If you are like me you will hear a lot of words and phrases in connection with your MLM business which you have never heard before and which you have absolutely no idea what they mean. One of the first that was thrown at me was “Funded Proposal Marketing”. That was it, no explanation, nothing!! Just the assumption that I knew all about it! Wrong!
So the obvious thing for me to do was to go away and find out what Funded Proposal Marketing actually was and, more importantly, did I really need it in my MLM business and when I found the correct information the answers to both of the questions did surprise me.
So, what exactly is funded proposal marketing?
To put it simply funded proposal marketing is marketing that pays for itself! The marketing process creates a profit that actually pays for the marketing!
Now my first thought when I discovered this was that I’d got it wrong or missed something and come to the wrong conclusion. I soon realised that I was right and then started having depressing thoughts about how much money I, and countless others, had wasted on marketing!
So lets see if I can explain how it works with this simple example. Lets assume that you are wanting to generate MLM leads for your network marketing business. You’ve exhausted leads through family, friends etc., you’re on social networking sites etc but you’re not getting anywhere so decide to try an online AdWords campaign where you pay, to keep it simple, $1 or £1, per click. Your campaign directs traffic to your capture page or your email inbox (believe me a capture page is much easier) but you only have a 33% opt-in rate. In other words only 1 person out of 3 who click on your ad actually go to your capture page, fill out the form and become an MLM lead for you.
That means that each lead you actually get doesn’t cost you the $1 or £1 cost per click but costs roughly $3 or £3 to account for the people who click on the ad but don’t complete the capture page.
So the smart thing to do is add a step to your marketing to recoup your outlay to make your network marketing sustainable and to ensure that you won’t run out of money before you generate enough MLM leads for your network marketing business. That is the basic idea of a funded proposal marketing system and it should be obvious why it’s so important to have it in your network marketing business.
The other option, which I used to use and which you may still be using, is the “original” network marketing prospecting methods which means that you end up paying for the cost of your network marketing leads out of your own pocket. This means that you personally are paying for product samples, marketing flyers and buying lists of MLM leads which may be months old! and this means that for those network marketers still using the “original” MLM prospecting techniques they can only recoup their network marketing costs when, and if, they manage to sponsor one of their MLM leads onto their downline.
But that is only the start of their problem, and it just gets bigger, much bigger, and reveals one of, if not the main, reason why using these “original” methods is basically a suicidal way of trying to grow your network marketing business.
The sad fact is that no matter how hard you attempt to get people into your business only about 1-3% of the MLM leads that you generated by paying for product samples, flyers and lists of MLM leads are going to ever end up joining your downline and that is a sad statistical fact!
What that also means is that with no funded proposal marketing system in place you are missing out on 97-99% of your income. And you wonder why you never seem to make any money and why you hear of so many network marketers packing it in, hopefully before they are totally broke!
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