A funded proposal is a term used to describe a marketing method. In this process, inexpensive products (to a degree) are sold on the front end. The goal is then to up sell the higher price point product or business, which is actually the main product, to the buyer. The end result is to show the buyer that they can trust you to make the higher end purchase because the initial, inexpensive purchase was valuable.

Why It Is Useful?

In a funded proposal, there is the element of building trust that factors in. It has become well known in the industry of network marketing that most people will quit (in some cases, the estimates are that 97 percent of people will not continue). One of the largest problems with a funded proposal is that it can take a great deal of time to earn money. Since a new person wants to make money quickly they easily become discouraged when business is slow. At this point they are highly likely to fall out if their perceived expectations are not fulfilled.

Many of those who are considering a business may already be involved in one. In this case, they may be interest in purchasing a product that is of interest to them or is likely to help them with their own business.

In either of these situations, the funded proposal method can work.

• Sell products related to network marketing or internet marketing.
• Keep the prices modest.
• Gradually build a list of people who are interested in the product or the business opportunity. This list is substantially stronger than other email campaign lists because it is based on people who have already purchased from you.
• Sell to the list your main business or product, at a substantially higher price point.

The Advantages

There are several key advantages to using a funded proposal method of advertising. First, by selling the smaller product, you still are generating some regular income. These funds are good to use for the purchase of advertising or to invest further in your business. It can also be a steady stream of income depending on how well one utilizes it.

Unlike email leads purchased from lead vendors, the leads created through the funded proposals are stronger. They have already purchased from you and are interested in your type of business. They have been proven to be a more serious respondent not just a tire kicker because they have paid for the privilege of receiving more information. The leads purchased from leads marketing vendors do not always generate any substantial interest and they may have already been in use by other businesses.

If you do use funded proposals for your overall initial product, be careful with your own personal branding. The author of the funded proposal product is the one who will get the branding, which can lead to helping to develop their business instead of your own. Utilize attraction marketing methods, like blogs, landing pages and other marketing tools to create your own brand even if you are using someone else's funded proposal product.