Automated Blog Software

According to Wikipedia, 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 latter part of that definition has the most applicability for affiliate companies.

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 how can we interpret the term “any influence” for our affiliate income businesses?

One of the easiest and quickest ways for a home-based business to leverage our results 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 began as a single blog post, or a response to a customer email, perhaps even a collection of Frequently Asked Questions.

Financially, the leverage benefit is commonly expressed as a ratio of some type, for example, a debt-to-equity ratio.  Such ratios are useful for accountants, 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 that it takes you 10 hours to write a document for use with a single customer and then sell it to that customer for .00.  You have earned $50.00, but it took 10 hours of your time to earn that .00; in other words, you have earned about $5 per hour (less than the current minimum wage) for your time but you would not have made any profit on that sale. 

Assume, however, you take that same document (and change it to remove any customer-specific or proprietary information) and offer it as an ebook via the Web for $19.95, and that you finally sell 100 copies of your published ebook.  You would have earned $1995, and if you deduct the $50 it cost you to create the first text less another $5 to tailor it to remove any customer/proprietary info, leaving you with an increased profit of $1940.00.

This simple example demonstrates the leverage advantage, specifically the improvement obtained from re-using existing content. 

Once we become aware of the concept of leverage, we discover many different applications to our affiliate businesses.  This article has addressed one of those ways.  Future articles will discuss other ways that home businesses can gain the advantage of leverage.

If you like what you’ve just read, and would like to learn how to leverage your efforts, and become a millionaire – get the FREE Infinite Income Plan report and put your income on autopilot.

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