Learn about Leverage

What is leverage & why isn't anyone able to get ahead without it? 

TWENTY-FIVE YEARS OF WORK CAN GET DONE IN ONLY ONE YEAR, HOW IS THIS POSSIBLE?

ANSWER: Consider two simple examples of leverage:

EXAMPLE #1 - One year's worth of your labor is equal to about 2000 hours (50 weeks X 40 hours a week). Let's say you had a small network of ONLY 200 associates working with you while they worked to develop their own organizations, and they each worked an average of only 5 hours a week. That would be equivalent to 25 years of full-time work.

This particular form of leverage is called (OPE), which stands for "Other People's Efforts", and there are additional forms of leverage that provide the same exceptional power. Let's look at just one more example:

EXAMPLE #2- Let's look at a form of leverage called (OPM), commonly known as "Other People's Money". Let's use the same 200 associates and assume they spent an average of only $250 a month for advertising. This would generate $50,000.00 in advertising a month to build YOUR business. There are many other forms of leverage, and collectively they can produce an immense amount of income-generating power.

The Bad News

Most people nickel and dime themselves into the poor house!

ANSWER: Any Business including Traditional Businesses, E-Commerce, MLM's & business models like Affiliate Programs have real business expenses & costs which rapidly accumulate 20 times faster in the first year then profits do if ever realized in the first 12 months, most people die on the vine long before the leverage kicks in which is required to become profitable. There are even major multi million dollar companies who still are not profitable; actually this is the case with most of them:

EXAMPLE #1 - Let's say you are in a MLM company, building your team in order to build your leveraged income stream. Now let's say that for every person you sign up who is as serious as you are, and actually buy the recommended company products, (because let's face it if your new Sales Associate isn't willing to start with at least the first level product pack they are a what the industry calls a "LOTTO LOOSER") But let's say you have a winner who buys the products and for their $1,000.00 investment you receive a profit of $300.00.

Well there is a law out there called the Law of Averages, I'm sure you have heard of it; however, only the people that have made it financially truly understand its power, they are the only one's who know that it not only works for you but it also works against you.. Sort of like the Law of Gravity, everybody thought they understood it until someone came along and invented the airplane.

"How the Law of Averages Works For You"

This is how it works for you... the Law of Averages state that if you show enough people a good idea long enough... sooner or later someone will buy it. Now you then once you have made your first sale you then take the number of people you showed it to that didn't buy and you now have your Average, for example 1 sale out of 200 presented. Whole industries are created once this number is established; this is how companies know how big a market is and how they can determine their market share in a particular market. It's all by the Law of Averages" which is very, very predictable once established.

"How the Law of Averages Works Against You"

Now, here is how the law of average works against you: If it takes 200 people to make one sale, how much is it going to cost you to get those 200 prospects? See you can't just spend the advertising dollars to get one, you have to spend up front the advertising dollars to attract the whole 200... If you get just 100 then the law is working against you, you must get to 200 for the law to work with you, it's just the way it is. Big Companies are well financed to be able to get enough momentum to have the Law work for them; however, many Entrepreneurs are taken out every day because of it. If your Law of Averages is in the thousands and you require at least 300 customers before you are in the black you better have enough capital to get you through or YOU ARE OUT!

So how much does it cost the average marketer to generate 200 Leads? Well if you have marketed anything before in your life you most likely know the answer to that question already. I can tell you that it is going to cost you about $2,000.00 give or take about $500.00 bucks to generate 200 good quality leads.. Sure you can buy leads for about $2.00 a piece but that is still $400.00 and for a $2.00 lead you can expect your Law of Average to go up to maybe 1 out of 400 leads. But let's say that it stays the same, or better let's say you do better then 1 out of 200 and you get 1 out of 100

Okay so if your profit on a new recruit who is as serious as you and buys $1,000.00 in product you make a cool $300.00 .. Okay now with the cost of Advertising & Marketing Tools combined with all the other overhead that appears to be pennies but ends up being hundreds or even thousands at the end of your first month in business, you my friend are in the red and you only have 1 recruit..

GOLD IN 12 MONTHS BUT NOT FOR THE SHORT SIGHTED!

So, if you can keep up with that pace for about 12 months, the leverage will kick in and it will all be worth it because now your life rocks!! You are making money while you sleep, while you eat, even while you’re out at the park with your family! Now doesn’t that seem worth it??? However, only one in a thousand have the type of staying power, vision, or ambition it takes to really make it. Only one in a thousand can handle the pressures of being “backwards” for an entire year; only one in a thousand can handle working incessantly and spending all extra money on a business that is consistently not returning on the investments.

So, bottom line... leveraged opportunities don't fail the people, it's just that the majority of society are paycheck to paycheck people jumping into the fast lane of being an Entrepreneur and don't have the skin for it. They feel like they did everything right, and they probably did, just not for long enough.

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