Leverage Definition
lev·er·age (l
v
r-
j, l
vr-)n.
1. The action of a lever.
2. The mechanical advantage of a lever.
The word “leverage” is used a lot around the Network Marketing industry. For example, you can leverage creating income from building a team or downline. You can leverage time by using the internet to reach more people in a shorter time frame. You can even wake up to sales when customers buy products from your website while you are sleeping. Now that’s leverage!! I am sure you have heard the word “leverage” many times before, especially if you have been around the Network Marketing industry for a while. But what is the leverage definition? The official definition above (”The mechanical advantage of a lever”) doesn’t mean a great deal when using it in connection with Network Marketing. But if we look at it from a Network Marketing point of view, the leverage definition of “The mechanical advantage of a lever” means using other people or tools as a lever to make your life easier. Those people and tools ARE the levers.
The internet as a tool is a great example of Leverage. The traditional set up of an MLM business would be to generate leads and call each of them individually. Thanks to the internet, we can now create a list of leads (this is called “list building”) and communicate with all the leads at once via emails and webinars. This is a great time saver! It is also a fantastic way to leverage time.
But the most important form of leverage within Network Marketing is the ability to create a team (or downline) of representatives that are part of your primary business or selling your products for a commission. The structure of this would look like the image at the top left of this article. Every time a new team member joins your team or buys a product, you get paid a commission. But more importantly, every time a team member creates their own team members or creates their own sales, you also get paid a commission.
The internet as a tool is a great example of Leverage. The traditional set up of an MLM business would be to generate leads and call each of them individually. Thanks to the internet, we can now create a list of leads (this is called “list building”) and communicate with all the leads at once via emails and webinars. This is a great time saver! It is also a fantastic way to leverage time.
But the most important form of leverage within Network Marketing is the ability to create a team (or downline) of representatives that are part of your primary business or selling your products for a commission. The structure of this would look like the image at the top left of this article. Every time a new team member joins your team or buys a product, you get paid a commission. But more importantly, every time a team member creates their own team members or creates their own sales, you also get paid a commission.
Just think of the power of that for a second.
Watch the 3rd video on THIS PAGE entitled The “Perpetual Leverage” Payment Plan for the perfect example of how you can build a team to create leverage in making money.
The Mistake We Make
Unfortunately this is where many Network Marketers fall down. They focus all their attention on bringing in new team members and generating their own commissions, but they fail to train their first line team members to get good at developing their own teams. This results in:
a) limited commissions for themselves, as they cannot leverage from their team members making sales for them
b) their team members getting frustrated and quitting
Being a good leader for your team means holding masterminding sessions with them as a group, giving one-on-one guidance and holding training webinars. The thought of being a leader is something that scares Network Marketers more than the selling itself. However, it is essential to fulfil the true leverage definition.
posted by Natalie Buhagiar @ 06:22
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