If you are looking to be financially free in a short amount of time you should definitely consider network marketing as a business. It’s because of one reason only: LEVERAGE.
No other business can compare to Network Marketing’s use of the Law of Leverage.
Before proceeding, let me explain what leverage is. Rane Panaligan, in his book Law of Leverage says:
“The word leverage came from the French word ‘levier’ which simply means to raise or elevate; to lessen the burden...to give a minimum input that achieves maximum results; to multiply time, effort and money...or the ability to gain more with less effort.”
A simple example of the use of leverage would be a door knob. You exert almost no effort turning door knobs because the knob is designed to multiply the force you exert in turning so that the mechanism opens without effort. Another example is the tire wrench. Have you ever seen bus drivers replace flat tires on their buses? They use very long poles to turn the bolts because if they use a simple wrench, they would not be able to maximize their force. Even if they don’t know it, they have just used leverage.
Simply stated, leverage makes life easier because it multiplies your effort.
You can use the law of leverage in personal finance as well. In fact, whatever you do be it employment or business, you can use it to your advantage.
Leverage in Employment – Leverage exists not only in business, it also exists in employment. People who have staff doing some of their work for them (we call them bosses) use their staff’s time to produce more. The staff can also employ leverage through the use of technology (cellphones, computers, equipment) to do part of the work for them. But the use of leverage in employment is limited.
For example: Most people who have no staff work 8 hours per day. It would be very hard to increase this to 12 productive hours per day. And the highest that person can go is 24 hours of work per day.
Leverage in Business – Most businesses can add to the 24 productive hours through the leverage provided by the owner’s employees. The more employees the business has, the more productive hours are generated.
For example, a businessman employs 4 employees working 8 hours per day. He can now count a total of 32 (8 hours x 4 people) productive hours towards his business and has now surpassed the limit of 24 hours he can spend if he did it all by himself. Robert Kiyosaki calls this the leverage of OPT or Other People’s Time.
Leverage in Networking – When it comes to the use of leverage, there is no other business that optimizes the law better than the business of network marketing.
For example:
If you spend 8 hours doing network marketing and you have no downlines, you get 8 productive hours.
[YOU = 8 HOURS]
If you have 2 downlines doing 4 hours per day, you get an additional 8 hours of productive work that benefits you and you raise the total productive hours of your network to 16.
[YOU (8 hours) + 2 downlines (4 hours each) = 16 HOURS]
If your downlines have 2 downlines each working 4 hours per day, you have now 4 more people X 4 hours resulting to another 16 productive hours. You now have a total of 32 productive hours and you have already surpassed the maximum limit of 24 hours you can use if you are simply doing a business all by yourself.
[YOU( 8 hours) + 2 downlines (4 hours each) + 4 downlines’ downlines (4 hours each) = 32 HOURS]
Now imagine having a network of 100 people spending only 1 hour per day doing the networking business. That’s 100 productive hours per day which directly benefits the network marketer businessman.
What happens if your network reaches 1000 people doing 1 hour of productive business per day?
On top of this, networking has a built-in mechanism that eventually turn it into a beast of a business if you are serious about it: The Network Grows Exponentially.
I thought I understood the power of the Law of Leverage when I read Rich Dad Poor Dad (by Robert Kiyosaki) but I never saw it in the light of network marketing. I now understood why some people earned millions doing this business.
Also, comparing network marketing with my traditional business, I saw that in my traditional business only one guy can use the law of leverage – me, because I own the business. In network marketing, everyone has the opportunity to use leverage if they just choose to. It is not an employer – employee relationship. It’s more like a business partnership. But here, instead of having just a couple of business partners, you can have hundreds, even thousands of business partners.
For those without enough capital to start a business, I can recommend only 1 thing: Start your own network marketing business with a reputable company. People always say “Sipag at Tiyaga lang Yan”. Kalokohan. My uncle is a farmer and he possesses all the sipag at tiyaga a man can have but he never seem to find the financial freedom he deserves. There is a missing ingredient to sipag at tiyaga.
It’s Sipag + Tiyaga + Strategy. And one strategy that is sure to work with Sipag at Tiyaga is employing the Law of Leverage. Parang kare-kare at bagoong yan, they go together.
My wife and now own 2 businesses. Our laundry business, has now a total of 150 productive hours per day after a span of 5 years of operations. Our network marketing business in Royale now has about 50 productive hours per day after 5 months. Both businesses took a lot of hard work to put up. And both businesses are very rewarding. But I must admit that the network marketing business has some characteristics that make it unique and exciting, thanks to the leverage.
One of the top earners in Royale said he has around 3000 people in his network. If those people just worked 1 hour per day, that would give him 3000 productive hours per day. That is like accomplishing in one day what an 8-hour per day person accomplishes in 1 year!
Network Marketing is a great business. And it is one of a kind when it comes to using the LAW OF LEVERAGE. If you have the right company to build a network for and if you know the right approach to building your network, it could become financially satisfying after a couple of years. Knowing this and setting my goal in accelerating my financial freedom, I think I can now accept being called a networker.
Next Blog: How to Really Succeed in Networking.
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