The Business Of The 21st Century

The Business Of The 21st Century Plot Summary

Introduction

In today's rapidly changing economic landscape, the rules of financial success have fundamentally shifted. The traditional path of getting good grades, finding a secure job, and climbing the corporate ladder no longer guarantees prosperity or security. Many people find themselves working harder than ever yet still struggling to make ends meet, trapped in a cycle of financial uncertainty despite following all the conventional wisdom about career and money. What if there was a different path? A path that offered not just financial rewards but true freedom - the ability to control your time, make your own decisions, and build wealth that lasts for generations. This path exists, but it requires shifting your mindset from employee to entrepreneur, from working for money to having money work for you. Throughout the following chapters, you'll discover how to tap into a powerful business model that can transform your financial future while developing the skills, connections, and leadership abilities that will serve you for a lifetime.

Chapter 1: Shifting Mindsets: From Employee to Entrepreneur

The fundamental difference between employees and entrepreneurs isn't just about who signs their paychecks—it's about how they think. Employees focus on security and steady income; entrepreneurs focus on opportunity and freedom. This mindset shift is the essential first step toward financial independence in the 21st century. Robert Kiyosaki illustrates this through his own journey from the corporate world to entrepreneurship. After working at Xerox Corporation, where he eventually became their top salesman, Kiyosaki realized he was still trading his time for money—a fundamental limitation. Despite his success, he recognized that no matter how well he performed, he was building someone else's dream rather than his own. This realization pushed him to develop what he calls his "entrepreneurial spirit," though it took nearly fifteen years to gain the confidence to feel fully comfortable in the business owner quadrant. The transformation wasn't easy. Kiyosaki describes how he failed twice in business before finding his entrepreneurial footing. These failures, rather than discouraging him, became valuable learning experiences that strengthened his resolve. Like his experience in military flight school, where he underwent rigorous training before feeling ready for combat, his business failures prepared him for future success by forcing him to develop crucial entrepreneurial skills and mindset. This shift requires understanding the concept of the Cashflow Quadrant, which divides how people earn money into four categories: Employee (E), Self-employed (S), Business Owner (B), and Investor (I). Most people live in the E quadrant, where they work for others and trade time for money. The goal is to move to the B and I quadrants, where you build systems that generate income whether you're working or not. To make this transition, you must overcome fear, develop self-confidence, and embrace risk. As Kiyosaki says, "Each of us has a winner and a loser inside us, and they often compete for air time." The entrepreneur in you must overcome the part that seeks safety and security at all costs. This internal battle is perhaps the biggest challenge in becoming an entrepreneur. The rewards of making this shift are substantial: control over your time, significantly reduced tax burden, the ability to leverage other people's time and money, and the opportunity to build genuine wealth. Most importantly, you gain the freedom to design your life on your own terms rather than following someone else's schedule and rules.

Chapter 2: The Power of Network Marketing as a Business Model

Network marketing represents one of the most powerful yet often misunderstood business models of the 21st century. At its core, it's not about selling products—it's about building networks that distribute products and services through relationships rather than traditional advertising and retail channels. When Kiyosaki first encountered network marketing in 1975, he dismissed it immediately. He was already building his own business and didn't see the value. It wasn't until the 1990s, after meeting his millionaire friend Bill who was actively involved in network marketing, that his perspective began to change. Bill explained, "In network marketing, I can actually help people make the kind of money they need to do some serious investing. The more people I help do that, the more investors I have! Besides, I really love working with people who are hungry to learn and grow." This conversation sparked Kiyosaki's interest. He began researching the industry extensively, attending presentations, studying company literature, and examining track records. Eventually, he even joined a few companies to learn more about them from the inside. What he discovered surprised him: some of the most intelligent, ethical, moral, and professional people he had met in all his years of business were in network marketing. The beauty of network marketing lies in its structure. Unlike traditional businesses that require massive capital investment and carry high risk, network marketing allows individuals to start with minimal investment and build a scalable business without employees, inventory management, or complicated operations. It operates on the power of geometric expansion—what Robert Metcalfe, founder of 3Com, defined in his equation: a network's value equals the number of users squared. This exponential growth potential makes network marketing particularly effective. When you sponsor one person who duplicates what you do, and they sponsor others who do the same, your network can grow dramatically. The economic value increases not arithmetically but exponentially. As Kiyosaki explains, "You are working arithmetically, but your economic value is growing exponentially." What separates network marketing from traditional sales is its focus on duplication rather than individual performance. Success isn't about being a superstar salesperson but about building a system that others can easily replicate. This is why network marketing emphasizes simple, teachable methods rather than complex strategies that rely on unique talents or skills. In the rapidly evolving economy of the 21st century, network marketing offers a democratic path to wealth-building open to anyone willing to learn, regardless of background, education, or previous experience. As traditional job security continues to erode, this business model provides both financial opportunity and personal growth to millions worldwide.

Chapter 3: Building Eight Wealth-Creating Assets Simultaneously

What makes network marketing uniquely powerful is that it doesn't just create one asset—it builds eight distinct wealth-creating assets simultaneously. Unlike conventional business approaches that focus solely on immediate income, network marketing constructs a multi-dimensional foundation for long-term prosperity. When Kim and Robert Kiyosaki were homeless in 1985, living in their old Toyota, they understood that getting a job might solve their immediate housing crisis but wouldn't create lasting wealth. Instead, they committed to the harder path of building assets that would eventually generate passive income. Robert explains, "I can tell you that during moments of deep personal doubt, the idea of a safe, secure job with a paycheck was appealing. But because job security was not what we were looking for, we kept pushing on." By 1989, they were millionaires. The first asset network marketing builds is a real-world business education. Unlike traditional education that trains you for employment, network marketing teaches practical business skills: organization, goal-setting, time management, communication, and leadership. It provides what Kiyosaki calls "experiential learning"—you learn by doing rather than by sitting in a classroom. This education would cost thousands in business schools but comes as part of the network marketing package. Simultaneously, you develop a second asset: personal development. Network marketing companies invest heavily in helping their members grow as individuals, overcoming fears, building confidence, and developing persistence. Kiyosaki recalls it took him two years at Xerox to begin stepping into his power: "Increasing my self-esteem was more important than my paycheck. Rebuilding my self-confidence and self-esteem has been priceless." The third and fourth assets—a supportive social network and your business network—provide both emotional support and economic leverage. Your growing network becomes an asset that generates income according to Metcalfe's Law: the value increases exponentially with each new connection. This explains why network marketers often value their social connections even more than their income. The fifth, sixth, and seventh assets—a duplicable business system, leadership skills, and a wealth-creation mechanism—work together to create true financial freedom. Through building your network, you develop leadership abilities that transfer to every area of life while creating a system that generates passive income without your direct involvement. Finally, network marketing cultivates the capacity to dream bigger and then live those dreams. As Kiyosaki says, "People who dream small dreams continue to live lives as small people." The business encourages you to expand your vision of what's possible and provides the means to achieve it. These eight assets, built simultaneously through one business model, create a foundation for wealth and freedom that far exceeds what most traditional careers can offer.

Chapter 4: Developing Leadership Skills for Lasting Success

Leadership is the critical factor that determines success in network marketing and in life. It's not just another business skill but a force that makes everything else possible—the glue that holds your network together and the engine that drives its growth. In Vietnam, Kiyosaki observed that great leaders weren't the ones who yelled the loudest but those who spoke directly to the spirits of their troops. "All great leaders have been master storytellers who were able to communicate the vision in such a vivid way that others saw it, too," he explains. "Look at Jesus Christ, Buddha, Mother Teresa, Gandhi, Muhammad. They were all great leaders, which means they were great storytellers." This ability to inspire through storytelling is fundamental to network marketing success. John Fleming, who spent fifteen years as a regional vice president at one of the industry's largest companies, points out what makes network marketing leadership unique: "What is unique about network marketing is that it marries a broad compensation structure to a field of people made up of 100 percent of volunteers." Unlike traditional business environments where managers can give orders and enforce compliance, network marketing leaders must inspire action through vision and influence. Kiyosaki's rich dad taught him that money flows not to the businesses with the best products but to those with the best leaders. When businesses struggle financially, it's often because the leader cannot effectively communicate the company's vision—they cannot tell its story. Network marketing leaders sometimes describe themselves as "highly paid storytellers," and for good reason: their ability to share compelling stories about products, opportunities, and possibilities is what builds their networks. Leadership in network marketing encompasses four elements that Kiyosaki learned in the Marines: mental, emotional, physical, and spiritual abilities working in harmony. Traditional education focuses almost exclusively on mental ability, but true leadership requires emotional resilience, physical stamina, and spiritual commitment. These four elements must work together both in the leader and in those they develop within their organization. The leadership development that occurs in network marketing transfers to all areas of life. Kiyosaki shares how his business training gave him the confidence to approach his future wife Kim when they first met. Despite being rejected multiple times, he persisted for six months because he had learned to overcome rejection in business. "If I had not learned how to overcome my own self-doubts, I could never have kept asking for six months," he explains. What makes network marketing exceptional is its focus on developing leaders who teach rather than command. As Kiyosaki observes, "Network marketing tends to develop the type of leader who influences others by being a great teacher, teaching others to fulfill their life's dreams by teaching others to go for their dreams." This creates a positive cycle of leadership development that spreads throughout the organization.

Chapter 5: Creating Passive Income Through Your Business Network

The ultimate goal of building a network marketing business isn't just to generate income—it's to create wealth through passive income that continues flowing whether you're working or not. This represents a fundamental shift from the traditional employee mindset of trading time for money. Kiyosaki vividly illustrates this concept using the metaphor of a water faucet: "Most people's income source works just like those spring-loaded water faucets that some public restrooms install to save water. When you turn the water on, you have to hold the faucet there, because when you let go, it bounces back to the off position." This is how employment works—stop working, and the income stops immediately. What you want instead is "a money faucet that you can let go of once you've turned it on, because it stays on by itself." This is precisely what network marketing creates when built correctly. Kim and Robert Kiyosaki followed a simple four-step plan to retire young and rich: First, build a business; second, reinvest in your business; third, invest in real estate; and fourth, let your assets buy luxuries. Starting with nothing in 1985, they were financially free by 1994—all without stocks or mutual funds. The mistake many network marketers make is treating their business income as disposable from day one, immediately using it to expand their lifestyle. Kiyosaki warns against this employee mindset: "If you suck all the income out of your new business to burn on monthly living expenses, then you're not building a business; you're just building yourself another job." Instead, he advises reinvesting in your business to grow it further, then using that expanded income to acquire income-generating assets like real estate. John Fleming emphasizes that network marketing uniquely positions you to build wealth because it requires minimal capital investment compared to traditional businesses. The major investment is your time and effort, which means more of your income becomes available for wealth-building rather than covering overhead expenses. The distinction between money and wealth is crucial. As Kiyosaki explains, "Wealth is not the same thing as money. Wealth is not measured by the size of income. Wealth is measured in time." Specifically, wealth equals how long you could maintain your lifestyle if you stopped working today. Building a large network creates an income-generating asset that continues paying you long after your initial work is complete. This passive income mechanism represents financial freedom in its truest sense—not just having money, but having control over your time and life choices. When your network reaches 500 or more people, it becomes a genuine B-quadrant business generating significant passive income. At this point, your business isn't just providing income; it has become a valuable asset that would continue generating revenue even if sold to someone else.

Chapter 6: Embracing Personal Growth as Your Path to Wealth

The journey to wealth through network marketing is inseparable from personal development. Unlike traditional businesses that focus solely on skills and strategy, network marketing recognizes that your personal growth directly impacts your financial results. Donald Trump's experience illustrates this principle perfectly. Despite losing everything during a real estate crash—at one point being $9.2 billion in debt—he rebuilt his fortune because of who he had become. Kiyosaki shares a similar story: "By age 30, I was a millionaire. Two years later, my company had gone broke." His rich dad told him, "Money and success make you arrogant and stupid. Now, with some poverty and humility behind you, you can become a student again." The lessons from this experience proved priceless, providing a real-world education that ultimately made him rich. John Fleming, publisher of Direct Selling News, explains that the only true failure in network marketing is quitting on yourself. "It's not simply a matter of whether or not one quits the company—that is, resigns one's distributorship and formally declares, 'I'm out.' The issue here is not about quitting the business; it's about quitting on yourself." This insight reveals the deeper truth: success requires personal transformation. Network marketing provides an environment specifically designed to facilitate this transformation. Companies invest heavily in personal development resources—books, CDs, events, and training programs—because they understand that as you grow personally, your business grows with you. The skills developed go far beyond business techniques to include overcoming fears, building self-confidence, communicating effectively, and persisting through challenges. Kiyosaki explains that we all have competing internal voices—the winner and the loser, the rich person and the poor person. "Every morning, I make that choice: Who got up this morning, the rich me or the poor me? The winner or the loser? That's our battle." Network marketing provides the support system to ensure the winner in you emerges more consistently. The path isn't easy. Building wealth requires changing deeply ingrained habits and thought patterns. Kiyosaki advises giving yourself five years to develop mastery: "Ten thousand hours: Do the math. If you work eight hours a day, five days a week, you hit the 10,000-hour mark after five years of full-time effort." This patience and persistence pay dividends not just financially but in personal growth. Most importantly, the personal development gained through network marketing transfers to all areas of life. Kiyosaki's business training gave him the confidence to persist in courting his wife Kim despite multiple rejections. "If I had not learned how to overcome my own self-doubts, I could never have kept asking for six months," he explains. This illustrates the true value proposition: network marketing doesn't just build your wealth—it builds you.

Chapter 7: Taking Action with a Five-Year Commitment Plan

Success in network marketing requires more than enthusiasm and good intentions—it demands committed action sustained over time. The most important factor determining your results isn't talent, education, or even your choice of company, but your willingness to commit to consistent action over a five-year period. Kiyosaki emphasizes that building wealth is never a quick process, regardless of the business model. "Get rich quick is an oxymoron," he states firmly. "A rich relationship doesn't happen quickly; a richly rewarding novel is never written overnight. Creating richness, by definition, takes time." This perspective runs counter to the instant gratification mindset that dominates modern culture, but it's essential for genuine success. Drawing from Malcolm Gladwell's research in "Outliers," Kiyosaki points out that mastery in any field requires approximately 10,000 hours of dedicated practice. Bill Gates put in 10,000 hours of programming before Microsoft took off. The Beatles played nightclubs in Hamburg seven hours a day, seven days a week, accumulating thousands of hours of performance time before achieving breakthrough success. Network marketing follows the same principle—mastery comes through sustained effort over time. The five-year commitment plan begins with a critical first step: keeping your day job while starting your business part-time. This approach provides financial stability while you develop your network marketing skills. John Fleming notes that the vast majority of network marketers build their businesses part-time, with only about one in eight working twenty hours or more per week. The beauty of the business model is its flexibility—you can build it during evenings, weekends, and other available time slots. During this five-year period, it's essential to reinvest in your business rather than immediately using profits to expand your lifestyle. Kiyosaki warns against the common mistake of treating network marketing income as "free money" to be spent immediately. Instead, use your growing income to further develop your business and begin investing in income-producing assets like real estate. The commitment plan also requires patience through the inevitable challenges. Kiyosaki admits, "There will be times when you will feel tested; when your friends are telling you, 'I told you so,' and your family members are whispering to you, 'Don't you think it'd be better if you just put more energy into your little job and let that network thing go?'" These moments test your resolve, but persistence through them builds the character necessary for long-term success. Action is the ultimate differentiator. As Kiyosaki bluntly states, "You can plan all you want, study all you want, and learn all you want, but the only people who win in network marketing are people who take action—today, tomorrow, and every day." Committing to consistent, daily action over five years virtually guarantees your success, regardless of your starting point or circumstances.

Summary

The journey from employee to entrepreneur represents more than a career change—it's a fundamental transformation in how you think about money, time, and personal value. Throughout this exploration of network marketing as the business of the 21st century, we've discovered that true wealth comes not from trading time for money but from building assets that generate passive income. As Kiyosaki powerfully states, "It is not real estate, gold, stocks, hard work, or money that makes you rich; it is what you know about real estate, gold, stocks, hard work, and money that makes you rich." Your path forward begins with a single decisive step: committing to your own business education and personal development through network marketing. Start today by selecting a reputable network marketing company whose products excite you, whose leadership inspires you, and whose training system supports your growth. Give yourself the gift of a five-year commitment, knowing that the person you'll become in that process—confident, skilled, connected, and financially educated—will be equipped not just to build wealth but to create the freedom to live life on your own terms. The time to take control of your financial future isn't someday—it's now.

About Author

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Robert T. Kiyosaki

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