Tweamster's Blog

What Else Do I Need To Know? | May 23, 2010

Before We Move On

Let’s recap. So far we’ve looked at the company track record, financial strength and the caliber of the management and how these things interact and what they mean to you as the prospective entrepreneur working to build your home based business with that company.

We understand what residual income is and why we want it. And the relationship of the three factors in the first paragraph to creating a reliable, long-term, residual income.

So, let’s move on.


If you’ve ever been to an opportunity meeting, or a home party, or a business presentation at your local Starbucks, you’ve probably heard the word “leverage” mentioned. You may have a good idea what was meant, or you may not have a clue, or maybe you’re wondering why you have to have a crowbar (a type of lever) in network marketing. So, let’s define it.

One meaning is “the mechanical advantage gained by using a lever.” If you’ve ever pried the lid off a can of paint, you’ve used leverage, the screwdriver was the lever, it’s use was leverage enabling you to open the paint can.

Let’s narrow this down and find a more appropriate definition for business usage, “to increase, enhance, or optimize something.” So, any tool that you use in a business would be a type of leverage. A computer would be a type of leverage, you use the computer to enhance your ability to keep track of sales and expenditures. A fax machine is a type of leverage by increasing your ability to send and receive documents so that you don’t have to wait for the mail.

Leverage In Network Marketing

Okay, there’s a general idea of leverage, now let’s apply it to network marketing: “Every successful person or business 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. …

“The unique and wonderful thing about the network marketing business 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. Instead of worrying about training people to become their competitors, in network marketing the people at the top have a vested interest in helping others on their team to succeed.”   – excerpted from

Here’s another quote that I found very enlightening from an Australian chap named Nic Brits. The site that I found this quote at no longer exists, but it’s still a good example of how it works: “True leverage is turning small numbers in to large numbers.” In an earlier post, someone had asked how to have 10,000 people in your downline. Nic continues, “Teach 5 people to each teach 5 people who in turn each teach 5 who in turn each teach 5 people who in turn each teach 5 people each to another 5 people and at this stage you will have 15,625 people in your downline team. … starting with a small number you create a large number by using leverage.”

You may have heard this quote before: “I’d rather have 1% of 100 people’s efforts than 100% of my own.”  – John Paul Getty

What Does That Have To Do With Residual Income?

If you recall in my blog on residual income, we had the following definition: “RESIDUAL INCOME is income from efforts which continue to generate revenue over time without requiring any additional effort.”

If you put those first five people in place and you train them correctly and they find five people, are you doing all the work? Is leverage beginning to work for you? Might you start seeing leveraged income turn into residual income?


Leverage increases your ability to enhance your income. What we’re looking for is reliable, long-term, leveraged, residual income. The company itself should provide reliable and long-term. You provide the leverage by how well you build and train your organization. Residual comes about from the longevity of the company and your ability to provide what the company needs – product sales.

Want To Know More?

For more info, go to and sign up for the “7 Days, 7 Insider Secrets” email newsletter. Did I mention it’s free?


“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.”   – Mark Twain


1 Comment »

  1. I got leverage – I’ve got Tweamster!


    Comment by Carrie — May 29, 2010 @ 4:16 pm

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