The Eight Hidden Values of Network Marketing – Part One

The Eight Hidden Values of Network Marketing are the foundation for success. I’ve been a student of personal growth and success principles for several years.

In the mid-eighties, while driving between jobs, my Toyota pick-up served as my personal Success University. For two or three hours a day, I listened to cassette tapes that ranged from spiritual foundations, vocabulary and memory courses, success principles, and self-improvement courses from several great mentors like Napoleon Hill, Brian Tracy, Tony Robbins, and Jim Rohn.

It’s critical, that as you launch out to build a network marketing you create an environment for growth and change in your life.  Healthy growth requires change and can sometimes be a bit uncomfortable. There are plenty of excellent resources that I’ll be covering in my Success Mentor® blog that will help you develop, grow, and overcome obstacles over the next weeks, months, and years to come.  Let’s start out the new year with a commitment to life-changing education.

Compensation plan mechanics, prospecting How-To’s, and even the best business building systems won’t guarantee your success. What you become while in the process of learning, growing, teaching and sharing will translate into great friendships, business relationships, and ultimately a tremendous lifestyle and financial future. What I’ve learned over the years is that we’re in a business of personal development.

Network marketing provides a safe environment to learn, grow, increase in knowledge and apply it by using a variety of skills.

Sixteenth-century gnostic philosopher, Sir Francis Bacon coined the term; Knowledge is Power, a cliche that’s been used by most success gurus over the years. But knowledge alone is not the key. It’s the application of knowledge – knowing the how and why. It’s interesting that in the Bible, King Solomon asked God for wisdom, not knowledge. We learn through applying what we know in real life. The experience empowers us and helps us empower others in this business and in life.

Here’s a brief outline of Robert Kiyosaki’s book,  The Business School – Eight Hidden Values of a Network Marketing Business other than Marking Money. I’ve provided perhaps a deeper insight into some of Kiyosaki’s points but his book serves as an excellent outline that highlights the values and benefits of being in this business.  I’ll do this in two parts over the next few days. Here’s part one,  Kiyosaki’s first four points with my commentary.

Value#1: Life-Changing Business Education

Kiyosaki recommends network marketing as a business for its system of education.  I agree.  In corporate America, you can just take a number and get in line.  It’s a cutthroat, dog-eat-dog world.  However, in the network marketing business model, your sponsorship line and the company trains you, educates you, and encourages you to achieve your highest potential.  You receive hands-on training, like an internship where you can earn while you learn and have a lot of fun doing it.

Value#2: The Value of Changing Quadrants instead of just changing jobs

Kiyosaki teaches that there are four quadrants: E=Employee, S= Self-employed or small business owner, B=Business owner and I= Investor.

Network marketing falls into the ‘B’ Quadrant.   B-Quadrant business owners understand that building your network takes time and that PROFITS are better than WAGES.

If you started a drinking water business and had to deliver water from the reservoir to your bottling plant, what would be the best business strategy?  Hmm… buckets or a pipeline?   Sure hauling buckets might be necessary at first but it would be smart to start working on that pipeline. Sure it takes longer to build the pipeline but the outcome creates less work and long-term profits.

The self-employed (S Quadrant) is labor and time intensive. Many small businesses fail because of exhaustion, both financial and physical.   That’s because they are “working IN or OUT in their business not ON their business-. Working ON your business is as important as working ON yourself.

There’s a big difference between working IN and working ON. A Chiropractor or Carpenter has to be IN the office or OUT in the field to make money.  Sure they can hire employees but it’s time intensive with the management of employees, payroll, taxes, paperwork, regulations, etc…

By working ON your business, you’re creating an asset that can grow and increase without you being there day after day.  In fact, as your network grows and as you develop leaders, your job actually becomes much easier.   It’s called leverage.  The famous,  J Paul Getty once said that he’d rather make 1% on the efforts of 100 people than 100% on his own efforts. Networking is working smart not hard.

The E Quadrant represents the Employee. There’s nothing wrong with being an employee.  I actually hate the negative criticism some network marketers direct toward employers and employees with a JOB.  Cliches’ like “Just Over Broke” or “Jerk of a Boss,” are used all the time. If a person has that kind of attitude toward their boss or hates their job, they need to get a different job. It is especially important for us not to demean what people do.  Let them know that there are other options and a way to escape if that job or career is not providing the lifestyle they truly desire.

Unless you’re experienced, don’t quit your job and go full-time. If you’re thinking about breaking out the nine to five,  a job can be a useful tool to provide the resources to finance your journey.  In the meantime, be a model employee for your employer. Learn from your on-the-job experiences.

The I=Quadrant represents the investment lifestyle and more options are available once you have leveraged your time and money with passive residual income.  More on this in Value #4.

Value#3: the Value of Access to a B-Quadrant Business

Entering into a ‘B’ Quadrant business can be expensive using the traditional industrial age business model but with information technology and the inexpensive and free communication technologies of the 21st century, virtually anyone can build a huge network and become a big business. Using the Internet and the sophisticated business tools that are now at our fingertips has never been easier.

Network marketing, with the right vehicle, gives you access to a ‘B’ Quadrant business at a bargain price and with very little risk. One of my mentors, the late Jim Rohn said: “If it’s easy to do, it’s easy not to do.” Because this business is so easy and affordable to get involved in, it’s easy not to do or take it seriously.

Don’t underestimate the power of this business.  Just because it’s not expensive and risky doesn’t mean it’s not a powerful business vehicle.  People tend to relegate network marketing to a hobby-level pursuit, when in fact it’s serious business.  Network marketing allows you to enjoy the ultimate leverage needed to rapidly replicate and multiply your business.

Value#4: The Value Of Investing in the I-Quadrant and Becoming an Accredited Investor

As you build and develop your network, your net worth will increase and you’ll head over to the I-Quadrant.   As your business grows, it becomes a real asset as your profits increase. As I mentioned earlier like I tell my six-year-old, “profits are better than wages.”

As your profits and net worth increase, the American Securities and Exchange Commission also known as the SEC allows an individual that makes $200,000 a year or $300,000 a year per couple to be called an accredited investor’ allowing you access to the inner sanctum of investing.   In addition to having more discretionary income, you will have more time.  Sure time is money but time also provides you with quality time with family friends and things you love to do.  By increasing your net worth you have more time to invest in yourself, in various causes, and in the people you love.

Click here for Part II