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Backend Selling - The Key to Longevity

Home > Profit > Selling Products or Services > Articles

by Steve Humphrey

We all know that considerable effort is required to get customers for our products. We design killer web pages, work hard for high search engine rankings (or pay for them), submit classified ads, etc. Then we make some sales.

Is our job done? Not a chance! We need more customers to buy more products, so we have to keep it up nonstop. Or do we?

Enter the concept of backend sales. Traditional marketing has used this for decades. Getting new customers is hard; selling that customer another product, much easier. Plus, if the customer buys from us repeatedly, he or she must be happy with the experience.

Besides getting us a stream of backend sales, we often get free advertising from the customer. Can you say... "word-of-mouth"?

So how do we make backend sales? There are several ways. You've already seen them in action, so I'll just refresh your memory.

When you order a product from a mail-order company, they'll send you a catalog along with your order, or put you on a mailing list and send you new catalogs from time to time. Or, they send you a sales letter for another product. This may be related to the first product in some way.

To implement this technique on the web, put the sales pitch for your backend item in the email to the customer to confirm their order. If you have an online catalog, include a link to it. Or include a coupon or special offer "for our valued customers".

For a faster response, put the backend offer on the "Thank You" page that is generated by a credit-card sale. The customer just bought something from you and has a credit card in his or her hot little hand! Why not ask for another purchase while they are in the mood to buy!

If you only have one product right now, you're missing the chance to make backend sales. Find or develop another product NOW! If you need ideas, try affiliate programs. They give you a product, plus some selling advice and maybe even a web page that makes the pitch for you. You just get people to follow a link and collect the referral fee.

Visit http://www.refer-it.com or http://www.associate-it.com and read their reviews of the top affiliate programs. Choose one that fits with your main product.

Another easy way to increase your offerings is to locate a vendor who will drop-ship his product(s). This lets you focus on getting the order while the vendor does the packing, shipping, etc.

Or, try this. You can hire a "fulfillment company". You deliver your product to the fulfillment company in wholesale quantities, as often as they need them. They operate the 1-800 phone lines, take the orders and ship your product. They take a percentage of the list price and send you what's left. You induce get people to call the toll-free number.

Search for "affiliate" or "drop-ship" etc. and you'll get more results than you can handle. With a little searching, you'll find a product that fits in with your site's theme. With a little luck, it may be one that has no affiliate network or has not considered drop-shipping.

Offer to set up the program and be the #1 affiliate? If you use a multi-level commission structure, you could become rich by using the power of duplication. Rich folk know that it's better to make a little bit from a lot of people than a lot from one person. Setting up your own affiliate program is not as difficult as you may think. You can get the software to automate the whole process by following this link:

http://www.theaffiliateprogram.com/cgi-bin/a/b.cgi/2956/home.htm

For an affiliate program to be attractive, it should offer a high commission (25-50%) on the first level. Do this and you will get plenty of first-level affiliates, who each have a chance to earn a good income. Another method is to use a "compressed payplan". This means, typically, paying 15% on the 1st level and 45% on the 2nd. This encourages affiliates to recruit others.

Now, be sensible! Don't try this with a chain-letter-style scheme for selling worthless "reports" or "safe email lists", etc. Use it to promote a real product that has real value to real people.

 
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