Backend Profit Secrets And Viral Marketing

Once you truly understand the power of backend profits, you’ll explode your marketing results and create an unstoppable viral machine.

The techniques I will reveal to you have often been taught in many marketing courses and articles…but they are still underutilized because of two words - “tunnel vision.”

Backend profits means the additional income that you earn from a customer. The first purchase from a customer is the front end profits while the second purchase and so forth will be your backend.

The really good marketers understand that the most money will be made on the backend.

Here are a couple reasons why:

You can charge higher prices for backend products because you’ve already built a relationship with your customer.

They already know the quality of your product and of your customer service. You no longer have to convince them that you’re credible and that your information is good.

You only have to convince them that your backend product is higher quality than your front end product and that they NEED the backend product.

Trust is one of the single most important components of selling. You can earn that trust by providing a good front end product.

Most marketers do not truly understand the power of the backend and that’s a fact.

I know because I see very few affiliate programs which pay higher than 50% commission.

Think about this for a minute.

Let’s say you sell your product for $50 and you give 50% commission. You have 5 affiliates who each make 10 sales each.

You pocket $1,250 after paying commissions. You now have 50 customers. Five of them end up purchasing your $100 backend product for a profit of $500. Total profits is $1,750 for you.

Now let’s consider giving away 75% commission to your affiliates.

By giving away higher commissions, you get 10 affiliates instead of the 5. Ten affiliates making 10 sales each at $50 will make you $1,250 - which is the same front end profits as before.

Now you have 100 customers and make 10 backend sales for $1,000 profit.

So how did you end up making more when you increased your affiliate commissions by 25 percent? You made it on the backend.

Here’s what is happening behind the curtain as you increase your commissions.

You gain more affiliates and subscribers as those affiliates send you more traffic to your site.

Those affiliates are happier with their higher paycheck because you gave them higher commissions. Therefore, they will continue to send traffic to your site.

This cycle increases your traffic over time as you gain more customers, more affiliates and more subscribers.

It’s the ultimate viral marketing machine!

More subscribers equal more profits. More customers equals more profits. More affiliates equals more profits.

So is all that worth a hit on your front end profits?

Yes!

The problem most people have is they can’t stand to see their affiliates making more than them. Tunnel vision keeps them from seeing all the extra subscribers, customers and affiliates which could be theirs.

Please remember one thing about running your affiliate program.

A 75% reduction in profits is better than a 100% reduction, which is the case if the affiliate had not made ANY sale.

In summary, you should create an affiliate program for your front end product which gives away a majority of the profits.

You should also spend your time creating multiple backend products.

If the type of product you're selling requires manual work and it's not worth it for you to give higher commissions then an option for you is to create a different front-end product which will serve as a portal into your product line.

Your main goal in creating an 'intro' product is to use it to gain more traffic to your site. When you get the traffic, you should capture as many prospects as you can into your marketing funnel.

When you have more leads in your marketing funnel, you can control where they go by directing them within your follow-up emails.

Back-End Offers – Make Real Profits

Often the real profits lie in back-end sales.

Once you have a customer, you simply offer additional products, add-ons, upgrades, a super-deluxe version of the original product purchase with all the bells and whistles. The customer is already “sold” on the product or service, based on your sales material or presentation.

The back-end offer should supply the answer to “what’s next?” It should be related in some way to the original product, and the most successful back-end products are higher-priced accessories that makes it easier of better for the buyer than simply having the original.

A back end product should further enhance the product that the buyer intended to purchase. Whatever the original product does, a good back-end product will make it faster, better, more detailed, more complete or easier to use and benefit from – in essence it is far more helpful to the prospect in satisfying his wants, than is the original, more basic product.

Keys to Success

The success of back-end products can be attributed to having a captive, highly targeted audience who is definitely interested in achieving a specific result or solving a specific problem. The add-on product makes it easier to solve the prospect’s problem, quickly.

Another factor is to further sell the customer while he is still in the buying mode and while he is feeling good about solving a problem or moving closer towards a goal.

Examples

To come with examples of back-end products simply ask “What product or service could I also offer that would be a natural match for what my customer is buying now? A self-publisher could offer a booklet on a specific topic. As a back-end, he could offer the same topic covered in greater detail and presented in a multi-media format complete with audio cassettes, videos, manual and CD.

Opportunities for back-end or additional add-on products are easy to find. A shoe store can offer shoe buying customers, laces, polish, protectants or, other accessories, based on the type of shoe sold. Ever visit a theatre to watch a movie and not order popcorn, chips, soft drink, or some other refreshment? Those items are all back-end products. First you bought your tickets, then you went to the snack bar.

My local video store now offers “tape protection” as an extra option. It’s basically insurance against returning a damaged video. Since most videos rented out these days are new releases, tapes being returned in damaged condition are a rarity. Yet, many people gladly pay the extra twenty-five cents to “feel” secure. A clever new profit center for the video-rental industry.

How?

Always be mindful of products, services or ideas that your customers will willingly pay for. Anything that can make it easier or hassle-free for the customer, could be a good candidate as an add-on product. Convenience is a wonderful thing and many will willingly pay you for it.

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