The Importance of
Leverage in MLM

Leverage in MLM is what makes or breaks many Network Marketers.

Many of you say they want to be your own boss or own a business.  However, most of you quit before you even get started because you under estimate the level of hard work that is required.

Look closely at most successful business owners, you’ll realize that they don’t HAVE to work as hard.  What they ALL have in common is the benefit of leveraging.

If you look at any business, the people who benefit the most (do less work, have more free time and more money) are the OWNERS and top EXECUTIVES of that business. These are the very people who leveraged their time and efforts.

Leverage is defined as, “ . . . the power to influence a person or situation to achieve a particular outcome.”

There is a quote by J Paul Getty that says, “. . . I’d rather have 1% effort of 100 men than 100% of my own efforts".

If you are a business owner, the main advantage of leveraging is that if one of your Business Partners, Associates or Workers quit, it will have VERY LITTLE effect on the production your business OR income that you get.

How to use Leverage in MLM

So in J Paul Getty's example:

If he was using 100% of his own efforts to get his business started and he got sick, ALL PRODUCTION with his business stops.

BUT, If he had 100 men working for him, and one got sick, he’d STILL HAVE 99% effort and production.

Leverage in MLM works the same way.

Leveraging is when you get more done other people’s effort and less of your own efforts. 

For instance:

  • Other People's Time
  • Other People's knowledge
  • Other Peoples money
  • Other People's Accomplishments
  • Other People's Health
  • Other People's Vision
  • Other People's Strength
  • Other People's Reputation
  • Other People's Talents
  • Other People's Excitement

An example of leveraging someone's time would be:

1. Having your mom and dad watching your children so you and your spouse can go out to dinner movie

2. Higher tutor to help with your child's homework so you can spend less time worrying about it.

(using their time to free up yours)

An example of leveraging someone’s vision would be:

1. Hiring a graphic and web designer to create a logo and website for your business.

2. Hiring a wedding planning to take care of the major and minor details if your wedding

(using their Vision for creativity because you don’t have experience in their field)

An example of leveraging people's talents would be:

1. You hiring hey construction crew to replace the windows floors in your house

2. Recruiting Professional basketball players help your team win the tournament

(using their talent because you aren’t as talented as them in their profession)

Example of leveraging other peoples excitement is:

1. Booking well-known opening acts toward the crowd for the meeting performance

2. Booking a motivational speaker the group of attendees in the room

(using their excitement to motivate attendees because you aren’t able to do it like they can)

Example of leveraging other peoples knowledge is:

1. Hiring a lawyer when you file bankruptcy.

2. In network marketing, using you're upline's knowledge and experience to be successful in your business.

(using their experience to have a better chance at achieving your results)


What are some ways you can use leverage in mlm?

As you see in those examples above, it's impossible to accomplish many goals without it. It is no different with multilevel marketing. There is a quote that says, “. . . If you want get somewhere fast go alone, but if you want get further go with people".

A team of people will always be able to accomplish more than any one individual.  The beauty of this is each person on the team won't have to do the level of work as if one person was doing it by themselves.

Now that you understand how leverage works, the following is how leverage in mlm is applied

How Leverage in MLM affects your business

Goals are accomplished when the team of people does their small percentage of the work.  As a result, progress grows over time.

As far as the power of network marketing goes, your team will grow larger because of leverage.  

Example #1

If you join a network marketing company, and you get one person in your downline and the two of you worked together, it would only require 50% effort from both of you.

If that one person in your downline quits, your business is only producing at 50% (if you don't increase you’re efforts to 100%.) Furthermore, if you get sick and aren't able to do the work, your business is producing a 0%.

Example #2

If you have 20 people in your downline, everybody just has to produce 5% effort for your business, to operate at 100%.

If 4 people get sick or quit (and no one improves their efforts), your business is still operating at 80%.

Example #3

If you have 100 people in your downline and everyone is giving 1% effort (to have your business operate at 100%).

If Nine people get sick or quit (and no one improves their efforts), your business is still operating in 91%.

So the MORE people you have in your downline the better your leverage. Also, before you start to think that everybody else you introduce an opportunity to has to work in vain just for the upline to get paid . . . remember the upline doesn't get paid until the downlines start producing.

Therefore, it is always in the uplines best interest to help the downline as much as possible to see an income.

Remember, leverage in mlm is when you get more done with other peoples efforts and less of your own effort.

Instead of finding a few people to work hard to sell a lot of your products, find many representatives to sell small volume of your products.

Take the Work out of Your Hands!

Network marketing is NOT about selling A LOT of products. I'll explain.

If you focus on selling 100 products and you DO reach that goal within a reasonable amount of time, that would be a good job on your part. You may have a lot of short term bonus money BUT no residual income (In addition you may be burned out).

But if you:

  1. Sold five products
  2. Then introduce the opportunity to five people
  3. Tought them how to do the same thing you did (use their efforts to sell five products) 

. . . that would be 30 products sold within your organization.

If those five you introduce the opportunity to:

  1. Introduced it to their five people
  2. Taught them how to do the same thing

. . . that would be 125 products sold in your organization.

All you did was sell five products on your own and introduce five to the opportunity. But by the efforts of others you now have 30 people and 125 products sold in organization.

Whatever, you are going trying to accomplish whether it be in business or other areas of your life, people use leveraging in one form or another to make their lives a little bit easier. 

In the network marketing industry, if you use the leverage in mlm that is available to you, to your advantage, you'll be among the top earners in your group.

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