Cart 0

Emails regarding the relationship between Robert Kiyosaki and multi-level marketing firms.

Posted by John Reed on

The contribution of multi-level marketing organizations to the success of Robert Kiyosaki’s book Rich Dad Poor Dad

Mr. Reed,

I found your site interesting, especially your analysis of RDPD. I must admit that I enjoyed the book because of its "easy read," but your analysis is right on target.

I attended a Quixtar (aka, QuixScam, Amway, AmQuix, Scamway, etc.) conference in the Fall of 2000 at which he was a keynote speaker. He espoused network marketing and recommended complete dedication to building the Quixtar pyramid business even though he hadn’t found pyramid businesses worth his time. Ultimately, RK has found a way to obtain significant financial benefit from pyramid-based businesses without having to build one of his own.

The story is that Bill Galvin discovered his book at a carwash in (or about) Houston Texas. At that time, RK could not get his book published and distributed in a more traditional manner. Bill Galvin is a diamond under the Dexter Yager organization for Amway/Quixtar. In fact, I still have an old prospecting tape of a dialogue between Bill Galvin and Robert Kiyosaki. You can have it if you want it. I’m sure you’ll enjoy it. By the way, the tapes he produces for Amway/Quixtar diamonds are also distributed by the 10’s of thousands for which he gets a cut of each $6 tape that costs less than $1 to produce.

Anyway, Bill Galvin distributed RDPD to the "leaders" in his group. Bill and his leaders loved the book, so they contacted RK to buy more. The distribution of motivational tools in the Amway/Quixtar distributor networks is extremely efficient (and profitable for higher ups). His popularity grew quickly as his books were channeled to many thousands of lower level distributors by diamond distributors. Distributors would often buy several to hand out while prospecting new recruits. Not wanting to be left in the dust, other MLM networks picked up on the book and it has spread through their organizations as well. I would guess that the MLM industry was responsible for putting RK on the best seller list.

If you take RK’s mantra of "financial literacy" seriously and begin take financial control of your life, the vague and inconsistent information in his book becomes progressively more alarming. I tried to research any record of Kiyosaki but found practically nothing. I am impressed that you found as much as you did.

You made some very interesting references to "cult of personality." RK appears to benefit from that phenomenon and it probably explains why various MLM organizations (especially Amway/Quixtar) have latched onto him. Many of the high level distributors in MLM organizations also benefit from what could be described as a "cult of personality." There is obviously some "synergy" there. If you don't mind, I'll quote you on your reference to cult of personality.

My disappointment with RK has grown steadily due to inconsistencies, vaguesness, unsubstantiated claims, and his chosen association with MLM organizations. That alone should be sufficient to arouse suspicions.

By the way, did you know that his first two bankruptcies were supposedly related to a nylon wallet manufacturing business? I'm not sure where I heard may be on that Galvin/Kiyosaki prospecting I told you about or in one of his books. If you recall in the late 70s early 80s there was a fad with bright colored nylon wallets. RK was supposedly involved in manufacturing those...first domestically and then importing them from China. Since that was pre-internet, Secretary of State corporation records don't reliably go back their far to do an online search.

After deciding that manufacturing wasn't for him, he built a financial education (or services) company that had 11 offices around the world. He sold his business or his share of the business for "several million." I didn't know if you were aware of that.

After that, RKs goal was to buy "one to two houses per year." [I am not a real estate expert, but why would RK focus on buying houses versus other RE investments?]

Sorry if all of this is old news. I can't remeber what he information he published versus what he talked about in the prospecting tapes he has made for Amway/Quixtar distributors.” Best Regards,
Jeff Parsons.

Order form | Real estate investment books

John T. Reed, a.k.a. John Reed, Jack Reed, 342 Bryan Drive, Alamo, CA 94507, Voice: 925-820-7262, Fax: 925-820-1259, Email:

Share this post

← Older Post Newer Post →