What Is Leverage?

Summary

• Leverage is all about the difference between the effort you put in and the results you get out.
• Think about leverage like a simple equation: volume times leverage equals output.
• For example, if I make 100 sales calls with mediocre skills, my sales will be fewer than someone with higher skills making the same number of calls.
• This goes to show that increasing your skills is a key way to create leverage.
• You want to always aim to get more out for every bit of effort you put in.

Video

How To Take Action

I would suggest focusing on building skills first. It's like a superpower for making your work count more. Let's say you're making sales calls or creating products or even just working on your personal growth. You want each effort to give you big rewards, right?

Start this way: Find the key skill that will make the biggest difference in your work. If you're in sales, maybe it's becoming better at understanding customer needs. Or if you're making a product, it could be learning to spot what features users love.

Then, make a simple plan to get better at that skill. Here's a tip: you don't need to spend a lot of money or time. Look for free online resources, like videos or articles to learn new tactics. Or maybe find someone who's great at what you want to do and ask them for advice.

Practice the new things you learn as often as you can. Just like sports, the more you do it, the better you get. And as you improve, you'll notice that you're getting more results for the same amount of work.

Remember, it's not about doing more. It's about making what you do count for more. So sharpen those skills, and you'll see your efforts grow into bigger successes.

Quotes by Alex Hormozi

"Leverage as we Define it is the difference between what you put in and what you get out"

– Alex Hormozi

"Volume times leverage equals output"

– Alex Hormozi

"The more times you do something times how much you get for each time you do it equals output"

– Alex Hormozi

"If I do 100 sales calls and I have no skill then I will get fewer sales"

– Alex Hormozi

"Skills create leverage you get more for what you put in"

– Alex Hormozi

Full Transcript

leverage as we Define it is the difference between what you put in and what you get out and it's volume times leverage equals output so it's how many times you do something times how much you get for each time you do it equals output so if I do 100 sales calls and I have no skill then I will get fewer sales than somebody who does the same hundred sales calls and has much higher skill so skills create leverage you get more for what you put in