five Misconceptions About Network Marketing
I'm about to tell you to discard almost everything you've heard about network marketing. Multilevel marketing, also known as mlm or network marketing, is a specialized niche of sales that has the potential to catapult you into five figure monthly earnings, but only if you understand it and approach your marketing seriously. The fact is, most of what you've heard about network marketing is misconception, some of it fostered by recruiters and some of it by detractors. Here are the five most common myths about network marketing and how they can trip you up.
1. Network marketing – isn't that just like a pyramid scheme?
Pyramid schemes are illegal investment schemes that involve no product – or more precisely, the investment scheme itself is the product. Network marketing, on the other hand, is a way to sell a product through word of mouth. As in any other business, the more people you have working for you and selling product, the more money you will make. Developing your network will build your income, but only if you are basing it on a solid product that people want to buy.
2. Network marketing is a get-rich quick scheme.
Few people will 'get rich' and fewer will get rich quick. Like any other home business, a network marketing business takes time to grow. You won't see those five figure incomes the first month you're in business. You'll have to put in the time to develop your network and build it into a successful sales team before you'll start to see a consistent stream of income.
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Tuesday, February 6, 2007
Building a Fantastic Network Marketing Business
Yes, your future can be fantastic in internet network marketing! It can be a lucrative part-time business or highly profitable full-time career for each of you who wants to build a successful internet home based business for yourself!
Firstly, you have to consider internet network marketing as the opportunity to develop a large cash flow with no employees on your payroll. It can be a great way to do business and a great way to live.
Think of it - you are your own boss. You have no employees to watch over. You have a down-line organization that is consistently producing new business and profit for you. You have the freedom to expand your business in a sunny climate during the winter months if you desire.
And while you are catching those rays while snoozing on the beach, you are literally earning money while you are sleeping; since your associates are continuing to do networking that expand not only their businesses and income, but yours as well.
Many people have free time on their hands but they do not have the income to enjoy this free time. Internet network marketing can provide that income. Others may have a terrific income, but they do not have the time to enjoy the fruits of their labor. A good, steady income through a solid internet network marketing business will give you additional financial freedom that will help you to eliminate worry and stress.
When building a home internet business, many situations will occur and they might actually work in your favor and help you to prosper in your internet network marketing business. Here are some of the reasons why you should start building your internet network marketing home business now:
1) Retirement
Most people, who are retiring today, need to supplement their retirement income in order to live. Many retirees are most interested in experiencing productive retirement years than in living just a rocking-chair existence.
2) Job transfers
Many people today are tired of transferring from city to city. However, many of the major corporations that they work are requesting them to move. In order to keep their job, many have no choice but to move. A successful internet network marketing home business allows you to live where you want to live and work at the comfort of your own home.
Mutual Funds Get Greedy
I was on a radio program not long ago. My host was a financial planner who was upset about the book Donald Trump and I wrote, "Why We Want You to Be Rich." In the book, Donald and I don't speak highly of mutual funds.
Rather than listening to what I had to say, the interviewer wanted to argue. His position was that Donald and I weren't experts on mutual funds, and had no right to criticize. I agreed that we weren't experts on mutual funds, and reminded the host that Donald I never claimed to be.
An On-Air Dustup
Instead, we were quoting John C. Bogle, a true expert and leader in the mutual fund industry whom I've mentioned before. For those who may not know, John Bogle is the founder of the Vanguard family of funds.
Rather than consider my position -- that Donald and I were not experts, but John Bogle was -- the on-air financial planner defensively said, "John Bogle loves mutual funds."
Again agreeing with him, I replied, "Bogle does love mutual funds. That's why he's upset, because mutual fund investors are being ripped off by mutual fund managers."
Our on-air argument continued for approximately five more minutes. I asked the host if he'd read Bogle's book, "The Battle for the Soul of Capitalism." He admitted that he hadn't, and had no future plans to do so. His position was that I had misinterpreted the book and was taking Bogle's statements out of context.
Bogle on Funds
There's a saying that goes, "Minds are like parachutes. They only work when open." Since the radio-show host's mind was closed, and so was mine, I asked to end the interview early. Rather than continue arguing about a book the listening audience couldn't see and the host didn't plan on reading, I decided to make my case here, with Yahoo! Finance readers.
Essentially, John Bogle's position in "The Battle for the Soul of Capitalism" is that investors -- what he calls the true owners of major corporations and mutual funds -- are being robbed blind by corporation and mutual fund company managers. He refers to it as the shift from owner's capitalism to manager's capitalism.
Most of us have heard about the investors (and true owners) of Enron, WorldCom, and other corporations being fleeced by the likes of Ken Lay, Jeff Skilling, and Bernie Ebbers. Bogle contends that the same type of theft practiced by these men is going on in the mutual fund industry. He doesn't point to just a few bad apples, either -- he fingers the industry as a whole.
To quote Bogle, "Simply put, fund managers have arrogated to themselves an excessive share of the financial markets' returns, and left fund investors with too small a share." Elaborating on that point, Bogle writes, "With today's dividend yields on stocks at about 1.8 percent, a typical equity funds expense ratio consumes fully 80 percent of a fund's income."
As I put it on the air that day, "Eighty percent is a bit greedy."
A Money Vacuum
To illustrate his point, Bogle writes that "while $10,000 invested in the stock market [in 1985] earned a profit of $109,800 [over 20 years], the average mutual fund investor earned a profit of just $29,700. Together, the cost penalty, the timing penalty, and the selection penalty consumed an amazing 73 percent of the profit available simply by buying and holding the stock market itself, leaving the average fund stockholder with a mere 27 percent of the total."
Why Good People Think We're Wierd
People often ask me why so many GOOD business people don't catch the "vision" of the network marketing opportunity.
Here's one reason: we come across as weird.
Ask Steve Jobs (iPod inventor) how he makes money, and notice your reaction as he responds...
1. Steve, what do you do to make money?
Oh! I share cool iPods and Apple computers.
Try these...
2. Lulu, how do you make money in real estate?
Oh, I share amazing properties.
3. Mr. Ford Motor company, how do you make money?
Oh, we share our wonderful cars.
Does anyone else in business say they share fashion, haircuts, telephones, furniture, computers, TVs, etc. to make money?
The world knows that business means buying and selling goods and services.
All except us. Ask a network marketer how they make money - "Is it sales?"
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Monday, February 5, 2007
Why Most People Fail in Network Marketing and How You Can Avoid It
Do you want to know the REAL factors that hinder 90% of network marketers from achieving true success?
First there's these 4 major categories......
1- Marketing Budget
If you don't have one, your business will suffer. How can someone treat network marketing like a business if they don't even commit to investing each month in it. This is not a hobby, but a true business.
2 - Lack of Action
I'm not talking about 'busy' action. I'm talking about income producing DAILY action. You can work your business part time or full time, but not 'some time'.
3 - Lack of Prospects
If you don't have people (and the right people) to contact every day, then how are you supposed to gain momentum and sponsor many people? Prospects (leads) are the lifeblood of your business. You may have a great opportunity, but if you are not in contact with people on a daily basis, you are not being productive in your business.
4 - Underdeveloped Skills
Ok, let's say you DO have a constant supply of fresh quality prospects (leads) to talk to everyday, will that solve your problem? No, because most marketers out there are using the WRONG approach with people and not getting the results they could. Contrary to popular opinion, uplines, etc., you do not spill information on people and then try to close them on your opp or product. You must gain the knowledge and skills necessar to you position yourself so others seek you out and you don't go 'prospect' people. That starts with being taught what actually produces results in prospecting and recruiting, rather than 'trying' what the other upline guy did and hoping it will work for you. You DO need skills in this business. You also need to know where to get those skills and how to apply them, so every month is a good month for you.
The beauty of this business is that anyone can get started in it. The bad thing about this business is that anyone can get started in it. Let me clarify. The reason 90% fail is they have no clue about what's involved or how to do it properly. Have any of you heard someone tell you this: I will do all the work for you, it's ground floor better get in now, all you have to do is sponsor two people, this comp plan is the best in the industry. This mis information is what gives us a bad name.
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Interesting Thought
A couple of days ago I wrote about a book I am reading that was written by Donald Trump and Robert Kiyosaki. Here is another thought from the book that I have summarized in my own words...what do you think?
Banks will lend you money to purchase investment property (real estate) but they will very rarely lend you money to purchase stocks, bonds, mutual funds, etc. Banks are in the risk management business and will therefore lend money for the safest investments. With this in mind, why is it that financial planners will tell you that the "safe" investment is to invest in stocks, bonds, and mutual funds?
Please do not get me wrong...I'm not saying that investing in real estate is the best or safest place to invest, in fact it is probably a horrible choice for most people, but the above thought is deffinetly worth thinking about.
What are your thoughts on this?
Tarun Trikha
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Book Review: Why We Want You To Be Rich
Co-authors Donald Trump and Robert Kiyosaki combined their efforts to write Why We Want You To Be Rich. This is a good read for any one who wants a different, highly successful look at the concept of money and financial education. However, the two authors repeat the mistakes of their previous books by not addressing real-world issues to the readers.
The biggest problem that I have with the message in this book is that both Donald Trump and Robert Kiyosakicompletely neglect and discussion of existing debt. Granted, my $116,000 student loan debt is a bit extreme, but there is no discussion of how to handle credit card debt, smaller student loan debt, or other types of “bad” debt.
Both authors make implied points that readers should pay off their existing bad debts before they make strides towards becoming financially free, but they don’t address the fact that today’s workers need to work to pay off their long-term debts. Neither of these men have had these issues in their personal life and it shows. Sure, they’ve had huge losses in the business world, but it’s much different when an LLC is at risk of being dissolved as opposed to when an individual is at risk of losing their credit rating.
Unfortunately, there is no discussion of the real problem that many people face today. It’s not a growing debt for existing debtors - it’s a growing number of existing debtors overall. Many people have finally realized that they can’t spend like drunken sailors and that they need to stop using credit cards and taking out high interest loans. These people have indeed stopped these bad habits. However, there is absolutely no option to stop working or start putting money in a different high-interest yielding account when you have to pay to keep the electricity on as well as to pay down your credit card debts.
Modern Internet Network Marketing Tips
Starting to realize there are much better ways to build your network marketing business then chasing down Aunt Suzanne? C’mon, be honest…you do realize we are in the 21st century. So let’s get to it.
What traditional “warm market” can compare to a market of billions of people at your finger tips via the internet? NONE. And when you have developed a system to bring people from the internet cold market into your warm market all day long…you just struck gold.
Tip #1: You must be generating your own leads. Buying generic leads from MLM lead companies are NOT who you want to be talking too. There is no lead comparable to one you generated yourself…meaning people filled out a form because they are interested in what YOU have to offer.
Tip #2: You must have a back end campaign set up where your lead can be funneled, and YOU CONTROL the information they get for the rest of time. Think about that…imagine you have an interested prospect and you get to repeatedly build a relationship with them for the rest of time.
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When The Stock Market Tanks
Will you be able to blame the Baby Boomers for taking the market down when we start to cash out of our retirement plans?
Robert T. Kiyosaki, the incredibly successful author of "Rich Dad, Poor Dad" and a leading edge Baby Boomer himself, set up that scenario in a 2002 book, "Rich Dad's Prophecy," but since then other forecasters have found less cause for alarm.
Robert Kiyosaki noted that the laws that created Individual Retirement Accounts and 401(k) plans require people to start taking withdrawals from these tax-favored accounts at age 70 1/2 , which is in 2016 for the leading edge of the baby boom. He predicted that dynamic combined with "millions of Baby Boomers needing money for medical expenses" could create a sell-off.
Kiyosaki said he is still worried about such a prospect today, but he lists it as only as one of many ills that he thinks could undermine financial markets. His current list includes the declining value of the dollar, followed by the cost of the war, the price of oil, the growing deficit and the fact that the dollar is no longer pegged to gold. "It's not the biggest thing. It's just a factor," he said of the concern that the Baby Boomers could start a market meltdown.
The Real Estate Market's Impact on Financial Markets
Has housing hit bottom? Not if history is any guide, says Hugh Moore, a partner at Guerite Advisors, a money manager in Greenville, S.C. Using data from the seven previous housing cycles since 1959, Moore concludes that the sector will fall further and land hard.
Take housing starts. In the past, they fell an average 51% from peak to trough. So, the current downturn, with housingstarts off about 30% from the January 2006 peak, has further to go. And it may meet recession on the way. That's because in six of the seven cycles, when starts fell more than 25% from their most recent peaks, the economy tanked.
Strategies To Your Network Marketing Success
Copyright © Tarun Trkha
The key to any network marketing home business is promotion, and the only difference between an in person business and Internet business is the way that you conduct your business. Instead of being face to face with the people, everything is conducted over the Internet including the training and salesmanship. The only time you may interact in a personal way is if the line of sponsorship that heads your organization decides to arrange a sales meeting or convention.
It’s important to remember that promotion is the most important part of your business, and for your business to be successful, you have to promote, promote, promote. There are several ways you can accomplish that, but the most important promotional tool you have is in your ranking with the search engines, that allows people to find your website in a search, especially Google, which tends to be the search engine of choice for many people. Accomplishing this means making sure that your site is optimized for the search engines, a process called Search Engine Optimization (SEO). It may cost a little bit to do, but it’s worth it in the end because SEO will guarantee that your website gets top ranking with the search engines, thus a better chance that it will come up early in a search.
Of course, before you even think about SEO, you have to make sure that you submit your website to the search engines so that they know it exists. Several services are available that allow
Network Marketing and The Iceberg Theory
Back in my college days, much of my reading consisted of books pertaining to government, freedom, and philosophy. One of the books I recall from those days was entitled 'Brave New World' by Aldous Huxley. The book was about a futuristic society that was sterile, loveless and had been chemically engineered to produce a seeming paradise for the masses. When trying to explain why things worked in this type of world, the protagonist 'Mustapha Mond' explains that the ideal society is built upon the iceberg, where 95% of the people are below the surface, unseen and unheard.
Whether or not an iceberg is a natural or desirable model for a society is debatable, but it's an established fact that most Network Marketing companies are modeled this way in results if not structure. Statistics indicate that only about 5% of the people involved in Network Marketing rise to a level of success that they're satisfied with. Why is this, and are there things you can do to help yourself become one of the 5% that reaches the tip of the earnings iceberg?
If you're just starting out or contemplating getting involved with a Network Marketing company, you might want to first start with a check-up from the neck up. First, are your goals realistic? Claims of overnight riches are just that! Just as it takes the larger icebergs years to reach their formidable size, so it is with successful Network Marketers. People who are successful in this business have been involved in it for many years. They didn't start off being 'successful' but have learned through many years of experience. They are the kind of people that go to seminars, listen to tapes, read books, allocate resources, and do many other things that help make them one of the 5% that become extremely successful. It's ok to dream big, but also understand that it takes time and effort to become a huge iceberg.
With that in mind, one of the best things that you could do to accelerate your growth in Network Marketing is to find yourself a 'mentor' or role model. It's been said that if you want to be successful at anything, find someone who is successful, and model yourself after them. When joining a business, look for a sponsor or person who is actively involved in the business. Leaders are people who will respond to your email and questions. Leaders are people who will contact you to see how you're doing and if there's anything they can help with you. Heck, leaders might even call you from time to time. The bottom line is, leaders are actively working their business. Look for leaders, and strive to become one yourself.
Make Your Network Marketing Business Work
Three Things That You Need
Home based network marketing is an interesting and profitable venture – if carried out correctly. If you enter into it haphazardly, with no idea of where to begin or what to do, then you can expect to fail. In a field wherein there is so much competition, it is practically business suicide without making the adequate preparations.
There are three main things that you will need to succeed in the home based network marketing business, and they are:
Commitment. Almost all new businesses will meet with obstacles from the very beginning. Some studies show that around 80% of all businesses fail within five years of their founding. This might tell you something about the odds that you face when you start a potential moneymaking venture.
Of course, it’s not all bad news. The other 20% do go on to make a decent living out of their ventures – and this is the group which you should choose to join. It might take months, even years before you start to see any concrete results from your efforts, but if you persevere you will be rewarded. Stay dedicated to your venture and the tides will soon turn in your favor.
If you believe that you have some measure of ability and that you have a good market to tap into, then don’t let the statistics make the decision for you. In fact, go ahead and defy the numbers – you’ll have an incredible sense of accomplishment when you do.
A Good Program. A good program to promote is the foundation of your home based network marketing success. Without a solid, moneymaking program, you may be forced to resort to chicanery to make a profit. Don’t put yourself in that position – it will make you many enemies and erode any chance for future profits.
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Real Estate Investing - How To Get Ahead
We all want to get ahead. You hear people say it all the time. But what exactly does that mean? It's kind of a vague statement, but it sounds good. Basically, it means that you want to have more money—maybe get your earnings ahead of your cash depletion. Maybe it means you want to be able to save enough to send your kids to good universities, or be able to take your family on annual vacations. It could mean that you want to squirrel away a retirement fund.
Whatever your particular idea of getting ahead, it does imply some sort of motion—movement from where you are now to where you want to be. That means you must figure out exactly where you are now and where you should be going. Once you start to think about it, though, you may find those places are a little more difficult to determine than you had originally thought. You may find yourself beginning to struggle with just what your particular concept of getting ahead is.
Robert Kiyosaki, who authored the popular Rich Dad series of books, has mapped out a way for you to tell where you are and where you should be, if building wealth is your goal. He also gives you a plan on how to get there.
In his book “Cash Flow Quadrant,” he introduces readers to a concept that the man he called his “rich dad” introduced to him years ago. This quadrant is an illustration of where your money is coming from and subsequently how you think about money. Believe it or not, the two things go together.
For instant, if you are in the E quadrant, you are an employee in search of security. Someone in the S quadrant is self-employed and likes to be in control, to do things their way. A B quadrant person is a business person. (This is very different from an S-quadrant person because the B has a system that can work without their direct input, thereby freeing them for other, wealth-building, pursuits.) The I quadrant person is an investor.
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One Attribute Will Decide Your Network Marketing Fate
Becoming a leader is simply vital to your success in network marketing. People join leaders plain and simple. If you're not a leader then starting today, you are.
People don't join companies or comp plans, they join people and they join leaders of network marketing companies. This may sound preachy but it's really true. Think about when you go out with your friends, who is the one leading the pack? It's probably your friend that just seems to magically attract people.
These people put out a confidence that can't be broken. These people are always in control of the situation they face, they never say die.
When you're a true leader in the network marketing industry people just seem to become attracted to you. Sponsoring becomes effortless and people start to call you. Before you can become a leader you need to fully believe that you are one.
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Sunday, February 4, 2007
Network Marketing Strategies
I'm sure you would all agree that in order to build and own a large Network Marketing Organization, you need to attact a certain type of person. ie: Somebody who has leadership skills, has a strong desire to succeed and finally unshakable commitment to see the people in their business, duplicate and grow. Now you can always Build your People so they build the business.....
OR
You can attract the people who already have the leadership skills, strong desire to succeed and unshakable commitment to see the people in their business, duplicate and grow.
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Network Marketing is Fun and Profitable
by Tarun Trikha
Network Marketing, also called MLM or Multi-Level Marketing, can be one of the most fun and rewarding businesses today.
Robert Kiyosaki said:
“If I had to do it all over again, rather than build an old style type of business, I would have started building a network marketing business.”
More and more companies are offering products and services that the average person uses, and making them available in a MLM format. Products such as nutritional products, water filtration systems, communication services, and internet access are all sold through Multi-Level Marketing.
MLM has gotten a bad reputation over the years due to the fact that, originally, many companies were set up to make money only for the founders, leaving those who got in later with nothing but empty promises — and pockets!
Even today, when most Network Marketing companies are legitimate, many people dont like anything to do with MLM. People will turn their backs on a great opportunity simply because it involves Multi-Level Marketing. They cant seem to forget the past.
What Is Network Marketing?
Network Marketing is a business about helping people. These are non-traditional businesses, generally worked from home (exactly what you’re looking for, right?).
Many business opportunities are actually network marketing companies but, because of the bad reputation mentioned earlier, they don’t call themselves that.
3 Real Estate Investing Myths
People are very entertaining if you just take time to listen to what they say and observe how they act. After all, that's why reality television shows are so popular. Now you can watch people from the comfort of your living room chair.
The things they do and say are so highly entertaining because people so often react based on emotion. Often, that emotion is fear. Throw in a little laziness and a willingness to believe whatever they hear that justifies their fear and there you have them—the two most wealth-preventing myths about real estate investing that were ever conceived. And those two are the parents of the third.
Those myths are, of course, fear-based. They are also myths that would not exist if it were human nature to educate themselves about a thing before making up their minds about it.
What are those myths?
1.Real estate is a gamble.
2.Real estate is risky.
3.There is no way I can possibly invest in real estate.
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Saturday, February 3, 2007
Could The Market Fall Down and Go Boom
There's a lot you can blame on the baby boomers, the sumo demographic that has given us everything from bell bottoms to those obnoxious "baby on board" signs. But will you be able to blame us for taking the market down when we start to cash out of our retirement plans?
Robert T. Kiyosaki, the incredibly successful author of "Rich Dad, Poor Dad" and a leading edge baby boomer himself, set up that scenario in a 2002 book, "Rich Dad's Prophecy," but since then other forecasters have found less cause for alarm.
Kiyosaki noted that the laws that created Individual Retirement Accounts and 401(k) plans require people to start taking withdrawals from these tax-favored accounts at age 70 1/2 , which is in 2016 for the leading edge of the baby boom. He predicted that dynamic combined with "millions of baby boomers needing money for medical expenses" could create a sell-off.
Kiyosaki said he is still worried about such a prospect today, but he lists it as only as one of many ills that he thinks could undermine financial markets. His current list includes the declining value of the dollar, followed by the cost of the war, the price of oil, the growing deficit and the fact that the dollar is no longer pegged to gold. "It's not the biggest thing. It's just a factor," he said of the concern that the baby boomers could start a market meltdown.
Business Needs Strategy to Succeed
When thinking of starting a network marketing business, you will need a business plan just as any other type of business if you hope to make it successful. It is more than the often-believed three-part strategy of start business, get rich, retire young. While that may happen one in 100,000 times, you will have to be extremely lucky to see it happen to you.
To begin to create a network marketing strategy you will need to decide on the type of business, or businesses, you hope to market as well as the target market you hope to hit. Knowing the product or service is a great first step in establishing yourself as a knowledgeable force on your way to success.
Write out your plan of in what position do you want to find yourself in the short and long term as well as how you plan to reach those goals. Since many network marketing efforts involve affiliate marketing you will need to discover which companies will accept pay for performance advertising and how to best leverage yourself as a leader in the market. You will also want to plan on whom to recruit to help you with your efforts.
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10 Decisions You Need To Make To Get Rich
Today, because of the multitude of choices we all have, it is easy to get distracted from where we want to go in life. I offer you a few suggestions on how to find your path and stay on your path to great wealth, if you should choose to do so. One night in 1975, I sat in my little apartment and began to choose the path I was now to take. I had to again decide which dad’s path I would follow, my rich dad’s or my poor dad’s. I had been off track for 10 years and it was now time to get back on track. These are some of the decisions I made and have continued to make over the years.
Step One: Decide to Be Rich
That night in 1975, I had to stop feeling sorry for myself and decide again to be rich. I went over some of the lessons my rich dad had given me - lessons that were more important than money, because they would ultimately create the financial empire I wanted. I sat quietly that night and my lessons began all over again. I could hear my rich dad talking. “The only difference between the rich, poor and middle class,” he said, “is the kind of lifestyle they want. You don’t have to be psychic to tell a person’s future. If you listen to the words a person uses, they will tell you their future.”
Rich Dad believed that words were a person’s most important tool. He constantly reminded me to watch the words I spoke, simply because he believed that the words you speak and the words you think ultimately become the world you live in. He often quoted the Old Testament: “And the word became flesh”. So that night, I remembered Rich Dad reminding me to listen to different people’s words. I noticed that poor people often said:
“I just want enough money to pay the rent.”
“I need a few dollars to get to the next pay day.”
“After I pay my bills, I don't know how my family can afford to eat.”
People who used words such as these, often focused only on financial survival. Rich Dad often referred to these people as “poor” people, because they were poor managers of money. So a person who thought or spoke words such as these was constantly fighting for financial survival, regardless of how much money they made. The middle class used different words because they had different ideas about how to use their money:
“Our home is our most important asset and our largest single investment.”
“We’re setting a few dollars aside every month, so we can afford the down payment on our dream home.”
“We’re saving money for our children’s college education and our retirement.”
I noticed that the middle class focused on comfort. That is why so many of them say, “I don’t want to be rich. I just want to be comfortable.”
That night, I recalled the words my rich dad’s rich friends used:
“How did you finance your shopping centre? Did you syndicate it with a joint venture partnership or did you go to a hard money lender for the interim money?”
“My underwriter has a new private placement, pre-IPO offering. Do you want a position in it?”
“I bought the shares through my corporation because the long-term tax consequences are better.”
The rich used the vocabulary found in the asset column. Rich Dad said, “The rich are rich because they are not focused on day-to-day short-term survival, or the expense column as the poor are. Nor are the rich focused on comfort and the acquisition of liabilities using credit, as the middle class is. The rich are rich because they focus on the long-term acquisition of assets...assets such as stocks, bonds, businesses and income producing real estate. Many times the rich will forsake meals, a steady pay cheque, a vacation, or the comfort of a nice home, to build or acquire real assets.”
So decide to be rich, even if you are broke and penniless today. In Rich Dad Poor Dad, I wrote of the difference between being poor and being broke. Poor is a state of mind where thoughts such as “I can’t afford it” or “Live below your means” come from. Being poor is eternal but being broke is temporary. The opening chapter of The CASHFLOW Quadrant is called, “Why Don’t You Get a Job?” It begins with my wife Kim and I being homeless for about 3 weeks. Even though we were virtually out of money, we continued to strive to become rich, to build a business and invest through that business. Today, even though we have plenty of money and several businesses, nothing much has changed. We continue to build businesses, reinvest in our businesses and invest through those businesses.
In The CASHFLOW Quadrant, I wrote about Be-Do-Have. “Be” is the most important part of the three word formula. Most people want to “Have” what the rich have, but they often are not willing to do what the rich “Do” to have what the rich “Have”. So whether you have money or not, it is important to “Be” rich if you decide to do so, which means being willing to make being rich more important than merely surviving financially or being comfortable.
Step Two: Decide What Kind of Money Problems You Want
There are only two kinds of money problems: not enough money or too much money. Unfortunately, the kind of money problem most people know is not enough money.
Rich Dad stressed that his son Mike and I know not only how to make money but what to do with the money we made. Rich Dad said, “Most people know how to work for money, but they do not know how to have people and money work for them.” So he taught us how to plan on having too much money. He said, “If you want to be rich, you must make sure your excess money creates more excess money. You must know what to do with your excess money before it gets to you. Most people, when they receive any excess money, spend it foolishly or just park it in the bank.”
So decide what kind of money problems you want.
Step Three: Write Your Plan and Follow It
After choosing between being rich, poor or middle class, and then choosing between too much money or too little money, it’s time to write your plan.
If you have chosen to be rich, even though you are broke today, and have decided to have the problem of too much money, read on. If you do not plan to be rich or to have too much money, then you need not read any further.
Rich Dad’s plan started with a few basic goals:
- Change the characteristic of your income. Start a part-time business.
- Change the characteristic of your expenses. Convert personal expenses into business expenses.
- Place your business inside a legal entity.
- Have your business buy your assets.
- Harness the power of reinvesting.
If you’re willing to be a little uncomfortable to become very rich and retire early, develop your plan — even though you may be broke, but not poor, today. And if you are already rich, Rich Dad’s plan may help you become richer and happier...even beyond your wildest dreams.
Step Four: Decide on Where You Want to do Your Banking
Rich Dad often said that you could tell the difference between the rich, poor and middle class simply by where they went to get their money or to do their banking.
Rich Dad said, “A poor man’s bank is a pawn shop.” A pawn shop lends money on “assets” that a banker would not loan money on. When a poor person is short of cash, they will often go to the pawn shop and put their chainsaw, microwave oven, jewellery, TV sets, tools, or watches up as security. The pawn shop gives them cents on the dollar, because what the poor spend their money on is not worth anything after they buy it anyway. The pawn shop makes money by charging legal usurious interest rates.
The middle class has the creditworthiness to use banks, savings and loans, or credit unions for their lines of credit. A popular form of credit for this group is the credit card, which is easy to obtain. The rich also use banks. But they often use different banks. They use the services of investment bankers, or find private capital from wealthy individuals, or money from institutions such as pension funds, insurance companies or the stock market.
The rich, if successful as business people, have fewer problems raising large sums of money and at better interest rates.
So decide where you will do your banking.
Step Five: Choose Your Friends and Partners Wisely
One of the reasons the rich get richer is because they spend time with other rich people. Most of my best investments come from my rich friends, not from my stock brokers or real estate brokers. It is important to know if a person’s aspirations are to be rich, comfortable or simply survive. Friends who merely want to be comfortable or survive will not understand why you want to be rich and may unconsciously pull you down. And besides, the investment tips I get from people who only want to be comfortable are often tips on investments that no one else wants.
How do you find people who are rich or want to be rich? Rich Dad had a simple answer: “It’s what you know that determines who you know. If you want to change who you know, simply change what you know.” So the most important investment you can make is in your financial education and financial experience. Invest in that first and the people you spend time with will change.
Friday, February 2, 2007
MLM Leads and Successful Network Marketing
In between direct sales and mass marketing companies, there is a type of business known as network marketing. This often refers to a company that uses distributors who create a network that consists of both customers and distributors to be lucrative. The best way for this to happen is through the utilization of excellent MLM leads.
These leads are a compilation of personal information that is given by people who have expressed an interest in starting their own network marketing business. These MLM leads are often separated into categories such as surveyed leads, opt-in leads and what is called real time leads. These leads are then divided further into specific lead requirements, depending on the business needs. For example, these leads could include information such as, age, location, income level and expressed desire of a particular lead.
If a marketer is ready to start contacting leads, they should be getting the real time leads. These leads are exactly how they sound, as soon as a prospect fills out a form, the information is sent directly to you. Therefore, you have the chance to call them and speak with them before they have a chance to change their mind. This is very important when turning a prospect into a recruit or even a customer.
The term ’surveyed lead’ is given to an MLM lead that has already spoken with someone from your company. Typically, this will be someone from your up-line. They have already been warmed up for your conversation with them. They have answered more precise questions, such as their time and money availability and someone with experience has decided that they would be a good quality lead for you to pursue.
MLM leads that are put into the category of opt-ins are most likely from an internet mailing list that they have joined or a newsletter that they have opted to receive. These types of leads will have the least information, but will have an email address. While these leads may not be the most promising, they will give a beginner, as well as a more advanced network marketer, more leads for the money.
Learn to be a Rich Woman
Kim Kiyosaki, author of Rich Woman: A Book on Investing for Women, began her career as a real estate investor in 1989 after launching her first business with her husband, Robert Kiyosaki, the author of the bestselling Rich Dad, Poor Dad series. Today, Kim controls millions of dollars of investment property and teaches women how to achieve financial freedom through investing and taking control of their financial futures. We recently spoke with her to get her insight and advice on the importance of taking charge of your money--and your life.
Rosalind Resnick: Given your own success in building companies and buying real estate, why do you think that so many women are still afraid to take business risks?
Kim Kiyosaki: I think part of it is that so many of us haven't been educated about investing and haven't really been expected to be the ones handling the money. Being risk averse is not necessarily a detriment unless it’s to the point where you become so afraid of risk that you do nothing. What I’ve found over the years is that the way I grow and the way I learn is by placing myself in situations where I have to face something I’m not familiar with or to break through a fear. I want to create a movement throughout the world to teach other women to put [my principles] into practice and become financially independent.
Resnick: Most women know how risky it is to depend on a man for financial support, yet millions of women continue to hope that their husbands will take care of them. Looking back on your own experiences growing up, what was the turning point that transformed you into the financial risk taker you are today?
Kiyosaki: I’ve always been very independent. When I was 14 years old, I came home one day and my mother was sitting with her girlfriend in the dining room, and my mom’s girlfriend was crying, very upset. I was ushered out quietly, but I stayed in the other room and overheard the conversation. This woman was saying that her husband had left her for another woman and how horrible it was, but when my mom asked, “Did you know? Did you have an idea?” she said that yes, she did have an idea but that, even though the marriage wasn’t working, at least she was financially taken care of. And I just remember thinking, “Why would anyone want such a miserable life?” I think so many of us women still have this idea that Prince Charming is going to take care of us. With one out of two marriages ending in divorce nowadays, that’s just not the case any more.
Resnick: One of the challenges that women entrepreneurs continue to face is lack of capital. What advice do you have for women who want to start businesses or buy properties but have little access to cash or credit?
Kiyosaki: For every business that I’ve ever started--and I’ve started them all with my husband--we had no money. There’s this idea that you have to have a lot of money to build a business or you have to have a lot of money to invest. I don’t subscribe to that. Borders bookstore started in a garage. Apple Computer started in a garage. None of those companies was highly financed. When it comes to property, Robert and I were broke for quite a while. We were homeless for a short period of time when we were building our businesses. But when it came to investments, we didn’t have money, either. My very first investment was a little two-bedroom, two-bath house in Portland, Oregon, and I needed a $5,000 down payment and I didn’t have it--but I found a way to get it. But the thing I’d say about investing, especially about real estate investing, is to find the investment first because then it’s a tangible thing. Otherwise, it’s just talk. Once you find the investment, it becomes real to you. Then you can figure out how to find the money.
Resnick: Another challenge for women entrepreneurs is balancing work and family. What advice do you have for women who don't have the time to invest in a business venture?
Kiyosaki: Let’s say you’ve got a full-time career and you’ve got a family. At the end of the day, the last thing you want to do is go look at property. You’ve got to somehow make that a priority. I think that every woman has their own business called, “Managing and Growing Your Money.” And it has to be looked at as a business, not just a thing to do to pay the bills. A lot of women business owners say, “I’ve got a business, and it’s doing well, so why do I need to invest?” I would bet you that every businesswoman out there has said to herself at some point, “I’d love to shut it down. I’d love to not have to go to work today.” Eventually, you’re going to get tired. You’re going to want to take a break. By creating that income stream, you have a choice.
How to Spot Network Marketing Scams
In most cases, it isn't very difficult to spot a network marketing scam. The biggest one is the organization that asks for a fee for you to become part of the network but with nothing in return. Known as a Pyramid Scheme, these type of schemes have been around for many years, and that is actually the way the money flows to the organization is by each new distributor paying a few to join. Some people today refer to all network marketing schemes as pyramids if you even pay anything in the way of a sales kit. For example, if you pay for a sales kit as a condition of your distributorship, that does not constitute a pyramid because you are getting something for your money. Paying for a sales kit introduces you to the products your organization distributes and gives you an introduction into using your own products. For example, before network marketing hit the Internet, how would it have looked if you were a distributor of XYZ Corporation, you brought a potential distributor to your home for a marketing demonstration, and you had none of the products in your home? It certainly would not make you very credible as a recruiter, would it? That's why the sales kits were provided to introduced, so that new distributors could begin using the products of their organization.
Network marketing is not immune to scams by any means, and it's important that you be aware of anything that sounds unethical or illegal. Paying something for nothing is a red flag off the bat, but there may be others as well. Scams crop up all the time, so you need to make yourself aware of their existence. Follow the adage that if it sounds too good to be true, it probably is. In
Building an Internet Network Marketing Business
As a career, network marketing in a home internet business, has far fewer problems than franchising and other off-line business opportunities simply because of the fact that you do not need employees. In network marketing, good assistance is there- if you seek it out.
Unlike other jobs, there are no promotions based on how well a boss like you. Networking is structured to reward one's won initiative and ambition to succeed. An important premise of networking is that everyone starts equal. You can't buy your way to a higher level. Your performance and only your performance determine how well you are rewarded.
Remember, in network marketing especially in a home internet business, any advancement you make, every check you receive, every reward you get, every time you are singled out for recognition is squarely for what you have developed through personal and team effort.
With no doubts, the business environment had changed. Today, experts in common businesses design compensation plans to severely restrict the number of persons who can make $100,000 or more. And all too frequently the company that looks as if it will prosper does not, and its pension expectancy is shortened. Consumers now are more fickle minded. The only certainty is uncertainty-unless you control your economic future.
If you are to enjoy a large income, financial security, and the "good life", you can also do it by building your own network marketing internet home business now. It is more than suitable at any other time in history.
Building a home internet network marketing business, which is free enterprise in its purest form, carries no guarantees of bug income and rapid wealth accumulation. But it does have an amazing record of helping ordinary people earn residual incomes.
Home internet business via network marketing is the closest we have come to what the nations founders had in mind-which people who work hard, exercise personal leadership, serve other exceptionally well, and accept responsibility should be handsomely rewarded. But those who do no more than is required, worship the clock, avoid initiative, and expect Santa Claus, or a state lottery to provide them with a first-class standard of living are in for a shock.
Read More
Thursday, February 1, 2007
Amazon Best Seller List
As of 3pm Eastern, 7 of the top 11 books in the Personal Finance best seller list on Amazon.com are either Rich Dad, Rich Woman or Why We Want You To Be Rich books. Impressive showing! Thank you to all of you that continue to increase your financial education.
Robert Kiyosaki
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Get the Best of Robert Kiyosaki with Skyquestcom, Asia Pacific’s 7th Fastest Growing Technology Company. Click here for more details
Why we want you to be Rich
Donald Trump and I got together to write Why We Want You Be Rich because we truly are concerned about the disappearing middle class. We talked about that this morning on The Today Show. Thank you to so many of you who bought the book. We think the message is vitally important. Please share the information with your family, friends and associates.
With gratitude,
Robert Kiyosaki
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Special thanks to Richard Tan, the CEO of Success Resources and Skyquestcom
Talking to People
To be really good at Network Marketing we have to learn how to talk to people.
Larry King is considered a master at talking to people and has written a good book called How to Talk to Anyone, Anytime, Anywhere.
People study various subjects and even become highly educated in some disciplines. However, we need to realize that it is really difficult to be successful (stay on top year after year) without communication skills.
In his book, Larry King gives a list of eight things the best talkers have in common:
- They look at things from a new angle, taking unexpected points of view on familiar subjects.
- They have broad horizons. They think about, and talk about, a wide range of issues and experiences beyond their own daily lives.
- They are enthusiastic, displaying a passion for what they’re doing with their lives and an interest in what you’re saying to them at that moment.
- They don’t talk about themselves all the time.
