Leverage is the ability to obtain a hefty benefit from a small investment – whether that investment is time, effort or money.

We generally think of leverage as the mechanical benefit that derives from using a lever.  In fact, Archimedes once said, “Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.”

But leverage isn’t restricted to the physical world of mechanical advantage – it applies in many other situations as well.

In the corporate world, Change Agents often speak of changing one or more business “levers” in order to bring about organizational change or transformation.  Unfortunately, in this economic climate, those business levers often have negative connotations and involve job cuts, down-sizing, bankruptcies, or other forms of corporate re-organization.

But leverage has many positive implications as well.

People apply financial leverage when they use borrowed funds to increase their ROIs, or when they use calls or puts to control large quantities of stock for much less cost than if they purchased the stock.

home based businesses use leverage when they work online.  Simply by being online, they’ve eliminated the boundaries of geography (and largely, time as well) and leveraged their advertising dollars, since it requires about the same amount of money to create an advertisement that reaches only a small number of people as it does to create an ad that is global.

If we were running a small “brick and mortar” store, we might be satisfied with traffic that numbered in the hundreds, but as an affiliate internet marketer, we want massive traffic numbering in the hundreds of thousands, or even millions – and not just any traffic, but targeted traffic.

We are applying leverage when we use tools such as Google AdWords:  we use the Google technologies to generate targeted traffic for us and send it to our website.

The Net provides us with many forms of leverage, but they basically all boil down to the use of technology.Technology can provide the best leverage.

Most internet marketers are familiar with the use of autoresponders and search engines, etc., but they habitually fail to make full use of the technology lever in their back office processes – including everything from managing sales leads to fulfilling the order and taking care of the follow-on billing and customer service issues.

Those online businesses that take full advantage of the leverage that technology provides are the ones who will succeed in this competitive environment.

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