According to the Wikipedia dictionary, leverage is “A force compounded by means of a lever rotating around a pivot” and “By extension, any influence which is compounded or used to gain an advantage.” The second component of that definition has the most applicability for online businesses.
Leverage is often discussed in either fiscal or mechanistic terms, but it has much broader application to a lot of contexts, including the internet marketing industry.
So how shall we interpret “any influence” for our internet businesses?
One of the easiest and quickest ways for a home-based business to leverage our results is by re-using available content. Most of the ebooks currently advertised on the internet reflect content that has been re-used, although some may have been originally written as ebooks, most originated as a single blog post, or a response to a customer email, perhaps even one one or more FAQs.
Financially, the leverage benefit is generally described as a ratio of some kind, for example, a debt-to-equity ratio. Such ratios are useful for bookkeepers, but accountants are not the primary audience here.
How can we calculate the leverage advantage to be gained from re-using our existing content? Consider the following simplistic example : Assume you could write a single document for one customer in ten hours and then sell it for $50.00. You would have earned $50.00, but it took 10 hours of your time to acquire that $50.00; effectively, you would have earned about $5 per hour (less than the current minimum wage) for your labor and made zero profit.
If, however, you take that same document (tailored to remove any non-generic info) and offer it as an ebook via the Web for $19.95, and that you finally sell 100 copies of your new ebook. You would have earned $1995, less the $50 it cost you to create the previous article with a reduction of another $5 to remove any customer/proprietary info, that would leave you with a much larger profit of $1940.00.
This simple example illustrates the power of leverage, specifically the advantage resulting from re-using existing content.
Once we become aware of leverage, we can learn how to apply it in many different ways to our home-based businesses. This article addressed only re-use of content, but there are many other ways. Further articles will discuss other ways that home businesses can apply other types of leverage.
If you like what you’ve just read, and would like to learn how to use leverage to help put your income on autopilot, get the Infinite Income Plan here.
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