The Funded Proposal Concept- a Marketer’s Best Friend
Many internet marketers have a cash flow problem. The cost of their marketing campaigns, especially early in their businesses, typically generates a negative cash flow. The momentum of their business has not gotten to the point that they are profitable on a monthly basis. This fact ruins many businesses before they actually get off the ground. People get discouraged and quit, and then feel that internet marketing is a scam because it didn’t work out for them. Sound familiar?
One reason for this cash flow problem is that most people only market one thing, their primary product. Now, their main product could be an actual specific product, or it could be their business itself, as in the case of most MLM businesses. Either way this can be deadly to cash flow. It is very typical that the conversion rate of leads to sales is quite small.
So what can be done about this?
What is needed is a way to generate revenue at a rate that provides a sufficient positive cash flow to support the marketing efforts, at least until the business gains a momentum of its own. Enter the funded proposal concept. This concept is relatively new in the internet marketing industry, but can be the solution to the cash flow problem.
What is the funded proposal concept?
The funded proposal concept, simply put, is the use of relatively low cost up front offers that a business can make to their target market, other than just promote their main product. It may be an informational product, or a tool that can provide real value to anyone in the business’s target market. It is a win/ win situation for both parties involved. A person in the target market receives something they need, and the marketer has working capital to further market his/her main product or business. It also provides a way to better monetize each lead, and thus increase the ROI. This concept is especially useful to the marketer whose primary product may have a large cost associated with it.
The funded proposal concept also provides additional benefits to those who employ it properly. It provides a way to build a list of clients that have established that they are willing to purchase from you and your business. The fact that these clients purchased something that gave them value builds a kind of trust. This trust makes them more agreeable to any other offers you may make to them, including your main product.
So, by leading with a low cost offer that provides answers to questions, or a tool that solves a problem you not only are able to generate a positive cash flow, but can increase the overall conversions of your primary business. This funded proposal concept can be the internet marketer’s best friend.
February 4, 2012 at 7:57 pm Comments (0)