Your Product or Service IS your Funded Proposal

Are "Funded Proposals" a good way to build your network marketing business?

We've all seen them out there ...

"Systems" that purport to teach you a "better" way of sponsoring, and thereby building your network marketing business. The underlying premise of most of these "programs" is that your sponsor and/or or anyone else who is successfully building a business is somehow "lying to you" about the "best" way for You to get to where they are.

Shocking as it may seem (sarcasm intended), the ultimate solution presented by each of these systems is that you should:

  1. Purchase their ebook

  2. Join their affiliate program

  3. Use their affiliate page as your primary means of promotion

  4. Then attempt to "back-end" your affiliate customers into your "primary" mlm program

Call me silly, but I just don't get it?

I was always taught that one of the keys to a building viable network marketing program is that we already have a built in "funded proposal" ... our product or service.

If I've already got a great product, that puts cash in my pocket while introducing new people to my business model, why in the world would I need to try to sell them an ebook?

Hey, maybe I'm wrong, but I've yet to meet anybody who's built a large (and stable long-term) income in this industry primarily on the premise that everybody else is Telling Lies.

What do you think?



  1. Todd! This is a great post and something that needs to be said. Many of the folks behind these systems are only concerned with their own bank account. They want every single penny they can get out of you.

    So many people jump into these things, make a little money for someone else and then they quit. Of course there are more people where the last sucker came from. I really appreciate your article!

    Bobby Revell's last blog post..How to Create Artisic Expressiveness

  2. Hi Bobby,

    lol, I can see you're not a huge fan of funded proposals either ;)

    Glad you liked the post.

    Catch up with you again soon,

  3. There's a lot of cheezy marketing going on out there. I'm thinking of those uber-long "killer sales letters" full of underlined, bold, red, and highlighted text where they promise outrageous results and claim to offer a HUGE markdown from their "normal" price. It's only $42 instead of $5,014 for this amazing new e-book plus lifetime membership with 12 dozen free bonuses...

    I haven't bought from any of them so far. There's gotta be a better way to market stuff online than that. High-pressure is always a huge turn-off for me.

  4. Hi Luke,

    I'm with you, high pressure is not my style. lol, even the message on my voicemail almost "too salesy" for my taste. That being said, people wouldn't be selling stuff for for 5K unless someone was buying.


  5. You're absolutely right about your product or service being the "funded proposal" to make your business self-supporting. However, the reason so many of these so-called "funded proposal" systems sprang up is the fact that a very large number of network marketing companies/lines of sponsorship focus so heavily on recruiting distributors, with little or no training on the actual marketing of the products and services to customers.

    People are told by their sponsors and upline to go deeply out-of-pocket to attend ALL company-sponsored "functions" and to subscribe to the book/tape/CD/DVD-of-the-month club, attend "motivational seminars" - but very little is taught about how to actually MARKET the product/service, except as a "fall-back" when a prospect says "no" to the business opportunity.

    As a result, the network marketing industry is negatively painted with an even broader brush than you're painting some of these "funded proposal" systems. There is an obvious vacuum that is being filled by these "systems" or they wouldn't exist, and they certainly wouldn't have attained the popularity they currently enjoy.

    A final note - while most Funded Proposal systems are oriented towards recruiting other distributors, quite a few of them also provide some "missing pieces" that uplines aren't providing - including retail marketing techniques. Where things get a bit dicey is when a distributor discovers their hands are severely tied by their own company's Policies and Procedures when it comes to restrictions of the use of logos, trademarks, and brand names in their advertising. I have had one personal experience with a company which relies heavily on the internet as an integral part of their fulfillment process, yet distributors are prohibited from using the company's name in any links or advertisements on the internet - their only permitted internet promotional site is the $25-per-month cookie-cutter replicated sales site provided by the company!

    I totally agree with you that proper training of new reps to become profitable thru retail is the key. Where to get that training is the real issue, especially when it isn't coming from your upline. If there wasn't that void, third-party funded proposal systems wouldn't exist.

    (My apologies for making my comment longer than your original post.)

  6. Hi Don,

    Always nice to chat with a fellow Airman.

    And, I Never mind long comments ... feel free to write away anytime the mood strikes you ;-)

    I actually agree with almost all of what you've written. These funded proposal systems are definitely filling a gap. And, they do contain some useful info. (i purchased Magnetic Sponsoring a few years back, and I've read the 7 Lies ebook).

    My biggest problem with these system, especially for new networkers, is that they are guaranteed to cause a lack of focus ...

    If all they did was provide additional training, then encouraged people with ways to build their "primary" network marketing business, I'd have no problem with them.

    But, because they are affiliate programs, and they encourage people to "lead with the ebook", I honestly think that they're primarily a distraction ... when it comes to building a viable long-term network marketing business.

    ... especially for people who do already have a truly retailable product or service.

    As far as sales training goes, I again agree with you, almost all network marketing companies are woefully inadequate.

    That being said, I also think that many of us tend to perpetuate the idea that "sales" is much more difficult than it actually is.

    Most people who fail, it isn't because they don't know how to sell ... they fail because they're scared of getting rejected.

    ... and I'm not sure there's really any effective way to teach overcoming the fear of rejection, without actually subjecting yourself to the possibility of rejection.



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