Monday, November 10, 2014

The truth about Network Marketing

Let’s face facts; everyday each one of us is involved in network marketing. For example, my friend sees my new suit, beautiful, elegant and so so fitting all the curves and she asks where I got it, I give her the name of the boutique and she goes there and gets one just like or almost like mine. Or, I need a good language school to enroll my son in and I post it on my BBM or Whatsapp and in a split second 5 or 6 friends bombard me with names of good schools or language teachers to contact, I get in touch with a few of the them, check them out and eventually pick one and enroll my son. I could give so many more examples, but I’m sure you catch my drift.

The only difference between what just happened above and network marketing is that my friend doesn’t get a discount because I referred her to that boutique, neither do I get paid by the boutique for referring her. I also don’t get a discount on the tuition from the language school because I got a referral neither does the one who referred me get paid. But in network marketing the exact opposite happens! When I refer you, I get paid and you get a discount cos I referred you. Which means that the more people I refer, the more I’m paid and when the people I refer in turn refer others, they get paid for the referral, I get paid for my referrals’ referrals and the referrals get the products or services at a discount because they were referred.

Robert Kiyosaki said that "the richest people in the world look for and build networks..." now that’s the way to go. Wouldn’t you want to build a network and make money while at it? Here's another instance. Let’s say at the end of a school term you have 10 families who have enrolled their kids in the same school your kids attend and they were all referred by you, do you know that is a network you’ve built?! At each PTA or family games you’d all form a team or something since you all knew each other and maybe if one of you were vying for a position in the PTA the rest of course would vote for him/her, but that’s all you get from that. How about if you were to get paid for all the ten families? And if you were paid a percentage of the tuition each term that each family paid their school fees? Can you imagine how much you’d make? And if each family in turn referred some more families to the school they get paid for each family they referred, you will also get paid for their referrals. This means that even long after your kids have left the school, as long as the families you referred and the ones they referred and the ones those ones referred and so on and so on keep referring more families and they keep paying school fees, your money keeps coming into your account from that school. It’s called residual income. Whether or not you are actively involved, you keep getting your income. How about that?

Let’s talk about active income and passive income. Active income is what we receive when we are on the left side of the quadrant, you know the E and S [Employee and Self employed/small business owner]. As long as you are working, either at a job or your small business, your income keeps coming and hopefully rising as well, but, the moment you stop. It stops. Highest the pension and/or savings will last you a few months or years but that’s it. This therefore means you either keep on working on someone’s job, i.e. helping someone else build their dreams, or struggling with your small business or your self employment. Now for those on the right side of the quadrant, they are the B=Big business owners and the I=Investors, what they earn is passive income. Whether or not they are actively involved, their income is constantly flowing and working for them.

Which side of the quadrant are you in? Which side so you wanna be in?

Adios! Let’s talk more soon


  1. You get paid for referring people? This is a refreshingly innovative idea! Wonder why no one thought of this before. About the 2 sides of the quadrant - I suppose the right side is the best side :).

    1. The right is sure the best and that 's where I wanna be. I'm sure you wanna be there too. You do get paid for referring people, the idea is that you get to know the product and get excited about it so you can introduce others to it