“Back-end Strategy” Using Back-end Products to Create Lifetime Customers
Well I bet you would never have guessed that we would be going from looking for a profitable Niche right into creating your backend strategy.
Chances are you don’t even have a product in your mind yet. Well that is OK and as I lay this next lesson out you will see why it is so important to begin thinking about the< “what comes next” even before you may know what comes first.
This term is used to describe strategies and tactics for generating sales of additional products and services to an existing customer list.
Back-end marketing is extremely important for long-term business growth and for the overall success of a sales and marketing venture.
Back-end marketing can be an inexpensive form of marketing because the largest expense relating to marketing (customer acquisition) has already been incurred.
Another important benefit of back-end marketing is that your response rates and conversions will typically be much higher because your customers already know, respect and trust you.
Despite the benefits of back-end marketing (low cost, higher conversions, higher profits, etc.), it’s the most ignored form of marketing strategy.
To be successful in marketing and sales in the long run, a business MUST become successful at back-end marketing.
So what is Next?
You did it…. You got a visitor to sign up to your squeeze page. You even got them to convert to a sale and have a real paying customer.
Now it’s time for your “Back-end Strategy Plan”.
You start out b generating traffic to your squeeze page, they opt in to your awesome free product that they just can’t resist which puts them on your list, and now you begin to give them more of what they want
So let’s look at what the benefits are of having a good strong backend marketing strategy in place.
Having a Backend Strategy Benefits
- Higher overall profits
- Higher quality customers
- Better JV partners
- Speaking opportunities
- Less competition
- Bigger impact on clients
- Fewer customer service issues
- Better testimonials
- Guru status
- Creative compensation
- Higher credibility
- YOU ARE NOW IN CONTROL
The Big Marketer’s Myth
Myth: Create a hundred page ebook, sell it for $37 and make a fortune.
Truth: One ebook does not contain the key to make you rich, you’ll be lucky if you break even. Right now many successful people online are losing money on that first product that you see.
That’s why you have to learn Backend strategies.
If you think a fortune is $1 million, then you have to sell 27,028 e-books. Not going to happen ever. Sorry!
Even if you think a fortune is $100,000, you would still have to sell 2703 books, which is almost impossible as well.
The front end sales only purpose is: Create a relationship to continue selling.
Examples of Back-ending
If you own a computer you might be sold on an upgrade after a year, printers, computer desk, etc.
If you open a bank account you might be sold on further financial services like loans and/or investing.
If you are giving away an ebook your ebook may be filled with links to other products of your own or affiliate products that are going to make sense within the mind of the customer as something they are going to need.
Maybe your ebook is on building a website and you have an affiliate link within the ebook recommending hostgator as your choice for a great hosting company to host the website they are going to be building.
Or maybe within your ebook you have a banner for them to check out your recommendation for a great hosting account.
These are all forms of Backend Marketing. It is offering the, “what comes next!”
Tips for Successful Back-end Marketing
- The primary product must be of the highest quality. This will give customers confidence that with your company, 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.
- Make sure that the additional product is a related item that the customer would find useful.
- Properly positioned in the mind of customer We will be covering positioning in a later chapter. But just know that if what you are offering does not make sense to the customer when they show up to your website, it will be a very hard sell.
What Type of Products or Services Can I Use In My Backend Strategy?
- Boot camps
- Coaching programs
- Home study courses
- Field trips
- Mastermind groups
- Do-it-for-them services
- Membership sites
- Physical version of your digital product.
- Consider breaking your product into two separate offers.
- And much, much more
- Offer the “what comes next”.
Steps to Building your Backend Strategy
Step 1: List Building, (Create A Lead-Generation System)
- Capture Name and Email
The first step in building your sales funnel should be to get as many people
in the “door” as possible. If you are not list building yet you need to start. We will be covering list building in one of the next few chapters
Always remember that the highest cost of backend marketing is getting the first sale. Getting that person on your list and turning them into a paying customer.
Step 2: Create a System to Earn More Money During The Sales Process
- OTOs (One Time Offers)
Let’s quickly touch on each of these terms before we move forward into step 3.
FACT: People are far more likely to make another purchase when their wallet, purse, credit card, etc. is already on the table than at any other time in the purchase cycle.
- Offering your customer a chance to upgrade.
- Upsells can double or even triple the amount of revenue.
Think of up-selling as tacking on a product that can enhance the value of the original product.
Do you need them? No, but it sure does add extra money.
Many marketers fail to capitalize on upselling and are leaving an insane load of cash on the table by not asking their customers to buy more.
What is Upselling?
Upsell – Win – Win, You are happier and your customer is happier.
- An upsell is an offer given to a customer during an initial purchase to bump them to another purchase.
- Customer must get a good deal so the extra value they receive must be worth more than the extra price. Clearly see benefits.
- The customer needs to see that at the time of the sale in order for the higher priced item to make sense
- Continue to believe it after the sale. (low refunds- Higher trust factor)
- If you buy a computer you are “upsold” on things like the memory, hard drive space, monitor size, etc.
- Upselling is used worldwide in business and is a common practice.
- McDonalds used to use “Would you like to super-size that?”
- Sell a $47 info product you can easily up-sell to a platinum version which includes the written transcripts for only $67.
- Up-sell to an 'Inner Circle Members Only' monthly webinar series for an additional $29/month! Call it your "Super Success Program".
- Sell a $17.00 e-book and upsell a video training course showing them the how to step by step process you outlined in the e-book for
- Deluxe Upsell - You could sell a basic product and tell people for a little more money they can receive the deluxe edition.
- Make Money Upsell - You could offer people the rights to sell the product they are buying.
- Time Upsell - If you're selling a product or service people subscribe to monthly, offer them a discount to subscribe for a full year.
- Free Upsell - You could offer a free sample or trial of your product (membership).
When Should I Upsell?
Always have something of value to offer.
- Upsell any time a customer makes a purchase from you.
- Upsell products that fit and flow with your offer.
Create a Sense of Urgency
The general rule in business is to always have something of value to offer. We are always upselling because we know the customer wants what we have.
Selling points such as “limited time offer” or “limited quantities on hand” create a sense of urgency and improving the conversion rates of upsells.
Upselling is huge!
Nearly all of our profits come from upselling and back-end products. On initial sales, 70% of our profit comes from the upsell.
Should you even consider launching a product without an upsell? While this is entirely up to you, I wouldn’t want to leave 70% of my money laying on the table.
That’s the difference between $30,000 and $100,000.
With money like that on the line, are you giving your upsell process the attention it deserves?
The Bump Process
A bump is slightly different than an upsell. A bump is usually used to increase the price of the initial offer and is usually a 10-30% increase.
An example of a bump maybe something like adding the video training to your ebook for a slightly higher cost. Make sure the value is there to justify the bump in the mind of the visitor.
Sell related products to your current customers either at the point of sale or at a later time.
Example: Purchase a video camera and you cross-sell a tripod
Cross-selling is used to sell products that may be related to the original product, instead of upgrades, add-ons, or more expensive versions like up-selling consists of.
A one-time offer is extremely powerful. We have all been hit up with one time offers at one point or another. Think about the last time you bought a product online and the very moment you bought the product you were taken to a page that said, “Hey Wait!”, or “You Will Only See This Page Once!”
Understanding the guidelines of how to create a successful one-time offer is the most important step that most people forget to take.
Some important facts to remember about your one time offer or OTO are as follows:
- An OTO is shown to the customer only once, immediately after the customer has paid for your front end offer.
- An OTO has to be compelling
- An OTO has to impart a sense of urgency
- An OTO must make sense in the mind of the buyer
You are able to locate simple PHP script that will allow the page to come up only once on a particular computer. Just do a search on Google for, “Free One Time Offer Scripts” and you will come up with all sorts of results.
You may have to hire someone to set this up for you if you do not have the technical knowledge already.
Step 3: Create Your System to Make Sales after the Initial Purchase
After your customers initial purchase you will need to begin introducing different backend products using different systems that you will need to set up.
Some of these systems will and should be automated such as setting auto responder services that will send out follow up message series to those that opt in to your list.
That same autoresponder system will help you to send out affiliate product recommendations to your new subscriber.
- Offers directly after the sale. This can set up many different ways from One Time Offers to product recommendations sent out through your autoresponder. Again it is the, “what comes next!”
- Product recommendations (Affiliate Marketing) sent out through broadcasts and follow up email series.
- Physical mailing (postcards about special deals)
- Telephone follow-ups (30-min phone consultation)
- Follow Up Emails sent out to deliver more products and services
- Thank You and Download Pages. Set these pages up with other offers such as un-advertised bonus offers.
- Webinars & Teleseminars where you recommend your products that follow the initial purchase and also affiliate products.
Let’s cover a couple of these methods a little more in depth.
"Thank You" Page
A thank you page is set in place to help reassure the customer that the order has been processed
It is also a great place to make another offer that compliments initial purchase just made. Your thank you page may actually be your One Time Offer page.
- The sooner you can communicate your back-end offer with your customer in that time, the better the results.
- Any product or service that can benefit the customer's purchase should be systematically offered and reinforced.
- It goes without saying that this works best when your initial front-end product is quality, has depth and offers a high ROI for the consumer.
It is the responsibility of the product download page to deliver the product promised and then give them another opportunity to buy again once they see how great the initial purchase is.
A great way to do this is to add an Un-advertised bonus offer to the page.
The reason this is a great place to do this is because your product download page is generally a page that will be re-visited many times as the customer begins the download process of the product they have recently acquired from you whether it was a free product or a paid product.
- Add Un-advertised bonus!
Many times your unadvertised bonus will lead them to another free offer being offered by another product owner that you have become an affiliate for.
The beauty of this kind of advertising is that the product owner of the un-advertised bonus is responsible for getting that lead into their sales funnel, and for making the sale.
They are responsible for setting up the One Time Offer pages etc. You just have to get the lead to their bonus offer you are offering on your download pages.
Once the other product owner makes a sale you are compensated through commissions.
The key is to position un-advertised bonus products that are of great value and make sense and compliment the product they just received from you.
Email Follow Up and Broadcast Emails
- Automated way for you turn one-time customers into repeat customers
- Develop a real depth of relationship with your customers
- Build Trust Factor
- Pre-selling - Pre-Selling is positioning your offer in the mind of the visitor so that it makes sense to buy!
Affiliate Marketing Product Recommendation
Product recommendation… promote Affiliate products in your backend
- compliment your products
- position to make sense
Your Affiliate product recommendations (if well-chosen and positioned) should provide an additional service and provide appreciated value for your visitors who will in turn reward you when they open their wallet and give back to you!
The affiliate model is an excellent backend revenue source. (It always makes more sense, and I recommend that you always diversify your income sources)
Step 4: Set up systems to Entice “Stale” Customers to purchase again.
- Limited time discounts
- Special offers or unique products
- Set up special offers for customers who request refunds or cancel memberships
- Set up a survey and ask customer why they are cancelling or refunding. Once they select best answer it directs them to product to help them solve the problem they are having.
A down-sell is what is offered if the upsell is rejected. Here are a few
The upsell may be rejected because it is too expensive, so a down-sell is generally cheaper.
Down-sells may not require a big decision and commitment of the buyer’s time and money.
Down-selling lets the would-be lost customers quickly move from prospect to customer.
- Gives the opportunity for the customer to enter the product funnel.
- Allows you further pre-selling and positioning of your higher margin products.
- Serves as a great opportunity to introduce who you are and what you can do for your customers.
- Effective at establishing new relationships.
- Helps build trust and credibility.
Easy Back-end Example With an eBook
While $27 sales are great, there's a whole lot more money to be made using your eBook.
Leverage your expertise.
If you’ve written your own eBook, you know enough on the subject to be considered a bona fide expert, and anyone that buys your eBook from you believes this... otherwise they wouldn't be wasting time and money on your product.
One of the best ways to add backend marketing to your ebook is something we have already covered.
Strategically adding links to other products throughout your ebook where it makes sense.
Don’t just plaster your ebook with links. Make sure that you carefully and strategically add these links so that once again it makes perfect sense to the customer.
As you can notice this positioning stuff we keep talking about is a big important factor when it comes to marketing product.
Here is a great example of placing links in the ebook.
You will notice we were talking about setting up autoreponders so it made perfect sense to offer an affiliate link to my favorite autoresponders in this spot of the ebook.
I am not selling it to them at this point. I am just positioning it in their mind as something they need and then recommending the ones they should use. They can now click on the anchor text I created and check out the services.
It will be up to Aweber and Get response to sell them on the service and when they do I receive a commission as an affiliate.
Now let’s pay the un-advertised bonus offer a revisit at this point as this is a great way to monetize your ebook as well.
Let’s say after reading your ebook on creating websites you feel your customer will still have many questions and doubts about setting up their website on their own.
Well surprise, surprise to the customer there is an un-advertised bonus offer from you with an offer to set up the website for them to eliminate the frustration the customer may experience trying to do it on their own.
You have now just offered them a service to help them set up their website and also help them earn money by helping them set up and get started selling an affiliate product on their website.
You also could once again offer your free unadvertised bonus offers you added on your download pages here as well.
Just makes sure anything you offer makes sense in the mind of the customer.
I am sure you may be getting tired of hearing that last statement but it is very important so either figure it out or get used to me saying it.
What other kind of services can you offer that compliment your eBook?
- Consulting with you, coaching and mentoring.
Be specific about what your consulting package will include and how it will benefit your customer.
- Package deals
Offer package deals where you actually put your system into action for the customer. If you teach people how to set up websites, actually offer the service of setting up websites for them.
Whatever the subject of your eBook, there is a higher-dollar service you can perform that compliments it.
Instead of making a few bucks for each eBook sale, you’re actually able to simply use the eBook as a lead generator for your more expensive personal service.
Information Back-end Funnel
The real product funnel used by millionaires is simple:
- Create front end offers that rarely change and constantly improve on your back-end offers.
- Usually your front end products will be lower in price to get more customers into your product funnel.
Setting up your product funnel is going to take a little time but by doing so you will stop leaving money on the table, and begin collecting it from those who choose to leave it there by not setting up their backend strategy.
Here is the process to setting up your funnel.
- First research your niche.
- Get to know your potential clients.
- Create series of products. Know what comes next
- Position Backend products so they make sense in the mind of customer.
Example of an information-based funnel could be…
- Low-end products – $10-$100 eBooks, newsletters, short e-courses and reports.
- Middle-end products – $100-$500 DVD tutorials, webinars, short teleseminar series, audio and CD series.
- High-end products – $1,000-$10,000 advanced coaching programs, one-on-one coaching, advanced teleseminar programs, boot camps, workshops and offline seminars.
Using PLR to Create Your Backend
Challenges of Backend marketing:
- No Time
- No Money
- No Idea Of What To Create
This is where PLR or 'Private Label Rights' products come to the rescue. The benefits of using Private Label Right’s products to create your backend strategy are huge.
- Time Saver -Who wouldn’t want more time in their day? Product creation takes time PLR gives back time.
- Inexpensive-PLR is easier on the wallet. Who doesn’t like that! :-)
Private Label rights products are very reasonable in cost, especially when you start factoring in all the time and money you would have to spend creating the product in the first place. Someone else has already invested the needed time and money.
- Flexibility -Rewrite it, Re-brand, and add your own spin and personality
- Profitable -Very high return on investment- When you factor in that you may pay $37-$497 for a good PLR product and then have the rights to set it up and re-launch it and generate a 6 figure income the return on your investment is huge.
- Idea Generator- Many times this is the big hold up of product creation…coming up with an idea. With PLR you don’t have to come up with the idea, someone else already did that for you!
Things to use the Private Label Rights product for are many when it comes to setting up your backend strategy.
- Find several and take pieces and parts from each of them and create a brand new product for your backend.
- Find high end training courses that compliment your front end
- Use PLR as bonus offers for increasing your backend Affiliate product recommendations to increase conversions.
A good PLR Store is the Bigproductstore.
Backend Marketing Summary
- If you don’t offer your customers what they want to buy, someone else will. Don’t do them a disservice.
- ABU - Always Be Upselling!
- Consistently improve on your back-end offers to achieve the highest LCV possible.
- The quickest way out of the business of selling informational products on the Internet is to NOT HAVE A BACKEND STRATEGY!
- Getting a first-time customer isn’t easy. When you get one you need to make sure that you keep him, keep him happy and make him want to buy from you again and again.
- You do this by having excellent customer service, staying in contact with you customers building good relationships to know your customer and by having great back-end products to offer him.
- It is much easier to sell to and existing customer than it is to get a new customer.