Being a network marketer and marketing coach for a decent period of time, I’ve noticed that reading Robert Kiyosaki‘s Rich Dad Poor Dad is a major reason why most people were encouraged to give it a shot at sales and marketing and starting a business.
However, few have truly understood the entire message contained in Rich Dad Poor Dad.
Through Rich Dad Poor Dad, most network marketers understood the importance of mastering sales and marketing, because it is essential to helping any form of business make money. Most people are just one skill away from wealth. And that is the ability to sell. Thus, Robert Kiyosaki recommended people to join a network marketing company, also called multilevel marketing, if you want to learn sales skills. Some of these companies have excellent training programs that help people get over their fear of failure and rejection, which are the main reasons people are unsuccessful. Education is more valuable than money, in the long run.
Most MLM distributors are able to grasp this point, which is to be good at selling. However, there are 2 other secrets in Rich Dad which many MLM distributors fail to teach their downlines because they got too caught with with trying to convince a new distributor the importance of learning to sell.
- Accumulating Assets & Minimising Liabilities
- Always Pay Yourself First
Assets & Liabilities
Robert Kiyosaki simply teaches that asset puts money in your pocket:
- stocks – dividends
- bond notes – interest
- real estate – rental income
- intellectual property – royalties
And liabilities take money out of your pocket:
- credit cards
Make an account of all the money you have spent in your business, and everything you own that is part of your business. As with financial management, there are also assets and liabilities associated your network marketing business.
Therefore, assets in network marketing:
- independent, self-motivated downlines – residual income
- mailing list – your own marketing channel where you can market whatever you want, by mass emailing your subscribers
- blog – brand yourself as better than your competitors by having an online presence, also works as an automated lead capturing tool
- library of training materials for your team – use it to train your entire team, reduces your need to invest too much time in them and indirectly increases their productivity
And liabilities in network marketing:
- car incentive – some MLM companies still have this. Most of the time they are optional, and I don’t encourage it no matter how rewarding it is. Because ultimately, the rewards are still tied to how much sales you bring to the company.
- auto ship
- peripheral subscription services
- needy and negative downlines
The key idea Robert Kiyosaki is trying to teach here is to accumulate assets and reduce your liabilities. Reinvest some of your profits back into the asset category. The more assets you control, the more income you can earn, with less effort.
Paying Yourself First
In Rich Dad Poor Dad, Robert Kiyosaki also said that whenever its payday or when there is time available, most people will tend to pay that time and money to other people first, and pay themselves last.
Choosing to go home after work and type out that report which is due tomorrow. Settling all your bills first on pay day. Thus, you pay your time to your boss and to the utilities company first. These are decisions to do what’s urgent instead of what’s really important to you. Because the important choices rarely seem urgent.
Learn the difference between ‘urgent’ and ‘important’. Then, you’ll understand what it means to pay yourself first.
Writing a blogpost or connecting with your prospects are examples of paying yourself, or your business. They are important but seldom appear urgent. So most people plan to do them at the end of the day after all the reports been done, all the bills paid, and when they are feeling tired. Eventually, they end up not doing them at all.
Always pay yourself first, instead of others. Example: You set aside time first to call your prospects because its important. Only after you’ve done that should you spend time cranking out that report which is due tomorrow, because it’s urgent but not important to you.
It appeared to Kiyosaki that no matter what, you will always find a way to get an urgent matter accomplished eventually. Well, simply because its urgent and has to be done. However, I can’t say the same for something as important as calling your prospects. Most of the time, you’re only accountable to yourself when it comes to running your own business, so its easy to get lazy and procrastinate. Therefore, if you wanna be like a Rich Dad, always pay yourself first.
Look at your own business right now. What are your assets and liabilities? What are the actions that you can take right now to make sure that you always pay yourself first? Leave your answers in the comments!