Using Leverage For Wealth


“I would rather earn 1% of 100 people’s efforts than 100% of my own efforts.” – John Paul Getty, Renowned Billionaire

Trading Time For Money = No Leverage

Anyone who is an employee and working for someone else is trading time and expertise for money. Most people are “stuck” in this cycle and it is not the road to wealth.

Leverage Through Employees = Headaches

If you know anyone who is a business owner, you probably have heard them mention how their employees have caused them headaches. If you have ever worked with someone who drove you crazy, imagine how the owner of the business feels.

Leverage Through Agents

In the real estate industry, you will find the broker-agent relationship. On the surface, agents look like a solution, because you get leverage from someone

who isn’t your employee. The downside is when a broker trains an agent, the possibility is that the motivated agent will take that knowledge and training and

start their own business. The broker has lost all the time put into that agent and has gained a competitor. You just trained your competition.

Another problem with leverage throught agents is that you are limited by time meaning that you can train only so many agents at once, so your income is limited by the amount of agents you can train at once.

Broker Empowers Leadership

When a broker empowers leadership, he/she gets leverage. With this type of leverage, a broker can train agents and brokers. So, a broker could create agents and other brokers allowing them to get more leverage. Now, if you trained an agent to become a broker and that broker you train works harder than you, they make more money than you.

You always earn a percentage on what that broker generates. When a broker you train can earn more than you for working harder….what is that callled?…….that is called “fair.”

The broker will not have a need to break off from you and go into competition with you, because they have the ability to earn on their effort.

Excerpt from Retiredat32