Leverage vs. Influence — What's the Difference?

By Tayyaba Rehman — Published on September 27, 2023

Leverage refers to using a resource to gain an advantage, often in negotiations or finance. Influence denotes the capacity to affect behaviors, opinions, or decisions of others.

Difference Between Leverage and Influence

Table of Contents

➝ Key Differences ➝ Comparison Chart ➝ Definitions ➝ FAQs

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Key Differences

Leverage and Influence, although similar in some respects, have distinct meanings and applications. Leverage primarily refers to the strategic use of resources, be they financial, positional, or informational, to gain an advantage or achieve a desired outcome. On the contrary, Influence typically pertains to the ability to impact or sway the thinking, behavior, or decisions of individuals or groups.

Sep 27, 2023

Leverage often carries a tangible or quantifiable aspect. For instance, in finance, leverage denotes the use of borrowed funds to amplify potential returns or in negotiations, where one party might use leverage to obtain more favorable terms. Influence, however, leans more towards the intangible, hinging on personal charisma, relationships, or expertise to produce effects on others.

Sep 27, 2023

To summarize, while Leverage is about utilizing resources or positions to gain advantages, Influence revolves around the capacity to mold opinions, behaviors, or decisions, often without explicit force.

Sep 27, 2023

While Leverage might imply a certain power dynamic where one party has a clear advantage, Influence operates more subtly. It doesn't necessarily mean one has an upper hand, but rather a persuasive ability. For example, a person may leverage their job position to enforce rules, while the same person might influence coworkers through effective communication or leadership.

Sep 27, 2023

Another distinction is in their duration and application. Leverage might be momentary, used for a specific transaction or negotiation. Influence tends to be more enduring, reflecting an individual's or entity's long-term impact on others. For instance, a brand might have leverage due to a patent, but its influence arises from its reputation and customer loyalty.

Sep 27, 2023

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Comparison Chart

Definition

Use of resources to gain advantage

Capacity to affect behaviors or decisions

Sep 27, 2023

Tangibility

Often quantifiable or tangible

More intangible

Sep 27, 2023

Power Dynamics

Implies an advantage or upper hand

More about persuasion without clear power dynamics

Sep 27, 2023

Duration

Can be momentary

Tends to be more enduring

Sep 27, 2023

Examples

Borrowed funds in finance, positional advantage

Personal charisma, relationships, brand reputation

Sep 27, 2023

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Definitions

Leverage

The use of borrowed funds to increase potential returns.

Investors use leverage to amplify their potential profits in the stock market.

Sep 19, 2023

Influence

Directing or changing situations through subtle persuasion.

His mentor's influence helped him make better career choices.

Sep 19, 2023

Leverage

Exerting force using an advantage or means.

The company's patent provided them with significant leverage in the market.

Sep 19, 2023

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.

Sep 17, 2023

Leverage

Maximizing benefits through strategic use of resources.

Using customer feedback as leverage, the team improved the product.

Sep 19, 2023

Influence

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

Used her family's influence to get the job.

Sep 17, 2023

Leverage

Amplifying an outcome using a particular instrument or means.

She leveraged her vast network to promote her new book.

Sep 19, 2023

Influence

A person who exerts such power

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

Sep 17, 2023

Leverage

The action of a lever.

Sep 17, 2023

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.

Sep 17, 2023

Leverage

The mechanical advantage of a lever.

Sep 17, 2023

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.

Sep 17, 2023

Leverage

Positional advantage; power to act effectively

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

Sep 17, 2023

Influence

To have an influence on (something); change

A news report that influenced the outcome of the election.

Sep 17, 2023

Leverage

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

Sep 17, 2023

Influence

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

Negative ads that are intended to influence voters.

Sep 17, 2023

Leverage

To provide (a company) with leverage.

Sep 17, 2023

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.

Sep 17, 2023

Leverage

To supplement (money, for example) with leverage.

Sep 17, 2023

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.

Sep 17, 2023

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).

Sep 17, 2023

Influence

A person or thing exerting such power or action.

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

Sep 17, 2023

Leverage

To use so as to obtain an advantage or profit

Leveraged their personal contacts to find new investors.

Sep 17, 2023

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.

Sep 17, 2023

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.

Sep 17, 2023

Influence

(obsolete) The action of flowing in; influx.

Sep 17, 2023

Leverage

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

Try using competitors’ prices for leverage in the negotiation.

Sep 17, 2023

Influence

(electricity) Electrostatic induction.

Sep 17, 2023

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.

Sep 17, 2023

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.

Sep 17, 2023

Leverage

(finance) The debt-to-equity ratio.

Sep 17, 2023

Influence

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

Sep 17, 2023

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.

Sep 17, 2023

Influence

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

Sep 17, 2023

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.

Sep 17, 2023

Influence

A flowing in or upon; influx.

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

Sep 17, 2023

Leverage

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

Sep 17, 2023

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?"

Sep 17, 2023

Leverage

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

Sep 17, 2023

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.

Sep 17, 2023

Leverage

Strategic advantage; power to act effectively;

Relatively small groups can sometimes exert immense political leverage

Sep 17, 2023

Influence

Induction.

Sep 17, 2023

Leverage

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

Sep 17, 2023

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.

Sep 17, 2023

Leverage

Supplement with leverage;

Leverage the money that is already available

Sep 17, 2023

Influence

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

Used her parents' influence to get the job

Sep 17, 2023

Leverage

Provide with leverage;

We need to leverage this company

Sep 17, 2023

Influence

Causing something without any direct or apparent effort

Sep 17, 2023

Leverage

Capitalizing on a resource or position for advantage.

He used his connections as leverage during the negotiation.

Sep 19, 2023

Influence

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

Her wishes had a great influence on his thinking

Sep 17, 2023

Influence

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

The influence of mechanical action

Sep 17, 2023

Influence

One having power to influence another;

She was the most important influence in my life

He was a bad influence on the children

Sep 17, 2023

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

Sep 17, 2023

Influence

Shape or influence; give direction to;

Experience often determines ability

Mold public opinion

Sep 17, 2023

Influence

Induce into action by using one's charm;

She charmed him into giving her all his money

Sep 17, 2023

Influence

The ability to shape opinions or actions.

Her speech had a profound influence on the audience.

Sep 19, 2023

Influence

The power to sway or affect outcomes without force.

Social media influencers have a significant impact on consumer behavior.

Sep 19, 2023

Influence

An effect on the character, development, or behavior of someone.

Peer influence plays a crucial role during teenage years.

Sep 19, 2023

Influence

The capacity to produce effects on others through intangible means.

The influence of culture on one's worldview is undeniable.

Sep 19, 2023

FAQs

Is Leverage always about power dynamics?

Often, yes, as it involves using an advantage, but the context matters.

Sep 27, 2023

Can Leverage and Influence be used interchangeably?

No, they have distinct contexts, with Leverage being more tangible and Influence more intangible.

Sep 27, 2023

Is financial Leverage related to Influence?

Not directly; financial Leverage refers to using borrowed funds, while Influence is about affecting outcomes.

Sep 27, 2023

Can one have Influence without Leverage?

Yes, one can influence others through charisma or expertise without any explicit advantage or resource.

Sep 27, 2023

How does a brand's Influence differ from its Leverage?

A brand's Influence is about its impact on customers, while its Leverage might be its market position or unique assets.

Sep 27, 2023

Can a person's education be considered Leverage?

Yes, education can be leverage in job markets or discussions where expertise is valued.

Sep 27, 2023

How does media Influence public opinion?

Through the dissemination of information, shaping narratives, and setting agendas.

Sep 27, 2023

How do Leverage and Influence differ in meaning?

Leverage refers to using resources for advantage, while Influence denotes affecting behaviors or decisions.

Sep 27, 2023

Are there risks associated with high financial Leverage?

Yes, while it can amplify returns, it also increases potential losses.

Sep 27, 2023

How does social Influence manifest?

Through trends, opinions, or behaviors that spread within a community or society.

Sep 27, 2023

Can someone lose their Influence over time?

Yes, Influence can wane due to changes in perception, credibility, or societal shifts.

Sep 27, 2023

Can one gain Leverage through Influence?

Yes, influential individuals can gain advantages or resources due to their impact on others.

Sep 27, 2023

In negotiations, is Leverage more important than Influence?

Both can be crucial. Leverage provides a positional advantage, but Influence can sway opinions and decisions.

Sep 27, 2023

Are celebrities always influential?

Not always; while many have reach, their actual Influence depends on their impact on fans or audiences.

Sep 27, 2023

How can businesses leverage customer feedback?

By using feedback to make improvements, thus enhancing customer satisfaction and loyalty.

Sep 27, 2023

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Author Spotlight

Written by

Tayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.