What is funded proposal marketing and how does it profit online business is a question that has recently dominated a number of business blogs and ezines. Sometimes also referred to as financed marketing, the philosophy behind the process centers on relieving online business owners from some of the burden of the requisite expenses attributed to promoting the company and its products or services.

Beyond the expenses for website development and hosting fees, the internet purveyor incurs the cost of advertising campaigns in order to draw customers to their website. Attracting web browsers is one thing; turning them into paying customers is another. Unless a sales transaction is completed, there is no return on the marketing investment. The answers to what is funded proposal marketing lie in ways to finance the cost of doing business online.

At the heart of the funded proposal marketing methodology is a process that attracts consumers with a low price point product or service. The product is promoted in front of the other products, primarily because of its ability to be offered so reasonably. The revenue from these low price point sales are then used to reimburse the business for the overall marketing expenses. However, if the volume is high enough, a profit may also be realized.

In the case of multi-level marketers, the FPM methodology saves on time and money in the pursuit of lead generation for building a downline of sales representatives. An MLM business is centered on selling a product or service, as well as enlisting a number of sales people who in turn sell the products and enlist more members for the downline. FPM works for MLM marketers by attracting prospects as customers with the low price point product and then encouraging them to become a members of the company downline.

A product or service is an offer to a consumer that meets a need. Knowing and meeting the needs of a target market is essential to successfully completing any sale. The same premise is used in deciding what low-cost product or service will be offered as the lost leader. The most effective products fall into the absolutely-must-have-this-product-or-service category. Depending on the target market, pricing should be in the I-have-nothing-to-lose range. It is suggested that FPM pricing be limited to less than $30.00.

There are a number of ways in which an appropriate FPM product can be developed. One is to create a product or your own. This is usually a downloadable how-to product containing advice on solving an issue relevant to the target market. In general, the higher the relevance of the advice offered, the greater the likelihood of a response.

Affiliate marketing opportunities is another way to offer attractive low price point products with little effort. There are a number of online enterprises that offer affiliate programs. Whenever a sale is made through an assigned link on a website, a commission is earned. Web pages on an existing site can be designed around the products. Revenue is generated and the contact information of the consumer is captured for the company database.

Employing the fundamentals of the funded proposal marketing system can prove very beneficial. This is especially true for online business owners who are seeking to lessen their business expenses while building a customer base.

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