Given the attempts people make to make money online, it’s surprising how many of them leave so much on the table. Too many people seem to be focused on simply getting the sale, and don’t realise that if they just stood back, took the blinkers off and looked at the bigger picture, they’re working hard for peanuts and leaving the real money behind. What am I talking about? Back end sales.
What Are Back End Sales?
Back end sales are one of the most ignored internet marketing strategies. They’re also one of the most profitable. So not offering them is a costly mistake.
Don’t believe me? Think of all the big name marketers. You buy a product from them, you’re on their list. Actually, you don’t need to buy. They’re so aware of how profitable back end sales are, they don’t even require a sale. Squeeze page and freebie anyone?
Back end sales are the sales you make to a customer after the initial purchase. Your strategy should be to develop a carefully crafted roadmap which recognises what your customers want and places the right products in front of the right customers at the right time. If you can do this, you can make repeat sales to your customers, far into the future.
Why Are Back End Sales So Profitable?
Back end sales are profitable for three main reasons:
- No Acquisition Costs. Remember how much it cost you to acquire that customer? You did measure it didn’t you? Whether you pay to drive traffic to your site, or you invest your time generating “free” traffic, there’s a cost to acquiring customers. But when you’re selling to existing customers, there are no acquisition costs. The cost that you would have incurred attracting a new customer to buy, now becomes profit.
- Relationships. When selling to new customers, you have no existing relationship with them and therefore have to invest in not only bringing them to your site, but also in persuading them to buy. They may be apprehensive about you as an unknown quantity and consequently limit their purchase. A customer, on the other hand, knows what to expect. If you’ve sold them a high quality product in the past, and have then continued to build a relationship with them by, say, offering them tip sheets via email, they’re more likely to need less convincing to buy. They may even buy more.
- High End Products. Not only may an existing customer be prepared to make multiple purchases from you, but if you’ve coaxed them through your sales funnel, they may also be purchasing higher value items than a first time customer.
These three reasons convert to a potential goldmine. They’re the reason the pro’s are the pro’s and the wannabes want to be.
Over To You: Are you leaving money on the table? Maybe you have a sales funnel but customers just aren’t travelling through it. Or perhaps this is just bleeding obvious to you and you can’t understanding why more people aren’t doing it. I’d love to hear your views.