Take responsibility for your finances—or get used to taking orders for

the rest of your life. You’re either a master of money or a slave to it.
Your choice.

When I say genuine wealth, I’m not talking about money alone.
Money is part of it, but it’s not the whole. Building genuine wealth is as
much about the builder as it is about the built.

The No. 1 strength of a paper asset is its liquidity—and that is

also its No. 1 weakness.
It’s a New Century
When I was a kid, my parents taught me the same formula for success
that you probably learned: Go to school, study hard, and get good grades
so you can get a secure, high-paying job with benefits—and your job
will take care of you.

We’re in the Information Age now, and we need to use Information- Age
thinking.

We aren’t just fooled once; we let ourselves be fooled over and over again.
We all grew up hearing the fable of the ant and the grasshopper, but the
overwhelming majority of us keep living with the foresight of a
grasshopper anyway.
And it’s not just about making a living; it’s also about the quality of
how we’re living. People

“All people are entrepreneurs,” says Yunus, “but many don’t have the
opportunity to find that out.”

Where is this ladder planted?

In other words, not just how much you make, but how you make
it—where it comes from.
The cashflow quadrant represents the different methods by which a
cash income is generated.
For example, an employee earns money by holding a job and
working for someone else or a company.
The self-employed are people who earn money working for
themselves, either as solo operators or through their own small
business.
A business owner owns a large business (typically defined as 500
employees or more) that generates money.

Investors earn money from their various investments—in other

words, money generating more money.
In a very real way, the S stands for slavery: You don’t really own your
business; your business owns you.

B quadrant make themselves recession-proof, because they control the

source of their own income.

Which quadrant do you live in?

Which quadrant do you want to live in?
The investor loves the idea of his money working instead of him
working.

If you want to get rich, you’re going to have to move. You don’t need a
new job; you need a new address.

It takes courage to discover, develop and donate your genius to the

world.
But most wealthy entrepreneurs are people you and I will never hear
of, because they don’t command media attention; they just quietly
live rich lives.
I often hear people debate the question, “Are entrepreneurs born or
can they be developed?”

A Maserati Mind

Yes, it’s about the business, but at the same time, it’s not really about
the business—that’s only the external form.

He needs the skills, the training, and, most important, the mindset
 An entrepreneur is self-determining.

One of the beauties of the business of the 21st century is that all the
groundwork of the business is already done for you—and you get to have
experienced leaders committed to your success to guide you.

But make no mistake: If it’s going to happen for you, you are going to be
the one who makes it happen. And for that to happen, you need to have the
mindset of an entrepreneur.

If it doesn’t take money to make money, and it doesn’t take a formal

education to learn how to become financially free, then what does it take? It
takes a dream, a lot of determination, a willingness to learn quickly, and an
understanding of which sector of the cashflow quadrant you’re operating in.
 What can you control? You can control the source of your income.

This is passive income, also known as residual income: income that

continues coming in, over and over, long after you finished expending the
effort and capital it took to create the source of the income.

We found that one business model stood out from the rest. This particular
business model creates passive income, but requires relatively little cash
investment to start up. It has very low overhead, and can be operated on a
flexible part-time basis until it generates enough cash flow for the
entrepreneur to transition out of his current full-time job.

That business model is called network marketing, and it’s what the rest
of this book is all about.
I came to realize that while personal success is fulfilling, it’s much more
fulfilling when you can help many others create their own success as well.

How? By harnessing the power of word-of-mouth—person-to-person

relationships—to build a substantial network that represents the company’s
line of products and/or services.

The B and I quadrants are not about earning more income; they’re about
owning assets that generate income.
What defines whether something is an asset or a liability is cash flow, not
some abstraction of value. In other words, is it generating money that goes
into your pocket, or is it taking money out of your pocket? Everything will
either make you money or cost you money. If it doesn’t make you money,
it’s not an asset, it’s a liability.

Exactly. That’s because your house is not an asset; it’s a liability.

Let’s talk about the real world. An asset is something that works for you, so
you don’t have to work for the rest of your life.

Work for a job.” My rich dad said, “Build assets.” The powerful thing about
living in the B quadrant is that when you build a business, you are building
an asset.
Because owning a business is owning an asset, when you build a
network marketing business, you’re not only learning critical life skills,
you’re also building a genuine asset for yourself.

In a job, you earn income. In network marketing, instead of earning

income, you build an asset—your business—and the asset generates
income.

When you build a network marketing business, you’re not only learning
critical life skills, you’re also building a genuine asset for yourself. If it
makes me money, it’s an asset;
A job is not an asset. You can’t sell it on eBay; you can’t rent it out; you
can’t take dividends from it. When you work at a job, you are building an
asset; it’s just not your asset.
Network Marketing Is Not About Selling Products or Earning
Income!

A salesperson has a job. If you work behind the counter at a department

store, you’re in the E quadrant; if you’re in business for yourself, selling
insurance or homes or jewelry, you’re in the S quadrant. But either way, you
have a job, and your job is to sell.

In network marketing, the whole point is not to sell a product but to build a
network, an army of people who are all representing that same product or
service to share with others.

And here’s the reason you want to build that army of independent
representatives:
Once you do, you know what you’ll have? An asset that generates income
for you— passive income.
 Network marketing is not about earning more income; it’s about
building an asset.

Financial education is where you learn to have money work for

you rather than to have you work for money.

When you live in the S quadrant, then, by all means, be brilliant and
creative and unique! But in the B quadrant? Kiss of death.
Ford thought like a person who lived smack in the B quadrant.
Again, what gives your network marketing business its real power is not
what you can do; it’s what you can duplicate.
Information Tools for Infinite Scalability
Another way of saying what John is talking about, when he says the secret is
duplication, is this: The power of your business is in its scalability. A
business that is scalable simply means a business that can operate on any
scale.
 The Go-Giver

A Little Story About a Powerful Business Idea

“The Five Laws are beautiful in their simplicity, but it is Mann and
Burg’s powerful storytelling that elevates them from the simply
motivational to the truly inspirational.”

Deeply heartfelt and meditative, The Go-Giver is filled with in­

sights.”
 
“Most of us have grown up seeing the world as a place of limitation
rather than as a place of in­exhaustible treasures. A world of
competition rather than one of co-creation.” 15

“That’s what they have in common. Giving.” 69

This is common in all who were cited in this book
Have you ever heard people say, You can’t always get what you want?”
15

 
That because you don’t put any focus on selfish­ness and greed, even
when it’s all around you, it doesn’t have much impact on you?” 16

“Joe, I’d like to do something with you. I’d like to show you what I call
my Five Laws of Stratospheric Success. If you can make a little time,
say, every day for a week.”
Pindar waved his hand vaguely, as if to say, Time means nothing. “Not
a problem. All we’ll need is one hour a day. Your lunch hour. You do
take time for lunch every day?” 17

I call these Five Laws my Trade Secret, not because I don’t want
people to find them, but for exactly the opposite rea­son. I call them
my Trade Secret so that people will find them—so they’ll seek
them. So they’ll place the proper value on them. Because it’s really
a term of honor.” 18
 
 “It never hurts to be kind to people,” 22

  some loyal customers, and word got around. 24

“A very useful thing to remember: appearances can be deceiving.” 25
 26 “the Connector

 27: Ernesto finished the phrase: “—people will do business with and
refer business to those people they know, like and trust.”

A bad restaurant,” Ernesto went on, “tries to give just enough food and
service, both in quantity and quality, to justify the money it takes from the
customer. A good res­taurant strives to give the most quantity and quality
for the money it takes.

“But a great restaurant—ahh, a great restaurant strives to defy

imagination! Its goal is to provide a higher quality of food and service than
any amount of money could possibly pay for.” 28
“Your true worth is determined how much more you give in value
than you take in payment.”

In other words,” said Joe, “exceed people’s expecta­tions, and they’ll

pay you even more.” 29

You give, give, give. Why?” “Because you love to. It’s not a strategy,
it’s a way of life. 29

passion for what they were getting than what they were giving.” 30
 
 
“It’s not about seeing. It’s about doing.” 30
Your true worth is determined by how much more you give in value than you
take in payment,” 44

 “The First Law determines how valuable you are,” 44

But it’s the Second Law that determines how much you actually do earn.” 44

“And that in a nutshell is the Second Law, the Law of Compensation:

“Your income is determined by how many people you serve and how well you
serve them.” 45

Or

Your compensation is directly proportional to how many lives you touch.

it’s not just a question of their value. It’s a question of impact 46

First, it means that you get to deter­mine your level of compensation—it’s

under your control. If you want more success, find a way to serve more
people. It’s that simple. 46

Every­body can be great because anybody can serve.’ Another way to say
that might be, ‘Everybody can be successful because anybody can give.
46

“I was brought up with a belief that there are two types of people in the
world. There are people who get rich, and there are people who do good.
47

Being broke and being rich are both decisions 48

What you focus on is what you get.48

“More or less. Yesterday, I had to ‘give more in value than I got in
payment.’ ”

“Survive, save and serve?” 59

“They are the three universal reasons for working.

Survive—to meet your basic living needs.
Save—to go beyond your basic needs and expand your life. And
serve—to make a contribution to the world around you.”

“Now, by a network I don’t necessarily mean your customers or clients. I

mean a network of people who know you, like you and trust you. They’re
your army of personal walking ambassadors. 66

Stop keeping score

“You want to know the Third Law of Stratospheric Success?”

“Watch out for the other guy. Watch out for his interests. Watch his
back. Forget about fi fty-fifty. Fifty-fi fty’s a losing proposition. The
only winning proposition is one hundred percent. Make your win about
the other person, go after what he wants. Forget win-win—focus on the
other person’s win.

The Third Law, the Law of Influence:

“Your influence is determined by how abundantly you place

other people’s interests first.” 67
 what creates influence? “Money. Position. Maybe, a history of
outstanding accomplishments.” Those things don’t create influence;
influence creates them. 68

“And now you know what creates it.”

“Putting other people’s interests first?”

“That’s what they have in common. Giving.” 69

This is common in all who were cited in this book

“They love to give. That’s why they’re attractive. Givers attract.” 70

“And that’s why the Law of Influence works. Because it magnetizes

you.” 70