Tweet

Make Exponential Profits With Backend Sales-part 2

Guest post by: Mike Saunders

Article Overview: You spend a lot of money on advertising and client acquisition....now with one easy step you can add sizzling profits to your bottom line.

Make Exponential Profits With Backend Sales-part 2

Taking the Advantage of Backend Selling


It’s odd that many companies don’t focus on building a database and taking advantage of backend sales.

There are, of course, countless examples of the value of building databases: Google, for instance, bought Youtube for $1.6 billion. It is extremely important to maintain and update your database to let your clients be aware of what special promotions you are offering and to keep them forever aware of the existence of your business. Having a good relationship with a large clientele is one of the biggest assets of any business in these consumer-oriented times.

Besides, though most companies focus on front-end sales, the backend is where the most money is to be made…..let me say that again….the backend is where the most money is made!
Your database means you can constantly market new products to your clients, allowing them to effortlessly upgrade, and expand your business further.

Backend sales are all about adding value to your clients’ purchases and persuading them that their main, front-end purchase would be much improved if supplemented by a number of backend purchases. If you market your backend good well enough, you can make a large profit even while seemingly offering the front-end product at a much cheaper price than other businesses.

For instance, let’s suppose company A purchases Toyota Camrys at $18,399 and sells them at $17,999. Company A thus loses $400 on the front-end sale. Meanwhile, other companies, which also obtain the cars at the price company A does, sell them at, say, $18,999. These companies thus technically make a profit of $600.

As people are more likely to purchase cars from company A, the others may justifiably complain that they are losing customers, and wonder whether the owners of company A were procuring cars at a lesser price.

Of course, company A, not being a charitable concern, is in fact making a profit. What company A is doing is concentrating on backend sales. Numerous extras, which would normally cost, say, $3,000 dollars are being offered with the car, for an extra price of, say, $1,400.

In this way, company makes a profit of $1,000, instead of suffering an apparent loss of $400. In addition, they can offer special discounts on finance, say 4% instead of 6%. This enables company A to build up a loyal clientele and ensure that the customers poached from other car dealerships would not be poached back by them.

You, too, can utilize backend sales and databases to make large profits.


Getting Started with Your Backend Strategy


A back end product is what you sell your after you've sold your main product.

Building a business requires acquiring new customers. However, that is expensive since marketing costs have to be raised to attract new buyers. According to a research by Fortune magazine it's easier to sell a product to an old customer than to a new one since buyers are always apprehensive in their first purchase.

An old customer trusts you and this enables him to buy other products from you. A foundation is created on whose basis you can introduce new products to the customer. This enhances their Customer Life Value and brings greater returns on your marketing investments….you DO know what the “lifetime value of your customers” is don’t you?! If not this is a very important concept, please get with someone who can help you with this, it will really open your eyes!

While determining your back end product, remember to keep it compatible with your main product. If you select an inconsistent product the customers will feel that you lack expertise and this can damage the customer's confidence in your main product also.

If you are undecided then you can always ask your customers' opinion regarding different products. Your customers will appreciate the gesture and your survey will bring you valuable information.


Conducting Surveys

If you possess a customer list then it is practical to conduct the survey by mail, email or phone. Prepare a simple survey questionnaire and mail it to your customers in self addressed envelopes. If you don't have the required customer list then get your sales clerk to conduct the survey in person with each sale. However, a one-to-one survey might not be preferable to every customer. Another great idea is to grab your webcam and make a quick video email to sent to your list (you DO create and build your email database don’t you?!). In this way you can ask in a fresh personal way!

Another way of determining your backend product is to check what your competitor is selling. If you have the same target customers then their product will work for you too.

Conclusion…

To sell your backend product successfully you must believe in it yourself. If you are ambivalent about your product it will become evident to your customer soon enough as well. Therefore, a genuine love for your product is necessary to make your business successful.

Related Articles
  Make Exponential Profits With Backend Sales-Part 1
  The Beauty of Backend Sales
  Make Exponential Profits With Backend Sales - Part 4
  Quickly Discover How Autoresponders Can Benefit Your Online Business
  Make Exponential Profits With Backend Sales-Part 3

Article Tags: assets, cars, clientele, countless examples, databases, existence, good relationship, google, money, special promotions, toyota, toyota camrys



Related Forum Posts
Re: Quote of the Day - "The only people witho - Thanks for sharing this Evan, there are some very powerful quotes in there, I particularly like this one:- You are now at a crossroads. This is your opportunity to make the most important decision you will ever make. Forget your past. Who are you now? Who have you decided you really are now? Don't think about who you have been. Who are you now? Who have you decided to become? Make this decision consciously. Make it carefully. Make it powerfully. regards, Mal.
Re: Joomla Now Has A GetResponse Module - Hi Kevin, Interesting that you tried Joomla and then gave up on it. So did I! There is a lot to be said for Joomla. It can make your site look very professional, you can completely change design in just a few clicks of your mouse, and if you add anything to a panel you can display it throughout your site... Also, Joomla does seem to suck in traffic. My traffic stats improved with Joomla, probably because of the interactive features it offers, such as the article directory feature and so on. However, I also experienced various frustrations with Joomla. HTML is simpler and you have complete control over your site, but you do have to recode every page when you make design changes... (unless you are prepared to learn CSS and then deal with all the browser problems...) Also, I market the Plug-In Profits Site and came to the conclusion that it would be better business practice to show my potential customers what can be done with a Plug-In Profits site by using one myself and modifying it to suit my purposes. After all, there is no better advertisement for a product than the fact that the seller also uses it! On the other hand, I know a lot of Internet marketers who love Joomla, so I think it is just a matter of choosing what works best for you. ... And if you like Joomla and use the GetResponse autoresponder service, life just got easier for you! David H
List of a few legitimate online business - Well My main methods to make money so far are adsense,affiliate marketing and freelancing and I think these are some more sites that can help me to make some more money.Your reviews are welcome: ::linkworth dot com>This site is awesome and offer lots of ways to make money. ::mturk dot com>complete simple mini task and get paid ::microworkers dot com>complete simple mini task and get paid ::shorttask dot com>complete simple mini task and get paid ::istockphoto dot com>sell stock photos ::eHow dot com>Make money writing ::Bukisa>Make money writing ::Associate Content>Make money writing ::Triond>Make money writing ::fiverr dot com>$5 freelancing job ::cpalead dot com>make money by completing offer ::peerfly>make money by completing offer
Increase Productivity and Profits on the Web - A Web site is a great way to better service and market to current customers, but often a difficult way to attract new ones." Increase Productivity and Profits on the Web New! Don’t let the savings and productivity enhancements described in the following pages make you rush out and spend thousands of dollars overnight to have someone set you up with your own Web server, hosted Web site, or intranet.
Re: 10 Tips to Start an Online Business - [quote="Anya101":1y6il6zm] 5. Make it very easy for people to order your products. The easier the order process, the more orders you will get. Make sure your payment pages are secured. If you accept payment online, it is [/quote:1y6il6zm] *This* is very good advice. I went to a site a couple of weeks ago to order a DVD, an independent movie, and instead of having Paypal, I had to jump through hoops to sign up for their payment system. It would have taken me more minutes than I cared to spend, so I just didn't bother!


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Top 5 Tips for Better Online Ads

Providing Feedback

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.