Leverage is the strength of your position in a negotiation: the alternatives each side has, the urgency on the table, and the value you bring. If the buyer needs a decision before year-end and your pilot already proved results, your leverage is high and you can hold price. If the buyer has three equivalent options and no deadline, your leverage is low and you concede carefully. Leverage is what makes a counteroffer or an anchor work.
In plain English
Leverage is simply "how much do they need this, and how replaceable are you?" More need on their side means more power on yours. Before any negotiation, write down what you have going for you and what they have going for them. That list decides your walk-away price.
Why it matters to you
Negotiation is not about being tough; it is about knowing your strength. Reps who assess leverage before the call stay calm, make fewer concessions and avoid giving away margin from fear. Build leverage with proof, timeline, and clear value — then negotiate from evidence, not anxiety.