Bobby and Amy dela Cruz are a husband and wife team who have made it to one of the top rungs at Amway Philippines, a network marketing company that sells nutrition and beauty products, among other things. A former banker and now a “Founders Diamond” and “Network 21” leader (with his wife) at Amway, Bobby may start off his presentation to new recruits by showing a cartoon depiction of why it pays to do network marketing. The video essentially talks about a guy who managed to build pipelines while he still had the capacity to work – thus giving him a natural resource even after he stopped working. These pipelines essentially referred to businesses or activities that generate income even when one has stopped producing (also known as passive income). Network marketing is one of those ventures that supposedly help you build your pipeline.
Bestselling author Robert Kiyosaki also popularized the idea of creating passive income and also encouraged his readers to try network marketing. At the very least, one learns selling techniques or gets immersed in business concepts. Of course, it goes without saying that you also need to choose a good network marketing company to learn from.
Although network marketing is not for everyone, building pipelines is not a bad idea to adapt. Just think of income-generating activities that do not require your fulltime presence – this could include becoming an investor (big or small) in businesses, earning rental income from real estate, or building your intellectual property that earns royalties and the like. There are ventures that only require your presence or work for a fixed period of time and then earnings pour in after your involvement. Successful network marketers will attest to this system.
Mary Kay Ash who founded her own cosmetics network marketing company wrote in her autobiography, “Financial analysts tell us that by the end of this century, the greatest area of economic growth will be in the creation of small independent businesses, such as those developed by Mary Kay Consultants. One primary reason for such growth is the worldwide trend toward streamlined management systems…. A department head within a large corporation can now plug into his or her computer and retrieve the information once compiled by a dozen clerks…. And what can a displaced middle manager do? Often the answer is to start his or her own small business.”
Just remember that businesses may take on different shapes. A self-employed individual like a doctor or dentist can also call himself a businessman. However, the venture is highly dependent on his physical presence or expertise. Thus, when he stops working, the income also stops. This simply means that there is no passive income involved. A single proprietor may also experience similar outcomes.
On the other hand, registered corporations usually involve at least five stockholders and the work is usually distributed or someone else is hired for day-to-day operations. Investors are usually called upon only for major decisions and not necessarily to handle operational concerns.
In his book “Cashflow Quadrant,” Robert Kiyosaki explains in detail the financial differences between the employee, self-employed, business owner and investor. He encourages his readers to try to get into the business and/or investor quadrants (right side of the quadrant). He quips: “The irony is, life is actually more secure on the right side of the Quadrant. For example, if you have a secure system that produces more and more money with less and less work, then you really do not need a job, or need to worry about losing your job….”
Of course, the secret lies in the phrase “secure system.” With so many business establishments tanking nowadays, it is hard to separate the weed from the grass. Just where to find that invincible fortress still rests in your own efforts to educate yourself, do research, and in some cases, apply a simple dose of common sense.