Are "Funded Proposals" a Good Way to Prospect?

Another great question came in through the "Ask Barry" service from one of our fellow blog readers. It asked about whether leading with a "Funded Proposal" is a good way to build your primary network marketing company.

The answer is ... well, let's start at the beginning:

What is a funded proposal?

The quick and easy explanation is this: Instead of advertising your business opportunity or your MLM products, you advertise something else that you sell, usually an educational report.

You sell this up front, and then use your MLM as the "back-end offer."

The reasoning is that you make money by selling them something on the front end, therefore lowering or even eliminating the cost of generating leads.

Does it work?

Yes, but only IF you have an excellent offer to sell.

• It must be attractive from a marketing perspective (so you sell a lot of books).
• It must contain content that has real value (so your customer will appreciate it and come back to you in the future).
  

Some people object to this approach saying, "Why don't you just use your own MLM company's product to use as the front end offer and retail that?"

You absolutely can, and that's a very valid idea. However it is a different angle and doesn't produce the same results (I'm not saying better or worse; just different).

Here's why:

In marketing, as in life, you get what you ask for. So if you're asking for a customer for a nutrition product in your ad, then that's what you get ... not a business builder.

Sure, a small percentage may become distributors, but not many because that wasn't what you targeted in your advertising.

On the other hand, if you advertise a book on the super secrets of how to succeed in multi-level marketing, then you will attract people who are interested in a MLM business opportunity.

BUT ...

You will also attract people who are most likely already in a network marketing business!

So here's the deal:

The funded proposal is a great approach, but it is more of a long-term approach. You can use it to help fund your building of a list of serious MLM entrepreneurs (they did spend money to learn about MLM success after all), stay in communication with them, build a relationship with them, and over time, when they are ready (i.e. if they quit their current company), you will be there to sponsor them into your business.

Sure, you'll find some who are ready to join you right now, but the ratio will be much lower than if you directly advertise your business opportunity.

So what should you do?

I do all 3 approaches:

1. I advertise my network marketing company's product to get customers.
2. I advertise my network marketing company's business opportunity to get distributors.
3. I advertise funded proposals to develop relationships with serious networkers who aren't ready to join with me now ... but may later.

Oh, and one more thing that is really BIG:

I've found one of the BEST parts of having a funded proposal (that most people don't do) is this:

Instead of using it only as a front-end offer, you can use it as a back-end offer to.

Most prospects who consider your business opportunity aren't going to enroll. So ...

After they've decided not to enroll, offer them your e-book, special report, etc. You'll be surprised how many will buy it! And this will help offset your costs of generating the leads that don't sign up.

Here are the 2 best funded proposals that I know of.

• Magnetic Sponsoring
• Renegade Network Marketer
  

Both of these are proven to be attractive offers, are reputable affiliate programs, and offer education that has real value to the people who buy them from you. I personally use them both and have found them to be excellent.