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Today I'm talking about
leverage, the third

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and final variable in
the equation to turn

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your expertise into
scalable revenue.

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In case you missed them
last week, I talked

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about the first and
the second variable,

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which is protection.

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And the week before that,
I talked about the first

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variable, which is Audit.

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So to briefly recap, we
start with an audit to

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make sure you understand
what assets you currently

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own and control in your
business right now.

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We want to know what
assets we have and what

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rights we need because
we don't want to build

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these new leveraged
assets without owning

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all of the rights.

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Many of you ask me
because you worry

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about, , can I use
this other resource?

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Can I refer to
this other expert?

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And we do, we do our,
audit to make sure

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that we do own or
control all the things

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we want to include in
our leveraged assets.

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We don't want to
be on the receiving

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end of a cease and
desist letter because

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we're using materials
that we do not own.

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At best, you wasted
money and momentum,

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but at worst, you'll
incur legal fees and

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maybe even permanently
damage your reputation.

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Then the audit stage lays
the foundation for the

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second step protection.

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You don't want to find
out too late that you

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failed to put into place
protections that prevent

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clients, subcontractors,
and facilitators

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from using your
materials without you.

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And that might be.

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By infringement, or by
permission, because we've

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granted them the rights
to use those, materials.

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So we talk about that in
the protection episode.

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So, now we come to
the 3rd and final

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leg, which is leverage
the plain meaning of

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the word leverage is.

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The application of a
lever levers are machines

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used to increase force.

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In other words, a
lever multiplies the

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impact of our efforts
In business terms,

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leverage means increasing
profitability, not just

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increasing revenue.

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We have leverage in our
businesses where we can

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increase revenue without
also increasing costs,

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or we decrease costs
without also decreasing

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revenue, preferably both.

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Typically, we think
of leverage, we think

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about, digital products
or online offerings,

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things like courses and
books, subscriptions, you

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maybe even memberships,
group coaching, and

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absolutely each of these
provides leverage with

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one to many offers or
one to several offers.

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We create the materials
once or we provide

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our time once and we
sell it to multiple.

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parties.

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So yes, and you can
even have leveraged

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one on one services.

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So we can lower the cost
of delivery of a one

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on one service by using
standards and procedures

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by having framework,
having models, having

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templates in place.

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These are all things
that help us become more.

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Efficient in delivering
the service and therefore

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decreasing the resources
or the cost required to

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deliver that service.

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And remember that you
and your time are the

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most expensive resources
in your business.

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So anytime you're able
to decrease your time

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in the deliverable
while maintaining

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the price, you are
increasing profitability.

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That's leverage.

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So what is the basis of
every leveraged offer,

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whether it is digital
online course, a book,

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or a leveraged one-on-one
service assets that you

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own and control before
you can legally offer any

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type of one-to-many or
one-to-several product

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or service you must
own or have the right

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to use those assets.

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Let's talk about assets.

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If you have followed me
for a while, you know

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that I like to ask my
audience, is there a

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Rembrandt in your attic?

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For our expertise
based businesses,

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this question is the
business equivalent of

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a treasure hunt where
we look for unidentified

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and undervalued
assets that are

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hiding in plain sight.

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Rembrandts are assets
that are primed to

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provide leverage
in your business.

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My favorite Rembrandts
are assets that have

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been created for
internal purposes only.

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So examine your
business for these

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or similar assets.

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Framework,
methodology, workbooks.

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SOPs, models, even an
email list, employee

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training practices,
market research

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reports, white papers,
industry insights,

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resource libraries,
databases, even your

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online community.

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Those Rembrandts
that we just talked

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about, those are the
effort or the input.

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Levers are tools and
then leverage is the

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output leverage is
the magnification

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of our efforts.

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So, Rembrandts, these are
things we put in place.

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Upfront and we have
those we incur those

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costs upfront and then
we create that Rembrandt.

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So we put the effort up
front to create models.

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We put the effort
in up front to

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create as a piece.

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We put the effort in up
front to, put together

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our database or to
create our community

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and then we are able
to reap benefits over

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time by using a lever.

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To increase the output
from those inputs.

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Now, I don't think
there's any such thing

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as purely passive income
because you do need

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to put in the effort
upfront to create

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those Rembrandts.

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They don't make
themselves, but it's the

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application of leverage
from that investment

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or effort that creates
the conditions for

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residual low input
recurring revenue.

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So those are
the Rembrandts.

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levers, some of the
levers to apply to

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your Rembrandts.

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You can then use your
Rembrandts to delegate.

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Again, you're the most
expensive resource in

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your business, so you
can delegate tasks

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to less expensive
resources, whether

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internally or with an
employee or externally

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with a contractor, but
you need to have some

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of those Rembrandts
in place to do that.

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Systemization, when
you have processes or

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systems, you create
efficiencies, whether

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you're delivering
yourself or again,

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delivering with one of
those other, resources

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specialization when
we are, Creating

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communities, creating
thought leadership,

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developing insights,
doing research.

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We become the specialist
and those things make

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everything simpler.

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You get better,
higher referrals

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and your expertise
compounds over time.

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Access is another lever.

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you can sell
subscriptions to those

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Rembrandts, access to
your community, access

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to your, data, to
your research, access

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to your insights.

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These all have values
outside of your

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business that you
can use as levers.

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And then last but not
least licenses here,

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we create an asset
with the intention of

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licensing to multiple.

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Licensees.

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So we talked about
Rembrandts, which is

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our input levers, which
is the tool and then

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leverage, which is
our magnified output.

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in a services based
business, I like to think

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of cloning yourself as
the ultimate leverage

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by developing a system
that allows others to

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deliver your services.

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You free up time to
focus on other tasks, but

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still provide consistent
customer experience and

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continue to grow without
sacrificing quality.

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For example, let's a
DEI training workshop.

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written exercises,
video scenarios, and

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a trainer's manual.

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You have, of
course, registered

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these in the U.

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S.

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Copyright Office.

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Your workshop is in high
demand, more demand than

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you can satisfy alone.

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One of your clients
could keep you fully

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occupied for a year you
trained all of their

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employees yourself.

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you'd have no time
left over for other

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initiatives or for
business development.

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That's where
clones come in.

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I like to talk about
four types of clones

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that we can use to
create leverage products,

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employees, facilitators,
and of course, licensees.

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First products, books,
courses, software,

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and other DIY products
are a great way to

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diversify your revenue.

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Depending on the
desired result, the

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customer may be able
to get 100 percent of

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the needs met with a
product, but that is not

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required for creating
a valuable product.

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Helping the customer
advance toward their

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goal with your expert
advice is also valuable.

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Also, you'll be able to
reach a larger audience

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of customers who might
not be able to afford

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your in person services,
increasing your impact

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and your brand awareness.

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Employees, as founders,
we are the most expensive

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resource in our business.

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A common method of
cloning ourselves is

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to use employees by
hiring and training

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individuals who can
deliver your workshop.

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You can free up
your time for higher

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level activities.

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In addition to using
less expensive resource

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to deliver the service,
employees reduce Risk.

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If you're the only one
delivering services,

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what happens if you're
ill or you hit a

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wall with burnout?

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Very few entrepreneurs
have a plan for such

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contingencies, which can
devastate the business.

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However, having employees
deliver services

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independently of you.

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Can be very difficult
if your clients are

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only buying your time
and not buying your

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expertise, which you
have, systematized or

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product ties put into
another package that can

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be delivered without you.

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Facilitators.

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Outsourcing is a great
way to expand your

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business without taking
on responsibility

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of hiring and
training employees.

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Utilizing a facilitator
or other subcontractor to

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deliver your trainings is
an especially effective

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cloning technique.

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When you have large
corporate clients

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who want several
cohorts to receive

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your training, you can
serve the business.

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That might otherwise
dominate your time

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while still being
able to focus on other

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parts of your business.

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You protect your
intellectual property

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by entering into
written agreements

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with all facilitators
that details the limits

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of their use of your
materials, ensures

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that modifications
or improvements will

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be owned by you and
prevents them from

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poaching your clients.

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This covered more
in the last episode

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about protection.

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Last but not
least licensees.

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So we do this
through licensing.

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Licensing gives
another party

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permission to use your
intellectual property

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in exchange for a fee.

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There are 2 types
of licensees.

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I'd like to talk
about clients, your

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current clients.

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potential clients and
other service providers.

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You turn clients into
licensees by training

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their in house personnel
to deliver your training.

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That's also called the
train the trainer model.

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You turn other service
providers into licensees

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by licensing your
IP to them so they

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can provide your.

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training to their
own clients.

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And again, that
would be a license in

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exchange for a fee.

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Now I've heard from
many of you that

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you're concerned about
your training being

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reused by a client
without you, more

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importantly, or being
stolen by competitors.

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With a license agreement,
you put in place the

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structure to make sure
that you're paid for all

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uses of your training.

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And it provides remedies
for unauthorized use.

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We've talked about
several different

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leverage strategies
and to the surprise

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of absolutely no one
at the core of all

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of those strategies
is the development.

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Ownership and
protection of assets.

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If we want to create
scalable, leverageable

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revenue streams in
our business, we

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must own assets.

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And the reward for our
investment in creating

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and protecting our
assets, and it is an

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investment, is that we
have that lever that

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we can use to make our
business more profitable

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and more enjoyable.

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This might be through
IP based offerings

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such as licensing or
trainings, or it might

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be through systemization
or productization of

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our one on one services.

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What I love to do and
what I look forward to

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working with you with is
helping you look at the

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assets in your business.

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Making sure that you're
owning them, controlling

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them and protecting them,
measure them up with your

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goals and your market,
and finding out the

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best way to maximize the
value of your expertise.

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I hope you've
enjoyed this series.

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Make sure you check
out the last two

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episodes as well.

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If you haven't
already, and remember,

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ladies, IP is fuel.