Robert Kiyosaki, the bestselling author of *Rich Dad Poor Dad*, is a well-known advocate for financial education and entrepreneurship. Among the many business models he endorses, **network marketing (also known as multi-level marketing or MLM)** stands out as one he strongly recommends for aspiring entrepreneurs.
Kiyosaki believes that network marketing provides an accessible and powerful way for individuals to build wealth, develop essential business skills, and achieve financial freedom. In this article, we’ll explore his thoughts on why network marketing is a viable business model, the benefits it offers, and how to succeed in it.
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## **Why Robert Kiyosaki Supports Network Marketing**
### **1. Low Startup Costs with High Potential Returns**
Unlike traditional businesses that require significant capital for inventory, employees, and overhead, network marketing allows individuals to start with minimal investment. Kiyosaki often compares it to franchising—but without the hefty franchise fees.
He says:
*”Network marketing is the best way to get into business for people who don’t have a lot of money or experience.”*
This low barrier to entry makes it an attractive option for those looking to escape the “rat race.”
### **2. Focus on Financial Education & Personal Development**
Kiyosaki emphasizes that network marketing companies often provide training in sales, leadership, and mindset development—skills that are crucial for long-term financial success.
He argues:
*”The primary product in network marketing is not the product or service—it’s *you*. The business forces you to grow as a person.”*
Unlike traditional jobs that don’t teach financial literacy, network marketing encourages individuals to think like entrepreneurs.
### **3. Leveraging the Power of Passive Income**
One of Kiyosaki’s core teachings is the importance of **passive income**—earning money even when you’re not actively working. Network marketing, when done right, allows individuals to build a team and earn residual income from their downline’s sales.
He states:
*”The richest people in the world build networks; everyone else is trained to look for work.”*
By creating a network, you can generate ongoing revenue rather than trading time for money.
### **4. A Business Model Aligned with the “B Quadrant”**
In Kiyosaki’s *Cashflow Quadrant* (from his book *Rich Dad’s Cashflow Quadrant*), there are four ways to earn money:
– **E** (Employee)
– **S** (Self-employed)
– **B** (Business owner)
– **I** (Investor)
Network marketing falls under the **B quadrant**, where systems and teams work for you. Kiyosaki encourages people to transition from being employees (E) or self-employed (S) to becoming business owners (B), and he sees network marketing as a structured path to do so.
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## **Kiyosaki’s Advice for Succeeding in Network Marketing**
While Kiyosaki is a strong advocate for network marketing, he also warns that **not all MLM companies are created equal** and that success requires effort and the right mindset. Here are his key recommendations:
### **1. Choose the Right Company**
– Look for a company with a strong **track record** and **ethical business practices**.
– Ensure the products are of **high quality** and have **real market demand** (not just a recruiting scheme).
– Check the **compensation plan**—it should reward both sales and team-building fairly.
Kiyosaki advises:
*”Don’t join a network marketing company just for the money. Join because you believe in the product and the people.”*
### **2. Treat It Like a Real Business**
Many people fail in network marketing because they treat it as a hobby or a “get-rich-quick” scheme. Kiyosaki stresses:
*”Success in network marketing requires the same discipline as any other business—consistent effort, learning, and persistence.”*
This means:
– **Investing time** in learning sales and leadership.
– **Building relationships** rather than just pushing products.
– **Staying committed** even when results are slow.
### **3. Focus on Personal Growth**
Kiyosaki believes that **your success in network marketing is directly tied to your personal development**. Many MLM companies offer mentorship, books, and seminars—take advantage of them.
He says:
*”If you want to change your financial life, you must first change yourself.”*
### **4. Build a Strong Team**
Network marketing is about **duplication**—helping others succeed so that your business grows exponentially. Kiyosaki highlights:
*”The key to wealth is not just what you know, but the network of people you build around you.”*
This means:
– Mentoring your team.
– Leading by example.
– Creating a culture of success.
### **5. Think Long-Term**
Kiyosaki warns against quitting too soon. Many people give up before seeing real results. He compares network marketing to planting a tree—it takes time to grow, but once it does, it provides shade (income) for years.
*”Most people fail because they quit before the magic happens.”*
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## **Criticisms and Kiyosaki’s Response**
Network marketing often faces criticism, with some calling it a “pyramid scheme.” Kiyosaki addresses this by distinguishing between **legitimate MLM companies** (which focus on real product sales) and **illegal pyramid schemes** (which rely solely on recruiting).
He advises:
*”Do your due diligence. A real network marketing company will have a sustainable product, pay commissions based on sales, and have a strong reputation.”*
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## **Final Thoughts: Is Network Marketing Right for You?**
Robert Kiyosaki’s endorsement of network marketing comes from his belief that it provides **a proven path to financial independence** for those willing to learn and work hard. It’s not a shortcut, but a **business model that rewards persistence, leadership, and personal growth**.
If you’re considering network marketing, Kiyosaki’s advice is:
**Believe in the product.**
**Commit to learning and growing.**
**Build a strong team.**
**Think long-term.**
As he famously says:
*”The size of your success is determined by the strength of your desire, the size of your dream, and how you handle disappointment along the way.”*
For those looking to escape the 9-to-5 grind and build wealth through entrepreneurship, network marketing—when approached correctly—can be a powerful vehicle for financial freedom.
Would you consider network marketing as a business? Share your thoughts below!
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