Leverage: A Powerful Business Principle

by Nicole on May 23, 2011










The Pyramids.


Easter Island.

These ancient wonders have baffled archaeologists for centuries! How these structures were built is one of the mysteries of the ancient world. It is speculated that the ancient civilizations used levers and other simple machines to move the large stones into place.

In the third century B.C., the Greek scientist Archimedes astounded his audience by saying “Give me a place to stand and rest my lever on, and I can move the Earth.”

What power!

The concept of leverage applies to business also.

The financial definition of leverage is “The ability to influence a system, or an environment, in a way that multiplies the outcome of one’s efforts without a corresponding increase in the consumption of resources. In other words, leverage is the advantageous condition of having a relatively small amount of cost yield a relatively high level of returns.”[1]

Leverage is about maximizing the returns on your efforts. The beauty of internet marketing is that it’s all about leverage. The internet allows business owners to reach more people with less time, money, and effort, increasing their productivity and their profits. It is an amazingly powerful tool that you can use to get your message to people! Any business can take advantage of this power, no matter what their product or service is.

So how can I use the internet to get some leverage for my business?

There are many ways, but here are two big ones:

1. Leverage other marketers

2. Leverage social media

Leverage Other Marketers

You can gain leverage by using the assets of other marketers, particularly their list or audience. For example, if you have a product to sell, you can team up with another marketer who will promote it to their list of customers in exchange for a nice commission. This is mutually beneficial. You gain new customers and new sales and the other marketer gains credibility as a value-provider as well as the profits from commissions. Collaboration with other marketers is a great way to leverage your efforts and maximize your returns.

Leverage Social Media

You can gain leverage by using social media to get your message in front of as many people as possible. Think about it, if you create a video and upload it to multiple video-sharing sites, that video stays there, working for you day and night for weeks, months, or even years…as long as you leave it up! Now compare that to talking to people in your community or circle of influence one at a time, in-person or on the phone. Which method do you think is more efficient or LEVERAGED? Facebook is a great place to gain leverage. Every time you post to your profile or page, all of your friends or followers see that message and may even decide to share it with their friends or followers. The same principle applies when sending an email to your list, tweeting on Twitter, and writing an article or blog post.

How do you leverage the internet for your business? I would love to hear your comments! If this post was helpful, please share it with a friend!

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