Wednesday, June 15, 2011

The law of leverage

Leverage, what is this word mean?  When it comes to mechanical, it is said that leverage is the action of a lever to act effectively. A positional advantage in which we are going to use something easy that helps us transporting objects that is beyond our capacity. The very good example of this is the use of a pulley that will help us to put object into higher level without using 100% of our effort. Another thing is the use of push cart that helps us transport objects in to one place in easier way.

When applying it to business/income, leveraging is the secret of the rich people around you. They use other people’s time, money, and effort for their business. This is what leveraging is. Multiplying yourself, money, and time in order to achieve you desired income or goal. As what Paul Getty, the first Billionaire said…  
          I'd rather use 1% of 100 people's effort rather than 100% of my own.     

Here in the Philippines, businessmen like Lucio Tan, Henry Sy, and others leveraging their self by employing hundreds of thousands of people to work for them and expanding their business nationwide. Thus, multiplying their time and effort to them.

A common example for this is the MLM company or Multi-level Marketing company (a.k.a Networking). The capital for this business is very affordable yet it can give you huge and unlimited income. It can give you an active and passive income. Active income happens when you are working and building your group. You will be compensated if there is someone willing to invest under your group. Then, after that, you can have your passive income. When these people will start earning, you can also receive a percentage of their income doing nothing. In this process, you are multiplying yourself, money and time to them, thus, making huge money and help achieve your dreams, and their dreams, too, because you introduce to them the business. Aside from this, the MLM company provides free training on how to market the products.

The first book that I read is “The Law of Leverage” This book enlightens me and helping me realizing and appreciating how great leveraging is. I advise you should read this book

I really appreciate the law of leverage. How about you, how do you leverage yourself?

1 comment:

  1. Rhon, you're right about network marketing as a perfect example of leveraging. But for those who would like to consider this business, I advise you to investigate well the company at which you would like to invest on. You may PM me on my FB account. "Connie Perales". God bless.