Why Funded Proposals Can Protect Against Lawsuits in Network Marketing

A funded proposal is a means of generating income in addition to that brought in by your network marketing business. Having more than one source of income can aid protect you in case something goes inappropriate with your parent network marketing company.



California's Network Marketing Lawsuit



In case you haven't heard, the attorney general for the situation of California has filed a gigantic lawsuit against a major network marketing company.



While many distributors in that network marketing company might be concerned as to how this is going to impact their business, those that expend funded proposals as section of their overall marketing strategy have less to be concerned about than those that do not.



Distributors who fail to exhaust funded sponsoring proposals as share of their overall marketing strategy have only one source of income for their business. Their source of income is dependent upon their ability to attract original customers and novel distributors to their critical MLM company.



If there is a dip in this process, the demolish result will be a dip in their income.



A lawsuit can have a major attain on the incomes of distributors who only market their notable networking business opportunity. The accomplish is even worse when the lawsuit is made by an attorney general or another governing authority.



At best, some prospects who would, under normal circumstances, join the business will now hesitate or not join at all. At worst, if the MLM company loses the lawsuit, primary losses may result and the company could go out of business.



How Can Having a Funded Sponsored Proposal relieve if the Parent Network Marketing Company Goes Under?



A funded proposal serves as a shield against any negative event that affects the parent MLM company. This is because a funded proposal offers related, but generic information that has nothing to do with the parent company in inquire.



Therefore any challenges that the parent company faces will have no impact on the sales and income being generated from a funded proposal.



In the worst case scenario of the parent MLM company going out of business as a result of a lawsuit, a funded proposal ensures that all of the work that was done by the distributor affected by the shut down is not completely lost.



The distributor may lose tons of credibility with his or her organization if the parent company fails. However, if the distributor was building a funded proposal in the process, revenue will continue to approach in from the funded proposal sale system.



The distributor won't have to commence from scratch. The sales of the funded sponsoring proposal product can be old by the distributor to fund his or her lifestyle until a time when the distributor finds a novel network marketing company.



By making a few changes to the marketing system (none at all if the system is kept completely generic), the distributor can easily shift gears and market a fresh parent network marketing company using the leads generated from the funded proposal.