Online Marketing Systems & The Funded Proposal

If you are here looking for information on Online marketing systems and Funded proposal systems then you have come to the right place. I will be examining the mechanics of how these Funded Proposal systems work , why in fact they work, and why if you want to be successful in generating leads for your home business it is critical for you to not only understand how they work, but why you should be using this unique marketing system.

funded proposal

The Mystery of The Funded Proposal

Now just about anyone from the home based business or network marketing industry who ventures online in search of better ways to build their business and generate leads sooner or later runs into the concepts of using Online Marking systems to generate lead flow and automate the process of giving a business presentation. They also run up against a unique but mysterious form of an online marketing system called the Funded Proposal.

Funded what??

Sounds exotic already…..

Now every industry and business model whether it’s franchising, network marketing, affiliate marketing or any host of other popular business models pretty much has its own language. Now for the uninitiated prospect who dives into that marketplace, the words and meanings can be downright confusing to say the least (i.e. capture page, landing page, funnels, slaps, plugins, widgets, and so many others it would fill a small dictionary).

 However words are just words and are usually easy to translate and understand. However the big stumbling blocks usually come with trying to understand different business model concepts, some of which are beyond the range of experience of a newbie, and since it usually represents something new and different, can be hard for a new person to grasp and get their arms around.

Implementing these new business model concepts can also be challenging since using them usually requires the rethinking or restructuring of an old well known approach, into doing something that is an entirely new business process.

Don’t ya just hate change…….

The Online Marketing System



Now this concept is pretty easy to understand since it is core to just about any business or sales model, and taking it online just uses a higher level of technology and automation than its non- internet based cousins.

Online Marketing systems are usually comprised of series of web pages that are linked together to first grab your prospects attention, capture their contact information, give them a video presentation, provide social proof of the product efficacy, and finally provide a buy option for the customer, all in an automated sales process.

In online marketing terminology these are called “Sales Funnels”

Here is what an online marking system usually looks like

  1. Capture Page (also called a Squeeze Page) – This is the initial webpage your prospect sees and its job is to provide them with just enough information and sizzle to make them want to know more. These pages may contain a short sales pitch video or sometimes just a few short phrases of powerful copyrighting designed to be so intriguing that the prospect is driven to want to know more. This page will also include an Opt-In form where the prospect has to enter their e mail address to receive more information and to gain entrance to the Landing or Sales Page of the Sales Funnel. Once entered the customer’s e mail address is automatically sent to an auto-responder system (such as Aweber or GVO) that will then provide automated e mail follow-ups with the prospect ever few days.
  2. Landing Page (Presentation Page) – Once the customer opts in or registers to get more information they are automatically redirected to a 2nd webpage containing a longer video sales presentation. In some online marketing system funnels there may even be a series of web pages and videos that the customer goes through step by step.
  3. Sales Page (Order Page) Usually the final step in the process is to offer the customer the ability to buy the product at the end of the sales funnel, usually with a “Buy Now” button that connects to a merchant account or shopping cart program that processes the customer information and sends the data on the customer to the company to process the order.

The Power of Online Marketing Systems

Now the power of the Online Marketing system is that your store or online sales funnel is open 24 hours a day, worldwide, and conducts the sales process for you automatically without you having to step in to manage the process or pick up the phone to close the sale.

A good online sales funnel selling a high profit product (such as Empower Network, Wealthmaster International, or other Top Tier MLM’s) and that targets a global market can make an online entrepreneur millions of dollars if done properly, and I might add, pretty much all on autopilot.

Yes Dorothy, that’s right you are no longer in Kansas, you are looking right into the eyes of your retirement in the Bahamas if you do it right….

FUNDED PROPOSALImagine sitting on your favorite beach enjoying a rum punch and smiling while you think about how much money you are making while you are not working.

Good grief, I want one!

Now you can see why internet marketing is so intriguing to so many business people.

Now of course as my economics professor used to stress “there is no free lunch” which means of course that you have to pay the price, but hey with a little study (well maybe a lot of study) and you laptop think about the life you could create.

Oh yes…….

Now online marketing systems are pretty straight forward, and as such pretty easy to understand but some forms of online marketing systems tend to leave newbie’s scratching their heads trying to wrap their head around a concept that radically different than what they are used to.

Enter the Funded Proposal Marketing System


Direct Approaches

Now most people in the world of business, home business, or network marketing are used to direct sales approaches. This is where you generate your leads, and directly pitch them on your business opportunity or product and present them with a buy decision.

Then the traditional sales model tells us to follow up until they buy or die (the Pit-bull on the throat approach).

Indirect Approaches

Now many sales people are also familiar with these approaches. These are slower but have a higher conversion ratio. This is where you don’t approach your prospect to buy right away but rather give them a chance to get to know you first, establish a Know-Like-Trust relationship first and then at some point they ask you to sell your product to them.

Attraction Marketing – The Know, Like, & Trust connection


These indirect approaches are also referred to as Attraction Marketing.

Now you may not know the label but you have seen it in action before, from stock brokers who do seminars to teach people how to trade stocks (so why do you think they do that?) to insurance agents who make friends with everyone in the community and never lay a sales pitch on anyone (and then write tons of business).

Attraction marketing is subtle and powerful, and the bottom line of the concept is that we would all rather do business with someone we Know-Like- and Trust, so if you establish that connection first then the sales process becomes effortless. There are even online courses that offer special training on how to implement these approaches online such as the Magnetic Sponsoring e book course.

The Funded Proposal

Now the funded proposal is also an indirect approach but this one is conceptually different, and probably confuses more people that try to market online than any other single concept because it goes against our basic desire for immediate gratification.

The World of Front End & Back End Products

In a funded proposal you usually will have a high profit product you want to sell your prospects but rather than approach them with that product first, you attract them with an alternate low ticket, high value product on the front end of your sales funnel to get their interest and attention and sell them that product first. (See EZ Money Formula)

Now once they are a customer you approach them with the higher profit back end product.

Now it’s important here that the front end product in your Funded Proposal be relevant to the primary business you are selling.

Funded Proposals Generate Cash Flow

One of the big benefits of the Funded Proposal is cash flow. Since generating leads costs money, why not monetize your lead generation efforts by selling a low cost high value product up front (see EZ Money Formula Funnel)

Funded Proposals and Top Tier MLM

Now Funded Proposals have been hugely popular in marketing Top Tier MLM programs. Since Top Tier MLM’s can cost anywhere from a few thousand dollars (Family IQ) to $20,000 or more for membership (Wealth Masters International), you are obviously going to have to drive a much larger lead flow than you would if you were selling a Matrix MLM membership for $25.

Funded Proposals – The Reverse Funnel System


Now the Reverse Funnel System is a type of Funded Proposal System, and it’s hard to say who actually invented the Reverse Funnel system but it is rumored to have been a Global Resorts International distributor in about 2006 who came up with the concept of setting up a powerful sales funnel presentation that sold prospects on a mysterious but powerful system for generating income and then had prospects submit an application and pay an application fee of $50 to see if they qualified for entrance to the program. This was later also used extensively by Carbon Copy Pro for their Wealthmasters International product.

The $50 fee generated the cash flow, and the back end product was a big ticket Top Tier Travel deal. Obviously more people paid the $50 than bought the big ticket deal but your business process generated cash flow while you were sifting and sorting for the qualified prospects.

There are many variations of this business system still in use today.

Funded Proposals and Standard MLM’s

Now the thought process of using a funded proposal to build a standard MLM goes something like this.

  • My high profit product is a Network marketing business opportunity
  • My target market is business opportunity seekers or existing MLM distributors in other companies
  • Identify the single biggest problem that people in that target market have in achieving success. (Now in my opinion that single biggest problem would be that most MLM hopefuls have real problems trying to consistently generate enough leads to power their business).
  • Next we generate leads from the target market and drive them to a funded proposal online sales funnel that offers them a solution to that problem, let’s say MLM leads, an online lead system, online marketing system such as My Lead System Pro, or an online training system like Empower Network that will teach them strategies on how to market online.
  • Then sell that market your front end product that will solve their problem of finding mlm leads,  and then once they are a customer sell then your back end high profit product or MLM.

Funded Proposals – Immediate & Time Delayed Sales Funnels

Now the process of offering the high profit back end product may be immediate and occur in the Funded Proposal sales funnel right after the initial front end product purchase (Empower Network), or it’s a delayed process in which you generate your leads, sell the front end product, and then contact your customers by phone and build rapport by getting to know them (My Lead System Pro) and give the Know-Like-Trust relationship time to develop before you try to sell them on your back end product (MLM company).

Now both these processes work well and which you use depends on what type of back end product you are selling. In the case of the immediate sale,  the back end product must be congruent to the front end product, and setup in such a way so that once the customer buys the initial product they can now see the benefit of the back end product and are much more likely to buy that also.

Empower Network which is a type of Funded Proposal actually does a great job on this since there are actually 5 levels of products that are immediately offered to the customer while still in the initial sales funnel, but each is offered to the prospect in ascending price order,  and only after the customer has completed the previous sales stage.

So in the example above the customer buys a $25 high value product, then they are offered a $100 training product, then after they purchase that they are offered the chance to buy a $500 training package and then a $1000 product and so on finally topping out at a $3,500 advanced training program.

Now using a Funded Proposal with a delayed sale such as with the My Lead System Pro marketing system, is necessary in that system since only about 1/3rd of the prospects coming into your sales funnel will probably be open to your back end business proposal immediately, but the other 70% of your leads will already be attached to some other MLM company or opportunity, so they will not be very interested in your sales pitch for why your MLM is better than theirs.

Why Wait?

Now since you know that Network Marketing is a transitional business, and  that the average time a new rep stays in a company before looking for some new and better opportunity is about 4 months. Now this is actually a killer lead generation approach since once you give the Know-Like-Trust relationship time to develop, you will convert a higher and higher percentage of your customers to the MLM you are building (see MLM Success The Tyranny Of The Deal).

Why Use The Funded Proposal?

  • Funded Proposals Generate More Prospects: Direct Approaches have lower lead flow and it’s harder to maintain list membership. Once someone has seen your deal and decided they are not interested they typically ‘Opt Out” of your list and they are gone forever
  • Funded Proposals Maintain Larger Customer Lists Over Time: Indirect Approaches allow you to build a much larger list of prospects that are all in your target market and also to maintain that list. Since you offered them something of value that did not conflict with their other business (tools, training, etc.) these customers tend to stay on your list.

Now if we think through our business process we know that if we approach enough leads directly about our business we would probably be able to sponsor the transitional prospects (those who are looking right now) and that probably represents about 2% or 3% of the total lead flow.

So we profit from the 3% but we lose money on the 97% who did not buy and to make it worse we know that since the MLM prospect market is very transitional, a very high percentage of the no-buy prospects will at sometime in the future be good prospects for your business once again.

  •  FUNDED PROPOSALFunded Proposals Give You Cash Flow: Funded Proposals allow you to cash flow your marketing efforts by the sale of your front end product, and to monetize your list on a long term basis by selling other products of value to that same list over and over.

Now if you learn to use tools like the Funded Proposal effectively you will find your success in building your home business will increase dramatically, and you may in fact find yourself on that perfect tropical beach smiling as you think about your laptop based business and that huge shopping cart in the Cloud that is now working for you 24 hours a day, 7 days a week.


Interested In Setting Up Your Own Funded Proposal Marketing System?

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Funded Proposal


About Marc Barrett

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