Creating Long Term Financial Success
Part 4 – The Power of Leverage
This is actually the fourth post in a series of 5 posts to cover the topic creating long term financial success. In previous posts I explored the question, "Are You Involved in Marketing?" Whether we worked for a Ford assembly plant or were a pharmacist; whether we were a plumber, dentist or lawyer, we're all in marketing, we sell our time or skill for money.
We began to explore the Network Marketing business and we started our discussion about how powerful passive residual income can be when it comes to long term financial security. Passive residual income is recurring income that continues to come to you long after the work you've done to produce it has ended. Today I want to get into a little more detail about how powerful the three principles of passive residual income, leverage, and geometric growth can be when it comes to long term financial security and talk about the second principle, leverage.
Every successful person or business (in or out of Network Marketing) takes advantage of leverage. There's only 24 hours in a day! And no matter how talented you are or how much you get paid per hour, if you don't take advantage of leverage you're limited by the number of hours in a day. By learning to leverage your time, you can also benefit from a percentage of other people's efforts, and dramatically increase your income and freedom.
If you're watching this video on the Internet, reading it on my website or someone else's that's one simple example of leverage. I don't have to be physically present to teach you something. I may be sleeping, or vacationing on the other side of the world while you're learning or sharing this information.
Unfortunately in most traditional businesses, the only ones who benefit from leverage are the owners or stockholders. The loyal, hard-working employees do most of the work. The unique and wonderful thing about the Network Marketing business model is that everyone has the same opportunity to become the 'owner' of their own business - with a fraction of the investment of time and money of a traditional business or franchise.
And instead of worrying about training people to become your competitors, in network marketing the people at the top have a vested interest in helping others on their team succeed.
The next question I ask is, "If you had the choice to receive 100% of one person's efforts, or 6% of 100 peoples', which would you choose?"
Again, if you answer 100% of your own effort either:
- you're not a good prospects for taking advantage of these principles or,
- you need a remedial math class or additional education.
Many talented people would rather just depend on themselves, and have difficulty grasping the importance of this concept.
Obviously 100% of one is always only one. But 6% of 100 is six. That's a 600% increase and that's significant! And with synergy, sometimes it can be even more!
Not only will the total result with leverage almost always be a lot more, but your income isn't dependent on only one person. If it is, and that person gets sick or injured, disabled, dies, quits working, or decides to go on a long vacation, your income could stop!
But if your income is produced by the activities of many, it's much more dependable. Even if something unexpected or negative happens to one or more of those people, it only has a minor effect on the total production. For people who understand and take advantage of this it allows them to live the lifestyle they choose and get paid while on extended vacations.
It's great to get paid while you're on vacation or doing other things you love! That's one of the many advantages of leveraging your time, and is just one of many reasons so many high income professionals from all walks of life are flocking to get involved in Network Marketing.
Many professionals, who make great incomes like I did in pharmacy, get frustrated at the 'bottom line' after putting in long hours just to cover overhead and miscellaneous expenses. No matter how much you earn per hour, if you don't learn to leverage your time, your earnings will always be limited by the number of hours you can work in a day. If you want to make more money you work more hours and nobody wants to work 24 hours! But even with a small network marketing organization, you can produce equivalent results to working 24 hours a day, with a fraction of the individual effort.
Learning to leverage your time (and money) is an important step toward gaining Financial Independence and Time freedom.
On my next post we'll continue with how powerful passive residual income, leverage, and geometric growth can be when it comes to long term financial security as we geometric growth.