Backend Selling - The Key to Longevity
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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.