Every good marketer knows how important it is to increase the lifetime value of the customer. It's much cheaper to make a sale to a previous customer than it is to get a new one on board. The cost of acquiring new customers can be high, but getting more money out of existing customers won't cost you a penny.
Building a backend to your business isn't hard... but without one, you're limiting your financial potential. A backend is how you continue selling to an existing customer. Let's say you sell an eBook on how to make money blogging, for example.
Your eBook could discuss what a blog is, how to set one up, and how to make money from it. Your backend sales could come from affiliate items (if you don't feel like taking the product creation route again) or a new eBook, membership site, or video/audio package you sell.
Whenever you first start selling online, always think of complementary topics you can tack on as a backend. For our example, your backend sales could be about social networking on other web 2.0 sites like Squidoo, Facebook, or bookmarking sites.
After you've begun seeing success with those, your back-end sales could continue by focusing on more paid methods of marketing, such as AdWords. You set up your offers with your audience like stepping stones, moving from the first logical starting point to a more advanced stage.
Insert your offers right into your autoresponder system and it will automatically serve the needs of your subscribers the longer they stay on your list.
Another common way to add a back end onto a product is to offer personal coaching.
Personal coaching can be expensive, sometimes even costing up to thousands of dollars per month. A lot of marketers offer this as a backend strategy, giving them the potential to significantly increase the return on their investment(ROI) of acquiring the prospect.
If you take care to create top quality backend offers that add value to their needs, they'll continue buying from you. If you promote anything and everything just for the sake of cashing in, they'll eventually lose trust in you.
Your backend sales strategy isn't limited to just your autoresponder. You can put links to backend products on your "thank you" pages as well. And don't forget that each product can act as a backend item for another one. So you might start with an ebook about social marketing and then use a blogging ebook as your back-end item for the customer.
Just make sure you don't set yourself up for limited profits by using a single product without implementing a backend strategy that will work to increase your ROI over and over again. You're building a business, not dabbling in a few hit or miss sales.
Your eBook could discuss what a blog is, how to set one up, and how to make money from it. Your backend sales could come from affiliate items (if you don't feel like taking the product creation route again) or a new eBook, membership site, or video/audio package you sell.
Whenever you first start selling online, always think of complementary topics you can tack on as a backend. For our example, your backend sales could be about social networking on other web 2.0 sites like Squidoo, Facebook, or bookmarking sites.
After you've begun seeing success with those, your back-end sales could continue by focusing on more paid methods of marketing, such as AdWords. You set up your offers with your audience like stepping stones, moving from the first logical starting point to a more advanced stage.
Insert your offers right into your autoresponder system and it will automatically serve the needs of your subscribers the longer they stay on your list.
Another common way to add a back end onto a product is to offer personal coaching.
If you take care to create top quality backend offers that add value to their needs, they'll continue buying from you. If you promote anything and everything just for the sake of cashing in, they'll eventually lose trust in you.
Your backend sales strategy isn't limited to just your autoresponder. You can put links to backend products on your "thank you" pages as well. And don't forget that each product can act as a backend item for another one. So you might start with an ebook about social marketing and then use a blogging ebook as your back-end item for the customer.
Just make sure you don't set yourself up for limited profits by using a single product without implementing a backend strategy that will work to increase your ROI over and over again. You're building a business, not dabbling in a few hit or miss sales.
Here's another great resource to help you build your business: CLICK HERE!
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