Why being an MLM distributor is an “E” in the Cash Flow Quadrant Let me dig a little deeper and explain why. It is on the line between the “E” and “S”… with the major disadvantages of both. Kiyosaki seems to claim that being an MLM distributor is a “B” in the quadrant.

S is for small business owners or specialists (doctors for example). These are the four types of ways people earn income. Kiyosaki describes the Cash Flow Quandrant as having four areas: E, S, B, and I. You might want to jump to 2:45 in the video where he draws it out and follow along: However, let’s examine the Cash Flow Quadrant in more detail. Who wouldn’t want a solution their money problems? The promise of passive income is appealing to just about everyone. A lot of people are apt to believe Kiyosaki. The video is big on marketing and it tells people what they want to hear: “Here’s a way out of the rat race.” That’s powerful motivation. Instead they have just watched a video from Kiyosaki talking about his Cash Flow Quadrant. Many distributors don’t know that above history. Robert Kiyosaki and the Cash Flow Quadrant The MLM industry provides Kiyosaki with a steady set of customers for his products Kiyosaki provides the MLM companies his support that it is a good business venture. It seems to be that Kiyosaki and MLM have a symbiotic relationship. It is clear that Rich Dad’s advice would be to avoid MLMs for this very reason.

In fact, you’ll find that the philosophy of the book is to avoid liabilities, which would include most MLMs due to their required autoship policy. This makes sense it was written before MLM played a major role in Kiyosaki’s life. If Kiyosaki believes that being an MLM distributor is a good business opportunity why isn’t he active in the business?įinally, if you read Rich Dad, Poor Dad, you’ll see that there is no mention of MLM at all. You’ll never hear him talk about his Amway rank or the money he’s made from it.

In addition to the above, Kiyosaki joined Amway under Bill Gavin, but it appears he was a failure at it. It is fair to say that Kiyosaki’s owes the MLM industry a great deal by embracing his products. Kiyosaki also sold tapes at $6 to tens of thousands of distributors. It was Bill Gavin of Amway who was able to pull the strings and use the MLM culture to get the book its best seller rating. In fact, Kiyosaki had trouble getting published. Short version is that a top person at the MLM company Amway, Bill Galvin, found Kiyosaki’s book, Rich Dad, Poor Dad, at a car wash before it was published. One of things that many people don’t realize about Robert Kiyosaki is that he got his big break due to MLM. There are a few things that people should know, starting with: Robert Kiyosaki’s History with MLM They’ll read Rich Dad, Poor Dad and become greatly motivated to find their financial freedom. They hear him say that he has millions of dollars from various complex business ventures and it makes him sound credible. Most people don’t know much about Kiyosaki. In my MLM articles like the aforementioned MonaVie one and my Nerium one, many MLM supporters say that Robert Kiyosaki is a big supporter of MLM and that justifies getting involved in MLM as a distributor as being a sound business choice. As you can tell from the title, this is going to be a little harsh on Kiyosaki, but keep in mind that Rich Dad, Poor Dad was major motivation for me to begin this blog. Today, I’d like to share some thoughts on the business of MLM and pair that with well-known personality Robert Kiyosaki, co-author of Rich Dad, Poor Dad. Over that time, I’ve come to learn quite a bit about the multi-level marketing industry – none of them good. As some regular readers know, I wrote about MonaVie, a multi-level marketing company (MLM), a few years ago and the post has received 6000 comments.

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