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Are You Neglecting 70%
to 90% of Your Internet Profits
By Terry Dean
At the very beginning
of this article, I want to tell you about a horrible mistake I have been
making lately. I have been neglecting the place where 70% - 90% of most
Internet profits come from.
I would normally keep
a mistake like this to myself, but I also recognize that probably 9 out of
every 10 of my readers are making the exact same mistake. This just
shouldn't be happening. My business is
extremely profitable, but by neglecting this one technique I have been
ignoring tens of thousands of dollars in additional profits.
The direct marketing
rule that I been neglecting to give attention to lately is that of backend
selling. I know and have taught backend selling to thousands of Internet
businesses, but in the past 6 months of my own business I have been
letting it slide. For my business this
means that I am ignoring additional profit centers. For many Internet
businesses which aren't as profitable as mine this one mistake could
easily spell the death of their entire endeavor. To give you a quick
idea of just how profitable backend selling can be for your business,
let's give the following example. Let's say you are in
an information business selling a low cost audio tape set and a larger
video package. The first product you have sells for $50.00 (and costs
$25.00 for drop shipping from the owner) while your second package sells
for $300.00 (and costs $150.00 drop shipping from the owner). If the first product
you sell to customers sells for $50.00 and costs you $25.00 to fulfill,
you have $25.00 potential earnings from it where you have to pay
advertising expenses from. If it costs you on average $20.00 advertising
expense for each new customer, you would only be earning a $5.00 profit on
every new customer. What would happen if
you included a sales letter for your $300.00 course in every $50.00
package people bought? If 1 out of every 5
customers you brought in on the first product would also buy your second
product for $300.00, you would be earning an extra $150.00 off of every 5
customers. Your front end profits would have been $25.00 for these 5
customers and your backend profits would have been $150.00 without
spending more than a couple of cents extra for the sales letter included
in the packages.
You would only be
earning $25.00 a day in your startup Internet business is you were selling
5 packages a day. Once you add in your backend product, your profits jump
up to $175.00 a day!
For many businesses,
having a backend product determines whether your business succeeds or not.
You must have a specific backend in mind whenever you are planning your
web site, choosing a product, or designing a product. On the Internet, it is
so easy to come up with backend products! If you don't own any additional
products or services to place on a backend, then you can simply join an
affiliate program with a high quality product or find a business owner who
will drop ship products for you. There are thousands of
companies out there which have affiliate programs or who drop ship for
you. All you have to do is search for "drop shipping" or "affiliate" and
thousands upon thousands of sites will come up.
If you see someone who
has a product you would like to sell, see if they will set up a drop
shipping program just for you. This type would often end up being the most
profitable for you since you wouldn't be competing with thousands of other
affiliates. The key to backend
profits in your business is to actually start doing something. So, I have
included 4 easy ways your Internet business can start profiting from
backend selling today! 4 Ways ANY Internet
Business Can Easily Start Making Backend Sales Immediately... 1. Point of
Purchase The absolute best
point for a backend offer on any sale is right after the initial sale
while the customer still has their credit card out. For example, whenever
I go buy a pair of shoes it always seems like once you have the shoes
picked out the salesperson will then ask you if you would like laces,
polish, etc.
If you go buy a suit,
then they ask if you would like dress shirts, ties, etc. Any smart
retailer will figure out what other products they have that naturally go
with the purchases most often being made. Then, they will offer an up-sell
immediately at the point of sale. How can you apply this
to your Internet business? The easiest method and the most profitable is
to offer the up-sell right after your customer has made their purchase and
still has their credit card out. In other words, put the additional
product or products on the thank you page right after the purchase is made
through your secure order forms.
At that point, your
customer has their credit card out and is in a buying mood. By listing one
to three similar products on this page, you should be able to increase
your overall sales by 10% - 30% immediately.
2. With Product
Delivery The second key time to
send a backend offer is when the products are shipped. Wise marketers
throw in a catalog of other products and services they offer with every
order.
Possibly offer a 30
day special coupon in the package. If they order something else from you
within thirty days they get $10.00 off or 10% off or something similar to
this. Just remember that there has to be some incentive to ordering now. If you have someone
else fulfilling the order for you by drop shipping out the products, then
just send out your own thank you letter with the backend offer enclosed.
3. Follow-up You should send out
follow-up sales letters to all of your current customers. Top direct
marketers report that it is 7 times as easy to sell to an existing
customer than it is to develop a new one. Put the odds to work for you
instead of against you and start selling more to your current customers. The correct time to
send out this letter depends on what you sell. If you sell a consumable
product such as food, nutritional, body care, etc., then you send out the
letter whenever the average customer will run out of the current supply. If you sell other
types of products, then the correct time will often be around every 3
months. Newsletter publishers will often advertise a new product in each
new issue of the publication that goes out. It all depends on your
products and your customers. Learn the correct time frame for sending out
letters based on testing. 4. Leads that Don't
Buy From You. Here is an area that
most Internet marketers don't even consider, but it could quickly become a
new profit center for your business. What do you do with those leads who
contact you but don't end up buying? In most businesses,
they just throw them away. The smart marketer who wants to get maximum
profit out of every second of their time and out of every dollar they
spend will put these leads to use also. They are obviously
interested in what you are selling since something you had caused them to
originally contact you for more information. They didn't want to buy your
product, but what if you offer another similar product or service to them
instead once you have finished your regular follow-up system for your main
product.
This is definitely an
area that you need to start testing out. You could also try working with
another marketer who sells a similar product and work out a lead trade.
You will offer your product to his leads that weren't sold and he will
offer his to your leads you couldn't sell. Since the cost of follow-up
online is virtually nothing, this type of additional profit center is
definitely something every business should look into. The question I am
going to ask you is, "Are You Going to Leave 70% - 90% Of Your Profits
Behind?" Above are four simple
techniques you can use to start making more profits out of your online
business. What are you going to do about it? Are you going to at least
start trying out a couple of these techniques in your business...or are
you satisfied with what you are making right now when there is so much
more available? Terry Dean, a 5 year
veteran of Internet marketing, will Take You By The Hand and Show You
Exact Results of All the Internet Marketing Techniques he tests and Uses
Every Single Month" Click here to Find Out More: |
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