What is a Funded Proposal?

Everyone seems to have a different answer when it comes to the Funded Proposal although they all mean the same in essence.

Setting the scene

You join a Network Marketing company to try and create a new income stream and earn some extra cash to do the things you want to do in life. The extra cash will go towards your Mortgage or car repayments, maybe it will be spent on the family or holidays or just to give you and your family a better quality of life.

Before you join the Network Marketing company, you have to pay your registration fees and usually you'll need to subscribe to the autoship process for the product. You'll be auto billed every month and will receive your product automatically.

You're ready to start building your business and you're eager to make back the initial outlay you just spent on registering with the company. Potentially you could be out of pocket anywhere from $300 – $2000 with the company registration and auto-ship payment.

You do what you're told to do and you make that list of your family and friends. You contact everyone you know and invite them along to one of the house meetings or web conferences your upline is holding. A few people show up and if you're lucky maybe 1 or 2 people get involved in the business.

You still haven't made your initial investment back and now you've run out of friends and family to contact. What are you going to do next?

Advertising

Ahh, the fun and expense of advertising! You look to the Internet, newspaper and magazine advertisements, buying flyers, business cards, stationary, lead co-op's and other expensive options. You look at Internet Marketing, banner ads, Google adwords and other ways to advertise your new business online.

You end up spending much more money that you're actually making in order to get leads and prospects for your business. So, rather than earning the extra cash you wanted to spend on your family and home, you start dipping into your bank account and credit cards to buy leads and prospects!

There's only so long you can sustain this type of business model for, and it's not very long unless you have a large bank balance. Believe me, I've been there and it's not much fun.

What's the Solution?

The solution is the Funded Proposal. Rather than spending money on trying to get leads and prospects to join your business, you look for a market of people, usually Network Marketers or Business Opportunity seekers and aim to educate them and teach them how to do things differently.

There are many funded proposal systems around which aim to help network marketers make money on the front end to cover their advertising expenses whilst at the same time allowing you to build up your contact list to help build your business.

You usually promote a network marketing training course such as Magnetic Sponsoring, Renegade University, 7 figure networker etc and approach other network marketers with these courses.

Each time you sell one of the courses, you earn a commission which is yours to keep. The more people you sell the courses and training material to, the more money you will earn on the front end. This system goes deeper than just selling the courses. You'll also be building up a relationship with the people you sell the courses to and will be collecting their name and email address to email out to in the future.

Over a period of time, you'll earned enough money through selling the courses to cover other advertising expenses you incurred and you'll build up relationships and a list of highly targetted prospects.

Who Can I Sell The Courses To?

The great thing about selling a generic ebook or course to other network marketers is that your market has just opened up to millions of people. You can approach people in every single network marketing company, sell them the training courses, build a relationship with them and eventually sponsor them into your business opportunity.

I hope you can see the power of the funded proposal. So, rather than trying to get someone to join your network marketing company straight away, you build up a relationship, sell a training course, help them learn about Attraction Marketing and using the Internet and then possibly in the future, you sponsor them into your company.

Click here to view the embedded video.

You'll learn about our powerful team with the SponsorDaddy system and how it all works and fits together to help you market your network marketing opportunity.

There are tons of places you can get a blog set up. Most MLM systems give you a blog, and many websites give you a free blog such as

http://www.wordpress.com or http://www.blogger.com

It's much better to have a self hosted blog, with your own domain name but I know that is out of reach of most people because they don't know how to set it up.

Holly can do that for you over at http://www.nonstopsocialmedia.com – she's a diamond

Click here to view the embedded video.

Go for it, find a free blogging platform and start writing your thoughts down, sharing links and great content and you'll build relationships up much easier this way.

You can also link in your blog with twitter and Facebook to synchronize your content… all good fun and saves a lot of time.

The Wrong Way

If you put yourself in your prospects shoes for a few minutes and think about how you would feel if you were on Facebook conducting your relationship building and networking and one of your 'friends' wrote the following on your wall.

"Brand new MLM business in Pre-Launch, get in now… visit www.brandnewprelaunchmlmbusiness.com/john_c and join now!"

If someone wrote that on my wall, I may go any take a quick look, but I wouldn't join the business under the person who just spammed on my wall. I'd delete the wall post and probably remove that person as a friend. If I was going to join the above business, I would search for someone who knew what they were talking about and knew what they were doing and join under them.

Also, if you drive traffic to your company's lead capture page and the prospect looks at the page and decides they are not interested and closes the page, then you've just lost that prospect forever. If your companies lead capture page/ sign up page is as bad at converting as most network marketing companies capture pages, then you'll be wasting your time and money on driving traffic to a very badly converting page.

The Right Way

Instead of sending traffic directly to a very informal company website with ZERO PERSONALITY, you drive traffic to your own personal website, blog, video page, facebook or myspace page and build up a relationship with that person.

You have to remember that there are thousands of MLM companies out there, all with the best products in the world (So they say)! BUT, there is ONLY ONE YOU!

You have the power to build relationships with other people, whereas network marketing companies DO NOT. If I get a recommendation to join a company from a complete stranger or a recommendation to join from someone I've watched on YouTube, read their blog and built up a relationship with, I know who's downline I'd join.

Also, if you are driving traffic to your blog site, you should have links to your Facebook, Myspace, Youtube and Twitter profiles on your blog which your visitors can go and visit. You've now increased the chances of that prospect making friends with you on one of the social networks by about 10 times!

BUT…

If you send them directly to a BORING COMPANY WEBSITE, then you risk the chance of losing them forever. 99% of the time, they won't just sign up to a business without knowing their upline and if they do, then they're probably the WRONG type of person to have in your downline anyway.

Where To Put Your Focus

My focus is always on building my own personal brand. The brand of Gavin Mountford. I've set up my blog, (which you're reading), my YouTube channel, Facebook profile, Myspace profile, Twitter account and many other smaller profiles which I drive traffic to and from.

I'm creating my own brand rather than advertising a specific company or setting up a website for a specific company. What happens if that company goes bust or vanishes? All your hard work has just gone down the pan.

You need to spend your advertising budget on building up the brand of you.

Imagine this…

For the last 2 years, you've been building up your own brand. You've got a highly respected blog and youtube video channel and receive hundreds if not thousands of visitors to your sites each day. You attract between 10 and 50 leads and prospects who are interested in building up a relationship with you and joining your business every day. You can filter out all the tire kickers and only sign up the serious prospects into which ever network marketing company you are with at the time.

Whereas, if you only focused on driving traffic to a specific company website and that company goes bust or vanishes, then in 2 years, you may be left with nothing.

Once you've built up the BRAND OF YOU, you can promote any network marketing company or product you'd like to. So, go build up YOUR BRAND.

Funded Proposal

Remember the Funded Proposal we talked about in the last few posts? If you are sending traffic directly to your network marketing company website and that person doesn't join your business, then you've just lost the money it cost you to send that visitor to the site.

But, if you are buying traffic and sending them to your funded proposal website, either Renegade University, Magnetic Sponsoring, or one of the other systems available then you increase your chances of capturing the lead and making a sale of one of the information products.

This helps to offset your advertising cost whilst you are generating leads.

Magnetic Sponsoring – How does it all fit together?

The magnetic sponsoring funded proposal system is aimed at earning you an income initially whilst you are building your network marketing business. Magnetic Sponsoring has 4 courses available at present which you can sell to other network marketers and MLM'ers to help them learn how to build their business online.

The 4 courses are:

1. Magnetic Sponsoring – Teaches you about attraction marketing and creating an online presence.
2. Building on a Budget – Shows you how to get started on the Internet to build your network marketing business whilst sticking to a low budget.
3. MLM Traffic Formula – Talks in detail about using the various tools of the Internet to build your system.
4. Black Belt Recruiting – Talks about posture, sponsoring others and using the phone to build your business.
   

When you join Magnetic Sponsoring, you login to your account and download your links which you need to refer people to when you are advertising the above courses. (If you hover over the above links, you will see that my username gavinmountford and the product name is in the URL). Each one takes the visitor to the sales page of the specific product.

How Do I Earn Commissions?

If you send a prospect to either of the above sales pages, they will either:

1. Buy the product
2. Leave the website
3. Submit their email address for more information

If they buy the product, you will earn a commission instantly from the sale. If they submit their email address for more information, you will be classed as their referrer and if they buy any of the products in the future, you will be credited with the sale and will earn a commission.

The great thing with the Magnetic Sponsoring system is that once you refer the prospect/ customer to one of the 4 sales pages and they submit their email address or buy one of the products, you will be credited with the sale of any or all of the products they buy in the future.

I refer a lot of people to Magnetic Sponsoring, and sometimes I have people who buy 2, 3 or 4 of the above products which earns me over $150 in commissions each time!

Another great benefit is that Mike Dillard has set up a series of pre-written autoresponder emails to be emailed out to prospects over a period of time, so that once people are in the system they continue to get emails until they either buy a product or unsubscribe from the system.

What Can I Do With The Prospects?

When someone opt's in for more information for a particular product, I usually send them a quick personal email. I usually introduce myself, ask a few questions about them and ask if they need any help with anything.

Many people don't reply for some reason, but when people do reply, you can start to build up that all important relationship with them. You can help them, learn more about them and maybe in the future they will join your network marketing company.

For me, I don't care if the prospect joins my company or not. It's an extra bonus if they do, but I earn a great income from just selling affiliate products such as the magnetic sponsoring courses etc to other network marketers.

Whilst selling these courses, I'm attracting people to me, gaining their name and email address, and building a relationship with them.

Note: I only email the prospect once with my initial email, if they don't reply, I don't keep pestering them. I also DO NOT advertise my network marketing company when I approach them. This would scare them off and I would lose the possibility to build that relationship with them.

How Do I Advertise?

We've come back to that excellent question again! Inside the magnetic sponsoring back office, there are lots of ideas and ways to advertise your ebooks, so I suggest you take a look. I've also written some excellent tutorials on the various advertising methods on this site.

Some of my ideas include:

• Video marketing
• Google Adwords
• Article marketing
• Blog writing
• Social Networking
• Instant Messenger and building relationships with people
• Ezine advertising
• Forum marketing (Link in your signature)
• Banner advertising

You can use all or any of the above to get your message out, but DO NOT SPAM. Here is Wikipedia's version of spam. http://en.wikipedia.org/wiki/Spam

If you advertise magnetic sponsoring or any system or network marketing company by spamming, then you will be banned and will lose your account and any commissions you've accrued.

How Much Commission Do I Make Per Sale?

Affiliates are paid a flat $20 commission for sales made of Magnetic Sponsoring and 40% of the purchase price on every other product. Prices may raise or lower constantly during testing periods, special offers, or sales.

But as I said previously, the great thing with the system is that you'll earn multiple times from each person you refer and will gain income for the lifetime of the customer.

Are There Other Funded Proposal Systems?

Yes, there are many other products you can sell to earn an income but you have to be a little careful which you promote.

Lets say that I am an active network marketer and I'm looking to sign people up into my network marketing company. One way I could do that is to create an ebook, or a course for people to buy. I could then pay other people to promote my course for me. Whilst those people who are promoting my course are earning a commission for each sale they make, I'm gaining the long term benefit from that customer because I can collect the customers email address, and then make contact with that person to sign them up into my own network marketing company.

There are certain products I don't promote because I know that the author of the product has got a hidden agenda. Whilst I'm earning $20 for each sale I make, the author of the product is making thousands of dollars in long term residual income and then the person I sent to buy the product joins his network marketing business and not mine!

So, be careful what you promote as you may be sending your prospects away from you and into the hands of another clever network marketer.

The benefit of promoting magnetic sponsoring is that the people you send to the website are yours and you are not going to lose them to the owner of the system.