People can maintain their professional careers in order to supplement their primary incomes through Direct Selling opportunities. Direct Selling is a business model that allows many to work from home with low-overhead and little needed capital to start.
However, sometimes, because of the convenience Direct Selling offers; it indirectly can sabotage the mindset of a new direct seller.
Direct Selling is a BUSINESS and thus needs to be treated as such. Many people who come into direct selling are often raised and influenced by their parents, educational systems and experiences to be just employees, therefore, they shape their thinking, habits, activities and recreation around a 2-week behavior model.
Cashfow Quadrant
While I don’t agree with everything Robert Kiyosaki writes, I did like his book, Cashflow Quadrant for explaining a business mindset in a simple, clear and applicable model. His basic premise is there are two directions cash goes: Assets and Liabilities and there are 2 ways of creating money: Active and Passive.
Active Income is generated through personal activity from two primary mindsets: Employee (Performance-Driven) and Self-Employed (Skill-driven). Both of mindsets require time and ability to perform, if either of these are reduced so is the income.
Passive Income shifts the mindset from you to systematic thinking hence removing you as the primary influence in the revenue formula… instead your money works at making money. Passive income, according to Kiyosaki can be generated through Investing (Markets & Real Estate) and through a Business System (Franchises and Direct Selling).
Many people operate in the Active income mindsets and need to learn how to think differently in order to maximize their Passive income venues.
Direct Selling offers people an opportunity to start off as an ‘employee’ of their opportunity with a coach/upline (acting as a boss) telling them what to do… As experience is gained, you move to a self-employed position where you can perform most functions without need of a coach (upline) ‘supervising’ you… now it is about your skill. As you start getting better results, you move to developing a system that allows you to worker smarter, not harder. You will likely have some form of a team that you have developed who have adopted your methodologies & philosophies towards your opportunity. Finally, you moved from ‘being the machine’ to ‘building a machine’… this can free up your time while providing you income without because you do not have to be as involved with day-to-day operations but can focus on investing your skills into developing leaders.
The mindset new direct sellers begin with is paramount to their long-term success. I can tell a big difference between someone who is paid hourly, vs someone paid commission to the person who is writing checks for their employees. Each mindset makes decisions differently based on their mindsets.
The individual mindset also impacts cashflow decisions both short-term and long-term. Managing money, personal and business can make or break any business. Rob has a powerful story of a friend Samuel and his financial decisions.
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