Leverage Part Two

Tuesday, March 10th, 2009 at 10:22 pm  
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In part one, we discussed the definition of leverage. In this installment, we will look at ways leverage is applied in a network marketing business.

If you have been involved in network marketing before, you have already heard the term leverage. It is one of the cornerstones of developing a successful business with a solid residual income. You have been taught to leverage your efforts by:

  1. Conducting house parties where you show the plan to a number of prospects at one time,
  2. Bringing prospects to a “second look meeting” where one of the organization’s top earners shows the plan, using his or her success and inspiration to lend credibility to your business opportunity,
  3. Using three-way conference calls with your prospect and your upline,
  4. Recruiting into your downline and through the power of duplication your downline’s efforts then benefit you through volume bonuses.

And the list goes on. Please, don’t misunderstand me. Literal fortunes have been made using the above techniques. But they all suffer from the same fundamental problem: they have to be repeated numerous times, with every new prospect you engage. It is leverage, but nowhere near the amount of leverage you can be using to build your own successful business.

So what is maximum leverage? When your effort produces prospects twenty-four hours a day, seven days a week. When it produces prospects while you eat, sleep, spend time with your family, and go on vacation. When it brings prospects to you that are eager for what you have to offer. That is maximum leverage.

In my next installment, we will begin to look at how internet tools enable you to maximize your efforts to build your business.

Please leave me a comment to let me know what you thought of the article.

Until next time.

Leverage Part One

Monday, March 9th, 2009 at 10:11 pm  
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In this entry, I’d like to discuss the concept of leverage and how it relates to network marketing (or any form of marketing, for that matter) .

I thought it might be good to start off with what Websters had to say:

–noun

1. the action of a lever.
2. the mechanical advantage or power gained by using a lever.
3. power or ability to act or to influence people, events, decisions, etc.; sway: Being the only industry in town gave the company considerable leverage in its union negotiations.
4. the use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one’s investment, to control a much larger investment, or to reduce one’s own liability for any loss.

Well, one and two are great when you are trying to remove that tree stump in the front yard, but not all that helpful for what we are trying to accomplish.

Item three in the above list is getting a lot closer to what we care about: having people in our circle of influence see the immense value and potential in the network marketing business model and see that our business is the right fit for them.

Number four, however, is where we find the real power. Using a small investment of resources (e.g. time and money) to reap rewards that make our initial investment seem ridiculously inconsequential.

In my next installment, we are going to take a look at how leverage applies to building your network marketing business.

Until next time.