What is a funded proposal? How can it help you in your MLM business? And most importantly, how can it stop you from going broke, and instead launch you toward MLM success?

There has been a lot of talk around the MLM industry lately about the idea of using a funded proposal.

Basically, the idea is this: Have a low cost product that your leads can buy before ever joining or talking to you about your business. The product can be something produced by your company that is aimed at your target market (many companies have introductory DVD's, sample products, etc). The more popular method, and in my opinion more effective, is to introduce your prospects to information products or services that will assist them in growing a home business. It is fairly safe to assume that your leads are interested in making money through a home based business, they are in the process of trying to figure out how to do this, and your funded proposal supplies the product they are looking for when they are looking for it.

The reason for the funded proposal is two-fold:

A funded proposal collects a 'Yes'

The marketing funnel your lead goes through is vitally important to your success. People like to make decisions that support their view of themselves, this gives them confidence and security in who they are. This is why it can be difficult to make big changes in someone's thinking. If your lead enters their details on your site that is a yes (they are saying yes they want to learn more about you), every time they open one of your emails that is a yes, basically the further they get in their journey to find out about you and how you can help them, the more yes's you've collected. The funded proposal is key here. This is the first monetary 'Yes' you receive. If someone gets out a credit card to make a purchase of a product you recommend they are far more likely to continue spending money with you rather than looking elsewhere. The most important thing in this is that you MUST deliver the highest quality information in your marketing system, followed by the highest quality funded proposal you can make. If you are selling something of poor quality or that doesn't genuinely assist the person you are dead in the water. You've lost the trust in the relationship and the person will likely never join you in business.

A funded proposal lets you make money on the No's

Let's face it, everyone is not going to want to join your business. In MLM marketing you will talk to and connect with many people who will never sign up. This is OK and normal. You don't want everyone to sign up, only those who are going to work at it and make their business a success. But leads can often be a costly business expense. The number one reason people fail in MLM is that they run out of money to keep it up and have to quit. The funded proposal allows people to get cashflow coming in from some of the No's, which can continue to fund their marketing until they grow their organization big enough. Obviously not everyone is going to purchase your affiliate product, but many will (especially if you select a good one). It is still vital that people get value from what you are saying, so that even if they don't join you, you have helped them find something that can assist them in their success.

Where to start with a funded proposal

This is why many marketers don't do funded proposals, they simply don't know how. You have to pick a product with an affiliate program attached, you should know that it is a good product, and present it to your prospects in a helpful way within your marketing funnel. Rather than trying to figure this out yourself an easier way can be to use a marketing system that has built in funded proposals.

Author's Bio: 

If you don't want to set up a funded proposal by yourself, take a free sneak peak at the exact MLM marketing system used by Industry Expert Niamh Arthur, that has more than 15 quality products built into the system for you as funded proposals.