Network Marketing LeverageNetwork Marketing and the Power of Leverage


Utilizing the power of leverage is essential in growing any type of business, but it is particularly relevant with network marketing. Let’s look at the general concept of leverage in business first.


Most entrepreneurs start off on their own –usually because a shortage of funding. But one’s efforts are limited by lack of available time. Only 24 hours in a day, and that is without sleeping!  To grow our business we need more work to be done in the available time, and in the traditional business this is done by getting employees.


Let’s say that you manufacture some kind of gadget and you manage to make 10 gadgets in one day. You then sell these gadgets for $50 each, resulting in sales worth $500 a day. If you get one other person to work as a subcontractor and pay that person $40 for each gadget produced, you could make $600 a day. This is leverage of other people’s time and effort.


It is quite plain to see that the more people you can get to work for you, the more money you will make. In other words, the greater your leverage, the more money you will make.  John Paul Getty, the American billionaire once said:


I would rather earn 1% of 100 people’s efforts than 100% of my own efforts


In traditional business this is usually taken a step further.  If more money is required to grow the business, one can leverage other people money by getting them to purchase shares in the business, or by taking a loan at a financial institution.


Network marketing is all about leverage. Here we do not limit ourselves to leverage other people’s time and money, though.


In network marketing we also leverage other people’s  talent, knowledge, skills, and enthusiasm.  This is why it is so important to build up a strong and motivated team.  The bigger and the more productive your team is, the more you will benefit financially.


We can also use technology as leverage. Just look around you and you will see countless types of technology that you use to leverage your time – microwaves, mobile phones, lawnmowers, vacuum cleaners, etc.


With network marketing we use Internet technology as a very powerful leverage tool.  We can use a website to make thousand (even millions!) of people aware of our presence and our opportunity. Compare this with the belly-to-belly methods of the past. On our website we can offer free information in exchange for contact details.  This is a very efficient way to generate leads and take leverage in network marketing to a new level.


There is also email to communicate with leads and members of your team.  No time consuming letters or phone calls. You can use an autoresponder service by setting up messages one time and then have it sent out to a list of people without your interaction.  Or you can blast out a message to everyone at the same time. Using the Internet you can also host your own webinars for team members or prospects. No need to arrange group meetings where everyone has to turn up in person.


Off course, the real leverage with this “new” type of network marketing is when you team duplicates your efforts. When they also use the Internet to build websites and create lists of people and to communicate with, your leverage expands exponentially!


In the end the effective use of leverage in network marketing can enable us to have the time and money required to lead our lifestyle of choice. And is that not what it is all about?


To your success!




PS If you are disillusioned with small commissions in Network Marketing, click here.


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