Leverage

It sounds like a euphemism for exploitation. For gaining an unfair advantage. And sometimes, it is. But it’s also a tool to create more impact.

Working alone, I can only stack so many stones in a day. There’s a limit. Bring in one person, and now twice as much wall gets built. I’m doing the same amount of work, but more gets done. That’s leverage.

What if I bring in a second person? Now we’re getting three times as much done. The project wraps up sooner. The next one starts sooner. I have the potential to make more money than if I worked alone. And if I’m not a jerk, the people working with me are making good money too.

There’s another option. The two people I brought in could build the wall without me. They get paid well, and I still make money on the project. And I’ve freed up my time. I’m no longer trading hours for dollars. That time can now go toward something else, hopefully something productive. Building the business. Finding more work. Designing future projects. Sourcing materials.

There’s a ceiling to how much money you can make when you’re only getting paid by the hour. That’s where leverage comes in. Labor is the oldest form of leverage. It’s also where the exploitation concerns come in. If I bring in more people to build walls, pay them by the hour, and make money off their work, am I just putting them into the same situation I’m trying to escape?

Yes. And I don’t know how to get around that, other than paying people well and not being an asshole.

There are other kinds of leverage I want to explore. Creating something once and selling it over and over, like a book, a film, or some kind of thingamajig. I haven’t figured that part out yet.

What are your thoughts on leverage? Do you use it in your work? How is it working for you?