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A funded proposal is a means of generating income in addition to that brought in by your network marketing business. Having more than one source of income can help protect you in case something goes wrong with your parent network marketing company.

California’s Network Marketing Lawsuit

In case you haven’t heard, the attorney general for the state of California has filed a huge lawsuit against a major network marketing company.

While many distributors in that network marketing company might be concerned as to how this is going to impact their business, those that use funded proposals as part of their overall marketing strategy have less to be concerned about than those that do not.

Distributors who fail to use funded sponsoring proposals as part of their overall marketing strategy have only one source of income for their business. Their source of income is dependent upon their ability to attract new customers and new distributors to their primary MLM company.

If there is a dip in this process, the end result will be a dip in their income.

A lawsuit can have a major effect on the incomes of distributors who only market their primary networking business opportunity. The effect is even worse when the lawsuit is made by an attorney general or another governing authority.

At best, some prospects who would, under normal circumstances, join the business will now hesitate or not join at all. At worst, if the MLM company loses the lawsuit, significant losses may result and the company could go out of business.

How Can Having a Funded Sponsored Proposal Help if the Parent Network Marketing Company Goes Under?

A funded proposal serves as a shield against any negative event that affects the parent MLM company. This is because a funded proposal offers related, but generic information that has nothing to do with the parent company in question.

Therefore any challenges that the parent company faces will have no impact on the sales and income being generated from a funded proposal.

In the worst case scenario of the parent MLM company going out of business as a result of a lawsuit, a funded proposal ensures that all of the work that was done by the distributor affected by the shut down is not completely lost.

The distributor may lose tons of credibility with his or her organization if the parent company fails. However, if the distributor was building a funded proposal in the process, revenue will continue to come in from the funded proposal sale system.

The distributor won’t have to start from scratch. The sales of the funded sponsoring proposal product can be used by the distributor to fund his or her lifestyle until a time when the distributor finds a new network marketing company.

By making a few changes to the marketing system (none at all if the system is kept completely generic), the distributor can easily shift gears and market a new parent network marketing company using the leads generated from the funded proposal.

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Source by M Klingler