Funded Proposal? Does it work?

by Ket-Sang Tai

Well. This is not a new term anymore but I know a lot of people are still a bit confused and not quite sure how it works. Essentially this is a way to solve the problem people face when doing direct response marketing for their MLM business.

The way most MLM compensation plans are structured is that most of the commissions are paid out as residual income, which means there is little or no upfront commission. This makes direct response marketing difficult for 2 reasons:

1. It is difficult to measure return on investment or ROI.

2. You need to have enough money to invest in it otherwise you will have cashflow problem.

Funded proposal is a concept where you try to make money from the leads you generated by promoting some sort of affiliate products to them. These products have to be relevant to the market you are working on. For example, if you are marketing to existing network marketers and most of your prospects are existing network marketers, then you are going to market products which are useful for their businesses, examples are marketing tools, ebooks, business card services etc. By doing this, you actually make money from these people before they even look at your business.

Will this put them off from looking at my business? The answer is no. 90% of these leads will not join your business anyway, regardless if you sell them anything or not. This can be due to various reasons like wrong timing, lack of fund, want to stay focus on current business etc. By promoting useful products to them, you might actually increase the chance of them looking at your business especially if the products you recommend to them are actually of good value. This will build a relationship between you and your prospects and they will look at your business when the timing is right.

So how do you go about doing that? Well, it is not hard. All you need to do is start using a capture page and market the capture page. Start building a list and then market to the list. You can set everything up yourself or use a marketing system. I personally use a fantastic system called MLSP and I highly recommend it to everyone.

To Your Success,

Ket-Sang Tai


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  • Hey Kets,

    Yes, I too am a great believer in the funded proposal model. It definitely helps you to get into profit and cover your marketing expenses before the residual kicks in.

  • all this stuff is latin to me

  • Sounds like a great way to generate cash flow.

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