MLM Funded Proposal: How to Use One to Grow Your Network Marketing Business

Today, I want to educate you about how to use a funded proposal to grow your MLM Business.

I want to teach you the ins and outs of what one is, why you should use one, a hypothetical example, how to get started and much more.

Let’s get started.

What is a MLM Funded Proposal?

A MLM Funded Proposal is simply a way to offset or reduce your advertising costs while you market and promote your network marketing business.

Basically, it allows you to generate leads for free (or at a really low cost).

Rather than promoting your business opportunity on the front end, you would promote a low-cost training product such as an eBook, lead program or system.

You would send someone to a lead capture page so they can become a lead, and then you would redirect them to your affiliate program.

This is known as a one time offer.

Sales from this affiliate product provide immediate commissions, which you can use to pay for your advertising costs.

The money you make allows you to keep advertising so you can keep generating more leads.

Why Should You Use a MLM Funded Proposal?

Every network marketer should use their own MLM Funded Proposal when they are building their network marketing business.

When you are trying to build a MLM Business online it takes time to build a substantial income (normally several years).

What you need is immediate income, so you can afford to keep advertising, build your list, and build your team.

If you only have your MLM Income you will go broke fast.

But if you use a funded proposal properly, you can be profitable beginning your first month in the business.MLM funded proposal

Another benefit of using a funded proposal is that you can appeal to more people.

When you lead with your business opportunity, you really limit yourself.

Most people in your target market (other networkers) already have a business opportunity, so they aren’t looking for a new opportunity to join.

On the other hand, most networkers are struggling in their business and they need a system, lead program or training.

By offering one of those things (a solution to their problem) you can appeal to more people.

As a result, you can make more sales and more commissions.

Even better, you can “back end” many of these folks into your MLM Program within a few months.

Other Posts You Might Enjoy:

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Hypothetical Example of a MLM Funded Proposal

  • You promote an affiliate product (MLM Training Course) that pays you $30 per sale
  • You send 1,000 visitors to you capture page to get their name and email and then redirect them to your affiliate offer
  • Of the 1,000 people, 300 people give you their name and email, so you have 300 leads
  • Of the 300 leads that were redirected to your affiliate sales page, 2% purchase it, which equates to six sales at $30 each, for a total of $180
  • You paid $.40 per click, so you spent $400 on traffic
  • You recouped $180 of that $400, so it only cost you $220 out of pocket to generate 300 leads
  • Therefore you only spent ($220/300 leads) about $.70 per lead.
  • You now have 300 people to market your business opportunity and other affiliate products to
  • You will easily recoup the remaining $220 out of pocket expense in the months to come by recommending additional products, and recruiting some of these folks into your business opportunity
  • You will grow your business on complete auto-pilot

This is the beauty of a MLM Funded Proposal.

If you do it right, you can offset most or all of your advertising expense so you can essentially generate leads for your network marketing business for free.

magnetic sponsoringHow to Get Started with a MLM Funded Proposal?

In essence, you really have two choices.

You can create your own funded proposal or you can use someone else’s.

The best course of action is to have your own unique funded proposal.

However, for most people that is not a viable option.

It could take a year or two to create your own funded proposal.

Plus, it would probably cost you thousands of dollars and hundreds of hours in time to get everything set up.

The best option for newbies is to use someone else’s funded proposal.

I’ve been using Magnetic Sponsoring for a few years now and have achieved great success with it.

I’d recommend Magnetic Sponsoring, or you can use MLSP, or visit Clickbank.com to find a good product to promote.

Ultimately, you want a product that offers real value and provides a nice commission.

I suggest you try out the product or service first to make sure it is worth promoting.

Final Thoughts

In summary, whether you are trying to build your network marketing business online or offline, you need your own MLM Funded Proposal.

That way you can offset or eliminate your advertising expense, while you build your list quickly.

Remember, the money is in the list.

As people join your list, you will make a few immediate sales.

You can then take this money and reinvest it back into advertising, so you can keep getting leads.

Once people get on your email list, you can promote your business opportunity and other affiliate products on the back end.

What are your thoughts about funded proposals?

Please share any tips or comments about your experience using a MLM Funded Proposal to grow your business.

I look forward to hearing from you.

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27 thoughts on “MLM Funded Proposal: How to Use One to Grow Your Network Marketing Business

  1. Georgia Avery

    This is such a new concept to me and I must admit, a little intimidating. But! I believe in trying something a little out of my comfort zone to grow professionally, so I am going to learn all about it. I also had never heard of Clickbank, so I quickly opened their website and will look at it later today too. I love all that I am learning from you. Thank you! I am also going to point several people your way, Chuck. Recently I attended a brunch and vendor fair where I met several people that had just started their business and appeared not to have a clue on what to do or what to say. I think they will learn a lot from you. I keep thinking of them as I read these pages and would almost feel guilty if I didn’t send them your way. Thanks for being so very generous.

    Reply
  2. Eddie

    I think a good funded proposal for your own MLM business is to create products and services to sell on Clickbank. Let other people promote your products for you. Let them send traffic to your sites and help you build your list. That’s the best advice I can share with you.

    Reply
  3. Calvin

    Great concept, Chuck. No one has ever explained the importance of having a funded proposal in my MLM business before. I can definitely see the merits of leading with something other than your business opportunity. I’ll see what I can do to find a funded proposal for my business. Is there anything that you recommend?

    Reply
    1. chuckholmes Post author

      Calvin,

      I’d start out with Magnetic Sponsoring. They have everything in place for you, so it’s really easy to get started with your funded proposal. Check them out and tell me what you think.

      Chuck

      Reply
  4. Marlene

    I use My Lead System Pro as my funded proposal and it works great. We provide a marketing system that we can promote to anyone. It provides a nice affiliate income and provides multiple streams of income. In addition, many people who join MLSP end up joining my primary MLM Company too. It’s like the best of both worlds.

    Marlene

    Reply
  5. Emma

    This is a fairly new, yet powerful concept. Some folks in Herbalife have been doing this since the 1980s. They advertise a weight loss kit or book for a low cost. Whoever buys it become a lead for their Herbalife business. Some folks have built six figure incomes using this approach in Herbalife, and many other companies.

    Reply
  6. Manny

    I learned about MLM funded proposals from Mike Dillard. Since then I have used several different funded proposals to build my network marketing business. All I can tell you is “it works.” Once you have something good to promote, you simply need to focus on marketing the product or service while you build a list. I hope every network marketer learns this concept and applies it in their business.

    Reply
  7. Ed

    I created an eBook that I sell on Clickbank. And my eBook does a lot of pre-selling others on my business opportunity. Plus, I have other folks promoting my eBook for me, so it makes sponsoring people into my team that much easier. Whatever you do, get a funded proposal for your network marketing business. And if you can turn it into an affiliate product, do it! I now sponsor people effortlessly into my primary MLM Company and I make money from my eBook sales.

    Ed

    Reply
  8. Dana

    Instead of leading with my MLM Company, I sell leads to other network marketers. A small portion of my customers get to know me pretty well and end up joining my team. The benefit of this approach is I make money whether people join my team or not.

    Reply
    1. chuckholmes Post author

      Dana,

      Selling leads to other network marketers is a great way to use a funded proposal for your MLM business.

      Thanks for the comment.

      Chuck

      Reply
  9. Amy Skalicky

    The simplicity of this concept is great. Traditional marketing is expensive, and with the increased traffic and capabilities on the internet, it only makes sense. I am most familiar with Clickbank.com, on which you can create a product relevant to your particular business to be marketed, and you can sponsor someone else’s product on your site. Even earning a portion of your costs back makes a difference when your budget is limited.

    Reply
    1. chuckholmes Post author

      When you promote multiple products and services, you put yourself in a win-win situation. It’s hard to sell a high priced, expensive product on the front end. That’s where lower priced products come in handy. Promote a low cost product first and use the product to help sell your higher priced product. Every network marketer needs to have a MLM Funded Proposal, especially if they are building their business online.

      Chuck

      Reply
  10. Diamond Grant

    I really like the idea of being able to offset advertising expenses. Any way you can conserve money but still benefit from it in the end is worth the investment of time and energy. You could probably sell multiple affiliate products if you wanted to generate more money for advertising or just focus on one if the task of managing multiple affiliate products was too much. It just kind of make me think that you should let your money and your business work for you. Why spend your own money out of your own pocket when you can allow your own business products to work for you?

    Reply
    1. chuckholmes Post author

      When done right, Diamond, a good MLM Funded Proposal will pay for ALL your advertising expenses and sometimes put a profit in your pocket, too. Plus, you now have all those leads that you can share your business opportunity (and other products) with.

      Reply
  11. Fred

    Chuck,

    Thank you so much for explaining how a MLM Funded Proposal works. I’ve been trying to build my business online for the past two years with very little to show for it. I’ve tried everything from YouTube videos, to social media to pay per click. I did everything my upline taught me to do about promoting a business online. Up until today, I had never heard of a funded proposal. This makes so much sense. I am going to check out the Magnetic Sponsoring Course that you recommend and use that. Thanks for the advice.

    Fred

    Reply
    1. chuckholmes Post author

      I’m sure you’ve learned a lot during the past two years, Fred. Don’t give up now! Start using a MLM Funded Proposal and then offer your business opportunity on the back end. It was one of the best online MLM tips I can share with you. Good luck!

      Chuck

      Reply
  12. James B

    A MLM funded proposal can really take the financial burden off of you, the marketer. It is no secret that PPC (Pay Per Click) advertising can be very helpful to getting a young company known and keeping an older company well advertised. It’s expensive, but if someone else is paying for it, you don’t need to worry about the cost so much.

    Reply
    1. chuckholmes Post author

      I use funded proposals for all my businesses, inside network marketing and outside of it. The single greatest cost for most businesses is the cost of finding a new customer. If you can acquire a new customer at break even cost or better, and you have good up-sells and a good back-end business in place, you can do very well for yourself.

      Chuck

      Reply
  13. John

    When you use a MLM Funded Proposal, what do you recommend? Is it better to promote a system, leads, or a training course? Please let me know.

    John

    Reply
    1. chuckholmes Post author

      John,

      I would recommend promoting a system or training product. Try to find something that not many other people are promoting, so you have very little competition. You also want to find something that pays you $50 to $100 minimum, per sale. This will give you immediate profits so you can keep advertising and build your leads list at the same time. I hope that helps. Check out Building on a Budget or Magnetic Sponsoring.

      Chuck

      Reply
      1. Diamond Grant

        Charles,

        Great recommendation. Going into a field with little competition improves your chances of making sales. Being able to build your leads list and advertise at the same time is also essential to building your business. So this is a really great point to make about getting paid a minimum of $50 to $100 per sale because it allows you not to have to dig into your own pockets in order to do so.

        Reply

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