Unfair Advantage There are many different ways to create an entrepreneurial-business asset in the B quadrant. • Franchising Franchisors sell the rights to do business with their corporate entity. McDonald’s is one of the best-known examples of franchising. • Licensing An agreement to license allows another business to do business with your business. This is the Rich Dad business model. We have a small corporate office, but license our intellectual property to businesses throughout the world.
Through licensing agreements, Rich Dad has thousands of people all over the world, working to promote and sell our products, seminars, and educational programs.
• Network marketing Network marketing is a business system that can expand infinitely. A single person can start with very little money and expand into a worldwide business with thousands of people working together to build their independent businesses. There are hundreds of millions of people around the world involved in this type of business.
The I Quadrant I stands for investor, those who understand the art and science of raising capital. When you can build a business in the B quadrant and raise capital, you are a capitalist. • Bank financing When you borrow money from a bank to invest in real estate, you are operating in the I quadrant. This is why rich dad insisted I take classes on real estate, not just to learn about real estate and taxes, but to learn to manage debt. Today, I have hundreds of millions of dollars in good debt, all producing income for me— most of it tax-free. 253
by Rich Dad, Robert Kiyosaki