I wrote the book Cashflow Quadrant for anyone who is ready to make a change in life—a change far greater than simply going from job to job. Many people have told me that it is my most important book, because it is so eye-opening.

After reading it and understanding what it means to change quadrants, many people ask me, “How do I change quadrants? You make it sound easy, but for most of us, it isn’t easy.” [The four quadrants are: E, S, B, I—employee, self-employed, business owner, and investor—Ed.] My reply is, “Changing from the left side of the quadrant (the E and S side) to the right side (the B and I side) is easy for some people. Unfortunately, it was not easy for me. If not for my rich dad guiding me, I might not have made it.”


A Shift in Core Values

I was born into a family of well-educated educators. In my family, a good education and a secure job or profession were very important core values. I say this because the change of quadrants may mean a shift away from family core values. That’s why it is not that easy for some people to change quadrants, even if they want to. It is because our personal core values run deep that, when people ask me, “How do I change quadrants?” I often reply, “Why don’t you join a network marketing company?”

In my family, a good education and a secure job or profession were very important core values. I say this because the change of quadrants may mean a shift away from family core values.

The main reason I recommend at least looking into a network marketing business is that the change from one side of the quadrant to the other side is not an overnight process. My rich dad spent years guiding me, teaching me, sometimes scolding me, to become a B and an I. The value of a life-changing business education must impact you mentally, emotionally, physically and spiritually—and that change may take some time and require some guidance.

Some network marketing companies offer that time and guidance.

People also ask, “Why can’t I change from the left side of the quadrant to the right side on my own?” My answer is, “You can. But for most people, the change is not the easiest of changes. It can be done, but most people don’t make it. They fail to make it on their own not only because of money, but because the price is high when it comes to mental, emotional, physical and spiritual development.”

I recommend some network marketing businesses because they truly do focus on building (or rebuilding, in some cases) the person; then the person can go on to build his own business. If this is of interest to you, your job is to find the network marketing company that has the educational program that focuses first on building you, rather than on you selling the company’s plan or products. Once you find a company that is best for you, your job is to do your best to rebuild yourself using their educational plan. All they can do is to provide the plan. It is your job to help yourself along that plan. No one can help you if you do not first help yourself.


The Power of Mentors

I am often asked, “Will you be my mentor?” I reply as politely as I can—and recommend that the person look into a network marketing business, because of their mentoring programs.

The primary role of the mentor in a network marketing company is to guide you from the E and S side of the quadrant to the B and I side. And they don’t charge you for all the hours they invest in mentoring, coaching and guiding you! That guidance is priceless.

I recommend some network marketing businesses because they truly do focus on building (or rebuilding, in some cases) the person; then the person can go on to build his own business.

If you should look into a network marketing company, I strongly recommend that you look at the mentors above the person who recommends the business to you. Take the time to meet them and evaluate their sincerity in supporting you to make the journey from the E and S side to the B and I side. Your mentors in life are important, so choose them wisely.

Not all network marketing companies are alike. There are many network marketing companies that mentor you into the S [self-employed] quadrant—not into the B [business-owner] quadrant. They do this when they focus only on developing your sales skills and not in the total business skills required to succeed in the B quadrant.

The way you will know they want you in the S quadrant is that they will focus more on product knowledge, sales skills and how much money you can make. A true B quadrant network marketing company will focus on developing all of you—not just the part of you that can sell and make money for those above you. Doing this may take a bit more time; many people quit before they make the complete change. They quit simply because they only wanted to make money, rather than change quadrants.

If all you desire is to make a few extra dollars, then those types of network marketing companies may be all you need. But for those who want to make the complete change from the left to the right side of the cashflow quadrant, you must look for a network marketing company with training programs that go far beyond just money, product knowledge and sales ability.


This passage is excerpted with permission from
The Business School for People Who Like Helping People,
by Robert T. Kiyosaki, with Sharon Lechter,
CPA, authors of Rich Dad Poor Dad.