A Funded Proposal for Your MLM Business Will Put Cash in Your Pocket and Stop You From Going Broke!

David Beckam

Quick question. How much is your monthly marketing budget for your MLM business? What’s that you say? You don’t have a monthly marketing budget? Well let me put it a different way. Since the start of your network marketing career, what is the total amount of money you have you spent on the following:

  • enrollment fee for your network marketing business
  • initial product order
  • prospecting cd’s and dvd’s
  • prospecting brochures
  • company business cards
  • compensation plan flipchart
  • pens, pencils, paper, and other writing supplies
  • dropcards
  • fuel and tolls for travel to local meetings and one-on-one appointments
  • pay-per-click advertising
  • leads and genealogy lists
  • wardrobe and dry cleaning for business-related attire
  • web hosting
  • website design
  • internet service
  • cell phone bill
  • weekly meeting distributor fees
  • regional/national convention registration, airfare, hotel and food
  • coffee at Starbucks for your one-on-one meetings with prospects
  • classified ads
  • team logo design
  • training materials for you and your downline
  • network marketing books
  • full-page and half-page ads
  • check processing fee
  • thank you cards and postage
  • fliers
  • product literature
  • product orders for samples and for personal use or consumption
  • monthly autoship

Oh yeah, you forgot about those expenses. Well guess what, those are your marketing and promotion expenses. Next question. How many months have you been in business with your network marketing company? If you add the total of the above expenses, plus any others I may have left off, and divide by the total number of months you have been business, the result is your monthly marketing budget.

For the sake of example, let’s say the total you have spent on expenses since the launch of your network marketing business is $1500 and you have been in business for 5 months. A quick calculation shows that your marketing budget is $300/month. Now here is the most important question:

Where is that $300/month coming from?

If this money is taken out of the revenues from your network marketing check, i.e. you are earning more than $300/month from your business, then congratulations, you are in a positive cashflow situation (a good thing). However, if you are not yet earning at least $300/month from your business, then you have negative cashflow; you are in a monthly deficit situation (this is bad). You are spending more than the business is making. More than likely you are covering the balance of these expenses from your personal savings (this is very bad). Your personal savings account is now like a private investor in your business. Unless you start to show your “investor” some positive returns and dividends, you will soon have an unhappy investor that may shut down the cash pipeline. In other words, it is imperative that your marketing expenses are covered by your business, and pronto, otherwise you will go broke!

Q: How does a funded proposal turn a negative cashflow situation into a positive cashflow situation that can be used to cover your monthly marketing expenses, so that you don’t wipe out your personal savings account?

A: By providing you with an additional stream of income that you can promote to get paid today, while you’re building your long-term residual check from the growth of your downline in your network marketing company.

For those of you unfamiliar with the term “funded proposal”, here is a quick definition, off the top of my head:

A funded proposal is a low-cost introductory product that you promote as part of your business model. The purpose of promoting the funded proposal product is to raise immediate cash to cover expenses, (e.g. marketing and promotion costs), associated with running your business. Typically, the funded proposal product is in some way related to your main product, so that the people who purchase your funded proposal product today would also possibly have an interest in your main product in the future. Because of your marketing and relationship building efforts, the customers who have purchased your funded proposal product will be more receptive to purchasing your main product in the future, than if you had promoted your main product to them first.

In your case, as a rep for your network marketing company, your main product is your business opportunity. One of your immediate goals is to grow your MLM business by creating a solid base of reps that have the proper skills, training, and work ethic to build a large, stable organization of reps and customers. A target market for good potential candidates to fill these positions is people currently in the network marketing industry that are dissatisfied with their current company, their current product, or the training and support they have received from their upline leadership.

An example of a good funded proposal product that you could promote to this group could be an instruction manual, or a video series, or audio series entitled, “How to Build a Huge Network Marketing Downline, Even Though You Have No Warm Market Where You Live and Your Upline Sucks!” Let’s say that you do your research, and you discover that a good price point for an instruction manual of this type is $47. If you sell 7 of these instruction manuals per month, using various free marketing methods, you would have just raised $329 that can be funneled back into your marketing campaign. It could be used to pay for your monthly web hosting, phone bill, marketing materials, fuel, etc., so that you are no longer taking money out of your savings to fund your marketing.

By promoting this product to struggling network marketers, you are accomplishing three tasks simultaneously.

1) You are building a list of qualified prospects (generating leads) to whom you can later promote your MLM business opportunity and
2) You are raising the necessary funds to keep your business afloat while you grow your MLM downline. (More Leads and More Cashflow)
3) In the event that they do partner with you in the future in your network marketing business, you are training them, through your instruction manual, to be the type of distributor that you want on your frontline.

Now, if you have the time and experience to create such a product, this would be a great product for you to create so that you could promote it to the type of individuals you would like to sponsor into your business, i.e., people with network marketing experience that may be struggling and open to switching to a new company. If you do not have the time and experience to create such a product, however, there are marketing systems that provide numerous excellent products that you can promote as an affiliate and make the upfront cash through affiliate commissions to fund your marketing efforts.

Some systems have upwards of twenty different income streams that you can set up in about an hour that you can promote without interfering with your primary network marketing business to finance your marketing budget. In addition, as a member of many of these marketing systems, you are given all the tools and training to generate traffic, build a list, market funded proposal products to your list to pay for your marketing, and sponsor more distributors into your MLM business.

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