What is financial leverage?
By definition, financial leverage is the process whereby participants of a program earn income based on their individual performance and the performance of their team.
In simple words, leveraged compensation plans effectively multiplies the income each individual can earn from the program by a factor of ten or more.
That is why the best way to earn money is to get involved in a partnership program or an affiliate program where affiliates are paid using the principle of financial leverage.
Financial Leverage Versus Linear Payment Programs
Let’s take a simple example to illustrate why leverage is the best way to earn money.
Suppose you join an affiliate program that pay its members $10 for each paying customer they refer to the business and nothing more.
If you join this program and send 20 paying customers to this business every month, you will earn $200 each month.
The month you’re preoccupied with life’s challenges and can’t send any customer, you earn $0.
Now suppose you have another affiliate program that also pays $10 per month.
Suppose also that this affiliate program is a two tier affiliate program that pays members recurring commission for life.
Suppose that this program pays you $10 when you refer a customer and $5 when someone you referred refers someone else (a 2 tier affiliate program).
If you send 20 customers to the business the first month, you will earn $200.
If you send another 20 customers the second month, you will earn $200 on the customers you sent in the current month plus the recurring commission from renewals of the first 20 customers you sent the first month.
Over a 6 month period, your commission will look like this:
1st month – $200
2nd month – $200 + $200 = $400
3rd Month – $200 + $200 + $200 = $600
4th Month – $200 + $200 + $200 + $200 = $800
5th Month – $1000
6th Month – $1200
See the difference?
In a linear affiliate program, you’re paid based on your performance.
On the other hand, in a tiered affiliate program (e.g. 2 tier, 3 tier, 4 tier affiliate program etc), you’re paid on your efforts and the efforts of your team members, which may number into thousands of people.
In the example above, you can see that while you may keep on earning just $200 per month every month from a linear program as described above, a similar program with 2 tier structure and recurring commission will quickly multiply your income by 12 times to $1200 earnings in just one month within 6 months of joining.
Guess what.
Even if you decide to stop promoting the program, you will continue to earn $1200 per month as recurring lifetime commission compared to $0 from a linear program.
Bottom line.
The best way to earn money is to join a home business income opportunity that . . .
- Pays members in multiple levels and
- Pays recurring commission for the life of the customer referred by you
This is the best way to earn money without stress. And this is the true meaning of financial leverage.
In fact, this is what is called passive income . . . you do the work once and enjoy the income for life.
The Erimama.com 4 Tier Affiliate Program – The Best Affiliate Program Around
Our affiliate program is a 4 tier affiliate program.
Therefore the multiplier effect of leverage is even greater compared to the popular 2 tier structure popular on the internet.
In fact, with our affiliate program, your earnings over a six month period could look like this.
1ST MONTH => 64.00
2ND MONTH => 341.12
3RD MONTH => 2,323.20
4TH MONTH => 17,944.96
5TH MONTH => 33,566.72
6TH MONTH => 49,188.48
NOTE: You can earn the above income level if you refer 8 paying platinum members every month and each member you refer also refer 8 paying platinum members every month.
Can you see the multiplier effect of a 4 tier affiliate program?
Bottom line.
If you’re still promoting linear affiliate programs or even 2 tier affiliate programs, you wasting your time.
Signup right away for our affiliate program and earn big cheques super fast.
Let financial leverage work for you!
