Posts Tagged funded proposals

Use Funded Proposals Properly: Market Your MLM Business

If you have an MLM business, no doubt you’ve heard of funded proposals. These are systems to generate cash that you can use for your marketing budget to generate more recruits for your main business.
Here’s how it works. You sell a product, a training series, DVD or e-books by sending out sales pitches to prospect, usually via an autoresponder. Typically, the materials you sell would be attractive to someone already in the MLM business or thinking about getting into it. The idea is that anyone willing to shell out their hard earned cash to learn about an MLM business would be your perfect recruit.
Your job is to use those sales as a way to recruit more people into your business. Most funded proposals give entrepreneurs a sales pitch that can help you recruit more people for your downline—and anyone in the MLM business knows that having a good, solid downline is the key to a successful MLM business.
Funded proposals are marketed to MLM owners as a way they can generate cash, even from people who do not ultimately sign up for their business. The MLM owner is urged to dedicate that money to advertising and marketing efforts that they might not be able to afford if they weren’t getting that money from the funded proposal.
These programs do work and do generate money. But the key to making them work as they were intended to work is not to get overly excited about the small amounts generated by the funded proposal sales and keep your eye on the prize—your main businesses.
The idea of these funded proposals is not to sell DVDs about MLMs, but to grow your downline by signing up recruits. That’s where the real money is. The problem, however, is that the typical MLM business doesn’t necessarily grow as fast as the owner wants it to. There isn’t that instant gratification of selling that training DVD, which is where some MLM owners are dropping the ball. Some MLM owners concentrate so much on selling the products from their funded proposal, they let their main business dwindle to nothing. It’s sort of like that old saying: “throwing the baby out with the bath water.”
If used as intended, funded proposals can not only generate extra money, but they can also be used to grow you business. For example, not every MLM owner has the money to market their business. Marketing your business properly can be expensive and the returns may not be immediately visible. However, anyone who is serious about their MLM business must spend money on it. Talk to any brick and mortar business owner and they will likely have a portion of their budget set aside for advertising and marketing. Why should an MLM business owner treat their venture any differently?
Funded proposal can give the MLM the ability to step into the next level of business—but you have to be smart, spend wisely, and keep your eye on the main prize.

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How Difficult is Network Marketing Sponsoring?|Is Sponsoring in Network Marketing Difficult?|Why Network Marketing Sponsoring Is Thought To Be Difficult

“Do I have to know and sponsor a lot of people to be successful in MLM?” is a commonly asked question.

The common reponse from most upline sponsors goes something like the following…

“No, you can create a great residual income and become very successful in Network Marketing by sponsoring just one person every month or two.

They will go on to tell you that the people you sponsor do not have to be from your “warm market,” (that is, your friends, relatives, and people you already know).  They say, just think of all the people you converse with every day in your normal activities!

They instruct you to sit down with pen and paper and write down a list of everyone you know, have known, attended school with, done business with, worked with, go to church with, etc. and they explain that you will be amazed by the number of people you come up with.

Surely not all these people will join your Multi Level Marketing program, however, you can still be very successful if only one in a hundred elects to join.  Statistics show that if one out of every hundred people you contact about joining your business, does so, it will be enough to make your car payment, another one will make your house payment, and one more will retire you!

So, three out of every one hundred isn’t all that bad!  Also, realize that the people on your list also know other people, and will quite often refer you to other people that may be interested in joining your program!”

Now 97 rejections may not seem like a lot to your sponsor, but I’m sure that it seems like a lot to you!  I know that it sure felt like a lot to me!

Do you know a number of people who would be willing to approach one hundred people and get turned away by 97 of them over and over again?  If you do, terrific, go sign them up today.  However, most people will not continue trying to sell or recruit to a disinterested, unwilling or hostile market.

If you are lucky enough to recruit an established “heavy hitter” from another MLM company who brings along his existing downline with him, then the above answer may be technically correct depending upon your company’s compensation plan.

If you do take this approach, the odds of you sponsoring a “heavy hitter” who will quickly develop a large downline below you is highly unlikely if you are only enrolling “one person every month or two.”

So what are your alternatives if you can’t land a “heavy hitter” early in you Multi Level Marketing sponsoring efforts and you do not relish the thought of being rejected by 97 out of every one hundred people you contact?

The solution is not to go out chasing after people attempting to get them to buy your products or join your company.  That will only get you membership in the NFL (No Friends Left) club.  Instead, entice the people who are really interested to come to you.  And then, recruit them into your business with a soft sell approach instead of the more tradition hard sell.

“OK, so just how do I go about accomplishing that?”, you ask.

You accomplish this by first offering your target market a funded proposal or free report relevant to your market and developing a mailing or contact list from the funded proposal sales process.  You then develop a positive relationship with your list members through frequent contact and by providing them useful information.

If you have targeted the correct market, you will soon have prospects calling you and asking you what program you belong to and how they can join your team.

Click the links in the resource box below to learn more about how to use free reports, funded proposals, and relationship marketing in your Multi Level Marketing sponsoring efforts.

George Dodge rates relationship marketing superior to all other MLM recruiting methods.  Download The 7 Great Lies of Network Marketing free report and then go on to discover the secrets of effective MLM Recruiting methods made available with the use of the Internet.

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