Rich Networker Poor Networker
Robert Kiyosaki

Robert this quote has been attributed to you: "If I had it to do all over again, rather than build an old style type of business I would have started building a network marketing business."

Did you really say that?

I said something like that, yeah!

Is it true?

Yes, when I looked at the problems I had to go through, but it's how I started. I still like building companies, but it was harder.

When you and I first spoke, many years ago, you were not all that 'high' on network marketing. What caused you to change your mind?

Let me backtrack and explain things to you. When I started as an entrepreneur I had to learn how to sell. That's how I started and I started with Xerox in 1974.

What I say to people today, when asked, "How would you start a business?" I always tell them to go start with a network marketing company. Not because of the network marketing company per se, but for the training you get from the network marketing company.

The reason I say that is because what makes people rich is not money. What makes people rich is skills. And the number one skill of an entrepreneur is the ability to sell.

That's why I recommend network marketing. It's not that I've ever been high or low or anything on it. When I first started out I just didn't realize how good the training was with that business model, because my training came from the corporate world of Xerox. Not too many guys are going to get hired by Xerox today and they don't do as extensive a training anymore because people quit too early.

So my whole point on recommending network marketing is that you go there and you gain priceless business skills. That explains further what I'm saying about if I had to do it all over again— I would probably go and get training through a network marketing company.

Rich Dad, Poor Dad What the Rich Teach Their Kids About Money That the Poor & Middle Class Do Not! by Robert T. Kiyosaki Kiyosaki compellingly advocates for the type of "financial literacy" that's never taught in schools. Based on the principle that income-generating assets always provide healthier bottom-line results than even the best of traditional jobs, it explains how those assets might be acquired so that the jobs can eventually be shed.

Cashflow Quadrant Rich Dad's Guide to Financial Freedom by Robert T. Kiyosaki THE CASHFLOW QUADRANT answers the above questions and guides you in finding your own path to financial freedon in a world of ever increasing financial change.

Robert, can you break down what some of those skills are and why they are important?

SELL! Sell, sell, sell, sell, four-letter word, you've got to sell. And that's the word everybody's afraid of! But… sales = income.

So when someone has low income, 99% of the time it's because they can't sell something; they have nothing to sell or they can't sell. You've got to learn how to sell.

If I'm going to be an entrepreneur then that is THE number one skill. That's the theme to everything I tell you. You read Rich Dad, Poor Dad, it says, "I'm not a best writing author, I'm a best selling author".

I think this is an important point about where most people make a mistake. They go into things looking at how much money they can make versus what skills they need to make the money. That's when I get really tired of talking to people.

I keep saying, "Just get the skills and the money will show up!"

Robert, can you talk to me about the components that go into 'sell, sell, sell'?

I'm just saying it's training. You have to know you're going to make mistakes. Look at the way the corporate world trains you.

When I was working at Xerox, every month they would post my record and of those in the bottom twenty, one of us got fired. They fired two guys and they hired two new guys. So, the only reason I learned how to sell was because I was afraid of getting fired.

At least in the network marketing world they'll train you. It's a whole different way of being taught. In the network marketing world if you're not making it, someone will be there to encourage you. It's a lot more humane way of being taught a vital, vital, vital life skill called sales.

Just look at the subject of sales— Jesus Christ was probably the best salesman in the whole world, and of course Buddha and Mohammed, they were all great at sales. Look at the presidential candidates, the one that wins is the one that does the best job of selling his point of view.

It seems to be the human condition, especially in the academic world, that there are two subjects that nobody wants to talk about, one is money and one is sales. They seem to think of 'cash' as a four-letter word and 'sale' as a four-letter word yet, I'm a teacher and I make more money than most teachers in the academic world simply because I can sell better than they can.

When I recommend network marketing to people, it is for one simple reason, you gain a life skill. It's called 'overcoming your fear of rejection', 'overcoming the clients fear of being sold', and breaking through that.

Robert, what makes you say that network marketing is a revolutionary way to achieve wealth?

Because they don't fire you! They'll work with you! They'll help you build a business and once you have a business you really do have an asset.

Assets are something that put money in your pocket whether you work or not. If you have a job... well, look at some of the big financial houses, they're firing people right now. One of them is firing something like 15,000 people in the U.S. and hiring 15,000 people in India. The day of the safe, secure job is gone.

At least with a network marketing business you work really hard to build something that you can pass on to your kids and, if you've done a good job, if you stop working it will continue to support you. You're not working for the rich, you're not working just for money, you are actually working to build an asset.

Is that what you speak about in your business school book, The Hidden Values, you speak about the value of a network?

Yes, well, the richest people in the world build networks. That's why they're called 'Television Networks' or gasoline service station networks. The poor and middle class and educated work for networks, I'd rather own the network.

For example, I have a network of book stores throughout the world that we control. That's worth a lot of money to me. I don't want to work for them; I just want to control them. I think in the form of networks and the average person thinks about working for money. I'd rather work to build a network. That's why I'm rich.

And that's what we get to do in network marketing. Build a network which we can take anywhere with us?

It's a completely different point of view; it's a different way of looking at the world.

If somebody said to me, "I'll pay you $5 million dollars a year to go work at Harvard University" I wouldn't take it. That's not enough money. Why would I work for somebody else? That doesn't compute for me. They could take it away from me and that just doesn't make sense. I know it computes to most people, like 401K's and Mutual Funds, which also make no sense to me but, I've been trained differently. I can make more building my own business. I pay more than that in taxes each year.

So what I'm saying to network marketing company's is, what makes it hard for some people is that they have to give up their old ideas of what they were told to do— go to school, get a job, work hard, save money, get out of debt, invest in long term, diversify, buy mutual funds.

That's really stupid from my point of view, but it is good advice for the average person. It's simply a completely different point of view. I am an entrepreneur.

I don't want to work for someone else. I don't want somebody telling me how much money I can make, I don't want somebody to tell me where I can go in the world or when I have to come to work. I'd hate it! Nobody tells me that. That's why I support network marketing!

Is that part of the challenge that network marketers face— that most people are indoctrinated in thinking as you just described?

Absolutely! From the time we're born we are told by other people what to do, including go to school, get good grades, get a good job, work hard, get a pension etc. That's not my idea of life. I want my freedom and anybody messes with my freedom, I fight for it.

When you talk to most people about going for freedom you'll find they would rather go for security. That's the challenge that network marketers have, they are talking to people who are, fundamentally, cowards. Cowards let their fear run them.

And that's what people run up against when they want to talk about network marketing.

People claim they want to be free but they are not willing to give up their job security, they're not willing to take any risks, they want a guaranteed paycheck but they also want their freedom?

Talk to me a little bit about the role of leadership in network marketing. And how is it different from leadership in other forms of business?

Well, leadership in network marketing is that you are offering no guarantees. Tell the truth! All you're offering this person is the possibility, the possibility that this other person can be a leader themselves.

If you're more concerned with your own self-preservation, what people think of you ,and steady paychecks, then you don't have core leadership skills.

To be a leader you have to be one willing and able to take the heat, to stand there and take the fire and say, "Look, you can do it!"

Leadership in corporate America is called management. They aren't true leaders; they're just dangling a paycheck in order to get people to do what management wants them to do.

You've witnessed a number of leaders in network marketing. What do you see them doing right?

They inspire people to be leaders. A leader doesn't lead, a leader creates leaders. That's why network marketing is so powerful— because if you can get somebody who is confident and more interested in freedom than security to actually come and lead people, their lives will change.

That's not always easy to do because of the mindset of the majority. That's the hardest part.

So many people are so afraid to say, "I want to do network marketing" not because it's not a good idea, it's because of what their friends and co-workers might think of them!

That's not me! I stand up and say what I say because I feel it's the truth. No one should apologize for wanting to do network marketing!

That's not freedom! Reminds me of the movie, Braveheart, where Mel Gibson says, "They can take our lives but they can't take our freedom!" Most people will sell their freedom so they can have their little lives.

Now understand, I know somebody has to be willing to do the jobs, be a waiter or waitress, or a school teacher and I appreciate that, but many people who do it are willing to sell their freedom and what I'm talking to you about is freedom.

The reason you learn how to sell is so you can become free. The reason you want to be in network marketing is for your freedom.

Do you realize most people from the U.S. can't go to Mexico and do work because you need a green card? But if you're a business owner, well, I can go to Mexico or China or wherever I want and do business. That's freedom! But if you're an employee you need a green card, that's not freedom.

I can make as much money as I like. That's freedom. But if I have to work for someone else and they're going to tell me how much I can make, that's not freedom.

That's really what it comes down to. When I get that question, do I recommend network marketing, actually, I recommend freedom!

That's what I stand for. And I don't care what that means to you, just go do it.

For me, freedom means I don't have to answer to anybody, I can leave the country if I want to leave it, I can travel around the world and make as much as I want, legally, ethically, morally. I tell you exactly where I'm at; you don't have to guess where I'm at. That's freedom; I don't worry about what somebody else thinks of me. That's what I stand for, not network marketing. Network marketing is one of the ways you can get there.

Do you think it's one of the best ways for average people?

I think it's the best system for the average person, yes. I say again, in the corporate world if you don't sell within the first year, you're fired. In network marketing they'll work with you to achieve success. What a deal that is! They will work with you to become free. Isn't that wonderful? That's revolutionary!

More From Robert Kiyosaki

• Rich Kid, Smart Kid
• Rich Dad's Guide to Investing
• Fundamentals of Investing
• Cashflow Quadrant
• Retire Young, Retire Rich
• More Robert Kiyosaki - Rich Dad Resources