Types of Leverage and How They Will Help Set You Free!

Many types of leverage are available to you to help you make money from your effort, time, money, and other people's money. How you use these forms of leverage will determine the amount of work you get back from these forms of leverage.

There are several ways to leverage something in order to build great wealth. I will touch upon some of the tools of leverage that are out there that you can apply to your wealth building plan once your off and running toward success.

Manual Leveraging: The amount of manual labor or effort and time you put into something to get something more in return. One of the manual types of leverage is also known as Time Leveraging and is the worst kind of leveraging because it generally takes a lot of your time at first. However, if you are applying your time toward something that you only have to do once and get a lot of future use out of (such as income or a helpful tool for your business). Manual types of leverage are generally very inexpensive, only costing you in the form of time.

An example of Manual Leveraging is when you build a niche website. The time you put into researching, developing, monetizing, and tweaking your website is generally more at first, but as your website becomes larger and is optimized correctly, you can ease back on the time you put in. The website will then continue to grow and automatically attract visitors which may turn into your network of potential customers.

Once the foundation of your website is complete, you can stop applying manual types of leverage and concentrate on more creative ways to make money with your website by reapplying the income you make into creative forms of advertising or purchasing additional content to add to your website to make it bigger.

Money Leveraging: The amount of money you put into something to get something more in return. There are many ways to use these types of leverage, most of which are in the form of investments. However, you can also use your money leverage with marketing to add more people to your network or to sell more products or services. The secret to proper money leveraging is to first earn, apply what you earned as leverage, earn more, apply more leverage, and so on. Over time, your reinvestment of your earnings will compound until you build substantial income. Keep building your income based on the continuous reapplication of your earnings.

Continuing with the niche website example above, now that your website is built and it is receiving more and more visitors every month, you start to earn some money from residual sales from affiliate programs and advertising throughout your website. Instead of spending all of the money you earn on personal expenses, you redirect your profits back into your website in the form of paid advertising such as Adwords pay per click. If you know each visitor is costing you $.10 a piece, then do not pay more than $.10 per visitor. As your income grows from more quality paying visitors, then you can pay more for each visitor. Eventually, your website will be totally automated and you can let it run itself through these types of leverage along.

Education Leveraging: Use these types of leverage to learn shortcuts and tricks of the trade to lessen your time leveraging and increase the affect of your money leveraging. With education types of leverage, you learn different ways to apply your time, money, knowledge, skills, and network in order to make the most return on your efforts and to make your efforts more efficient when applied. Things you used to spend four hours on may only take one hour with properly applied education leverage.

Knowledge comes in many shapes and forms. Instead of just jumping into the stock market with a lot of money and experiencing high losses because of improper investing strategies, learn everything you can about the aspect of the stock market you plan to invest in. This will help you avoid putting your money at risk and greatly improve your return on investment. Learning how to properly build and optimize a website will greatly improve how many visitors your website will receive each month as well as how much money your website makes each month.

Network Leverage: The use of other people's skill, money, time, and efforts significantly improves your ability to succeed at building wealth. You do not know everything. Nobody does. So, instead of taking a lot of time out of your day trying to learn everything, you should tap into your network and use them toward your wealth building advantage.

There are many ways you can tap into your network in order to make money, but one in particular is discussed in the Networking Principles part of this website. It is known as building a relationship with your network. When you build a relationship, your network will be a lot more responsive to your offers for products, services, and other requests than if you advertise blindly to people. That is why most network marketing companies often become very successful.

Use a network as leverage by applying Metcalfe's Law of Networking. Metcalfe's Law says that the economic power of a business is the square of the number in its network. Once you understand the Law of Networking, you will totally grasp how to use a network as leverage when it comes to making money.

There are other types of leverage out there and by knowing the terms, rules, and laws of money will help you find more that will help you build great wealth.

(C) 2007-2011 Copyright by Global Niche Services, LLC and Jason W. Moser. All rights reserved.



Website designed, developed, and managed by Global Niche Services, LLC.

SBI!