Most network marketers struggle due to lack of cash flow. Needless to say, this is one of the most important reasons for the huge failure rates experienced in this industry.
A lot of network marketers join and start contacting their near and dear ones asking them to join their business. It?s a very well known fact that there are operational costs for promoting a network marketing business. The idea is to recruit people and build a team which in turn will generate profits.
Since people spend a lot of money to promote their business, they are in a certain kind of pressure to recruit.
A very few people are able to turn a profit in a short period of time while most struggle to do so. This results in rejection which leads to people ultimately quitting this industry.
Can this situation be averted wherein distributors start making immediate upfront profits while building their network marketing team? Yes it?s possible and the best way to do so is by using a funded proposal system.
A funded proposal is a marketing technique where you sell a low priced, high volume product to your potential customers before offering them your back end (main) product.
A well planned funded proposal system will helps you in the following ways.
1. It produces immediate cash flow which results in offsetting your marketing costs and creates profit.
2. It sorts your prospects so that you work with only the serious ones.
It all sounds good but how can one create a funded proposal system to generate instant cash flow while building a business?
Actually there are certain criteria?s for choosing a funded proposal.
1. It must have a high demand in your market.
2. It must be a low cost product.
Now the first step starts with identifying the need of your target market.
In majority of the cases, what people (who are considering network marketing) need is information. A low cost, highly valuable informational product is something that your prospects would love and devour immediately.
If you take a close look, you would notice that information is what most people need. It does not matter whether your prospects are thinking about your business or your company products, what they need is information.
Why?
The reason being that everyone likes to know what they get out of a deal. The focus is always on the buyer, not the seller. When you offer information that your target market desperately needs, you will make sales which will result in immediate upfront profits.
This is precisely what smart network marketers do. They use the funded proposal concept to sell a simple low cost product which will generate them immediate cashflow and also qualify their prospects.
Here are the exact steps that they employ to create an organization of highly committed people.
The first step is all about generating highly targeted leads using various online marketing techniques.
After the leads are generated, they are put through a follow up process which drips them info thereby educating them. This is the second step.
In the third step, the prospects are sold a low priced, high value product which creates instant profits. The ones who invest in this are perceived to be more committed than those who haven?t.
The last step involves recruiting them and teaching them how to do the same.
What smart marketers do is invest their time and efforts into money producing activities. They create systems to do the grunt work while they focus on income producing activities like recruiting and all.
Since they employ the funded proposal concept when creating their marketing systems, they are able to generate instant cash flow which in turn funds their business growth.
The funded proposal concept has been one of the main reasons for the massive growth of many network marketing teams. Master the art of creating an effective funded proposal system and you too can experience similar growth.
If you want detailed information on how to set up a funded proposal system for your network marketing business, then go to this funded proposal article page.
Source: http://www.articlesontop.com/2011/05/using-funded-proposal-to-build-a-network-marketing-business/
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