I was wondering about the potential of network marketing for building wealth. I noticed Robert Kiyosaki's 2010 book about network marketing, which is called "The Business of the 21st Century." I'd love to be able to build wealth that way; I just don't know how much of a douchebag I'd be perceived as if I were suddenly telling everyone I knew about weight loss supplements, herbal products, etc. Not to mention that it would feel weird to be working towards a life beyond Plato's Cave while maintaining an existence inside the consumerist paradigm to push products that feed the shadows. In sum, is network marketing a worthwhile, and feasible, way to create a source of income in the ERE lifestyle?
Viability of Network Marketing?
I haven't read the book, but I'm pretty sure most people would perceive a high douchebag factor. It seems that you might as well hit up your friend for a couple dollar donation to the Human Fund rather than sell them $20 of crap they don't need for which you get a $2 commission. If you can pitch a product that will actually make people's lives better, however, I say go for it. Unfortunately, I think it's hard to find such a product.
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jacob
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In terms of marketing, I think the douchebag factor is directly correlated to how satisfied your customers will be down the line.
The question is whether you are providing value to your customers or whether you are mainly providing value to yourself. Whenever I read a book on marketing, one of the first rules is that the seller has to really believe in the product he's selling.
I strongly believe that this belief CAN NOT be due to self-delusion, but I often get the impression that that is exactly what is called for: "Yeah, I totally believe in the 8 minute ABSerciser".
A marketeer with integrity should be better informed than his customers and he shouldn't be selling a certain product if he knows that a better product exists. If this holds, the marketeer is providing value. It seems, however, that few 21st century marketeers are actually providing value.
In other words it seems that modern marketing is more about selling a product given a customer than finding a customer given a product.
The question is whether you are providing value to your customers or whether you are mainly providing value to yourself. Whenever I read a book on marketing, one of the first rules is that the seller has to really believe in the product he's selling.
I strongly believe that this belief CAN NOT be due to self-delusion, but I often get the impression that that is exactly what is called for: "Yeah, I totally believe in the 8 minute ABSerciser".
A marketeer with integrity should be better informed than his customers and he shouldn't be selling a certain product if he knows that a better product exists. If this holds, the marketeer is providing value. It seems, however, that few 21st century marketeers are actually providing value.
In other words it seems that modern marketing is more about selling a product given a customer than finding a customer given a product.
IMHO, Network mktg/MLMs don't/won't work!
When I was a child, I read a book "Mathematics can be fun" by Ya. Perelman.
In that book, there's a story that goes like this.
A local newspaper carried the following advert. Own a bicycle for 10 roubles.
This, when the typical bicycle costed 100 roubles. There followed a set of instructions on how to mail 10 roubles by money order to a certain Moscow address to avail this unique offer. Many were enticed/intrigued/whatever and sent the aforesaid money to the address. So, they were disappointed to say in the least when they received in the return post, not a bicycle, but a stamp book containing 10 stamps.
This, along with a booklet that said, the following:
You need to sell all of these stamps, each worth 10 roubles and send this money back to us. Then you will receive your bicycle. We won't charge you for shipping as a gesture of our magnanimity [;-)]
Now you can imagine how this turned out.... Now had they to sucker other people into buying a stamp for 10 roubles that is not worth anything to them,
so that did not go very successfully. They could ask other "stamp book suckers" to buy theirs (and this meant that they had to return the other person's favour)
In the end, there were a lot of people who didn't follow through and congratulated themselves on losing only 10 roubles. Some did follow up, but spent a lot of time and money convoluting themselves for the same bicycle available in the market for which they had paid out more than market rates(*)....
(*)10 roubles in the beginning, time spent selling coupons, loss of goodwill, etc..etc...
Then Perelman stops this narrative and explains in simple clear and mathematical terms (I think he brings Binomial theorem in at this point, but I have to go back to check this one!) how any such scheme, no matter how holistic these schemes sound, are simply not viable mathematically... It is a brilliant "taking-apart-in-the-seams" expose of the
network marketing/multi-level-marketing model.... I know I am not making justice to Perelman's writing here!
If you can find it please read it. If I can find my
dusty copy around, I will scan that one and upload it in the forums.
When I listen to MLMs/network mktg, affiliates and others, I always remember this story and I tell them the eventual limits on their model through this analogy.
It may not be a bicycle that is being sold, but the analogy holds up well.
Needless to say I am very unpopular for being a "thicko" as well as a "spoilsport".
P.S:- Think I am smart? NO! I was also suckered into joining a MLM business (facepalm, OMG, drum rolls, etc...!!) when I graduated and found very scarce jobs on account of the Asian tigers collapse..... Desperation makes a monkey out of anyone.. Proved by yours truly!
But sense prevailed over nonsense and soon enough, I walked out, cutting all my losses! So, even if you (are in the) know, you can slip.
HTH,
Surio.
---
When I was a child, I read a book "Mathematics can be fun" by Ya. Perelman.
In that book, there's a story that goes like this.
A local newspaper carried the following advert. Own a bicycle for 10 roubles.
This, when the typical bicycle costed 100 roubles. There followed a set of instructions on how to mail 10 roubles by money order to a certain Moscow address to avail this unique offer. Many were enticed/intrigued/whatever and sent the aforesaid money to the address. So, they were disappointed to say in the least when they received in the return post, not a bicycle, but a stamp book containing 10 stamps.
This, along with a booklet that said, the following:
You need to sell all of these stamps, each worth 10 roubles and send this money back to us. Then you will receive your bicycle. We won't charge you for shipping as a gesture of our magnanimity [;-)]
Now you can imagine how this turned out.... Now had they to sucker other people into buying a stamp for 10 roubles that is not worth anything to them,
so that did not go very successfully. They could ask other "stamp book suckers" to buy theirs (and this meant that they had to return the other person's favour)
In the end, there were a lot of people who didn't follow through and congratulated themselves on losing only 10 roubles. Some did follow up, but spent a lot of time and money convoluting themselves for the same bicycle available in the market for which they had paid out more than market rates(*)....
(*)10 roubles in the beginning, time spent selling coupons, loss of goodwill, etc..etc...
Then Perelman stops this narrative and explains in simple clear and mathematical terms (I think he brings Binomial theorem in at this point, but I have to go back to check this one!) how any such scheme, no matter how holistic these schemes sound, are simply not viable mathematically... It is a brilliant "taking-apart-in-the-seams" expose of the
network marketing/multi-level-marketing model.... I know I am not making justice to Perelman's writing here!
If you can find it please read it. If I can find my
dusty copy around, I will scan that one and upload it in the forums.
When I listen to MLMs/network mktg, affiliates and others, I always remember this story and I tell them the eventual limits on their model through this analogy.
It may not be a bicycle that is being sold, but the analogy holds up well.
Needless to say I am very unpopular for being a "thicko" as well as a "spoilsport".
P.S:- Think I am smart? NO! I was also suckered into joining a MLM business (facepalm, OMG, drum rolls, etc...!!) when I graduated and found very scarce jobs on account of the Asian tigers collapse..... Desperation makes a monkey out of anyone.. Proved by yours truly!
But sense prevailed over nonsense and soon enough, I walked out, cutting all my losses! So, even if you (are in the) know, you can slip.
HTH,
Surio.
---
The OP's remark on Kiyosaki's new book had me intrigued. Small search on said topic brings me to a site which sums it up this way:
Like many people, RK was skeptical about the (network marketing) industry at first— and I know THAT for a first-hand fact. I was one of the first to do an article with Robert (for Upline) and it was one of THE hardest interviews I’ve ever done. He was a bear! That is until he learned first-hand what Network Marketing is all about: Helping People & getting a great Personal and Professional Education (and earn while you learn, too).
I definitely lost them after that
So, it is not about selling "the 8 minute ABSerciser" then?
Like Jacob (and we both read it roughly around the same time too!), RDPD was one the eye-openers for me, in making me coming to terms with things! But I also realised, that beyond coming to terms, we need to blaze our trails by using that grey, fluffy thing between our ears and not just Robert's "prescription for a good life"....
So, contrary to some others, I do recommend RDPD heartily, but that's about between me and RK.
Surio.
---
Like many people, RK was skeptical about the (network marketing) industry at first— and I know THAT for a first-hand fact. I was one of the first to do an article with Robert (for Upline) and it was one of THE hardest interviews I’ve ever done. He was a bear! That is until he learned first-hand what Network Marketing is all about: Helping People & getting a great Personal and Professional Education (and earn while you learn, too).
I definitely lost them after that
So, it is not about selling "the 8 minute ABSerciser" then? Like Jacob (and we both read it roughly around the same time too!), RDPD was one the eye-openers for me, in making me coming to terms with things! But I also realised, that beyond coming to terms, we need to blaze our trails by using that grey, fluffy thing between our ears and not just Robert's "prescription for a good life"....
So, contrary to some others, I do recommend RDPD heartily, but that's about between me and RK.
Surio.
---
Much like blogging, I think its a really bad way to earn income. There are lots of things that pay better for less hours that are more enjoyable than direct sales, affiliate programs and referal fees.
But... if you do... here are two practical examples of what this looks like:
1. On my blog (www.geekypeek.com) where I recommend books about software engineering/startup life & gadgets associated with my day job. I do it through amazon so I get 4-6% commission if someone buys one of the books/gadgets. This nets me $100/month if I have a very high traffic month (1000 uniques visitors would be really high for me).
2. I take a 5-10% referral fee for a dev shop I use if I refer them to a new client. This has been quite lucrative, to the tune of about $25k for me this year. But it literally feels like a sales job. I could use the time elsewhere and probably make good money as well.
But... if you do... here are two practical examples of what this looks like:
1. On my blog (www.geekypeek.com) where I recommend books about software engineering/startup life & gadgets associated with my day job. I do it through amazon so I get 4-6% commission if someone buys one of the books/gadgets. This nets me $100/month if I have a very high traffic month (1000 uniques visitors would be really high for me).
2. I take a 5-10% referral fee for a dev shop I use if I refer them to a new client. This has been quite lucrative, to the tune of about $25k for me this year. But it literally feels like a sales job. I could use the time elsewhere and probably make good money as well.
Not really Jacob,
One way to word the ERE credo is a) efficiency, b) quality over quantity, and c) authenticity of experience (over 'awesomeness' of experience
- you only know too well what I mean).
a) Efficiency: We EREs analyse today's society, and come to understand that it is actually quite easy to make your money work for you (reasonablishly). So, we choose to maintain investments as others are too happy to get sucked into the "rat race" and make us some money by working for us - all the while thinking that they need this bling, they need that car...and that vacation, etc.
b) Quality: Meanwhile we spend the time efficiently developing life skills that a) is practical from a day-to-day, existence and sustain perspective and b) that can't be 'outsourced'. We pursue our own interests, remain truthful to ourselves and gain what I term,
c) Authenticity of experience:
When everyone wisens up, and the well dries up (so to speak), are we worse off than those that really truly depend on network marketing or "the game" to make a living? I don't think so. We will become productive in the "New World Order"(*) by merging into the locally self-emergent and self-organising groups and hit the road running for our second innings.
(*) Gaahhh... corny! I am figuratively speaking here...
Correct me please, if I am missing something here.
Surio.
---
One way to word the ERE credo is a) efficiency, b) quality over quantity, and c) authenticity of experience (over 'awesomeness' of experience
- you only know too well what I mean).a) Efficiency: We EREs analyse today's society, and come to understand that it is actually quite easy to make your money work for you (reasonablishly). So, we choose to maintain investments as others are too happy to get sucked into the "rat race" and make us some money by working for us - all the while thinking that they need this bling, they need that car...and that vacation, etc.
b) Quality: Meanwhile we spend the time efficiently developing life skills that a) is practical from a day-to-day, existence and sustain perspective and b) that can't be 'outsourced'. We pursue our own interests, remain truthful to ourselves and gain what I term,
c) Authenticity of experience:
When everyone wisens up, and the well dries up (so to speak), are we worse off than those that really truly depend on network marketing or "the game" to make a living? I don't think so. We will become productive in the "New World Order"(*) by merging into the locally self-emergent and self-organising groups and hit the road running for our second innings.
(*) Gaahhh... corny! I am figuratively speaking here...
Correct me please, if I am missing something here.
Surio.
---