Magnetic Sponsoring and the Funded Proposal

Let’s be honest, you really can’t get ahead in your online business if you have to spend a ton of money on advertising right off the bat. What most fledgling internet marketers aren’t told by their upline is that they need to be very strategic in their actions. More specifically, they need to have a way to make money in addition to their primary opportunity. It doesn’t have to be a ton of money, it just has to be enough to support their advertising costs.

This is where the idea of a funded proposal comes in. A funded proposal is basically when you sell an inexpensive front-end product that will allow you to cover your advertising costs while building a downline for your primary business. In essence, it’s like getting paid to prospect. This idea of a funded proposal has allowed me to largely pay for my advertising costs while building my primary downline.

Since my main opportunity is a high-ticket network marketing business, I needed to lead with a less expensive front end product, both to generate new leads and to support my advertising costs. I decided to use Magnetic Sponsoring. Magnetic Sponsoring is a fantastic affiliate program founded by Mike Dillard, that will pay you on referrals of all of his products. To become an affiliate, all you need to do is purchase one of his products, the cheapest being $39 for the Magnetic Sponsoring book. For this price, not only do you get the highly regarded book on how to become a recruiting expert, you also get the opportunity to earn unlimited commissions as an affiliate, use the extensive Magnetic Sponsoring back office, and build a downline of leads within the system. It’s a fantastic idea both for network marketing newcomers and experienced players alike. I can’t praise it enough.

Mike’s 7 free videos below have really changed the way I run my online business, and I think they can help you too.

Why Do New Network Marketing Companies Fail?

There are new network marketing companies showing up all the time. The majority of these will fail and crush the dreams of the distributors who joined them. Why do so many of these new companies fail?

I am a big believer in network marketing, but I’m realistic enough to understand that the majority of them are being started by people who will not have what it takes to make it. The reasons network marketing companies fail are similar to any brick and mortar business.

Network marketing owners also face many more challenges than traditional business owners. For one thing they create a lot of egos and deal with a lot of distributors egos. When they are fortunate enough to recruit someone who builds a successful organization, they build them up, to encourage others. Unfortunately, some of these leaders may begin to believe their press and think they’re God’s gift to network marketing.

People prefer to follow humble leaders. The egos of the leaders can be the very reasons an organization may begin to crumble. Other times it is the ethics of the owners themselves. All network marketing owners, like to promote themselves as people who care for their people and someone to be trusted. Once their actions expose their true intentions the ethical distributors will lose confidence in them.

Once confidence is lost, these distributor’s ethics will not allow them to continue recruiting new prospects. Soon they’re looking for new network marketing companies themselves. It may take a few years, but when the leaders give up on a company, they leave. Soon most of them will find a company to believe in and the unethical will lose.

Another area that can hurt new network marketing companies is coming up with a compensation plan that actually pays out too much money. This can cause an adjustment to the compensation plan. If the adjustment takes money away from distributors they’ll start to lose trust in the company.

Likewise new hurdles that cause breakage can be disheartening. Breakage is a term that means to cause failure. Any new requirement, such as a tough monthly quota will cause distributors to fail to qualify. Once a distributor is full time in the business, losing a several thousand dollar check can be a disincentive. Be assured other leaders will hear about this and lose faith in the company owners as well.

To me a new network marketing company, it’s owners and leaders must be willing to do everything in their power to not cheat their people.