by The RichDad Company

If you purchase this book without a cover, or purchase a jpg or tiff copy of this book, it is
likely stolen property or a counterfeit. In that case, neither the authors, the publisher, nor
any of their employees or agents has received any payment for the copy. Furthermore,
counterfeiting is a known avenue of financial support for organized crime and terrorist
groups. We urge you to please not purchase any such copy and to report any instance of
someone selling such copies to Plata Publishing LLC.

This publication is designed to provide competent and reliable information regarding the
subject matter covered. However, it is sold with the understanding that the author and
publisher are not engaged in
rendering legal, financial, or other professional advice. Laws and practices often vary
from state to state and country to country and if legal or other expert assistance is
required, the services of a professional should be sought. The author and publisher
specifically disclaim any liability that is incurred from the use or application of the con-
tents of this book.

Copyright © 2014 by Robert T. Kiyosaki. All rights reserved. Except as permitted under
the U.S. Copyright Act of 1976, no part of this publication may be reproduced, distributed,
or transmitted in any form or by any means or stored in a database or retrieval system,
without the prior written permission of the publisher.

Published by Plata Publishing, LLC

CASHFLOW, Rich Dad, B-I Triangle, knowledge: the new money and CASHFLOW Quadrant
are registered trademarks of CASHFLOW Technologies, Inc.
are registered trademarks of
CASHFLOW Technologies, Inc.
Plata Publishing, LLC
4330 N. Civic Center Plaza
Suite 100
Scottsdale, AZ 85251
(480) 998-6971

Visit our websites: and

Printed in the United States of America

First Download Edition: May 2016

Best-selling Books
by Robert T. Kiyosaki

Rich Dad Poor Dad
What the Rich Teach Their Kids About Money –That the Poor and Middle Class Do Not

Rich Dad’s CASHFLOW Quadrant
Guide to Financial Freedom

Rich Dad’s Guide to Investing
What the Rich Invest in That the Poor and Middle Class Do Not

Rich Dad’s Rich Kid Smart Kid
Give Your Child a Financial Head Start

Rich Dad’s Retire Young Retire Rich
How to Get Rich and Stay Rich

Rich Dad’s Prophecy
Why the Biggest Stock Market Crash in History Is Still Coming…
And How You Can Prepare Yourself and Profit from It!

Rich Dad’s Success Stories
Real-Life Success Stories from Real-Life People Who Followed the Rich Dad Lessons

Rich Dad’s Guide to Becoming Rich
Without Cutting Up Your Credit Cards
Turn Bad Debt into Good Debt

Rich Dad’s Who Took My Money?
Why Slow Investors Lose and Fast Money Wins!

Rich Dad Poor Dad for Teens
The Secrets About Money—That You Don’t Learn In School!

Escape the Rat Race
Learn How Money Works and Become a Rich Kid

Rich Dad’s Before You Quit Your Job
Ten Real-Life Lessons Every Entrepreneur Should Know
About Building a Multimillion-Dollar Business

Rich Dad’s Increase Your Financial IQ
Get Smarter with Your Money

Robert Kiyosaki’s Conspiracy of the Rich
The 8 New Rules of Money

Unfair Advantage
The Power of Financial Education

Why “A” Students Work for “C” Students
Rich Dad’s Guide to Financial Education for Parents

Second Chance for Your Money, Your Life and Our World


Foreword ................................................... 1

Chapter One ............................................ 8
What is a Digital Entrepreneur?

Chapter Two ............................................. 11
What is the CASHFLOW Quadrant?

Chapter Three ........................................... 22
The 8 Integrities of Business

Conclusion ................................................ 45

Amazon Master

Shane Caniglia
Rich Dad President and Serial Entrepreneur

Slavery was a terrible system. The slave owner would give the slaves
food and shelter with a hint of medical care. The slave would then be
forced to work long hours at difficult jobs.

Nowadays, CEOs give their employees just enough money to afford food
and shelter and a hint of medical care. And the employees are forced to
work long hours at difficult jobs.

Slavery was abolished, but if you want to abolish being an employee
you have to do that yourself. You have to realize that you are caught in a
trap. You can escape. You won’t be alone. There’s an entire movement of
people taking matters into their own hands and bravely forging ahead as
self-employed entrepreneurs.

These people first understood that the old way of doing business and
work isn’t the answer and rather than try and fix it, it’s better to just move
on and accept the new. The world has changed and you must change
with it. These people have taken the leap and started their own
businesses, and now know the freedom and thrill that come with building
something from the ground up. These entrepreneurs don’t fear change—
they embrace it and profit from it.

This is your time to make a change. This is your opportunity to become
a part of the homepreneur movement and take your future into your own
hands. Besides, you don’t really have a choice—things are changing with
or without you. The rules of the game have changed, and unless you
adjust the way you think about money— and how you make it—you’ll be
at a serious disadvantage in this new economy.


the most ground-breaking. We—in a way— glamorize the entrepreneur. If you try to do it for more than five years. It’s just media worship and more media hype. If you take those false numbers out of the equation. But we live in an age when the tools for entrepreneurship are available to 2 . More hype. Guess what? You can’t do that for very long. Those figures come from the IRS. though. you are going to get audited. but from the other side of the coin. Those numbers are media drama! So go out there! Quit your job! Be that entrepreneur! It’s easy! This is also drama. you’ll discover that being an entrepreneur isn’t nearly as risky as you’ve been led to believe. and Steve Jobs. They study Bill Gates. what is inside the entrepreneur that makes him or her so driven. The way they do this is to create a business around their hobby and then deduct all the money they spend on their hobby as a business expense. Many people often try to turn their hobby into a tax deduction. Entrepreneurship is not easy. Then they tell us we don’t stand up to them. influential entrepreneurs. They tell us to go back to our jobs and quit dreaming of being an entrepreneur. we are told that 9 out of 10 entrepreneurs fail in their first 5 years and another 90% never make it past that. We read reports that state the entrepreneur defies all odds. Then.Everything We Think We Know About Entrepreneurs is WRONG! People do studies analyzing what makes an entrepreneur special. When “researchers” study entrepreneurs. they seem to only want to focus on the biggest. It’s hard work. Donald Trump. Richard Branson. That’s all media hype. especially at the beginning. So what about those stats about failing entrepreneurs? Those stats are incredibly misleading. What does this mean? It means most of the “businesses” that get started are not actually businesses. Everything we think we know about entrepreneurs is WRONG! Let me break it down for you.

You can start a business from home while still working at your job. get educated. Start your home business on the side and grow your business until it is covering all your bills and responsibilities. but can be digitally made and delivered. You feel invisible and unappreciated. That is great. no security. then this book probably isn’t going to help you. There are two things that make today the greatest entrepreneurial age: We have access to teachers like never before. We live in an age when products are easier and cheaper to make than ever before. So what’s a person to do? I’ve already told you that the answer is not to just go out and quit your job. but it’s not what makes this time the best time to be an entrepreneur. no benefits. We live in an age when products don’t even have to be made with materials. Amazon Master anyone with a computer. and the potential of being laid off. The company’s values don’t align with your own. Sound too hard already? Brad DeGraw (Rich Dad’s Amazon Expert) spends about an hour a day working on his business. The key is. You have responsibilities and bills. or TV time. you’ll work until the day you die. you feel like you’re headed down the same path as your parents. and loved ones depending on you. And worst of all. I think the first point is obvious enough. But if you can give up your lunches. 3 . You realize that you are making the world more of the same rather than a better place. Do you think you can find an hour to build the machine that will create your freedom? If you can’t. You probably don’t like that you are working for a company that lacks a soul. BEFORE you quit your job. You know that your future holds: no retirement. so let’s focus on the second point. or even a little sleep for a little while. Or worse. One thing you’ve probably learned (and fast) about working for someone else is: you don’t like it.

tablets. and smart phones. You must accept the responsibility of being self-made. As the world offers more problems to solve. You must accept that opportunity is everywhere. the idea of being in complete control of your future is exciting. Opportunity is all the time. We also knew we had to find a teacher who understood business. Turning it into a business is where the profit and the freedom comes in. Before you jump into the lessons from this book.. It will all begin and end with you. digital entrepreneurs. an idea and the courage to act on it. Opportunity is everywhere and the ability to capitalize on these opportunities exists through the laptop. then this book won’t help you either. All you need now is an idea. The idea of not having to rely on anyone—except yourself—to prosper. It does not disappear in the difficult times. or your dream to the land of OZ. but scary. If you want your success to be a gift and not earned. You’ll have no one else to blame if you fail. Your first step in taking responsibility is to quit blaming others and quit blaming the world. or your rabbit hole. knowledge. Well. in fact it’s even greater. with the creation and emergence of the digital world. We searched forever until we found Brad DeGraw. your hard work. the person with the ability. This is NOT a gift. If you are not afraid to learn from one of America’s greatest entrepreneurs and one of America’s new.. then this book is the blue pill you’ve been looking for…or your closet to Narnia. Getting a product on Amazon is not the hard part.then you CAN be a success. As you know. there is one more thing you need. a single person armed with the power of a laptop can become a force to be reckoned with overnight. Take your wins and losses on your shoulders and learn about becoming an Amazon Master below. or creativity to solve problems will see more opportunities than ever. What is an Amazon Entrepreneur? When Rich Dad decided to embrace the Amazon opportunity and help our community profit from it we knew we needed to find the best teacher out there. 4 . So be your own person. This is your journey.

He was not looking to create another job for himself. The key though is that you will find multiple products in that market. the product is easy to find. You will already have an audience. He is a student of Robert’s B-I Triangle and created his Amazon system from the B-I mindset. Once you identify your market. See the power of focusing on a system rather than a product? There is one other point that makes Brad’s Amazon approach more successful than the other Amazon mentors. Well. Brad does Amazon differently. you just need another product. He wanted this to be duplicable over and over again with multiple products. Well. as you know. Brad’s approach is unique because it will generate way more profit with less work. He was not looking to find the right product to sell. and your next product and on and on. You don’t want to just repackage something all the others are repackaging. Amazon Master The team at Rich Dad hunted him down and badgered him until he agreed to help them create the ultimate system for selling on Amazon. “Why Brad?” you ask. In this approach you are going to first identify the right MARKET. you’ll also be creating an audience for your next product. Brad does not like to just private label an existing product. Why sell what everyone else is selling when you can sell something better? 5 . Brad approached his Amazon business differently. Every other Amazon mentor teaches you how to find a good product and turn it into income. Brad was creating a SYSTEM that would do the work for him and not just one time with one product. You do not have to build an audience every time you want to create a product. Rich Dad says the product is the least important part of business. You don’t need another audience. and it’s an audience that buys. The key here is that you only have to build one audience. it’s a large audience. You’ll want to make it better. As you create one product. it’s an audience with money.

We touched on this point earlier but we will close on this as well: Brad’s approach is to focus you on freeing yourself from your job. 11. 5. Do it again. Find a manufacturer of your product who is reputable and can manufacture under your guidelines. But it’s not about trading your slavery from a job to becoming a slave for Amazon. So Brad creates SYSTEMS. it’s just more money. We want you to get freedom from life’s curveballs that come flying right at your head. Brad is not Amazon’s worker bee. Determine your first product to offer your market. 2. That isn’t much better. Give great customer service. Review your sales and inventory. A few hours a week and he has over 50 products being sold on Amazon. When he does work it’s just a few hours a week. 6 . Create your own brand from logo to your relationship philosophy. 8. Create your Amazon page. 3. The process looks a lot like this: 1. Determine what market will buy a lot of different products and be profitable for a long time. 10. not a bigger cage. 7. 9. but it does take time and commitment at the beginning. Listen to your customers and figure out your next product to sell them. The way to become an Amazon Master is not difficult. It is all about the freedom from dependency on a job or government or anything. too. Amazon is his. 4. 6. Money without freedom isn’t much better than a job. Determine how to make your product better than the competition. Ship your inventory to Amazon. And the honey Amazon makes is so sweet! That is the sweetness of freedom! You can have this freedom. Systems do the work for him. Market your store. 12. You want out of the rat race.

but this gives you the basic idea of what an Amazon entrepreneur does. And when you do it right. you will become an Amazon Master. Amazon Master There are a lot of little steps in between these big picture steps.   7 .

The home computer gives us the power to be entrepreneurs. The computer changes the way things are done. Robert Kiyosaki’s rich dad said. No longer do we need to rely on schools to teach us. The computer is the second greatest tool of the digital entrepreneur but it is not the brains. anytime. The computer does one more thing that is new. ‘Go to school so you can become an entrepreneur. The web has brought teachers from around the world into your home. We now have the power and freedom to learn how to do anything. But the computer gives us so much more than the ability to learn. “Asking if people are born to be entrepreneurs or trained to be entrepreneurs is a question that makes no sense. leadership. The computer lets you search the whole world for manufacturers. ‘Go to school so you can get a good job. The Internet has made information so instantaneous that you can learn anything. and the entrepreneur mindset. but even the digital entrepreneur must provide vision. or are they trained to be entrepreneurs?” When asked. The computer runs your business’ systems. It gives you the tools for accounting and access to legal advice.We have yet to hear any parent say. It would be like asking if people are born employees or trained to become employees?” He went on to say. That is why so many parents say to their child. They can be trained to be either employees or entrepreneurs.’” But the world is changing. The computer lets you 8 . It gives you the ability to communicate and market through email and social media. The entrepreneur is the brains and must still provide leadership. “People are trainable. Chapter One What is a Digital Entrepreneur? “Are people born entrepreneurs. The reason there are more employees than entrepreneurs is simply because our schools train young people to become employees.

It’s our job to find the opportunities in this changing world and use them to become financially free. you would struggle to sell your product. Amazon produced over $107 billion in 2015. In the US. you would not have lasted long without much sleep. right or wrong. Wal-Mart has also very quietly begun to pull back. So even if you could cheaply manufacture something at night. Amazon is growing. Amazon’s 9 . The digital entrepreneur can now start small at home. they have begun closing stores. but it’s not accurate. Sports Authority and Sports Chalet have both filed bankruptcy. You couldn’t do sales calls because all the offices would be closed at night. too. find a product in your home. The second option almost never worked as the options available to people were so small. It’s not good or bad. Not too long ago there were only two choices. and still get the needed sleep and maintain their job as their business blossoms. You could quit your job and risk everything to commit the time to get your business up and running. To contrast. Plus. Their profits have shrunk and they are closing stores. The computer lets you get educated in your home. Aeropostale has too. As we write this. The world is changing. it has just changed. grow his or her business. That is an easy answer. Or you could start a very small business that you could work on at night. You would have had to find something you could manufacture in your home. That is how the rich think. Why Amazon? There is a very harsh reality going on right now that the media is not talking about and that is the death of the retail store. Target just pulled out of the entire country of Canada. Amazon Master transition from employee to entrepreneur. but also lets you run a business for as little as a few minutes a day from your computer at home. The change is the Internet and Amazon’s strength of changing the shopping patterns of consumers. Most people think the change is due to Wal-Mart and Target’s domination of the retail world. Best Buy has shut down many of its stores as well. Amazon is worth ten times what it was ten years ago.

What makes this exciting is Amazon’s willingness to embrace the entrepreneur. All you need now is a little education. you don’t need a shark.revenue in 2013 was $74 billion. Well. you’ll see that almost every one of the budding entrepreneurs is asking the ‘sharks’ to get them into big box stores. They are everywhere. This behemoth has opened up its world dominance and offered it to you.   10 . You have Amazon. There are a lot of opportunities in this world. but how many of them are with the biggest retailer in the world? If you’ve ever seen the show Shark Tank.

and “poor” as someone who earns less than $25. There are actually four distinct sources of cash flow.000 a week). Amazon Master Chapter Two What is the CASHFLOW Quadrant? So you’ve been working hard for years. But even more important than the quantity of money you make is the quality of money you make. not just how much you make. “Where is this ladder planted?” It doesn’t matter how fast or high you climb on the ladder if it’s leaning against the wrong wall. or some combination of both. Many people have said that this book. And there’s no doubt that this has some bearing. or just under $20. Maybe you’re still near the bottom of the ladder.333 per month. is the most important writing he’s done because 11 . to find out where you might want to move it. How Do You Make the Money You Make? Most people assume that their financial standing is defined by how much they earn. or maybe you even got near the top. What matters is the question that you may have forgotten to stop and ask before putting in all that time and effort climbing. how much they’re worth. regardless of the amount of cash you earn. The purpose of this chapter is for you to stop climbing for a minute and see where your ladder is planted. climbing the ladder.000 a year. Where you are on the ladder doesn’t really matter. After publishing Rich Dad Poor Dad. Forbes magazine defines “rich” as a person who earns in excess of $1 million per year (about $83. Each is quite different from the other. And. but how you make it—where it comes from. In other words. if you’re not happy where it is. and each defines and determines a very different lifestyle. Robert wrote a book to explain these four different income worlds. CASHFLOW® Quadrant.

12 . and what you probably learned. love. Investors earn money from their various investments—in other words. money generating more money. You’ll probably earn enough to survive. from the cradle to the grave. There isn’t any security here. Shane Caniglia. loyalty is scoffed at and seen as naïve. The CASHFLOW Quadrant represents the different methods by which a cash income is generated. Rich Dad President. And when you get too old to be productive you’ll get dropped. an employee earns money by holding a job and working for someone else or a company. either as solo operators or through their own small business. The self-employed are people who earn money working for themselves. For example. and leave this life entirely within the E quadrant. E = Employee S = Self-employed or Small-business owner B = Business owner I = Investor Which quadrant do you receive the majority of the income on which you live? The E Quadrant The overwhelming majority of us goes right to the heart of the crucial issues involved for people who are ready to make true changes in their lives. The operating philosophy for this world is what poor dad—Robert’s real father—taught him. study hard and get good grades. Our educational system and culture train us. live. but not enough to be free. and get a good job with benefits at a great company. when you were growing up: go to school. too. There was a time when this quadrant worked. The focus of a business is on their stock holders not the ones giving their life every day. Earlier. to live in the world of the E quadrant. Companies were loyal to their employees and treated them like family. A business owner owns a large business (typically defined as 500 employees or more) that generates money. referred to this quadrant as slavery. Nowadays.

The S quadrant includes a huge range of earning power. consultant. You may have thought you were “firing your boss. The only difference is that when you want to blame your boss for your problems. The S quadrant can be a thankless and difficult place to live. The difference between an S business and a B business is that you work for your S business.” but what really happened is that you just changed bosses. and your family picks on you because you never take any time off. that boss is you. Rich dad taught Robert to live in the I quadrant by playing Monopoly. and we all know how that works: four green 13 . Amazon Master The S Quadrant Driven by the urge for more freedom and self-determination. because they control the source of their own income. to the highly paid private-practice lawyer. you lose ground. your business owns you. Your employees pick on you. But whether you’re earning $8 an hour or $80. You have no free time because if you take time off. The government picks on you—you spend one full day a week just in tax compliance. your customers pick on you. IF you are in the S quadrant chances are you don’t really own your business. but your B business works for you. or public speaker. How can you? If you do. The I Quadrant This is not rocket science. the S quadrant is typically a trap. This is the place where people go to “strike out on their own” and pursue the American Dream. Everyone picks on you here. all the way from the teenage freelance babysitter or landscaper just starting out in life.000 a year. a lot of people migrate from the E quadrant to the S quadrant. the business doesn’t earn money. The B Quadrant The B quadrant is where people go to create big businesses. Those who live and work in the B quadrant make themselves recession-proof. You are still an employee.

The problem is. I’d rather be doing [fill in the blank]. then decide to make a change. This job stinks! My boss stinks! Life stinks! (etc. especially. But if you want the relative safety of the left-hand side. Every time I get a raise. is where we are taught we will find safety and security. most of the time when people do take the initiative to actually make a change in their lives. he wants to see your financial statement. On the other hand. At least 80 percent of the population lives in the left-hand side of this picture. The E quadrant. How often have you heard someone complain about their job. That’s where we are brought up and trained to live. 14 . The left-hand side—the E and S quadrants—is where most people live. Now you determine it. then maybe the ideas in this book are not for you.) These. are all statements that reveal a person who is trapped—trapped not in a certain job but in an entire quadrant. all they do is change jobs. four green houses. the right-hand side—the B and I quadrants—is where freedom resides.” we’re told. Changing Jobs Is Not Changing Quadrants Now let us explain why it’s so important to understand these different quadrants. But your grades don’t matter in the B quadrant. only to end up a few years later with the same old complaints? I keep working harder and harder. What they need to do is change quadrants. one red hotel. simply because you are no longer dependent on a boss or on the economy to determine your annual income. Breaking away from those typical job structures and creating your own stream of income puts you in the best position to weather an economic storm. “Get good grades.houses. but I’m just not getting ahead. but I can’t afford to go back to school a learn a whole-new profession at this stage of my life. and dozens of others like them. so you can get a good job. it gets eaten up by taxes and higher expenses. then you can make it happen. one red hotel. If you want to live on that side. Your banker doesn’t ask to see your report card.

how you think. but in a very real way. they are four different mindsets. Most of us are a little of each of these characters. but do not want to run them. he would sit with his rich dad when he interviewed people for possible hiring. training. You not only change what you do. Robert learned to listen for people’s core values—values that rich dad said came from their souls. There are people who earn millions and people who go bankrupt in each of the quadrants. Which quadrant do you live in? Which quadrant do you want to live in? Your Core Financial Values The four quadrants are not just four different business structures. This is important to grasp because it means that shifting from the E or S quadrant over to the B quadrant isn’t as simple as filling out a change-of- address form at the post office. Certain people love investing. Amazon Master That’s a decision only you can make. It is a matter of your core financial values. 15 . and central interests. Here are some key phrases that emerge from each quadrant along with a snapshot of the core values of each. Living in any one quadrant does not in itself necessarily guarantee financial success. Some people love owning companies. Which quadrant you choose to earn your primary income from has less to do with external circumstances—your education. When Robert was 9 years old. From these interviews. Or at least. what appear to be the available opportunities around you—and much more to do with who you are at your core: your strengths. It is also important to note that you can be rich or poor in all of the four quadrants. you also change who you are. weaknesses. It is these core differences that attract us to or repel us from the different quadrants. while others hate it. You can tell which quadrant people are living in by listening to their words. while others see only the risk of losing money. Some people may love being employees. the economy.

legal. but isn’t that risky?” We each see life from our own core values. such as real estate agents and insurance brokers.” the path taken is from the E quadrant to the S quadrant. regardless if he is the janitor or the president. the core value is independence. it would be either.” Or. because how we view our business tends to be how we view everything. People living in the S quadrant often take great pride in the work of their own hands or brains. You might be the top-earning vice president of a company yet still share the same core values as the company’s janitor. secure job with good pay and excellent benefits. They want the freedom to do what they want. are in the S quadrant. commissioned salespeople. “Yeah.E Quadrant Values “I am looking for a safe. you will often find a lack of trust at the core of this person’s approach to business—which also means his approach to life. lawyers. or accounting firm. 16 . For example. If they had a theme song. The people found in the S quadrant are small-business owners. and accountants who do not belong to a large medical. the core value is security.” For people in the S quadrant. “How many paid holidays do we have?” When you have a conversation with someone in the E quadrant and talk about starting your own businesses. and consultants. behind the façade of independence. “I’m going to quit my job and go out on my own. specialists. secure job with benefits. he may say.” For someone living in the E quadrant. “How much do we get for overtime?” Or. S Quadrant Values “If you want something done right.” Yet. such as doctors. What may be exciting for you is frightening to someone else. often thinks or says words such as. “Nobody Does It Better” or “My Way. When a person says. “I am looking for a safe. do it yourself. The S quadrant is also filled with professional people. mom and pop businesses. who earns a tenth of your salary. A person in the E quadrant.

and more capable than you are. If you’ve ever heard yourself saying. B Quadrant Values “I’m looking for the best people to join my team.” People in the S quadrant often don’t work too well with teams. this is often not true for a B quadrant businessperson. “If you want something done right. 17 . do it yourself.” or if you tend to think that way. People who start from nothing and build great B quadrant businesses are often people with powerful life missions. who value a great team and efficient teamwork and want to serve and work with as many people as possible. they may even have a bit of an ego problem. your team is in trouble. you will usually see a person with great technical or management skills but little leadership ability.” For people in the B quadrant. the core value is wealth-building.” Or.” Whenever you meet someone from the E or S quadrant who is having difficulty making the transition to the B quadrant. Rich dad used to say. what is needed is a quantum jump not in technical skills. When you own a B quadrant business. While a person in the S quadrant wants to be the best in his or her field. Rich dad had no formal education. an S may be heard saying words such as. more experienced. Henry Ford surrounded himself with people smarter than he was. but in leadership skills. “If you’re the leader of the team and you’re also the smartest person on the team. but he dealt with bankers. “My fee is cost plus 10 percent. a B quadrant person wants to build a team out of other people who are the best in their fields. “I charge $100 an hour. it might be a good time to take a good long look at that philosophy. Amazon Master An S is often paid by commission or by the amount of time spent on a job. you will often deal with people who are much smarter. For example. To make the jump from S to B quadrant.” Or. While an S quadrant businessperson is often the smartest or most talented person in the room. “My commission is 6 percent of the total purchase price.

bonds. Some schools may teach stock picking. investment advisors. we all need to be investors. how much income continues to come in?” If your income stops in six months or less. In most cases. Different Investors In today’s world. In raising money for his businesses. a true B quadrant person can leave his or her business and still get paid. accountants. Therefore. you are in the E or S quadrants. but that is not investing that’s gambling. When it comes to being paid.” or. Investors invest in many things. “How much deferred maintenance is on the property?” Different Quadrants. then that is income from the E quadrant. a question you may want to ask yourself now is. If your income comes from company or government retirement plans. or the business. However. or paper assets such as stocks. A person in the B or I quadrants can stop working for years and the money will continue to come in. businesses. many of whom had advanced degrees. our school systems do not teach us much about investing. real estate. I Quadrant Values “What’s my return on investment?” People in the I quadrant most value financial freedom. The investor loves the idea of his money working instead of him working.lawyers. is still paying its bill for your years of service. and mutual funds. chances are. Words an investor might be heard saying are. if someone in the S quadrant stops working. then. the income stops also. 18 . rather than your own personal investing knowledge. do it yourself. They may invest in gold coins.” he would have ended up a complete failure.” or “Show me the company’s financials. In other words. and experts. your boss. If he had lived by the motto. he often dealt with people who were far richer than he was. “If you want something done right. “I’m receiving a 20 percent return on my assets. “If I stop working today.

different mindsets. If the B is on vacation. To be successful as a B requires: 1. then it’s time to pack up your stuff and move. set your schedule. Different people. 19 . “I don’t invest in real estate because I don’t want to fix toilets. different values. if you want real freedom— the freedom to call your shots. If you want control over your life and destiny.” A person in the B quadrant addressing the same investment challenge might say. does not mean you will be successful in the I quadrant. or B. “I want to hire a good property-management company to fix my toilets at night. spend time with your family and with yourself. He also said. different quadrants. you need a new address.” In other words. One more note on the difference between the “S” Quadrant and the “B” Quadrant B business owners can go on vacation forever because they own a system. “Just because you’re successful in one quadrant. not a job. the money still comes in. a person in the S quadrant might be heard saying. Ownership or control of systems.” Rich dad also pointed out to that different quadrants invest in different ways. Doctors are often the worst investors. and a B quadrant investor will hire another company to do the property maintenance for him. You don’t need a new job. For example. doing the things you love to do—if you want to live the life you were designed to live—no holds barred. It’s time to leave the left side of the chart and move over to the B and I quadrants. an S quadrant investor will think he has to do the property maintenance on his own. you’ve probably figured out it all comes down to a pretty simple thing: If you want to get rich. S. By now. Amazon Master Rich dad pointed out that most employees invest in mutual funds or savings. and 2. you’re going to have to move. The ability to lead people. such as the E. if you want to be rich and live rich. a life of passion and excitement and fulfillment—in short.

but not as an entrepreneur. Before quitting your job. Chances are your system will be both people and tools. then you are chained to that business. Or they’re often too attached to the system to let go and let other people in. Unfortunately. It really owns you. Let’s define system. The system creates the freedom! The system makes money for you whether you are on beach or at a desk. a B owns a system! Why is this so important? If you own a business. It can be a manual and a training system. then the system does the work for you. Brad uses tools like Jungle Scout to help him pick his market and product while training people how to take Jungle Scout’s results and turn them into a product. you are gaining something far more important than money—real-life experience. A system can also be the right software and tools with the proper mindset of how to use them. The system is the key. and many aren’t able to do that. they need to convert who they are and what they know into a system. it might be a good idea to find a mentor who has been an entrepreneur. It can be people who know exactly how to handle every situation is your business. All too often. Most new entrepreneurs get excited about a new product or an opportunity they think will make them rich. Not only will you learn about business. 20 . Brad DeGraw has a team of people and has a suite of software. but for the experience. For example.For S’s to evolve into B’s. many of them focus on the product or opportunity rather than invest the time designing the business around the product or opportunity. even if your part-time business does not make any money. and it had nothing to do with the number of employees! An S owns a job. If you own a system. That means. people ask business advice from people who have business experience as an employee. you will learn a lot about yourself. There is a huge difference between the S quadrant and the B quadrant. Rich Dad recommends keeping your daytime job while you start a part-time business—not for the money.

You’ll start to think and talk like someone in the B Quadrant. You do not need to quit your job to start becoming an Amazon Master. as you build your Amazon business. Amazon Master *Note. You’ll soon find. Multiple Quadrants A person can be in two quadrants at the same time. And you should be.   21 . When you first start learning about how to sell on Amazon and how to create your own brand and product without much money. You will have freed your mind and soon your body will follow. if you are reading this you probably received a free 30 days to use Jungle Scout. you will still be in the E quadrant. that your thoughts will change.

“A business needs both a spiritual and a business mission to be successful. all in different industries. the B-I Triangle. Mission Rich dad said. a fast-food business. a convenience-store chain. “There IP CASH FLOW are many people with great ideas but ® few people with great fortunes. especially at the beginning. When asked how he could start. and running several different companies. The B-I Triangle is the guide to taking an idea and creating an asset.” This chart represents the knowledge required to be successful on the B and I side of the CASHFLOW Quadrant. own. and manage so many businesses. which for him was real estate. Robert owns interests in several different companies in completely different businesses because he uses the B-I Triangle as a guide. the key to great wealth. Chapter Three The 8 Integrities of Business Rich dad called the following diagram. Today. and a property-management business. The MISSION B-I Triangle has the power to turn ordinary ideas into great fortunes. It has been modified a little over the years. As he often said.” When he explained this diagram. PRODUCT The Key to Great Wealth LE LEGAL AM AD The B-I Triangle was very important TE SYSTEMS ER to rich dad because it gave structure SH COMMUNICATIONS to his ideas. Rich dad was about 40 years old. a real estate construction business. but it was amazing how many businesses he could run all at the same time. he had a restaurant business. 22 . a trucking company. For example. his response was to draw the B-I Triangle. He was following his plan to have his businesses buy his true investments.

Amazon Master he always began with the mission since he thought it to be the most important aspect of the triangle. Rich dad thought the mission of a business was very important. He said. “If the mission is clear and strong. “Many people start a business only to make money. the combined power builds huge businesses. or the mission it was created for is no longer needed.’ When the spiritual mission and business mission are both strong and in line.” He said. The mission of a business should fill a need that the customers want.” The spirit and mission must be preserved long after the entrepreneur is gone. His spiritual mission was to provide jobs and opportunities for many of the poor people to whom he served food in his restaurants. which is why it was at the base. although it was hard to see and to measure. drive. And if it fills that need. not just the rich.” Rich dad’s spiritual mission and business mission were closely in line. When a business gets big and forgets its mission. It is the mission of the business that your customers love and mission generates brand loyalty. He wanted to make the automobile available to the masses. That is why his mission statement was: ‘Democratize the automobile. Money alone does not provide enough fire. and fills it well. the mission and the entrepreneur’s spirit are essential for the business to survive.” When it came to the spiritual component of the mission.” He also said. “At the start of a business. the business begins to die. The mission determines the product and the brand. a business is not likely to survive its first five to ten years. “Henry Ford was a man driven by a spiritual goal first. the business will begin to make money.” Rich dad chose the words “spiritual” and “business. Just to make money is not a strong enough mission. The mission of a business is a reflection of 23 . “Without a strong mission. “The most important of the B-I Triangle’s eight integrities is the mission. the business will weather the trials every business goes through during its first ten years. and a business goal second. or the business will die.” Rich Dad also said. or desire. rich dad said.

“Investing is a team sport. we attract individuals and other groups with similar missions. Team Rich dad always said. Most companies would rank based on profit. they train students to take tests on their own.’ In the real world of business. The most important of the B-I Triangle’s eight integrities is the mission. It’s this mission that generates brand loyalty. Some people call it luck.” He would also say. The mission determines the product and the brand.” He went on.” One of rich dad’s strongest criticisms of the educational system was: “In school. By being clear on our mission. we have enjoyed great success. One example is the way Amazon ranks competing products. 24 . it is called ‘cheating. The Rich Dad Company has the following mission: “To elevate the financial well-being of humanity. but Amazon’s mission guides even the ranking of products. “Business is a team sport. Amazon ranks products based on customer experience. We call it being true to our mission. Can you see why Amazon is the number one retailer in the world? It’s due to their mission. It’s the mission of the business that your customers love. If a child attempts to cooperate at test time. and endeavors to offer its customers the lowest possible prices. Amazon will always place a product with good customer service above the same product with a poorer service record. saying. “The problem with being in the E and S quadrant is that you as an individual play the game against a team.” By being clear and true to the dual spiritual and business mission of this company. where customers can find and discover anything they might want to buy online. Amazon’s mission is “To be Earth’s most customer-centric company.” Once you get to know Amazon better you will find that this customer first mission is at the core of how they function.the spirit of the entrepreneur.

We teach and educate you as well as answer your questions when they arise or when you stumble. not as an individual. This is a perfect example of an individual trying to trade against well-organized teams. you had to take tests alone. then your success will be much faster and much bigger. You are free! Team is important for home-based business.” A Very Important Lesson For people who are considering building a powerful and successful business. and his bankers.” On rich dad’s team were his accountants. To be successful in school. Business and investing are team sports. Team and systems go hand-in-hand. his brokers. his attorneys. every day is test time. Amazon Master business owners cooperate at test time. this lesson on teamwork is crucial. It is one of the primary keys to financial success. When it comes to investing. If you view Amazon as a team member that you communicate with regularly and follow the same systems. Many investors today are trying to invest as individuals. then we become a part of your team. too. When he made a decision. they can follow and even create the right systems. and remember that every day in business is test time. He always had more than one advisor. they must invest as a team. you should invest as a team member. Your teachers and mentors are also part of your team. his insurance agents. When you get the right team. Once the team and system are united you are no longer needed for the day-to-day operations. Amazon is part of your team. 25 . and in the world of business. it was with his team’s input. In business. Rich dad would say. “If people want to become sophisticated investors and more. You see and read about thousands of people who are doing online day trading. his financial advisors. That is why so few of them succeed and why many lose their money. success comes from taking tests as a team. If you take the Rich Dad Amazon CASHFLOW Machine course. from management to hourly employees.

able to deal with more and more people. and training means being big enough to take corrective feedback. to make the world a better place to live. As a visionary. That takes leadership. True leaders want to be leaders and are willing to be trained to be leaders. the leader must keep his or her focus on the corporate mission. and pit bull. They may be smart.” A true leader also knows when to listen to others. he or she must be able to make the tough calls regarding issues that distract the team from achieving the mission. With the right mission. you will add to your team. “Business would be easy if not for people. inventory experts. The unique ability to take decisive action while maintaining focus on the ultimate mission is what defines a true leader.As you get bigger. logo creators. team. No one follows. The world is filled with people who have great intentions and great ideas. Cheerleader. He can turn an idea into a product and brand in days! Leadership And that leads to the next part of the B-I Triangle—leadership—because every team needs a leader. and manufacturers on his team. Brad DeGraw has copywriters. is never easy. Many have a strong desire to change the world. and Pit Bull A leader’s roles are a combination of visionary. As a cheerleader. young or old. but they have no power. an entrepreneur must be a better leader. is because dealing with people. and leader you are 26 . “True leaders are not born leaders. cheerleader. Rich dad often said. Visionary. he or she must inspire the team as it works together towards that mission as well as herald the successes along the way. preferring to be a lone wolf rather than a leader. They may have great ideas but no one listens to them. As the pit bull. For a business to grow.” One of the reasons so many people who become entrepreneurs remain small. researchers.

You need purpose. A leader may identify a problem but the real role is determining who is best to solve the problem. What makes this type of business different is HOW you lead. and then hold the team responsible for its solution in a timely manner. Part 2 —You must get your team to agree to meet your requirements. The job of a leader is to keep the teams communicating. your team will respond well to it and work harder for you. Part 3 —You must hold the team to the agreement. Make things black or white. We mentioned earlier that leaders need to be part pit bull. You cannot just rely on great charisma and charm. because they want to work hard for the mission. It’s a three-part process. the leader simply gives the team the tools to solve the problem and the greatest tool is communication. assign the problem. Your job as an Amazon entrepreneur is to remove all the gray middle ground from all your agreements. Do not accept deviations. email. In an Amazon business. great leadership comes from a great mission. Most of your communication is through electronic media. Amazon Master well on your way to building a strong B business. 27 . but the tone of the communication is very different. Most people think the leader’s job is to solve problems. A tip for leading your team is to constantly refer to your mission. That is really not the case. The team will be the one to solve the problem. People are often confused about the importance of leadership for a home-based business. This is still done through electronic mediums. Because your mission is more than just making money. Part 1 —You must very clearly and plainly explain what you need and when you need it. That is true for home-business leaders as well. Skype and so on.

accountants. They fail to realize that profit and cash flow are not the same things. they will tell you that many people are weak financially simply because they are not financially literate. It is the awareness of these two cash flows that makes you rich or poor. Proper cash-flow management starts on the first day you begin your business. and there is phantom cash flow. Nothing can impact a business more dramatically than not being able to make payroll one Friday. At The Rich Dad Company. Five building blocks are essential to developing a strong business: cash flow. and the numbers tell you the story of the business. Many small business owners fail because they do not know the difference between profit and cash flow. This allows them to plan for any large cash need before it becomes a cash crisis. communications. based on facts.Cashflow With the right mission. month. “Business owners need to see the two types of cash flow if they want to be successful. “Cash-flow management is a fundamental and essential skill if a person truly wants to be successful in the B and I quadrants. He would say. “Financial literacy allows you to read the numbers. Rich dad would say. and product. and quarter. Rich dad really focused on the importance of cash-flow management. As a result. and leader you are well on your way to building a strong business.” Cash-Flow Tips Cash flow is to a business what blood is to the human body. or loan officers. many very profitable businesses go broke. There is actual cash flow.” If you ask most bankers. he spent most of his time teaching Robert to be financially literate. legal.” In fact. This type of review is imperative for a company that is growing quickly. systems. no purchase is allowed if it cannot be justified by an increase in sales. 28 . Good cash-flow managers review their cash position daily. team. looking at cash sources and needs for the next week.

• Establish a minimum dollar amount for orders before granting credit. a single rental unit. your investors will be much more supportive if they see that you are sharing in the development process by “investing your time. Initial Corporate Start-up Phase • Delay taking a salary until your business is generating cash flow from sales. After you have 29 . • Establish late-payment penalties as part of your terms and conditions— and enforce them. you may want to have your customers pay their bills online with direct deposit. By delaying taking a salary.” • Keep your full-time job and starting your business part time. However. and always check references. • As your business grows. Expenses and Accounts Payable • Many businesses forget that a crucial part of cash flow is managing their own bill paying. Make sure you pay your bills promptly. You can start a home-based business that you run while still working at your full-time job. Ask for extended payment terms up front. you can reinvest sales to help grow your business. or a hot dog stand. This is why an Amazon business is so great. Require that credit applications be completed before granting credit. whether it is an inter- national business. In some cases. Each step applies to your business. this may not be possible due to an extended development period. to speed up the receipt of cash. Sales and Accounts Receivable • Invoice your customers quickly upon shipment of goods or when services are provided. Amazon Master Below are listed some cash-flow tips that may help you in structuring your business. Standard credit forms are available at office-supply stores. • Require payment up front until credit has been established.

• Checks should be endorsed immediately “For Deposit Only.) While this may sound very complicated.” • The people authorized to sign checks should not prepare the vouchers or record the disbursements and post to the accounts payable and general ledger. Call on your accountant. Before purchasing something new. if at all possible. ongoing supervision is still essential. ask for additional extensions on your payable terms. (Our outside accountant does this. General Cash Management • Have an investment plan for your cash on hand to maximize its earning potential. • Keep your overhead to a minimum. Once you establish a system for how to manage your cash. keep an eye on your current assets/liabilities ratio (at least 2:1 is good). 30 . Quick ratios (liquid assets divided by current liabilities) should be over 1:1. set a goal for increasing sales to justify the expense. • To make sure you can move quickly to borrow if needed. you can purchase the overhead-related items from the cash flow—but only if you have set and achieved new higher sales goals. Preserve your investors’ funds for costs directly related to business operations. paid timely for two to three months. • Establish a line of credit with your bank before you need it. and personal financial advisor for advice in structuring your cash-management system. • The people who record the cash receipts on the bank deposits should be different from those who post it to the accounts receivable and general ledger. • The person who reconciles the bank statement should have no regularly assigned functions related to cash receipts or cash disbursements. each step of cash management is important. As your sales increase. • Establish good internal controls on the handling of cash. A supplier will usually extend credit for 30 to 90 days to a good customer. banker. not overhead.

• Always know a range of sales for future months so you can ensure you have enough product. Inventory is also found in the systems area on the B-I Triangle. but as an Amazon entrepreneur. For those of you working as a digital entrepreneur and an Amazon entrepreneur. must always be moving. If you have too much. • Much like the above post. Many people lose sight of cash management when their businesses become successful. This is a major cause of business failures. you’ve got to think of your inventory as money. You have to manage your inventory as if it’s money. Here are a few things you’ve got to stay on top of for your “inventory flow. For the Amazon entrepreneur.’ It’s got to always be moving. cash flow management is much more than just money. and prepare early for additional funding that may be required for your expanding business. The Amazon entrepreneur cares about cash flow management. and profit closely. • Always know when Amazon has checked it in. always have enough inventory for the holidays. It’s why we call money ‘currency. just like money. you may find much of the cash-management system will be provided for you. Start ramping up as early as October. Inventory. Amazon Master Review your cash position and funding needs daily. cost of product. We do track our sales. If you run out… you’re done. ad spends. the corporate headquarters performs the accounting functions for your organization and sends you a report of your earnings periodically with payment. In these cases. Proper cash management (and therefore expense management) is crucial to the ongoing success of any business. 31 .” • Always be aware of how much inventory you’ve sent to Amazon. expenses. you’re in danger of something happening to it. refunds. but focuses very heavily on inventory management. but we also track so much more than that.

you need to know what buttons to push. Proper inventory management is crucial to the ongoing success of any business as it is a major component of cash flow management. Different people have different buttons.” This is why communications management is the next level up on the B-I Triangle. Amazon accepts many methods of payments. When you ask for something from a coworker and that coworker gives you a reason why he/she cannot comply to your request. the better your cash flow will be. and you accept that reason as valid. You bought. • Even if your product is not a holiday type product. and the more people you communicate to. You never know what motivates people.” 32 . “Many people are talking. is always selling. including you. Just because something makes you excited does not mean it makes others excited. “The better at communicating you are. and prepare early for additional funding that may be required for their expanding business. then he/she sold you. but only a few are listening. You are always selling yourself. Communications Management Here is a very important lesson: Everyone. you first need to be good at human psychology. He would also say. it grows the base of customers you can sell to. but the money goes to the best communicators.” He also said. An Amazon entrepreneur reviews his/her inventory position and fulfilling needs daily. To be good at communication. The world is filled with fabulous products. One of the best things about being an Amazon entrepreneur is the use of their cash flow systems. Every time there is a conversation you are either buying or selling a point of view. Amazon takes that expense and burden off of your back. Wouldn’t you rather be the seller? Rich dad would say. Entrepreneurs always need to find ways to accept multiple forms of payment. You are always selling your point of view. you still want extra as customers will add on their product needs to their holiday gifts in order to get free shipping. “To be good at communication.

communication done out- ward toward the potential customer base.” 33 .” If you are thinking about starting your own B-quadrant business. it is amazing how little time businesspeople put into improving their overall communication skills. there are entrepreneurs that cannot raise capital. Rich dad also said. which is the life blood of every company. Give in to your fears and your world will get smaller every year. and to communicate the value of your product or service. Rich dad would say.” Sales are what create cash flow. develop the skill to overcome your fears. there are advertisers that no one watches. Communication holds a team together. He would also say. First. what rich dad meant when he added communication to the B-I Triangle was sales and marketing. “Cash flowing into your business is in direct proportion to communication flowing out. Knowing this. “There are speakers that no one listens to. develop the skill of speaking to large groups of people and keeping them interested in what you have to say. As rich dad said. don’t be any of those people.” This negative statement is mentioned with the intent of inspiring further study and practice of this vast subject. and there are business leaders that no one follows. “The number one job of an entrepreneur is sales. If you want to be successful in the B quadrant. Second. it is often a reflection of poor communications going out. there are salespeople that cannot sell. Primarily. not enough communications going out. we recommend these two skills.” Whenever you find a business that is struggling. Fear of Selling “Get through your fears and the world will open up. Communication is what makes a leader. to overcome rejection. or both. “Poor people are poor communicators. Amazon Master This communication level covers so many areas of business.

you will see your cash flow increase as a result. Marketing is selling through a system. rich dad insisted that Robert know the difference between sales and marketing.” Entrepreneurs know to watch their results and listen for feedback. Any published or printed material you produce or distribute is also important. the company must spend a lot of time and money and work very hard at gathering sales. If a business has strong and convincing marketing. the sales will come easily. doesn’t mean anyone is listening. “Sales is what you do in person. In conclusion. He would say. everyday communication skills will also improve.” Most S-quadrant businesspeople are very good at one-on-one sales. include these three key ingredients: 34 . which is called marketing. Marketing and Sales Good first impressions are vital.” He said. When all three improve. but to be a successful B-quadrant business owner. As rich dad said. Whenever you are speaking. communication is a subject worthy of lifelong study because there is more to communication than just speaking. Always make sure you know your audience and that your marketing tool has been designed for that audience. As you go through the process of transforming from a poor communicator to an excellent communicator with these two skills. Marketing is sales done via a system. you must be good at marketing as well as sales. If the business has weak marketing. you will find your fundamental. For them to make the transition to the B quadrant.The Difference Between Sales and Marketing While still on the subject of communications. you need to learn how to market. “Just because you’re speaking. or demonstrating. It is a public representation of your business. one on one. Your marketing and sales efforts will often be the first impression your business makes on your potential customer. “Once you learn to sell. dressing. “Many business owners suffer with low sales or poor communications with staff and investors. In every marketing or sales effort. they need to learn how to sell through a system. writing.” He also said. An S-quadrant business owner is often good at sales. both your passion for your business and your appearance will have a lasting impact on your audience.

Amazon can help. • Communicate a sense of urgency for the customer to respond. But most people fail to do this right. This form of advertising can drive a company to success or failure very quickly. One of the most powerful forms of communication that affects a business is one over which you have little control: the communication from your existing customers to your potential customers. and • Answer your customers’ question. but this part falls squarely on the Amazon entrepreneur’s shoulders. The ability to speak is vital to building a successful business. “What’s in it for me?” with a special offer. But how are you going to compete with so many sellers on Amazon trying to do the same thing? 35 . Communication is quite possibly the most focused on part of the B-I Triangle for the Amazon Entrepreneur. to name your product. So how do you do this right? As you’ve heard. customer service is a vital communications function for any company. Amazon Master • Identify a need • Provide a solution. But communicating to the customers is your responsibility. For this reason. Amazon and their systems fulfill much of the B-I Triangle. Amazon gives you a place to put pictures of your product. The personal development and mentoring programs offered by select franchises and network-marketing organizations provide wonderful opportunities for personal growth. The power of this word-of-mouth advertising is immeasurable. to write a beautiful description of your product and so much more. selling on Amazon is a HUGE opportunity right now and there are MANY people making HUGE earnings doing it.

Product Reviews to Build Customer Relationships . If one of those systems stops. A business is a complex system of interoperating systems. not your brand name. Take advantage and encourage reviews. And customer service affects your sales.Good and bad customer service creates word-of-mouth moments. The same is true with a business. Also make sure to respond to all feedback no matter if it is positive or negative.Always lead your Amazon title with your best keyword phrase. Use all eight of them and make them professional. Amazon will reward you. So is a business. each item listed within the inner triangle of the B-I Triangle is a separate system 36 . because it affects your Amazon position—both positively and negatively. The human body is made up of a circulatory system. Premium Product Pictures . Communication Is Part of Customer Service . Systems Management The human body is a system of systems. digestive system. respiratory system.Earlier in this book we talked of Amazon’s mission being customer based. Key Product Features .You Need to Stand Out Above the Competition! Here are some tips and tricks to get you on the path to outdoing your competition: Keyword Title Optimization . In fact. there is a good chance the body will be crippled or die. and then address how your product solves that problem. Use all five to express your key features and benefits.Amazon gives you 2000 characters to let you focus on identifying a problem that the consumer is facing.Amazon allows sellers to list their key product features as bullet points directly underneath your product title. Product Descriptions that Sell .Be sure to use every single picture that you possibly can with Amazon. and so on.

Amazon provides the heart of the systems. In most cases. The car does not depend upon only one specific person to drive it. Every business. needs to have systems in place to enable it to conduct its day-to-day activities. When one system fails. For any business to grow. the person in the S quadrant is the system. the less dependent you become on others. Systems are at the heart of the Amazon entrepreneur. Amazon 37 . Many small start-up businesses or S-quadrant businesses fail because the operator of the system has too many systems to monitor and take care of. It is also difficult to say that one is more important than another. McDonald’s depends on systems. The better the system. the person’s immune system begins to break down. A true business system is much like a car.” This is possible because of the excellent systems in place. The same is true for a B-quadrant business. It is difficult to separate the systems because they are interdependent. In essence. Even a sole proprietor has to wear different hats to conduct his or her business. such as when cash flow dries up. the sole proprietor is all systems in one. but you still need your own systems too. Look at McDonald’s systems: “It’s the same everywhere in the world. all the other systems begin to fail almost simultaneously. not people. and it’s run by teenagers. and a general overall director must be in charge of making sure all the systems operate at their highest capacity. whether large or small. Amazon does the heavy lifting with collecting and monitoring cash flow and inventory flow. It is like when a person gets a cold and fails to take care of it. Pneumonia soon sets in and if it’s not treated. but not necessarily for an S-quadrant business. Anyone who knows how to drive it can do so. Amazon Master that is linked to the other systems and into the overall business that the triangle represents. Another word for ‘system’ is ‘process’. specific individuals must be accountable for each of the systems. A good businessperson can manage multiple systems effectively without becoming part of the system.

Amazon also has systems for parts of the legal triangle. Legal Management This level of the B-I Triangle. These attorneys. The important thing is this: You can’t just sit back and let Amazon do all the work. your intellectual property attorney and your contract attorney are some of your most important advisors because they help create your most important assets. once your idea is exposed. What an Amazon entrepreneur must understand is that it’s not enough to have a system. Especially in the Information Age. The world of business is filled with stories of smart entrepreneurs with great ideas who begin selling their products or ideas before protecting them. 38 . There are processes for communicating better through Amazon. Another company quickly came along and copied his idea. In the world of intellectual property. Robert had failed to secure the legal rights to the nylon-and-velcro products he had designed before he started producing them.does the bulk of the communication work by providing you with the largest customer base in the world. There are processes for evaluating the Amazon systems and reading the data they send you. and he could do nothing about it. You must learn the system and learn how to use it at its fullest capacity. About 99% of the people on Amazon just open a store and sell their goods. Very few take the time to learn the systems and how to pull incredible profit from them. legal management. More specifically. he failed to patent some of his products. There are processes which help you get 10x more efficiency and profit out of the Amazon systems. was one of the most painful lessons Robert talked about. will protect your ideas and your agreements from intellectual bandits. people who steal your ideas and therefore your profits. He failed to do so because he believed the $10. His rich dad identified a serious flaw in his business. if they are good.000 in patent attorney fees was too expensive and not important enough to spend that much money on. it is almost impossible to protect.

You will want to choose an attorney to set up your business structure. is the last important aspect of the B-I Triangle. or just the US Patent and Trademark Office website (http://www. Instead. Product Management The company’s product. For the most part. and provide outstand- ing service. Amazon Master Avoiding Legal Problems The Amazon entrepreneur uses the legal level of the B-I Triangle quite a bit differently. improve them by adding an additional value. But how do you know if a product is patented? Usually it is listed in the Amazon product description or the product description on the website. 39 . Is it a very unique design that does not have any direct competitor? Then more than likely it is patented. you still need to avoid other businesses’ lawyers. In fact.uspto. you probably will not have to deal with the cost or headaches of a lawyer or the legal system. One of the great benefits of being an Amazon entrepre- neur is simply the lack of legal resources you need. Chances are you will not create or invent your own prod- ucts. That is about it. you will rarely use an attorney. repackage them with your brand. which the customer ultimately buys from the with that said. Now. Do not steal or private label a patented product. You can also do a Google search for the product name with “Patent” on the end. It could be a tangible item such as a hamburger. you’ll find products people want. You may also choose to have an attorney set up your business with a trademark or registration to protect your brand. This is great because you do not have to pay patent attorneys. or an intangible item such as consulting services. Always use your common sense. The reason for this doesn’t need too much explanation.

Many people have ideas for new innovative products. getting it manufactured and in the hands of your customer is the lion’s share of your work. but few of us can build a better business system than McDonald’s. Thinking that a better product or better service is most important is usually the domain of the E and S quadrant. Now. Follow these steps using your free Jungle Scout tool and you’ll understand how easy it really is. where being the best or highest quality is important for success. The world is full of great products. lets address that fear. Most of us can cook a better hamburger than McDonald’s. the product is still important as it is the part that the customer sees and touches. People also think that their new idea or product is better than an existing product. the most important part of a new business is the system behind the product or idea. Even though the product is least important it’s the part that gets people stuck. The beautiful thing is that after you’ve done it once. Determining your product. Brad and Greg (from Jungle Scout) have created the following steps: 40 . you can do it again and again with another product. Below are the simple steps to finding the right product. Rich dad thought that the product was the least important piece to inspect when evaluating a business. Close to 90% of people who never end up starting is due to the fact that they cannot pick the “perfect” product. The first step and the most important step is to find the best market like we talked about earlier. or the rest of the B-I Triangle.It is interesting to note that when evaluating a business. Getting started with private labeling is hard for most people to do. many average investors focus on the product rather than the rest of the business. it’s not the product that is most important to your freedom it’s the knowledge and systems to do it over and over again with ease. In the B and I quadrants. But what everyone wants to focus on is the product. So while the product is not the key to success. So you see. The product reflects your whole business. But let’s look at McDonalds. however.

We have nine more steps to help you in the process. Yes. These categories are: • Sports and Outdoors • Home & Kitchen • Patio. We like to call this the “shoebox test”. For our first product. #2 Choose a small and lightweight product. We don’t want anything that won’t fit in a shoebox and can’t be easily carried with 1 hand. you could sell in lots of different categories but don’t make it hard on yourself. it is upon you to now go digging through to find the opportunities. That means nothing that weighs over 20lbs (ideally less than 5lbs). just choose one of these beginner-friendly categories. Amazon Master #1 Choose the right category Do yourself a favor and for your first product. not good for private labels) • Watches (brands are big here) There are literally thousands upon thousands of possible products in the remaining categories. Lawn & Garden • Pet Supplies Categories that we would not recommend for any private label beginner (or at all. only look at categories that are well suited for private label products. There are multiple reasons for this: the most important is that Amazon 41 . or is longer than 18”. of course. for that matter): • Appliances (have you tried shipping a refrigerator?) • Camera & Photo (too complicated and big brands own the category) • Electronics (more on this in later) • Jewelry (quality control issues) • Music (maybe OK for retail arbitrage. we do not want to mess with anything classified by Amazon as oversized.

Lastly.charges higher fees for oversized items. Is it a very unique design that does not have any direct competitor? Then more than likely it is patented. Second. We also want to stay away from anything that has complex electronics or glass. 42 . We also recommend doing a Google search for the product name with “Patent” on the end. First. or just the US Patent and Trademark Office website (http://www. oversized items are more expensive to get from China via Air shipping. in general. There is just too big of an opportunity for it to break in Less than $15 and we’re not left with enough profit after Amazon takes their cut. Which is more likely to have problem? We’ve never seen a broken yoga mat. Greater than $50 poses a few different inconveniences. #5 Avoid patented products. Think of yoga mat vs a coo-coo clock. especially your first product. Chances are. The reason for this doesn’t need too much explanation. Not exactly helpful for a private label product. but it’s important enough to reiterate: How do you know if a product is patented? Usually it is listed in the Amazon product description or the product description on the website. not easily breakable. people want to know more about a brand which they are spending more money on. Knowing that. Always use your common sense. We would highly recommend building this business with a long term outlook. Amazon will only allow new sellers a limited amount of oversized items to be stored in their warehouse. We want our product to sell to the customer for a retail price between $15 and $50. Additionally.uspto. Large items are a hassle and expensive for your first product. the sales volume of these items are often lower because there are less impulse purchases. #4 Find a product that sells at a “moderate” price range. you need to do things by the books: don’t infringe on patents! We mentioned this before. #3 Choose a simple product. the more complex and the more moving parts your product has. the more problems you will come across. The simpler the item the better.

com/Best-Sellers/zgbs - Drill down into the categories by clicking the sub categories on the left. just click the JS button and you’re you know what type of item you would be willing to sell. We would like to see the top 10 results having a cumulative number of monthly sales of 3. Need to get the creative juices flowing? My favorite two sources are directly on Amazon: • Amazon best sellers . If you have Jungle Scout. Amazon Master #6 Create a long list of ideas. (Jungle Scout Owner Hint: Extract all their products then sort by sales to find their best sellers) #7 List them all on an Excel sheet. For instance. Delete it from your spreadsheet.http://www.000 or more. Trying to sell something that is not already selling well is risky. simply search “grill gloves” in the search bar and see which results pull up. Try to create a list of 30-50 products. this part is really easy for you. Keep clicking sub categories to drill deeper and deeper. This step will probably cut your list in half. We would highly recommend checking it out at this point if you’re having any trouble with this step. great. Go straight to the source. 43 . Amazon. • Spying on other Amazon Sellers To find a seller you think is selling a private label. and check how well this item is selling. Now. let’s start brainstorming some possible ideas. How do you know this? The free (and more time consuming) option is to get the BSR (best sellers rank) from each of the top 10 products. HELPFUL TIP: Since the advent of Jungle Scout’s Web App. Now search through their products for ideas. if you’re thinking about selling Grill Gloves. If the item does not pass this test. research them on Jungle Scout. From the first 5 tips. this step is now super easy. shown below by the red arrow. Go to their storefront by clicking on the seller name.

#9 Find something that needs simple improvements. #10 Get factory pricing. Is this market completely saturated or is there room for you to enter? Here. It is a waste of time to do it any earlier. Congratulations. If the entire first page of Amazon is sat- urated with competition that all have 100+ reviews and high quality listings. the straps just aren’t thick enough. This area leaves a little open to interpretation.#8 Assess the competition. If the item has a bunch of two star reviews saying that they love the item. What does your spreadsheet look like now? 44 . Only now are you going to go to contact the factories and get estimated pricing for your products. As a rule of thumb. it’s going to be tough competition. Ask the factory for thicker straps. How do you know what an item needs to be perfected? Read the existing reviews on Amazon. we want to look at the overall number of sellers. the number of reviews and the quality of their listings. If you have Jungle Scout the first two steps are super quick. you’ve hit the jackpot. good descriptions on all 5 bullet points and a well written product description. While making small changes to an item is certainly not necessary for your first product. it’s icing on the cake if you can find a product that needs a simple tweak to make it perfect. obviously. with 1 as the highest. we figure we can jump anyone in ranking that has a poorer quality listing than me and less than 50-100 reviews. What makes a high quality BSR listing? As a quick check we look for numerous high quality pictures. We would like to see someone in the top 5 with less than 50-100 reviews and/or poor quality listings. If you use this rule of thumb. you just ranked your products from best to worst. can you get into the top 3 listings? What about top 5? In your spreadsheet. The way we’re going to organically get sales is by climbing to the top of the rankings by creating a superb listing and getting reviews. write the number you think you would rank if you had 100 reviews and a very high quality listing.

If not. If you find it overwhelming. congratulations! Proper product selection will likely make or break your business so it is worth investing a serious amount of effort here. At this point. #11 Take action. contacting the factories will. Throw them out. You’ll find most of them don’t reply or aren’t easy to work with. Step 10 is where 90% or more of people won’t follow through. is your gut is telling you which product you like better. Jungle Scout can be a huge help! Now get out there and start finding that perfect product! 45 . Amazon Master Use conservative numbers and figure out which products you can source for about a third of the sales price on Amazon. The ones of you that do. This will probably cut your list down to just a couple products.

” Now the time is easier than ever. Today I do. It begins with a desire for more freedom than security. The Transition from Employee to Entrepreneur I know I was not born a natural entrepreneur. There was a lot I had to unlearn before I could begin to understand the lessons he was trying to teach me. Amazon is only growing and they are inviting you to grow with them. they are opposites.” As a teenager. This is an opportunity that I did not have. Entrepreneurs seek freedom. he replied. The more security you seek. he was talking about freedom. It was difficult hearing what my rich dad had to say because what he said was exactly opposite from the lessons my poor dad was trying to teach me. The clash of these two philosophies going on in my head was confusing. Take the time to learn more and get educated about how you can succeed as an Amazon entrepreneur. My rich dad guided me through a process of starting as an employee to eventually becoming an entrepreneur. Finally. I asked rich dad about the difference in philosophies. “If you are going to be an entrepreneur or an investor. In fact. The people with the most security are in jail. I asked. 46 . For me.   Conclusion By Robert Kiyosaki Rich dad said to me. “Security and freedom are not the same. you need to let go of security. “Yes. I had to be trained. Every time my poor dad talked to me about going to school to get a job. It begins with a change in philosophy. the less freedom you have. “If you want freedom. he was talking about security. it was not an easy process.” So the question is: Can anyone become an entrepreneur? My answer is. fully understanding the B-I Triangle is essential to your success. “Aren’t security and freedom the same thing?” Smiling. That is why it is called ‘maximum security. I did not really believe or appreciate rich dad’s respect for the importance of the B-I Triangle. Employees desire security. Every time my rich dad talked about entrepreneurship.’” He went on to say.