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Back End Selling-making the real money
Copyright (c) 2007-2012 Cheryl Miller
Anyone who has been in marketing, and has their own product, will tell you that the vast majority of your profits will be in back end products. Surprisingly enough many people seem to forget this and after the initial sales seem to fizzle out like a brightly glowing meteor or firework.
Firstly what is a back end product? This is a product or service that is offered to a customer after his first purchase. For example you buy a nice set of golf balls, from a company, and a little while after you purchase, you receive a note from the company about a great discount on a manual containing the latest tips for improving your game. Now as a golfer you might very likely be interested in this. Added to this is the fact that you have already bought good quality product (golf balls) from the company and have confidence that you can expect the manual to be of the same high standards.
Encouraging the backend sale: As you can see there are a couple of elements here that would encourage a customer to make a second purchase. One is the primary product must be of the highest quality. This will give them confidence in your company that they will receive good products and services. Customer service and support are another key factor; always make sure you give extra attention to this and over deliver. Another important element is of course making sure that it is a related product that the customer would find useful. The discount is the icing on the cake.
How to do this?
1. Mailers are the best way to offer back end products. This is a sequence of messages set up on your autoresponder. They will start with the immediate thank you letter on purchase. A couple of days later a message with an offer to help with any questions your customer might have. Include a discount coupon for a related product or service, as a thank you for purchasing a product from your company. You can make some variables on this sequence but remember to try not to bombard your customer with too many messages, as this will deter purchase.
2. A discounted offer for a related product on the actual purchase page. It can be presented as a one time offer, bundled in with the customer's purchase.
3. Announcement of a new related product that you have developed, with a nice discount for established customers. You can even form a special announcement list for interested customers.
4. Free newsletter: This is always a nice place to offer back end products.
Where to get back end products? Resale rights products, make good back end offers and will also save your time, so that you do not have to immediately develop new products.
Develop new related products and services. If you like developing new products or have a special line of products lined up to sell, then you will have the advantage of brand new original products and services to use as back end offers.
Affiliate for related products and services. This is an easy way to get hassle free, back end products. Be sure these are related to your primary offer.
Examples of what you might use for back end products: If your primary product is a service you can add related e-books as backend products, or discounts on tools and related services. There are a wide variety of back end offers associated with products as well. This will largely depend on what your primary product or service is. A wise idea is to have a line of about 5 additional products associated with your initial product or service. You can then make 5 additional sales from the same customer. When you announce a brand new product the sequence begins again.
The 20/80 rule: consider that your primary product will give you 20% of your profits, but back end sales can bring you in as much as 80% of your overall business profits. So do not pass up on back end selling. It could cost you some serious money in lost profits.
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Top-Level Category: Business Offline Articles || Related Categories: Business Online Articles
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