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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- 26 Instant Marketing Ideas to Build Your Network Marketing Business by Big Al Tom Schreiter – Book Review
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:
- My Lead System Pro
- Power Lead System
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:
- Weight loss coaching
- Weight loss eBooks
- Weight loss training courses
- Weight loss seminars
- 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.
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.