Funded proposal is a relatively new concept that puts a twist to the traditional multi-level marketing (MLM) business model. What it does is to take advantage of lead generation’s ability to rake in profits in a slowly but surely manner. The key difference of the funded proposal from the traditional model is that there is income generation even before the actual business is introduced to the prospective buyer or affiliate. This can be done through the promotion of products that are related to the main product. Some would say that funded proposal is a tougher sell because it takes skills to convince people to buy an affiliate product to lure them into buying the main product. This kind of thinking could easily be changed if the proper training is extended to affiliates.
In today’s ultra competitive world, people need all the tools and training to succeed in an MLM business. The state of the economy can dampen the spirits of people who work under the cloud of uncertainty and doubt. However, changing one’s outlook and becoming open to new ideas can lead to a better understanding of the concept of the funded proposal. With a better grasp of the process, people can benefit from the business model without worrying it would fail. Setting the business model into motion starts with generating leads, as is normally done in traditional MLM. The twist here is that those who join the network will not be offered the main product outright. They will be given training and provided with tools to keep the business going. These training and tools can be considered the affiliate products. Once people in the network are equipped with knowledge and skills, they can either buy the main product or offer it to his or her affiliate. The process of funded proposal does not stop with just selling; there is an added value that keeps people in the network hooked.
The concept of the funded proposal system
The funded proposal model is a calculated risk, but the payoff is huge if steps are properly executed. There is little chance of losing money because affiliates are trained well enough to close deals. Of course, the most critical stage of the funded proposal business process is determining the product. This is because it is the basis to which the value added sub-product is based on. For example, for the business to gather steam, the target market should realize that the business exists and that people need the product. The funded proposal system allows small businesses that are financially challenged to obtain money that can be used for selling their main products. This system works by selling an inexpensive sub-item to specifically targeted customers, and have them pay right away. The next step is preparing the sales pitch for the main product. This becomes easier to do because the customers now trust the business. Take the case of selling a video about expanding an MLM business as the main product. Before such product is offered to the customers, a video on setting up a business should be first offered at a fraction of the price of the main product. This way, there is a hook that would eventually complete the process. Those who avail of the first offer would almost always move to the next offer because they are the correct target market. It is for this reason the funded proposal system works.