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 Time-Leverage
The secret behind the System that fetches Passive Income

The first step one has to take towards understanding Time Leverage is to believe in the age-old adage that we’ve been listening from our school days, “Time is Money”. Before we get into understanding Time-Leverage in detail, let us first understand Active Income earned by a salaried person in the form of an illustration.In the conventional way of earning money (read Active Income), this is how money is made.
  • 1 person in 1 day works for about 8 hours
  • across say 22 days in a month
  • therefore puts in approximately 180 hrs of work
  • and gets 1 salary

    Similar will be the case as regards most self-employed and professionals, the only difference being that their rewards are in the form of profits / fees.

Let us discuss certain facts about salaried people, no matter how fat one’s salary is. When one works for a salary, directly or indirectly they are :

(a) helping the management of the company to either build a new System / Process to be put in place or
(b) they are helping maintain a System / Process which is already put in place, for which they are compensated.

To get a much clearer perspective, let’s put ourselves in the place of the management of a company (at the top of the pyramid) and have a bird’s-eye view of what’s happening below (the rest of, especially the bottom of the pyramid).

On a day-to-day basis, companies are able to function smoothly simply because within each of the divisions (like Finance, Administration, Human Resource, Marketing, etc.) they have Systems /Processes in place that all the employees adhere to. Once the Systems and processes are in place, every thing else falls in place.

Every new System was initially created by a group of people who were associated with the company during the formative years. But once the System is put in place in a few months (or years in some cases), the same becomes self-sustainable - irrespective of whether or not the people who originally put it (System) in place are still around. After all, a new set of people can always be hired by the company who can take the System forward!

This is the reason behind the very popular phrase most employees hear every now and then their bosses saying, “No one is indispensable in the organization”. What they are indirectly and unconsciously referring to is that the System is bigger than any individual in an organization. It is only a select few wise bosses (managers) who’re conscious about the fact that the same applies to them too!

Systems in conventional organizations & Network Marketing organizations

In conventional organizations, people are paid a salary either to create or maintain Systems & Processes, whereas in Network Marketing organizations, people who own an enterprise do not pay any salaries to their Associates!

What the business owners in Network Marketing do is that they first learn the business, teach the business to their like-minded associate partners and empower them through leadership training and motivation, to do exactly the same (called ‘Duplication’) to their like-minded associate partners they brought into the business. The senior associates in the business groom exceptional leaders within their organizations to take ownership of their business and make them too to do the same.

You might think that building such Network Marketing System is easy or even otherwise. It all depends on how one looks at things. The fact is, it is not easy. But it is definitely simple! Anything for that matter is difficult, only till such time we don’t know how to do it. Once we learn how and practice enough, it becomes simple. Remember the first time you saw someone cycling with their hands free? Soon, you developed the desire to do the same, learned it and practiced enough and finally, did it!

The Salaried are paid for something that they can’t own!

Now if you think about it a little further and try to understand it closely, you’ll figure out that the Salaried work only to be part of a System they can never own! That’s why they are ‘Dispensable’! And when a salaried person quits the company he/she has been working in, in the worst case scenario, in a few days’ time, the day-to-day operations of the division / department he/she has been working in gets back to normal. In the case of large corporations, no matter how many people leave at a point in time, there’s virtually nothing adverse that happens to the operations – even on a global scale. That’s what Systems can do!

Having said that, when a set of employees quit, behind the scene, there are a group of employees who should be stretching for long hours at their office to pitch in and take care of the work left behind by those who quit. That too happens because of the ‘Back-up System’ that’s in place.

From the perspective of employees who quit organizations after 3, 5, 10, 20 or 30 years of rendering service; every bit of effort they put is something they can’t own. What they don’t realize is that they were busy helping someone or a set of few people have a System of their own, for which they are compensated (yes, just compensated) in the form of salaries. Sometimes, we need to accept hard facts in life!

It is important to accept, however, that it would be both unwise and unjust to point fingers at managements of successful companies / corporations (for the compensation they do). Looking at it objectively, anyone would be able to understand that managements/executive board of successful companies in conventional businesses are an exceptional bunch of people who took the initiative, risk, commitment and put in lots of money to pursue a vision they believed in. As a result, they provided employment opportunities to may be hundreds of people - in some cases tens of thousands of people.

And let’s accept it! As long as there are people who wouldn’t dare to risk - not their life, not their money, but just risk and dare to be on their own, companies and large corporations would pay their best and high-performing employees just enough - so they don’t quit!

 

 


 
 
 
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