The Power of Business Leverage

It’s hard work making money. But, if you can figure out how to get the work done by others, you don’t have to do the work. . . e.g. Leverage.

Business Leverage: (as related to making money) using other people’s assets (labor, time, products, contacts, customer lists, etc) to make you money.

In order to use this type of leverage you must have in place:

  • own, or have distribution rights to, a good product, or a good service
  • product/service is targeted toward a select group of people (consumers)
  • a developed (and tested) marketing plan
  • an ordering process (tested)
  • tested distribution channel(s)
  • sales tracking method, again tested & proven
  • and a failsafe process to pay asset owners their promised share of the sales they make

For maximum success, you use asset owners who have already built trusting relationships with people who match your target market. In other words, the leveragee has an established conduit to the market (people) your offer will most appeal to.

Joint Ventures JV

Probably Not Exactly The Joint Venture The Mules Had In Mind When Signing Up...

An online IM business example you already see a lot of: Months ago, I bought a premium WordPress theme via an offer in the WSO marketplace. (WSO = Warrior Special Offer) The marketer I bought the WP theme from wasn’t the owner. He was an affiliate for the product’s owner and he had already established a relationship with me when I’d bought a WP plugin from him last year. He stayed in touch and often (too often, really, but I like an aggressive sales approach) he’d email me info related to WP tools and other generic blogging stuff.

Considering the above, offering me the WP theme was a no-brainer for him, because:

  • I’d bought a WP plugin from him: Targeted Offer
  • Because I’d stayed on his contact list, receiving many sales offers without complaint, he assumed we had a trusting relationship: Trust
  • I was a buyer, proof I’d spend money on blogging products, and services: Presold

The affiliate I bought from used the leverage of his customer list to make a commission. The owner of the WP theme used an affiliate’s assets (customer list) also made money, without doing the work.

Business leverage, often called joint ventures puts your offers into another’s business assets of leads, prospects, customers and distribution process. On the flip side, if you are an owner of business assets, you can make more money by offering other people’s products, and services, to the people in your established business network. e.g. Leverage: is a brilliant business principle!

If you have something good to sell, your only limit to sales then, is the number of interested eyeballs who see your offer. You could spend lots of money advertising for leads. Then you could spend a lot of money and a lot of time converting leads into prospects. (Depending upon how exclusive (pre-qualified) your lead generation process is.) And, it costs time & money, to sell those prospects on you and your offer.

Yup, it’s hard work making money…

Or, you could use business leverage, or joint ventures, and laugh all the way to the bank.

Stay casual,
Edward ‘Mr Ed’ Thorpe “He who helps the most people Wins!”Mr Ed

Bonus Vid: Advantages and disadvantages of JVs video: some very slight distortions, but quick, and smart information about joint ventures: