The concept of leverage is not unique to network marketing. It is used by any successful industry anywhere in the world. It may take on different forms and it may be used in different ways but the concept is the same; work smarter, not harder. To fully understand the concept of leverage we must first understand the core meaning. The root meaning of the word lever comes from Latin where the word levis, meaning“lightweight,” implies something to do with being light in weight. A lever is a bar used to help lift something up by making it feel lighter than it is.
“Lighter” is the goal. Most people do not start their network marketing business to make life harder or heavier. They start their business because they are looking for a path with the least amount of resistance. That provides high return on investment with A “light” amount of effort. For this reason alone, network marketing is one of the most powerful and greatest examples of a passive income when done correctly, but when done incorrectly many people fail and feel they were part of a scam.
Most people fail at network marketing not because it is A broken model or because it is a pyramid scheme. In fact the very argument of network market being a pyramid scheme is A failable concept. You see con artist who create a pyramid scheme disguise their opportunity as something legitimate. Such as, Multi-Level Marketing (MLM) for example. MLM is one of the most powerful and lucrative passive income opportunities for the average person that has ever been introduce to the market. It provides average people, from average lifestyles, and with average income the opportunity to create a passive income that if done correctly only continues to grow with time. This opportunity in the past was only available for people with deep pockets to playing the stock market or investing in real estate. MLM changed the game forever, and many people have powerful success stories of how the this platform completely changed their life and wealth opportunity forever.
The fallacy of the concept of all MLM being a pyramid scheme is at the core the vast amount of people not understanding leverage, but rather being stuck in the rut that society has told them is noble and is the proper way to make a living and wealth. If this were true then over 70% of the US population would not be living within the middle class or below middle class income. The scales would be tipped in the opposite direction where 70% of people doing the day to day JOB would be making money above the middle class income level, while the other 20% who did not follow societies “norm” would be living at middle class income. So the question has to be asked why are you not making what you want to be making? It’s a very simple answer…
YOU DO NOT UNDERSTAND LEVERAGE.
To help you see how common leverage is and why the people who understand this concept become wealthy, lets return to our conversation about the fallacy of MLM being a pyramid. The common consensus of why MLM is a pyramid at its most basic form is because the people at the top make the most money, while the people at the bottom do not make very much at all, but if this alone was the definition of a pyramid scheme then the following other business would also fall under that definition real estate, music industry, corporate america, or any other industry that pays people “at the top” more than the people just starting out.
To illustrate this point lets take the example of real estate. In real estate, the agents will not likely be able to out-earn the big broker they work for. Their income is limited to only what they can personally generate. The broker is able, through massive leverage in hiring many agents, to earn substantial override commissions. How can one agent compete with that? Is this fair? Is this legal? YES. It is absolutely fair!
The broker is the person who has taken all the risk, they made the personal effort to get their brokers license, they create a business opportunity and marketing material for all the agents to just show up and plug themselves into. Do all of these other agents have the same opportunity to become a broker and recruit their own team to sale for them? Absolutely. Do very many take the effort to do that and leverage the effort of their entire team to generate wealth? No, they do not. Most are comfortable not taking the risk nor learning how to train other people to be successful, they are happy to take the path of least resistance and therefore, they will only make as much as their personal efforts will allow. So is this a pyramid? No, its a perfect example of a person in this case the broker working smarter, not harder and using leverage.
Using Leverage In Your Network
“In today’s times, people are beginning to realize that jobs are not going to give us the lifestyle many of us desire. They are not designed to. At a job, you trade your time for money. The company will pay you just enough to get the maximum value out of you for the paycheck, and often the employee will work just hard enough not to lose the job and guaranteed income. In fact, some still believe in job security or income guarantee. As soon as your company finds someone who can do your job faster or cheaper, loyalty is out the window and you are replaced. This is hardly a way to live your life, in a constant state of worry…Network marketing businesses allow a busy person who already has a career to start a part-time business to supplement their finances, while learning to grow the business to a larger significance. As the late business philosopher Jim Rohn taught around the world, people should work during the day earning a living, while working part time at night building their fortune. Earning a living is good, but building your own fortune is even better”, Brian Carruthers explains in his book Building an Empire.
So lets build your fortune. Lets use leverage in your business. Lets assume that you are only able to dedicate 5 hours a day to build your network marketing empire, and you only want to do this 5 days a week. This would mean you would be getting paid on 25/hr A week 1,300 hours a year worth of effort from the sales you can personally produce. The problem with this is this will never build passive income. You see your sales are based off your efforts which means as soon as you stop producing effort you sales will stop producing income. You can never take a break, you can never take a vacation, you will never generate wealth the moment you stop your income stops.
Now lets take this same example but apply leverage. We will assume you still only want to dedicate 5 hours a day to build you network marketing empire and you only want to do it 5 days a week, but this time you focus your efforts on getting 4 team members who will do the same amount of effort as you will and will duplicate twice. Instead of only getting paid on the 25 hours a week of personal effort you are now leveraging your team giving you 100 hours a week worth of effort. You are now taking advantage of leverage. Where the combined efforts of you + your team = your passive income opportunity for wealth. Have more people sharing equal amount of effort in your team you create a larger amount of wealth.
Now the final part to this your success formula. The single most important aspect to creating leverage PEOPLE HAVE TO BE ABLE TO DUPLICATE. It is your responsibility to plug your team members into a system that allows them to duplicate and generate success, and the best way to do that is to NOT be an expert. Plug them into the system Be Young has created for them, point them to the resources to share the products, send them to the Be You Academy to learn about products and how to share, but gather your team together to go over these principles multiple times a month to ensure they are getting the tools and knowledge they need to put the hours of effort to the best use to generate wealth for themselves and you.
Recipe for successful leverage
- Be Coachable
- Create Duplication
- Consistent Training
- Be Willing to Work