What is a Funded Proposal and Why You Need One NOW!
Many times, when people begin a network marketing career online, one of the first questions they may ask is what is a funded proposal, and why do I need one? The purpose of this post is to help you tie it all together and help you make sense of all the information you have probably been bombarded with since you began the process of promoting your network marketing business online. The first thing that you must realize when you’re promoting your network marketing business is that you MUST have a funded proposal. Why? The average person who gets started in network marketing needs money NOW! True, most MLMs have up-front money to be earned in the form of fast start recruiting bonuses and product sales, but those two by themselves won’t cover the cashflow needed to pay for advertising, pay for web hosting, and pay for autoship. There is also a time delay of up to a month before you get paid commissions for product orders, and that time delay can threaten your liquidity.
What is a Funded Proposal and Why Do I Need One?
The purpose of having a funded proposal is to have more income and cash flow coming in on a regular basis. This is important not only for you, but for new reps that you recruit into the business. Not only should you have a funded proposal to keep you afloat in the first few months in business, you should be able to help your new reps stay afloat financially in the beginning by showing them how to promote their own funded proposals. A profitable funded proposal keeps your new reps able to afford your mlm autoship until the MLM income picks up.
How Does This Help Me in My MLM?
This does not detract from your long-term mlm goal, which is to build a large residual income by building a large team. In fact, it contributes to you accomplishing that goal, by providing you with an additional recruiting tool. While building a huge downline of reps and customers is your long-term goal, your short term goal , in case you didn’t know, is to be able to stay afloat in the early months, so that you can have money for autoship and business expenses without having to dig into your own pocket to pay for it. A funded proposal is also called a self-liquidating offer, because it keeps your business liquid. That is, your income from your funded proposal outweighs your expenses and you have cash on hand to promote your business. By the way, your business is not your mlm distributorship. While your distributorship is a portion of your business, your business is YOU and the mlm opportunity that you promote is ONE of your products, but that is another lesson for another day.
What Exactly is a Funded Proposal?
For those of you unfamiliar with the term “funded proposal”, here is a quick definition:
A funded proposal is a low-cost introductory product that you promote as part of your business model. The purpose of promoting the funded proposal product is to raise immediate cash to cover expenses, (e.g. marketing and promotion costs), associated with running your business. Typically, the funded proposal product is in some way related to your main product, so that the people who purchase your funded proposal product today would also possibly have an interest in your main product in the future. Because of your marketing and relationship building efforts, the customers who have purchased your funded proposal product will be more receptive to purchasing your main product in the future, than if you had promoted your main product to them first.
Here is a short example:
Lets say you generate $650/month with a funded proposal, either an information product you have created or by promoting one of several affiliate products available and popular with network marketers. Because you are generating $650/month, you now have a story that you can share with others. You don’t have to worry about not having made money, as most new network marketers struggle with. You have a story you can share, and you can now show your prospects how to do what you did. That is a strong recruiting tool. As someone who has made $650/month, you have a story, and you can now brand yourself, because you have RESULTS! Too many network marketers get online and try to brand themselves, even though they have no results. They’ve never recruited anyone into their MLM, they’ve never gotten a check from their MLM or affiliate commissions, they’ve never generated a lead. They simply have nothing attractive to offer. Our business is about being able to offer leadership, to be attractive, to show your prospects how to do what you did. That’s hard to do when you haven’t done anything that someone would want to duplicate.
To summarize, before you can start recruiting, sponsoring and leading, you have to go out and do something that someone would want to duplicate, e.g. generate some leads, get a check, etc. The best way to do this is with a funded proposal. Results sell.
That’s one of the reasons most people in this business have such a hard time recruiting friends and family. Even though they trust us, they don’t always respect our financial decisions or our business judgment. Unless you are the alpha in your circle, you won’t be able to recruit many people from it.
It’s different when you have results. Once you have some results, and a story, you can make a video, or write an article, blog post, or email that details “what you did”, such as “How I made $650 in my first (days, weeks, months) in business.” You don’t give away all the details of “how” you did it, but you do a good job of showing “what” you did, enough info for them to want to know how you did it. At the end of your video, or article, blog post, or email, let your prospects know that if they want you to show them how you did it and teach them how to do it, they should contact you.
How Can a Funded Proposal Help Me Recruit?
Here’s where you can use this to your advantage in recruiting. Now that you have proven that you have something to offer, they see you as a leader, you stipulate that for you to open your entire playbook to them, and for you to work with them directly with them, that they must join you in your MLM and you will teach them everything you know.
So to summarize this in steps:
- 1. Get a funded proposal, by either creating an info product that caters to your target audience, or promoting an affiliate product that would be valuable to the niche to which you cater.
- 2. Create a result — generate some leads and make some money promoting your funded proposal.
- 3. Develop a story from the result you have created.
- 4. Brand yourself around your story and share in as many different media as you can to spread your message, get traffic and get leads. That’s being attractive.
- 5. Recruit people into your primary business by sharing your story and offering to help them get the same result when they join you.
See the diagam below for a visual description of the process.
Funded Proposal Diagram
If you are need of a funded proposal to help cover expenses in your network marketing business, make sure to check out these high converting systems:
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p.s. Are You Tired of Chasing Your Friends and Family, Wasting Gas Going Back and Forth To Hotel Meetings to Meet Prospects that Never Show Up, Prospecting Strangers in the Parking Lot about Your Company, and Spending a Bunch of Money on Leads Who "Don't Remember Filling Out Any Form?" I Was Too Until I Discovered the Online MLM Business Plan That Gets 25+ Leads Per Day. Give Me The Formula!
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