Business School for People Who Like Helping People - value 4

The Network Effect:

Facebook, WhatsApp, etc., all have no value unless your friends

also have the app too, otherwise who would you send messages to? Who would you connect with?

This chapter deals with the value and power of a network.

The reason franchises succeed so widely is because they are a network, not just a single store trying to survive on its own.

If you try to be a hero and do it on your own, you will lose

to major companies (networked companies) entering your space

and competing with you. They will take your lunch and eat it

in front of you.

Think of all the smaller companies that Amazon

and Walmart have put out of business.

These are large companies with massive networks.

And if you don't have a network of your own

that can compete, you will lose.

Or you could join a network marketing company

and benefit from the already large and engaged network

of individuals operating within your network.

The answer is no. Here's an article that explains the differences.

MLM business is a smart move for people with limited capital,

but want to build a profitable business

and associate with progressive people.

According to Kiyosaki, network marketing is truly a business

for the future because it runs on information more than it runs

on factories and machines. And that's why it grows so quickly,

because information is easily shared and transferred.

I've read this far and I have not learned how to succeed

in this business, which is kind of disappointing.

Maybe we'll learn something in the coming chapters.

• If you want to succeed quickly, build a network.