Hi all, I have been reading the Kiyosaki books on investing, and he seems a strong advocate of building a business before jumping into investing, especially network marketing as a vehicle for building a strong business with cashflow.
Receently I have joined a network marketing company called
Good post! I had joined a network marketing group just prior to getting into property investing. The cashflow wasn’t great, but it was just what I needed to give me some sales skills. I went from being a medical researcher who worked in a lab and only talked to other researches to having to deal with buying/renting etc with the public.
I highly recomend it, if you don’t have lots of money to start a business from scratch or buy a franchise, it’s a good learing tool to act as a bridging step between a regular job and property investing.
Good luck pp
Xenia
We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required [email protected]
phone 0412 437 582
I am looking at joining a certain network marketing company. Unfortunately Amway have given the industry such a bad name, which makes makes life harder for some of the newer ‘better’ ones.
I have also read some of his books and i’m racking my brain for business ideas that I can manage while i’m still working full-time.
Can you guys explain a bit more and perhaps give me some references on the net to learn more?
Unfortunately Amway have given the industry such a bad name
I can understand your feelings but I know many people who have carved out a really nice living from Amway. The problem you are referring to is the idiots who gave Amway a bad name, there is nothing wrong with the business.
Generally though, a network marketing business can be a really good move if people are after a financial ‘leg up’ into other things. Just make sure that whatever business you join has long term viability! Take it from someone who knows[wink]
I joined an Amway network several years ago because I liked the products. I soon became totally captivated by the motivational programs. That was where I picked up the habit of listening to motivational tapes, reading books on personal development & ‘building equity’ in myself.
I never did build a network but it was still a life-changing experience. Network marketing invariably includes a system that prepares people for team building and leadership roles. The training I undertook helped me become far more positive and emotionally resilient. This laid a strong foundation for the work I do today.
We may not agree with some of the tactics used by people in network marketing. These are mostly beginners making their early mistakes. To get an idea of how powerful network marketing can be, take a look at those who had made it to the top. I found them to be absolutely inspirational.
I personally have found network marketing a waste of time and money. The products are usually way overpriced in order to allow commissions to be payable. Why pay $15 for some shampoo when you can pay $5 in the supermarket.
We have tried two different network marketing companies. Both resulted in failure…
The first was a product that I really believe in but just don’t use much (Nutrimetics – make-up and skin care). It is a great product and I’m still happy to buy it off someone else every other year or so. It was very hard to sell something I just wasn’t that interested in.
The second had an excellent business model but the research that they relied on to justify the “need” for people to use their products just would not stand up to university level scrutiny. There was nothing published in reputable journals and the studies they quoted were mostly “one-offs” done by people with no standing in the industry (outside of the network marketing company, that is). Some of the names used and studies quoted were enough (combined with that excellent business model) to get us excited and sign up. As time went on and I did more research I became more and more uncomfortable using the products and advising others to do the same. BTW (for the forum members who know what company I’m talking about) this only applies to the mega doses of vitamins – the shampoos and skin care products were great. Just before anyone gets defensive (as I know a few people here are involved with this company) I studied at the University of Wollongong for a degree in science with a nutrition major and what I’m stating here is only my opinion and if I’m wrong it won’t be the first or last time in my life Hence we dropped out of this one too.
I believe that to make network marketing work you have to love and use all of the products associated with the company you are signed up with. If you have a passion for the products then that will carry you a long way to success within the company… Just my conclusion after two failed attempts
We have tried two different network marketing companies. Both resulted in failure…
The first was a product that I really believe in but just don’t use much (Nutrimetics – make-up and skin care). It is a great product and I’m still happy to buy it off someone else every other year or so. It was very hard to sell something I just wasn’t that interested in.
The second had an excellent business model but the research that they relied on to justify the “need” for people to use their products just would not stand up to university level scrutiny. There was nothing published in reputable journals and the studies they quoted were mostly “one-offs” done by people with no standing in the industry (outside of the network marketing company, that is). Some of the names used and studies quoted were enough (combined with that excellent business model) to get us excited and sign up. As time went on and I did more research I became more and more uncomfortable using the products and advising others to do the same. BTW (for the forum members who know what company I’m talking about) this only applies to the mega doses of vitamins – the shampoos and skin care products were great. Just before anyone gets defensive (as I know a few people here are involved with this company) I studied at the University of Wollongong for a degree in science with a nutrition major and what I’m stating here is only my opinion and if I’m wrong it won’t be the first or last time in my life Hence we dropped out of this one too.
I believe that to make network marketing work you have to love and use all of the products associated with the company you are signed up with. If you have a passion for the products then that will carry you a long way to success within the company… Just my conclusion after two failed attempts
I agree with you sonja. You need to have a passion for the product to be successful. Too many people join up network marketing just thinking about making money and not really knowing anything about what they are selling or how they go about selling it.
I am looking at joining a certain network marketing company. Unfortunately Amway have given the industry such a bad name, which makes makes life harder for some of the newer ‘better’ ones.
What determines “better”? Despite individual opinions and experiences, it is hard to argue with a business model such as Amway for example, that has businesses in many countries and turns over billions of dollars each year. Similarly, Mary Kaye, Herbalife and other older ones have been around for decades and operate on a sound business model, otherwise they wouldn’t have lasted for as long as they have.
I personally have found network marketing a waste of time and money. The products are usually way overpriced in order to allow commissions to be payable. Why pay $15 for some shampoo when you can pay $5 in the supermarket.
Is this opinion based on proper research? These sorts of opinions are often expressed about many businesses that are not understood. In its early days franchising was one such example (including McDonalds). Comparing $15 shampoo with $5 shampoo with no regard to the product is like comparing a $5,000 go-cart with a %500,000 Rolls Royce, they are both motorised vehicles.
My investigations into network marketing indicate the it requires the same business skills as any good business. For example, it requires the building of a network, developing an understanding of the business, people and products. Above all it is important to have a vision, plan and a system with mentoring/support. A good network marketing business can take any product(s) and grow its business because of the business model, not because of the product (e.g. McDonalds), and still offer benefits to purchasers. Isn’t this how any good business operates?
Kiyosaki himself claims in his book “Business School”, to have recently joined a network marketing business.
I have now met numerous people who have had very positive experiences similar to those of starglow. If it’s going to benefit – go for it.
If the aim is to build people skills, then that is the focus.
Network marketing is a people business, and rapidly builds people skills. From a satellite viewpoint, the products and prices are incidental.
Amway system is financially successful and teaches volumes about motivation and people skills. Not my cup of tea. Unfortunately, some of the recruiters lack ethics.
There are other ways to build people skills. My own early trial by fire was door-to-door selling books, very tough gig, gave up a few times every day, but, it taught me not to, and later, when to.
Nothing like a good teacher.
Whether this post’s topic is building a business, generating business ideas,acquiring people skills or network marketing, one benefits from getting out there in the information flow and online, talking to as many people in a day as possible, and asking the necessary questions. We know persistence pays off, so the methods of success are not a secret.
Good luck to you all on your journeys.
cheers
thecrest
I think you will find most investors have been exposed to MLM either directly or thru friends and family.
Amway has done nothing to get themselves a bad name. It is the people in it that do so. Their sales tactics are often questionable. The pressure they place on their downline (who often join reluctantly) leads to many friendships being tested.
The uplines ask you to first approach friends and family – write a list of names of everyone you know…sound familiar?
Join up, buy the expensive products then start to work your friends and families. If people don’t perform it is their own fault. It means they are lacking and need to listen to more tapes and strengthen their faith in the company.
Many many people have joined these systems. I know an awful lot of people successful through property investing. I know none who have done so through MLM.
If it suits you then good luck to you. You will learn a lot about what works and doesn’t work in the sales industry – if you can apply these lessons to other parts of your life then good on you.
All the best,
Simon Macks
Residential and Commercial Finance Broker [email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
One of my friends was in Amway for a couple of years, and had a few disturbing stories.
There was a couple in her upline (ie. they were quite senior in Amway), and Amway Head Office made them lease out a jaguar at their own expense, so they would be perceived by their downline to be mega-successful in their Amway business.
One of their tactics they had to use was inviting themselves around to people’s house for a coffee, not telling them that it was Amway, and then try to talk them into joining Amway.
Somehow I dont think I would feel comfortable with the above, but I guess every company has their own set of ethics/strategies in trying to make $$$.
Kiyosaki is just one author expressing his view. There are many other authors of varying success with differing views. There is no one correct or best way to do things otherwise we would all be doing them. Surely what matters is what works for the individual. I know of people who have either never been involved in network marketing or have failed in that area but that have been successful in property investing and in life.
One point that Kiyosaki makes is that if you want to be successful in any area (including network marketing, or property investing) find someone successful in that area and learn from them. Makes sense.
Perceptions about businesses come and go – eg second hand car yards, banks, network marketing, real estate agencies, etc. Generally nothing wrong with the businesses, just some of the people. Eventually they are “cleaned out” and the perception changes again.
Many stories can be recounted in relation to various businesses etc, but interestingly, most are hearsay, interpretations, misinformation, and sometimes deliberately misleading for various reasons. Consideration of the facts and alternative interpretations may often lead to opposing conclusions. Seek out the facts rather than second hand stories and hearsay.
Whatever it is you want to do, if it is good and worthwhile, then learn to do it well, with integrity, and enjoy it, and you won’t have to worry about what others may think.
gee Usana – I wonder which company you are involved with… hehe.
Yep= way to lose friends and influence noone- see all as your potential downline- and those who say no are losers… The question is- do you want to come out of this “business venture” with any friends left at all?
I think MLM is about 30 years too late- noone falls for it anymore. As others have said, the product is secondary- really, one can pretty much buy anything in a $2 shop these days- and not have to hear about it changing their lives. No product is gonna change my life- but MLM will probably send the salesperson broke- that’s kind of life-changing.
Usana- think about the average Australian income, for example- it’s about 50k. Well, you can start on that before you make your REAL MLM fortune. So you need to make $1000 a week- how’s it looking so far? I met a woman recently who was an MLM person… and she told me she had already won a free holiday. Her eyes were all shiny, and I asked about hoe much money she had put in to this scheme. She had put in several hunred dollars- an investment… the same value as the holiday was worth. Hence, she had paid for her own holiday. How she saw it as having won a free holiday, I’ll never know.
Best of luck with it, Usana. If anyone can make money from MLM and still have friends and family intact, in 2005, well, my friend- I’ll even buy one of your cleaning products from you.
i don’t think its fair to assume that all MLM’s are bad…
a lot of people advocate multiple streams of income… How do we do this?
(1) income from everyday job
(2) property/shares/interest repayments
(3) a multilevel marketing business is also an option…
I’ve personally been involved in one and i strongly believe in what it stands for… And, if nothing else, i have learnt so much about approaching people, self confidence, personal development etc. In fact, these are all the skills required to be a successful person in property investment/development and even a normal job.
As i am continuously told “if you always do what you’ve always done, you’ll always get what you’ve always got”.
I guess everyone has a decision to make – earn enough to pay off there expenses or generate an extra income to start saving for future retirement. There are many methods and i guess everyone has to find the right one for themselves…
Network marketing has been given a bad rap over the years (admittedly due to individuals within the industry giving it a bad name). However look at the business model of network marketing and it is a powerful way to build residual income for the associate in the company, as well as an effective form of distribution of products for the company itself. It is a win-win situation.
Network marketing is here to stay, with many new generation network marketing companiees offering an attractive business model and awesome products to back it up. My belief is that the negative perceptions about network marketing are changing… especially amongst the new generation of people coming through.
But like, what many forum members have said… each to their own, and we all have to find paths which we are comfortable with. I can personally say that i have not employed any dodgy sales tactics, have awesome mentors or lost any friends over this business venture.
Cheers, UsanaAssociate
We do today what others will not so tomorrow we do what others cannot!