How Leverage Works
If you want to understand how leverage works in business and you want to use it to your advantage to design your own life, please watch this video Own The 24 Career Opportunities (if you haven't already) and fill out the following worksheet.  Grab your calculator and let's get started!
Email *
Quiz Questions
This quiz will help you gain an understanding of how you can leverage yourself in your own business.  You simply answer the following questions and decide if you see something for yourself that you'd like to explore further.  

The example is you own a business and you have clients.  They purchase a product from you that they are inspired to use for their own personal results.  You support them in that endeavor.  You also have an opportunity to expand your business and increase your earnings.  

Check it out.  

NOTE:  Don't use $ or " , " (commas) in your answers.  Just enter the number.
Name *
Where are you from? *
Enter your City & State
If you have 20 clients that order 150 product points per month from you, how many product points would you have generated each month? *
Use your calculator if you need to.  Enter 20 x 150 = write in your answer
10 points
Let's now discuss how much you'll EARN by servicing your 20 clients each month.  

If you earn 50% of the total product points from question #1 how much money will you earn each month in retail sales?  

NOTE:  Don't use $ or " , " (commas) in your answers.  Just enter the number.
 *
Use your calculator if you need to.  Enter 3000 x 0.50 = write in your answer (20 x 150 x 0.50)
10 points
So you have generated some cashflow with retail sales in your business.  Now let's look at leveraging yourself so you don't have to service so many customers that you can't offer great service.  

Like every business, you add people and train them to do a job.  In this case, you will train 3 people to do exactly what you do.  

How many more clients per month will be served if you add 3 people who service 20 clients each to your business?
 *
Use your calculator if you need to.  Enter 20 x 3 = write in your answer
10 points
Let's take a look at what your trainees will EARN now that you have offered your opportunity to others.  

How much will each of your trainees earn per month by servicing 20 clients each if they earn 50% on their product points?
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Use your calculator if you need to.  Enter 3000 x 0.50 = write in your answer (20 x 150 X 0.50)
10 points
You have leveraged yourself by training others.  You will get paid an additional incentive for effectively training your people.  

You are servicing your 20 clients and earning $1500 retail profit by doing that.  And, you have 3 people also servicing 20 clients and earning $1500 each month!  

You will be paid 5% on the total product points generated each month because you trained a team.  

So let's calculate the total product points sold per month when you have just 3 people who service 20 clients each to your business?
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Use your calculator if you need to.  Enter 3 x 3000 = write in your answer (3 x 20 x 150)
10 points
Let's take a look at what YOU will EARN on the total product points generated each month by your team. 

You are servicing your 20 clients and earning $1500 retail profit by doing that.  And, you have 3 people also servicing 20 clients and earning $1500 each month!  You will ALSO get paid for effectively training your people.  

You will be paid 5% on the total product points generated each month by your team.   

These are called Royalties because they are paid every month on work you did in the past (ie., training people).  

Calculate the total royalties if you earn 5% of the total product points sold per month when you have just 3 people who service 20 clients each in your business?
 *
Use your calculator if you need to.  Enter 9000 x 0.05 = write in your answer (3 x 20 x 150 x 0.05)
10 points
So let's add up what you earn each month when you have just 3 people who service 20 clients each in your business?  

Calculate your total monthly earnings: Retail profits + Royalties.
 *
Use your calculator if you need to.  Enter 1500 + 450 = write in your answer (Retail profit plus Royalty)
10 points
Are you getting excited yet?  

You have generated some cashflow with retail sales and some royalties by adding people to your business.  That's called leveraging yourself.  

Now let's look at what happens if you can offer the people you trained the same opportunity to leverage themselves.  They don't have to service more customers than they can effectively handle either!  Like every business, you keep adding people and training them.  

The difference in this opportunity is, the people you train can train others and grow THEIR own income, too!  

So let's say the 3 people you trained, do the same thing you did and they each train 3 people to service 20 clients each.  

How many more will be in your business?
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Use your calculator if you need to.  Enter 3 x 3 = write in your answer
10 points
So your business is growing!  Congratulations!  Your team is expanding and you only trained 3 (who just trained 3 each).  

So how many total people do you have in your business?
 *
Use your calculator if you need to.  Enter  3 + 9 = write in your answer ((3 x 3) + 3)
10 points
Let's take a look at how many clients are being serviced in addition to your 20.  You now have 12 people in your business serving 20 clients each.  

How many additional clients is your business able to serve?
 *
Use your calculator if you need to.  Enter 20 x 12 = write in your answer
10 points
So you have a real team growing and everyone is earning cashflow and now your 3 trainees are also earning royalties!  

Let's take a look at what YOU will EARN on the total product points generated each month by your growing team.  

Calculate the total product points sold per month when you have 12 people who service 20 clients each in your business?
 *
Use your calculator if you need to.  Enter 12 x 3000 = write in your answer (12 x 20 x 150)
10 points
So you have a real team growing and everyone is earning cashflow and now your 3 trainees are also earning royalties!  

Let's take a look at what YOU will EARN on the total product points generated each month by your growing team.  

Calculate the total royalties if you earn 5% of the total product points sold per month when you have 12 people who service 20 clients each in your business?
 *
Use your calculator if you need to.  Enter 36000 x 0.05 = write in your answer (12 x 20 x 150 x 0.05)
10 points
So let's add up what you earn each month when you have 12 people who service 20 clients each in your business?  

Calculate your total monthly earnings: Retail profits + Royalties.
 *
Use your calculator if you need to.  Enter 1500 + 1800 = write in your answer (Retail profit plus Royalty)
10 points
But wait!  There's more!  When your royalties reach a certain threshold, you also earn a production bonus.  So let's add that in.  

Here's the thresholds: 
1000 royalty gets you an extra 2% production bonus, 
4000 royalty gets you an extra 4% PB and 
10,000 royalty gets you an  extra 6% PB.  

Yup!  Calculate your production bonus on your royalty in the previous question.
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Use your calculator if you need to.  Enter 36000 x 0.02 = write in your answer (1000 or greater is a 2% PB)
10 points
So let's add up what you earn each month when you have 12 people who service 20 clients each in your business?  

Calculate your total monthly earnings: Retail profits + Royalties + Production Bonus!
 *
Use your calculator if you need to.  Enter 1500 + 1800 + 720 = write in your answer (Retail profit plus Royalty plus Production Bonus)
10 points
You have to be excited by now!  What job offers this?  

We're not done yet... let's take this one step further and look at what happens when the people you trained offer the people they trained the same opportunity to leverage themselves.  

No one has to service more customers than they can effectively handle and everyone can leverage themselves!  

Like every business, you keep adding people and training them.  The difference in this opportunity is, the people you train can train others who can train others and grow THEIR own income, too!  

So let's say the 9 people your people trained, do the same thing and they each train 3 people to service 20 clients each.  

How many more people will be in your business?  Is it mind boggling yet?
 *
Use your calculator if you need to.  Enter 9 x 3 = write in your answer
10 points
So you have amassed a team of people each servicing 20 clients.  

How many total people will be in your business because you taught 3 who taught 3 who taught 3?
 *
Use your calculator if you need to.  Enter 3 + (3 x 3) + (9 x 3)  = write in your answer
10 points
You've amassed a great team all with equal incentive to service their own clients and train their own teams.  

How many clients are now being serviced in your business?  Remember you're still serving your 20.
 *
Use your calculator if you need to.  Enter 20 x 39 then add your 20 = write in your answer
10 points
Let's calculate the total product points that it takes to service your team's clients.  

We don't include your 20 clients in this calculation.
 *
Use your calculator if you need to.  Enter 3000 x 39 = write in your answer
10 points
Your business is officially out of control and everyone is earning cashflow and your 3 trainees are also earning royalties AND production bonuses and their trainees are earning royalties!  

Let's take a look at what YOU will EARN on the total product points generated each month by your growing team.  

Calculate the total royalties if you earn 5% of the total product points sold per month when you have 39 people who service 20 clients each in your business?
 *
Use your calculator if you need to.  Enter 117000 x 0.05 = write in your answer (39 x 20 x 150 x 0.05)
10 points
Of course you are going to get a bigger production bonus on that royalty.  

Calculate your production bonus when you earn 4% on top of the 5% royalty of the total product points sold per month when you have 39 people who service 20 clients each in your business?  

Remember, a 4000 royalty triggers a 4% production bonus.  And, that's not even the highest production bonus!  Is this sick??
 *
Use your calculator if you need to.  Enter 117000 x 0.04 = write in your answer (39 x 20 x 150 x 0.04)
10 points
So let's add up what you earn each month when you have 39 people who service 20 clients each in your business?  

Calculate your total monthly earnings: Retail profits + Royalties + Production Bonus!  Yes, this is your MONTHLY earnings.
 *
Use your calculator if you need to.  Enter 1500 + 5850 + 4680 = write in your answer (Retail profit plus Royalty plus Production Bonus)
10 points
Summary
This is an example to illustrate how the marketing plan pays out.  In our business, the payout is actually more than illustrated because we get paid on the earn base of the products which is more than the product points.  The product points are used because our qualifications are based on the product points or documented volume from our client sales receipts.  

Things to note.  

There is no limit on the number of clients one can take on, but to retain our clients and grow our referrals, it's important to maintain a manageable client base of about 20 clients.  There is no substitute for personalized client care.

There is no limit on the number of people we can train in our business.  Again, if you want people to be successful, they must be properly trained and become self-sufficient (ie, independent).  They will be more successful in duplicating themselves when properly trained.  We teach to teach to teach.  

You can play with the business model (if so inclined) to see what training 5 people who train 5 people who train 5 people produces.  3 x 3 x 3 is quite exciting!  So you get the picture.

The final thing to note is that royalties are paid on 3 levels deep.  So you are not paid royalties on your 4th level and beyond.  However, your production bonus is paid on your 3 levels PLUS all levels beyond 3 up to the next production bonus earner.  So your production bonus can be larger than your royalty.

So many people misunderstand the business model and think the person on top earns all the money.  The fact is that the person that effectively duplicates himself and teaches others to do the same can earn more than the person that trained them.  Since everyone's royalties are paid on their 3 levels, everyone's business is unique to them.  No one's 3 levels are the same and everyone has an equal opportunity to build their own business to the level they desire.

It's an amazing business model and one that will inspire you to grow your skills, develop yourself and work hard to bring out the best in everyone!  It's a win-win-win proposition.  A win for you.  A win for those you train.  A win for the company.

So help us understand how you would like to proceed? *
10 points
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