Leverage is a powerful business concept that allows you to get more done in less time. Wondering What Is Leverage? Lets look at the best way to get it.
What is Leverage?
In business, Leverage is the concept of cooperatively using other peoples efforts to accomplish a particular task in your enterprise, thereby freeing up your own time.
Typically, a business owner will delegate certain tasks to employees or contractors in exchange for money.
An example of this is a traditional bank, in which the CEO hires tellers to serve the customers.
Even if the CEO desired to serve the customers himself, it is obviously impossible for him/her to attend to thousands of customers per day, while still maintaining the real duties of a CEO.
Leverage is a wealth principle in life.
We can all agree that truly wealthy people have never gotten wealthy on just their own efforts alone – rather, they have acquired their wealth on the efforts of a lot of other people.
There are only 168 hours in a week for everybody.
Simply put, working harder will not multiply your results. But if you could duplicate yourself, how much more could you accomplish per day?
J. Paul Getty is noted as being amongst the worlds first billionaires. Getty was a pioneer in the oil and petroleum business. Here is what he said about the concept of Leverage:
I would rather have 1% of 100 peoples efforts than 100% of my own efforts. -J. Paul Getty
What Is Leverage In Network Marketing?
The night I was introduced to Network Marketing, I immediately recognized Leverage as being inherently built into the Business Model.
This caught my attention in a hurry.
What I have come to appreciate about Network Marketing, is its the greatest, fairest, most moral form of compensation in the history of business.
In Network Marketing, Leverage is not the product of paying your downline for their service, or the new recruit paying their sponsor for their mentorship.
Instead, it is a harmonious relationship where the new distributor goes after their goals and dreams, while receiving coaching, mentoring, and guidance from their sponsor at no cost to them.
Neither person works for the other, yet both benefit from a co-operative effort.
It is a beautiful business philosophy.
Leverage in Network Marketing is an equal playing field, where everybody has equal rights to success.
Everybody can sign up distributors and be a sponsor, just as they themselves have a sponsor too.
It is a perfect success system which relies of mutual co-operation and support.
In real estate, the broker recruits agents to go out an sell all the homes, and then the broker gets a small piece of every sale.
In Network Marketing, every distributor is not only an “agent” but a “broker” too!
Here is another example.
If I own a McDonalds franchise, I have the right to sell burgers and fries. But if somebody comes into my restaurant and wants to purchase a franchise for themself, I cannot sell it to them.
That person must go to the corporate office to get their own franchise.
However, in Network Marketing not only can I sell my product/service, but I can also sell you your own “franchise” too.
And, I will get a small piece of all of the products/services that you eventually sell yourself!
THAT is powerful.
Now, the moral question of Leverage.
Think about this. If you introduce somebody to your company, you have expanded the companies distribution network that much more.
Furthermore, that one contact could turn into hundreds or thousands of other distributors.
You have just helped to expand the companies distribution network.
You have just made the company more valuable.
Additionally, you are helping that new recruit with training, presentations, guidance, and coaching.
You help them hands-on to get their business started.
Why shouldn’t you be entitled to a small piece of their production?
And the best part is, your compensation does not come out of your teams pocket.
The company pays you over and above what they themselves are entitled to.
Everybody is entitled to the same compensation plan. That to me, is brilliant. And it is true equality for all, without any prejudice.
The more effort you give, the harder you work, the more you expand the network, and the more products/services you get to consumers – the more you get paid.
If somebody in your downline out works you, then they make more money that you do. Fair is fair. And that to me, is the perfect form of compensation utilizing the purest form of Leverage.
Did this post on What Is Leverage help? If you liked this training, feel free to checkout these other posts:
What Is Residual Income
What Is Network Marketing Or Multi Level Marketing
10 Powerful Things I Love About Network Marketing
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To Your Empowerment,
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