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

Today, I want to educate you about how to create a MLM Funded Proposal, so you can work smart and do what the top earners in our industry do. 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 promote a low-cost training product such as an eBook, lead program, or system. Your ad 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.

For example, you sell a $100 MLM Training Course. You are an affiliate and earn $50 per sale. You spend $300 on ads and generate 30 leads. Six of those thirty people purchase the course, earning you $300 in commissions. That means you generated thirty leads for FREE. You can then offer all thirty people your business opportunity on the back end. Make sense?

Here’s what one network marketer has to say about funded proposals:

A self funded proposal is a way of marketing that allows the MLM leads you generate to actually pay for themselves. Not only are your MLM leads paying for your marketing expenses, you are at the same time generating high quality prospects that can promote your primary business as well. You get paid even if they don’t join your MLM business.
This strategy starts off by offering a solution to a critical problem that your prospects face by offering a free email course, eBook, audio, or resource of some kind.  Promoting a “how-to” resource that solves a pressing issue, will attract 10x more prospects than pitching your MLM business. ~ Darren Little

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.

Earning a full-time income in network marketing normally takes several years. While you are building your business, you need an 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.

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

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Example MLM Funded Proposal

What you see below is an example MLM Funded Proposal, simply to give you some basic ideas about how it would work.

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 (generate a lead) 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 those 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 additional 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.

Using this simple process, 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.

How to Get Started with a MLM Funded Proposal?

To the best of my knowledge, there are only two ways to do a funded proposal. You could create your own product or service to sell or you could promote someone else’s as an affiliate. The “ultimate” is to have your own products, but for most people that’s not possible. It simply costs too much money and takes too much time for most people to create their own training product or service.

Finding a good “affiliate” program is a great alternative for most people. You could:

  • Sell leads
  • Sell a training course
  • Sell coaching
  • Sell an eBook
  • Sell capture pages
  • Sell traffic
  • Sell blog design services

Your options are endless. Some of the most popular funded proposals that I know of in the MLM Industry are:

Ultimately, you want to pick what works best for you. One great way to do this is to focus on your company’s products. For example, if your company specializes in weight loss products, as an example, your funded proposal could be:

  1. Weight loss coaching
  2. Weight loss eBooks
  3. Weight loss training courses
  4. Weight loss seminars
  5. Or countless other weight loss affiliate programs

As you make money from selling these weight loss affiliate products, you could then offer your company’s weight loss products on the back-end. It’s a win-win for you and the customer. You help them solve their weight loss problems, while you earn money, generate leads, make sales, and grow your network marketing business.

Final Thoughts

In conclusion, 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 email list, you will make a few immediate sales. You can then take this money and reinvest it back into advertising, so you can keep generating leads. Once people join your email list, you can promote your business opportunity and other additional affiliate products on the back end. Either way, you make MONEY!

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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Chuck Holmes
20+ Year Network Marketing Professional
Email: mrchuckholmes@gmail.com

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

  1. 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.

  2. 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.

  3. 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?

    1. 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

  4. 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

  5. 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.

  6. 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.

  7. 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

  8. 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.

  9. 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.

    1. 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

  10. 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?

    1. 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.

  11. 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

    1. 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

  12. 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.

    1. 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

  13. 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

    1. 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

      1. 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.

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