I Need A Funded Proposal System That's Not Expensive

You’re probably going to hate me for saying this.
Recently, I was participating in a forum where someone began a heavily debated thread about Funded Proposal Systems.
Over the course of my career as an online business marketer, i found that Funded Proposals are misunderstood. Even the gurus with their large system followings–they could make more sales and have a true evangelical following if they understood it the way i see Funded Proposals.

A Funded Proposal isn’t magic.

It’s just a fancy name for “everything you sell to recover your ad spend”. Meaning, a “funded proposal” could be made up of 3 or 4 different products. The sum total of their revenue lets you break even on your advertising cost. This permits you to continue to generate leads from paid traffic who will buy all your other stuff.
Mike Dillard, a pioneer in the Funded Proposal space is the only one who created an extraordinary funded proposal system.
Dillard knew that his Magnetic Sponsoring funded proposal should have two purposes:

  • To recover what HE spend on advertising so he can keep generating leads
  • To warm prospects up so they buy everything else he wants to sell

With a subscriber-base of over 1 million, it is a testament that his understanding is superior to every other guru out there.
Now most of the people in the discussion thread were of the opinion that one should create their own funded proposal and sell it cheap.
I agree.
Make your own funded proposal. Its purpose, after all, is to sell the rest of YOUR products, not someone else’s.

A Cheap Funded Proposal Is Not A Funded Proposal At All

But a CHEAP product for $4 (as some suggested), will NOT create enough sales activity to recover ad spend.
Keeping the price low, creates a giant gap between your spending and your revenue.
It’s extremely difficult to break even at $4 a sale, considering that your average LEAD will set you back about $5-$20 (depending on how good you are at PPC).
I don’t know about you, but it usually costs me at least $50 in paid ads to make a single sale.
Perhaps you think that’s just because I’m a horrible seller and I’m probably over-paying for my traffic. But facts are facts. This has been my experience as the top paid advertising consultant in my industry.
Particularly before campaigns are optimised, the cost is much too high to break even with a $4 sale.
Forgive me.
Even at $4, you’re still asking someone to whip out a credit card and pay. They will resist the sale, even if it’s $1 nearly as much as they would at $50.
So you may as well make it count.

Should You Use Someone Else’s Funded Proposal System?

In short, NO.
Marketing Systems treat you as a user as an affiliate. Someone who is typically paid HALF (or less) of the revenue made from the sale.
Which means, you work twice as hard to make half the sale price in commission.
The fact of the matter, you’re NEVER going to recover your ad spend. Take it from me.
I’ve worked for most of the funded proposal systems as a traffic consultant, and in a majority of cases, breaking even on the first product is a physical IMPOSSIBILITY.

A Funded Proposal Warms Customers Up

Leaders in the network marketing Info-Marketing space neglect this feature of Funded Proposal system. In my opinion it cripples and holds them back from their full potential.
Their understanding of this point is far too simplistic.
Writing an eBook will only give you ONE product to sell.
This is NOT a funded proposal.

Converting Your Customers To Your Religion

A funded proposal warms its buyers to spend more money buying all your remaining solutions, almost automatically without thinking.
It makes you a trust-worthy leader they can follow blindly.
Now, be careful.
I am by no means saying that you should SELL a pure sales pitch.
Your goal should be to inform your customer about YOUR BELIEFS.
These are the things that form the identity of your company. It’s the core beliefs that inspire you to do what you do, in offering and creating products and services for your market.
It contains your VISION and your MISSION all in one. Packaged as a well-thought out argument supporting all your beliefs.
It is your version of the truth. Why you think YOURS of all businesses is the one they should use to solve the problems that customers agonise from.
Think of your funded proposal like a BIBLE for a new religion. YOUR religion, their religion, the religion of your employees.
And you must convert all who read it to your way of thinking.
Present a compelling argument, a logical reasonable argument that you are unwaveringly CONVINCED of.

An Example From YaghiLabs

Here’s an example to illustrate my point.
I, for one, don’t believe in marketing systems. They stand against everything we at YaghiLabs believe in.
We think Marketing Systems are not for entrepreneurs. They are a scapegoat way out for the typical employee drone who thinks money comes easy.
We are unwaveringly AGAINST marketing systems.
We see them create more problems than they solve. Through numerous client consultations, our personal experience, and spending time actively communicating with the Home Business community. We KNOW this to be true.
Simply presenting our experiences in a product, in a blog post, or anything else we publish to the YaghiLabs website, in a convincing well-reasoned argument, I automatically get across our entire philosophy.
This philosophy is the basis and core on which all my products, training, and services are built.
We truly want to institute change in the industry. Move them away from these replicated dying business models and help them to find their entrepreneurial selves.
We are PASSIONATE about this goal. We spend hours debating it with one another, shaking our heads at what we see is wrong in the industry, and making every effort to re-educate the masses.
If we can convince people of the problems we see, they will easily see the benefit of buying ALL of our products and services.

Who Are You As a Business?

Your business needs its own identity too.
You need real reasons why you do what you do the way you do it.
When you speak about your views, the people who believe in you or agree with you …they will be EVANGELICAL about your products. They will buy everything you wish to sell after.
Because they now share your belief structure. They no longer buy into the old beliefs that would have normally made them resist buying from you.

A Funded Proposal Sells The Beliefs of Your Business

My point is, your funded proposal has to come from a place of PERSONAL experience.
It has to be something you believe in and can defend and stand up for. it has to guide your life and your business.
Can you do all those things with someone ELSE’s funded proposal?
No! usually not.
In RARE cases, you can be evangelical about someone else’s ideas…but you’d be helping someone else spread their cause. In this case, you better be prepared to do that for charity. If you’re truly evangelical, then you can’t be a sell-out to your ideas for the sake of profit.
Working with someone else’s funded proposal system does not serve you.
It serves them to make people buy all THEIR products. NOT yours. Not your bizop. Nothing.

So to conclude this awfully long rant…

  1. Create your own funded proposal.
  2. Price it so you can break even on your ad spend
  3. Built it on foundations of personal beliefs and theories about how difficult problems of your customers can and should be solved
  4. Convince your team (or employees) to become evangelical about it. They must be willing to go out and preach the “good word” for the sake of enlightening others.
  5. Have a clear idea of what other products you intend to sell in future, because that’s where profit lives.

The YaghiLabs Internet Business Academy is the only course in the industry that educates its students on creating an unshakable identity, mission, and vision for their business. We’ve taken our students through some simple exercises that allow them to verbalise their philosophies in any market.
Check it out at…


Good luck with your funded proposal quest!

Jim Yaghi

Jim Yaghi

Foremost Home Business traffic expert, Jim Yaghi is a Computer Scientist and Mathematician who used to build search engines for a living. At 16 he created a mildly popular social network and has been an online entrepreneur for over 15 years. In 2006 he rose to the #1 Affiliate rank in many Home Business programs (most notably Magnetic Sponsoring). Today he's best known for hatching the first industry-wide viral campaign to reach all major social networks, for hosting a top-10 Internet radio show for entrepreneurs, and for shattering industry sales records with his best-selling, easy-to-follow online marketing courses PPC Domination, PPC Supremacy, and Traffic KickStart.

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