The last years the new trend in network marketing, especially for those working online, is what is called a funded proposal. The process of generating leads that you can try to convert them to distributors in your MLM opportunity by selling them usually an infoproduct in the front-end. That method can be very useful for those that don't have the financial resources to advertise directly themselves and their multi-level marketing business for a long period of time.

But let's see in more detail how exactly it works.

As we said, everything starts with the front-end product that is usually an info-product like an ebook, sometimes it can also be a tangible product, but such cases are rare as it's not cost-efficient. What you are doing is you are trying to sell this product for a designated price. When someone buys it he becomes a lead and you follow up with him through an autoresponder with a preloaded series of emails trying to convince him to become a member to your network marketing opportunity. The business opportunity that you are trying to sell to him is called the back-end product.

The exciting part of this method is the selling of the front-end product, in essence you get paid to generate your own leads. Of course, you have to subtract the advertising costs in order to find your real profit, if any. If you sell for example a training course for $35 and the customer acquisition cost is $25 you make a profit of $10 for every lead you generate.

That concept is very powerful if you consider that most people that advertise directly their MLM company, they are losing money in the first months, or even years until their downline grows big enough so their commissions can match up their advertising expenses. With a funded proposal you solve the cash-flow problems of your home based business right from the very beginning getting in profit literally from your first sale.

Another advantage is the quality of the leads you generate. First, you know where they come from since you generate them on your very own. Second, they already have spent money for buying your course so they are serious prospects and not freebie seekers. And third, they qualified themselves that they are genuinely interested in network marketing by purchasing your relevant product.

As good as it sounds the funded proposal by now, it gets even better. There are ready made solutions with an information product that you can sell, an autoresponder loaded with pre-written emails in order to convert your customers to distributors in your multilevel marketing opportunity, as well as training on how to market and build your home business.

That way you won't have to set up the whole system by yourself which requires a lot of knowledge and skills in order to function properly and be efficient in terms of converting traffic to customers and leads to distributors. Someone else has already done the hard work for you.

From what we have seen above an MLM funded proposal is a powerful tool for every network marketer, especially if he doesn't have the necessary cash to sustain direct advertising of his business opportunity for a long period of time that can usually last for many months before he gets to profits. Whether you set up your own system, or join a ready one, using that method is something that you should consider.