A funded proposal is simply a method to develop prospect confidence and trust by offering real value at a low risk cost early in the relationship. Let me restate with an example. If you can offer a product such as a training video or ebook for a low risk price or even free, the prospect will be more likely to purchase and experience your value. This does 4 things for the internet marketer.

• The exchange of contact information helps to build the infamous “list”
• The small payment covers some of the costs of prospecting and funnel management but more importantly, qualifies a level of interest
• The internet marketer develops credibility with the prospect, if the purchased item has perceived value
• The prospect learns more about more products or larger investments from initial purchase

It is a great way to begin the dance between prospect and marketer because it puts the control in the hands of the prospect, allowing them to signal whether they are interested in an offer or willing to invest, even minimally with a stranger to try it out. The marketer has to be prepared, knowledgeable and ready to respond for FAQs, support and follow-up.

A value-added funded proposal can solve immediate questions for a prospect while demonstrating skills, expertise and professionalism of the internet marketer. Let’s face it. What are the two most common reasons why people do not buy? They are afraid of getting ripped off and although, rip offs are becoming increasingly rare, as reputations become more and more transparent on the internet, perceived value can be relative to the buyer. So one important thing for the marketer is to know their customer by clearly identifying what the features and benefits of the product are. If the product is advanced and the buyer is a beginner, the buyer will be frustrated and probably avoid other items from the marketer. If the product is basic and buyer thought he was getting a more advanced solution, the buyer will feel cheated and also feel that the marketer has nothing to offer. So the sales or advertising scripts leading up to the product offer must be clear on the attributes of that product. 

With the convenience of the internet search, today’s buyer has become very sophisticated and it is no longer good enough to provide a value-added products. At a minimum that, of course, is expected but the prospecting message must be clear, attractive and accurate to the reader with thought given to niche marketing, key word positioning and message placement for the search engines. Your message and your funded proposal product should be create confidence and credibility for you. In the world of internet informational products people “buy” people – your reputation is everything. 

Remember, the goals of internet marketing are no different than the marketing goals of the past hundred years: to create a long-term relationship between marketer and customer. In the early days the world of internet marketing was a little like the wild west. You had to be fast on the draw and it was all about the “owning” the search engine rankings and that just took lots of money and crazy “caffeinated” cowboys. As the industry continues to expand and the platforms and tools become more sophisticated and inexpensive, the critical factor is not money or ownership. 

I think the critical factor for successful internet marketing is having a consistent strategy. Most people are failing because of this latency of the cowboy image; i.e., if they don’t make it rich in a few months or with one campaign, they quit. The funded proposal, if done correctly, works beautifully as the first rung of such a strategy. 

Questions about your internet marketing strategy? Teresa has consulted with many companies and individuals on crafting or tweeking creative strategies that work. Write her at info@teresafarrell.com with your question or concern.