Leverage vs. Influence: What's the Difference?

Edited by Huma Saeed || By Sawaira Riaz || Updated on November 13, 2023

Leverage refers to using something to its maximum advantage, often a resource or position; Influence denotes the capacity to affect behavior, character, or decisions.

Key Differences

Leverage and Influence are terms that, while sometimes used interchangeably, have distinct meanings. Leverage typically refers to the ability to utilize something, like a resource or a position, to its maximum advantage. It can denote using a particular strength or asset to achieve a desired outcome or effect. Influence, on the other hand, is the power or capacity to affect someone's behavior, character, or decisions, often through intangible means.

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In business, leverage can mean using financial instruments or borrowed capital to increase the potential return on investment. It's about maximizing the output with a given set of resources. Influence in the business world, conversely, pertains to the power or sway one entity has over others, guiding decisions, shaping behaviors, or steering outcomes in a certain direction.

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From a personal standpoint, leverage might refer to an individual using their unique skills, connections, or resources to gain an advantage or to advance in a certain scenario. Influence, in a personal sense, reflects the ability of an individual to persuade, inspire, or affect the thoughts and actions of others. This could be due to their charisma, reputation, knowledge, or other factors.

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Culturally, countries or groups may have leverage in global matters because of their economic strength, military might, or strategic position. Influence, in a cultural or global context, might refer to the spread of ideas, trends, or philosophies that shape the beliefs or behaviors of other groups. A country might have significant cultural influence through its art, media, or ideology.

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Comparison Chart

Definition

Using something to its maximum advantage.

Capacity to affect behavior, character, or decisions.

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Context of Use

Often tangible, like resources or position.

Generally intangible, like charisma or reputation.

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Application

Business, personal advantage, strategic position.

Persuasion, inspiration, guiding decisions.

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Result

Gaining an advantage or increased return.

Shaping behaviors, beliefs, or outcomes.

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Measurement

Can be quantitative, e.g., financial leverage.

Often qualitative, based on perceived sway or impact.

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Leverage and Influence Definitions

Leverage

The power to influence a situation.

The company's market share gave it considerable leverage.

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Influence

A person or thing with such ability or capacity.

The president is a major influence on global politics.

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Leverage

The exertion of force by means of a lever.

The worker used leverage to lift the heavy object.

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Influence

To affect or change in an indirect way.

The media can greatly influence public opinion.

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Leverage

Using something to gain an advantage.

She used her connections as leverage to secure the deal.

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Influence

The capacity to have an effect on character, development, or behavior.

The teacher's positive influence shaped many young minds.

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Leverage

Using borrowed funds to enhance potential returns.

The investor maximized his returns through financial leverage.

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Influence

The effect or impact manifested by something.

The novel's influence can be seen in various literary works.

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Leverage

The advantage gained by such means.

The team had leverage thanks to its unique expertise.

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Influence

A power affecting a person, thing, or course of events, especially one that operates without any direct or apparent effort

The pervasive influence that TV has on modern life.

Young people falling under the influence of a radical philosopher.

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Leverage

The action of a lever.

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Influence

Power to sway or affect based on prestige, wealth, ability, or position

Used her family's influence to get the job.

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Leverage

The mechanical advantage of a lever.

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Influence

A person who exerts such power

My parents considered my friend to be a bad influence on me.

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Leverage

Positional advantage; power to act effectively

"started his ... career with far more social leverage than his father had enjoyed" (Doris Kearns Goodwin).

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Influence

A determining factor believed by some to affect individual tendencies and characteristics understood to be caused by the positions of the stars and planets at the time of one's birth.

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Leverage

The use of credit or borrowed funds, often for a speculative investment, as in buying securities on margin.

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Influence

Factors believed to be caused by the changing positions of the stars and planets in relation to their positions at the time of one's birth.

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Leverage

To provide (a company) with leverage.

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Influence

To have an influence on (something); change

A news report that influenced the outcome of the election.

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Leverage

To supplement (money, for example) with leverage.

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Influence

To change the behavior or thinking of (someone); sway

Negative ads that are intended to influence voters.

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Leverage

To improve or enhance

"It makes more sense to be able to leverage what we [public radio stations] do in a more effective way to our listeners" (Delano Lewis).

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Influence

The power to affect, control or manipulate something or someone; the ability to change the development of fluctuating things such as conduct, thoughts or decisions.

I have absolutely no influence over him.

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Leverage

To use so as to obtain an advantage or profit

Leveraged their personal contacts to find new investors.

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Influence

An action exerted by a person or thing with such power on another to cause change.

I'm not able to exercise influence over him.

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Leverage

A force compounded by means of a lever rotating around a pivot; see torque.

A crowbar uses leverage to pry nails out of wood.

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Influence

A person or thing exerting such power or action.

He has been a great influence on the voters during the elections.

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Leverage

(by extension) Any influence which is compounded or used to gain an advantage.

Try using competitors’ prices for leverage in the negotiation.

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Influence

(astrology) An element believed to determine someone's character or individual tendencies, caused by the position of the stars and planets at the time of one's birth.

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Leverage

(finance) The use of borrowed funds with a contractually determined return to increase the ability to invest and earn an expected higher return, but usually at high risk.

Leverage is great until something goes wrong with your investments and you still have to pay your debts.

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Influence

(obsolete) The action of flowing in; influx.

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Leverage

(finance) The debt-to-equity ratio.

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Influence

(electricity) Electrostatic induction.

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Leverage

(business) The ability to earn very high returns when operating at high-capacity utilization of a facility.

Their variable-cost-reducing investments have dramatically increased their leverage.

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Influence

(transitive) To have an effect on by using gentle or subtle action; to exert an influence upon; to modify, bias, or sway; to persuade or induce.

The politician wants to influence the public.

I must admit that this book influenced my outlook on life.

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Leverage

To use; to exploit; to manipulate in order to take full advantage (of something).

They plan to leverage the publicity into a good distribution agreement.

They plan to leverage off the publicity to get a good distribution agreement.

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Influence

(intransitive) To exert, make use of one's influence.

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Leverage

The action of a lever; mechanical advantage gained by the lever.

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Influence

To cause to flow in or into; infuse; instill.

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Leverage

The mechanical advantage gained by being in a position to use a lever

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Influence

A flowing in or upon; influx.

God hath his influence into the very essence of all things.

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Leverage

Strategic advantage; power to act effectively;

Relatively small groups can sometimes exert immense political leverage

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Influence

Hence, in general, the bringing about of an effect, physical or moral, by a gradual process; controlling power quietly exerted; agency, force, or tendency of any kind which affects, modifies, or sways; as, the influence which the sun exerts on animal and vegetable life; the influence of education on the mind; the influence, according to astrologers, of the stars over affairs.

Astrologers call the evil influences of the stars, evil aspects.

Canst thou bind the sweet influences of Pleiades, or loose the bands of Orion?

She said : "Ah, dearest lord! what evil starOn you hath frown'd, and poured, his influence bad?"

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Leverage

Investing with borrowed money as a way to amplify potential gains (at the risk of greater losses)

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Influence

Power or authority arising from elevated station, excelence of character or intellect, wealth, etc.; reputation; acknowledged ascendency; as, he is a man of influence in the community.

Such influence hath your excellency.

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Leverage

Supplement with leverage;

Leverage the money that is already available

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Influence

Induction.

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Leverage

Provide with leverage;

We need to leverage this company

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Influence

To control or move by power, physical or moral; to affect by gentle action; to exert an influence upon; to modify, bias, or sway; to affect; to move; to persuade; to induce.

These experiments succeed after the same manner in vacuo as in the open air, and therefore are not influenced by the weight or pressure of the atmosphere.

This standing revelation . . . is sufficient to influence their faith and practice, if they attend.

The principle which influenced their obedience has lost its efficacy.

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Influence

A power to affect persons or events especially power based on prestige etc;

Used her parents' influence to get the job

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Influence

Causing something without any direct or apparent effort

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Influence

A cognitive factor that tends to have an effect on what you do;

Her wishes had a great influence on his thinking

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Influence

The effect of one thing (or person) on another;

The influence of mechanical action

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Influence

One having power to influence another;

She was the most important influence in my life

He was a bad influence on the children

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Influence

Have and exert influence or effect;

The artist's work influenced the young painter

She worked on her friends to support the political candidate

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Influence

Shape or influence; give direction to;

Experience often determines ability

Mold public opinion

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Influence

Induce into action by using one's charm;

She charmed him into giving her all his money

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Influence

The power to shape policy or ensure favorable treatment.

He used his influence to get the legislation passed.

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FAQs

How is leverage typically used in business?

Leverage in business often refers to using borrowed funds to boost potential returns.

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What is soft influence?

Soft influence refers to persuasion and attraction strategies rather than coercion or force.

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Is influence always evident?

No, influence can often be subtle and not immediately noticeable.

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How does one gain leverage in negotiations?

One can gain leverage by having valuable resources, alternatives, or information.

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Can influence be measured?

Influence can be challenging to quantify but can be gauged by changes in behavior or opinion.

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Can leverage always lead to positive outcomes?

No, excessive or mismanaged leverage, especially financial, can lead to significant risks.

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What factors can increase a person's influence?

Charisma, expertise, trustworthiness, and reputation can enhance personal influence.

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Can anyone have leverage?

Yes, anyone with a unique resource, position, or advantage can have leverage.

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How can one resist undue influence?

Critical thinking, self-awareness, and seeking unbiased information can help resist undue influence.

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Can leverage exist without power?

Leverage is a form of power, stemming from resources, position, or advantages.

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Is influence always positive?

No, influence can be either positive or negative, based on the impact.

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Can influence be bought?

While certain aspects, like visibility, can be bought, genuine influence often relies on trust and credibility.

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Is financial leverage the same as debt?

While related, financial leverage refers to using debt to enhance returns, not just borrowing.

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Does influence always require direct communication?

No, influence can be exerted indirectly through actions, reputation, or presence.

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Is leverage always visible?

No, leverage can be latent, only becoming apparent when used.

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Can leverage be dangerous?

Yes, especially when overextended or misused, it can lead to unintended consequences.

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How is leverage different from advantage?

While both related, leverage is the means to gain an advantage, which is the beneficial position.

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Are celebrities always influential?

Not necessarily, but many have influence due to their visibility and fan base.

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How is influence different from manipulation?

While both guide behavior, manipulation often involves deceit or exploitation, whereas influence can be transparent and mutual.

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Does leverage always involve pressure?

Not always, but it often involves using a position or resource to achieve a desired result.

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About Author

Written by

Sawaira is a dedicated content editor at difference.wiki, where she meticulously refines articles to ensure clarity and accuracy. With a keen eye for detail, she upholds the site's commitment to delivering insightful and precise content.

Edited by

Huma is a renowned researcher acclaimed for her innovative work in Difference Wiki. Her dedication has led to key breakthroughs, establishing her prominence in academia. Her contributions continually inspire and guide her field.