Is List Building with Funded Proposals Really Worth It?

by Franco on September 17, 2007

List Building with Funded Proposals seem to be all the rage right now, but are they really benefiting you? Or just building someone else’s list?

A funded proposal in [tag]online marketing[/tag] is where you advertise and build a list. The first thing you offer your prospect is some sort of low priced ebook, report, audio recording, software, or something of value. You then later follow up and promote your primary program or whatever else is next to offer in your marketing funnel.

One of the most popular ones I’ve seen and used in the recent past in the [tag]Home Business[/tag] arena has been [tag]Mike Dillard[/tag] and his [tag]Magnetic Sponsoring[/tag]. The way it works is I promote Mike’s free 10-day Bootcamp, which then sells the $47 book. Each sale nets me a $20 commission.

But the thing is that the people I refer to him stay on his database and his newsletter promotes all kinds of other things to these people as well as very aggressively brands Mike as the “go to guy” for learning online marketing…


I haven’t promoted Magnetic Sponsoring as a funded proposal for a long time.

I used to use it as a training aid. So people can understand the marketing psychology I use in my own marketing and why I don’t promote certain programs…

But as a funded proposal I came to a decision that the return you as the marketer get for building Mike’s list is just not balanced or worth it…

At some point building your own list, or at least having a bit more control of your list is more important than a $20 commission for some ebook.

If it’s balanced and there is a good give and take, it’s fine… but I thought otherwise with that specific model.

Here’s the thing though… I don’t care about any “[tag]funded proposal[/tag]”.

In and of itself it’s not that big a deal. And often it can just be a distraction.

I build [tag]direct sales programs[/tag]. I’m looking for entrepreneurs that have a budget and a desire to build high ticket programs. That’s my main focus.

I’m not an info marketer… I don’t create my own products or want to…

I build top tier direct sales programs.

So a $20 ebook… ? So what? It just does’nt fit into a big priority… UNLESS it helps me attract and close sales with the people I’m looking for.

That’s the difference.

Some people are into “monetizing” their list in whatever way they can… and it’s good. Not saying it’s bad…

But as long as it doesn’t detract from your main goal,whatever it is…

If it complements your current business, then great.

A “funded proposal” can be anything really. I’ve tested using very low priced point automated programs for people to get into my marketing training.

A nice 100% commission on something under 100 bucks and then I can take that person and teach them online marketing, my way and they can make fast profits while they learn. The idea being that they’ll move themselves up
to more lucrative programs with momentum and profits…

So that’s a way to create a “farm system” and to create your own “funded proposal”.

Now the [tag]Reverse Funnel System[/tag] is a crazy type of “funded proposal” because it’s so unconventional…

Usually a funded proposal offers “something”. Some cheap ebook, an training audio or some other form of “product”…

The RFS’s funded proposal is very clear about what it’s not…

You get nothing. And you know it up front. All you get is a chance to show the RFS marketer that you’re serious about checking out the program and that you’re not a “tirekicker” just wasting time.

That’s pretty much it. And it’s assertively clear on the site.

It was designed to be very provocative.

But then again… that has really attracted some very high quality prospects to this high ticket program. It’s target marketing. Some are attracted, others are not. But for the marketer, it can be a very useful tool that saves a lot of time.

Am I just building [tag]Ty Coughlin[/tag] and his list?

Maybe. But people opt in all over the place anyway.

Paying to have them opt in to Mike Dillard’s list (even though I still like his product and use it in my training) and having him market aggressive to them through his newsletter in exchange for a $20 spot per sale of his book is not in my best interests…

But sending traffic to RFS and building Ty’s list… but having him aggressively sell and convert the system for ME to the tune of a passive 20k – 30k per month level and being able to utilize a system that is converting and duplicating at that high price point, unlike any other program I’ve seen in a while… you know, yeah… I’ll take it. I’ll build that list all day long…

Plus the way it’s designed is very methodical… any other income streams presented later will be offered only to people reaching a certain income level in the primary program and sponsorship integrity will be maintained within the system…

Contrast that with Mike’s newsletter where he sells all kinds of back-end stuff not really caring who’s “prospect” that is… that’s not for me.

So it has to be a win-win-win. That’s my point.

Had the RFS program not converted or duplicated for my new teammates, then that’s another story. For me a funded proposal is worthless if the main program doesn’t convert… because it won’t last.

So, it’s not just a thing about being too focused on the “funded proposal”… who cares about that… it’s all about running your business and having it deliver what you want it to…

Funded proposal or not…

Be careful… most are just distractions…


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Mark Fitzpatrick April 17, 2011 at 9:46 pm

I agree with you Franco, you are right on spot with the balance.issue. The basics of what magnetic sponsoring offers is a stepping stone in at least teaching people not to lead with their primary business. however”the funded proposal side of the offer weighs too far one way” .
I personally Love to Use “Real Funded Proposals” to the advantage of my prospect more so than to my advantage. I love to show people how to buy things that don’t cost, I love to show people how easy it is to redirect the “Currency” into Their Pockets ,and when I show them how easy it is to do “They Get It”, Literally! Then we move on and upwards to bigger and better returns. Great Article! Thanks for all you do…

Chase Swift April 29, 2008 at 10:49 am

You’re so very right about the funded proposals. Some people don’t realize this, but it is an important factor.

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