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Leverage is the ability to achieve a hefty gain from a lesser 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 boasted, “Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.”

But leverage isn’t limited to the laws of physics – it applies in many other conditions as well.

In business, Change Agents commonly speak of shifting one or more business “levers” in order to change the organization’s structure or performance.  Unfortunately, in today’s world, those business levers are often perceived negatively, resulting in job cuts, down-sizing, bankruptcies, or other forms of corporate re-organization.

But leverage has many positive uses as well.

People apply financial leverage when they use borrowed funds to increase their ROIs, or when they use options to control large numbers of stock at a cost far less than outright purchase.

Home businesses use leverage when they operate online.  Simply by doing that, they’ve eliminated the boundaries of geography (and largely, time as well) and leveraged their advertising dollars, since it costs the about the same amount to create an announcement that reaches only a small number of people as it does to create an ad that reaches a global market.

If we were managing a small “brick and mortar” store, we might be satisfied with a couple hundred visitors, 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 identify targeted traffic for us and send it to our website.

The Internet provides us with many forms of leverage, but they basically all boil down to the use of technology.   Technology is one of the greatest levers ever invented.

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 fully leverage technology are the ones who will succeed in this competitive environment.

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