The biggest problem of MLM is that it takes anywhere from 2 to 5 years to build any kind of decent residual income. If you are doing it part time then it may take even longer. As a result most people who join network marketing either lose patience or run out of money to fund their business. The end result is that they drop out. The concept of ‘Funded Proposal’ has given a new lease on life to Network Marketing.
The main hindrance that network marketers face is the problem of generating ‘High Quality Leads’ and the ‘Cash Flow’ to fund and sustain their business. Generating high quality leads take a lot of money, time and effort. The most unfortunate part is that 95% of the leads will not even join your primary business.
Funded proposal is a concept that puts money in your pocket even as you generated high responsive leads. You do this by selling an inexpensive but useful product on the front end to cover your advertising expenses. Most network marketers lack knowledge of marketing. So you sell them an information marketing product that will help them to build their business even if they do not join your opportunity. By doing so you are doing a service to them and building a relation of trust by helping them in their business.
These front end sales helps you to recover cost of advertising for lead generation such as pay per click etc. The system is so powerful because it is self sustaining. Now you have cash flow to keep advertising and generating more leads in an endless cycle. Many of these leads will not only join your primary business but will also join under you as a full member of the Funded Proposal System. This will give you multiple sources of recurring commission monthly which means more funds that you can put back into marketing.
Funded Proposal System works in two Steps:
STEP 1 – Offer your leads coaching to help them make money online, such as how to set up a blog with affiliate links and make some sales. Give them valuable training on various aspects of network marketing such as Web 2.0, PPC, Forum marketing, List Builders/ Solo Ads etc. Do not charge them a high price but just a small fee to cover your costs. This will solve your cash flow problem.
STEP 2 – Once your prospect is pre trained through your efforts in Step 1 and become confident with computers and Internet Marketing, you offer them to join your MLM business opportunity so that they have a multi-tier affiliate program to promote.
This simple process firstly trains your prospect into internet marketing and gets him into positive cash flow immediately. This will create momentum in your team and decrease attrition.
This is the smart way to do business. This is how the masters in this industry make it happen. Do you think they make cold calls or do home meeting? The answer is a big NO. They market information and training. This pays for their advertising which in turn serves as a never-ending source of free leads for their network marketing business.
If the logic of ‘Funded Proposal’ appeals to your intelligence, then take ACTION and do something with it today!
But firstly you should learn how to build your Virtual Real Estate.