Leverage Your Income

Wednesday, September 7 2011

Do you believe that to earn double the money you have to work twice as hard? If so, you are mistaken. Use leverage in your sales strategy and turn a little extra effort into much bigger results and earn more, but work less.

It sounds good in theory, but clearly most people don’t buy it, because if they did, they would be leveraging their efforts, not working at the same old job, doing the same old things and getting the same old results.

Have you ever had a financial advisor suggest you leverage your investments by borrowing to invest? In our current economy with volatile markets, that’s a pretty risky venture. Might work, might not.

Make an investment in your own training and increase your knowledge:

•    Better serve your customers
•    Build more effective work habits
•    Focus on the activities that help you reach your goals
•    Think creatively about your approach
•    Develop procedures and processes that guarantee predictable results
•    Communicate more effectively
•    Write more persuasive proposals
•    Ask more enlightening questions
•    Make more credible presentations
•    Enhance your sales efforts by using social media
•    Close more sales

Invest in yourself and leverage a relatively small amount into a huge dividend.

Say you had $5,000. If you were really lucky, you might find something in the traditional markets; stocks, bonds mutual funds, or GICs, which would pay you a consistent 5%, return. After five years, you would have $6,381, up $1,381 from your original amount. Not bad, certainly better than most investors have done over the past 5 years.

On the other hand, if you’re in sales or own your own business suppose you invested that same $5,000 in a sales course to develop your ability to sell more successfully. Suppose it increased your income by even a conservative 10%, which good sales training can and should do. If your starting income is $75,000, then at the 5 year mark, your investment would have returned a whopping $45,788 and you would be earning an income of $120,000 annually!

Invest in something others control and you get $1,381.
Invest in something you control and you get $45,788.
It seems simple to me. That’s why I invest $6,000 – $14,000 every year in my personal development. It pays huge dividends. That’s the kind of leverage I prefer.