How To Create Automatic Back-end Profits
Its just about every persons dream: to be able to just sit back and watch the money come in
. Unfortunately, not too many people have made that dream come true for themselves. But then there are others whove come close. With online businesses and something called back end marketing, the possibility of getting something substantial for a minimal effort is now, more than ever, possible.Simply put, back end marketing is the promotion and presentation of a product or service indirectly via referrals.
A common example would be an e-book thats being distributed for free. However, the content of the ebook refers to a certain product (say, another ebook) that can be purchased from the distributor of the free book. That kind of promotion can be called back end marketing.
This should not be confused with marketing materials like brochures or ebooks that talk about or solicit sales for the product directly. The point of back end marketing is that the promotion of the product or service is done suggestively (much like what a hamburger joint attendant would do when they ask you if you want fries to go with the burger you just bought).
Furthermore, not all back end marketing materials should be distributed for free. Again, much like the fries with burger example, your customer is encouraged to make another purchase to complement the one he had just made.
You may not realize it but if done right, back end profits could bring in twice as much profit than what direct sales accounts for. This is because making the sale with a repeat or referral customer doesnt cost you anything and therefore more profit goes back to you.
Now that you know that back end marketing is such a nifty idea, how exactly do you go around applying it? Below are some suggestions, which you can modify and tailor to suit the kind of business you are in.
First thing on your list is to create referrals and references. Use all possible opportunities to link one product with another. For example, you could indicate products references inside distributed ebooks or reports or offer current customers the opportunity to purchase product updates at discounted prices. Remember that a satisfied customer is more likely to purchase products related to the one he just bought and is happy with.
Your avenues for back end marketing should also flow from one customer to another. The best way to make this happen is to make sure that the product or giveaway that makes the referrals offers great benefit to any person. You can also create and give incentives to people who tell other people about your products and help you spread the word.
The idea is that the product will continue to promote itself effectively even without you making the pitch. Basically, the product is generating profit for you automatically.
Here is one example you may want to look into just to see how backend profits can be made automatically just by making sure you apply back end marketing principles. (Taking out your calculator at this point might help.)
A cooking e-course sells for $50. If the site sells 10 courses a week, the owner grosses $500 a week. However, advertising this course costs him $100 a week and so his net profit comes to $400.
The same site also offers a dessert-making e-course for $30 and an average of 15 of this is sold a week. With the same computation and advertising cost, the business stands to gross $450 with net profit at $ 350. That said, on a particular week, the business earns $750.
The following week, the cooking course was modified to refer to the dessert-making course and vice versa. Selling at the same rate, the cooking course was able to make a sale for 5 dessert courses, while the dessert course was able to generate sales for 7 dinner courses.
So for this particular week, with direct sales alone, the site grossed another $750. But with the sales made with back end marketing, an additional dinner course sales of $350 was made and $150 for the dessert course which adds up to a total gross of $1250 with net profit at $1050. Thats more than 70% increase in sales without having to increase the advertising cost!
Do you see now how you can actually earn more without needing to work more? All it needs is for you to work smarter by doing back end marketing for your products or services.
As this becomes part and parcel of your business, you will be able to find yourself spending less time and effort selling your business and more time actually enjoying the profits it brings.
by: Elijah Chai