Wikipedia defines leverage as “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 latter part of that definition has the most applicability for home-based businesses.

Leverage is generally described in either economic or mechanical terms, but it applies to many different situations as well, including the internet marketing industry.

So what does “any influence” mean for our affiliate income businesses?

One of the most used ways for an internet business to gain the advantage of leverage is by re-using accessible 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 started out as a single blog post, or a response to a customer email, perhaps even one one or more FAQs.

In the world of finance, the leverage benefit is generally expressed as a ratio of some type; e.g., 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; in other words, you have earned about $5 per hour (less than the current minimum wage) for your labor but you would not have made any profit on that sale.

If, however, you take that same document (modified to remove any non-generic info) and offer it as an ebook on the internet for $19.95, and that you finally sell 100 copies of your new ebook. You would have earned $1995, and if you deduct the $50 to create the previous paper less another $5 to remove any customer/proprietary info, that would leave you with a much larger profit of $1940.00.

This simple example demonstrates the power of leverage, specifically the increased profit gained from re-using existing content.

Once we become familiar with leverage, we can learn how to apply it in many different ways to our home businesses. This article addressed only re-use of content, but there are many other ways. Other articles will discuss other ways that internet businesses can benefit from 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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