The best way to make money as an online business owner is through the use of back end products and offers.
A back end offer is simply a product or service that is offered to your customers after they have already purchased something from you. These are the most profitable type of sales, since you have already acquired the customer. In fact, once you have developed a series of back end products, you may even be able to afford to take a loss on the initial sale.
Back end offers really increase the lifetime value of a customer. You have already spent money on marketing to acquire the customer. Hopefully you have been lucky enough to make a profit on the initial sale. Now, everything else that you sell to that customer is pure profit. This is why many of the most successful marketers have a whole line of complementary products.
For example, take a look at the infomercials on late-night TV. Most of these actually lose money initially. However, you will then be sold a variety of add-on items (to make the first product work more effectively), and will be sold a subscription offer, vitamin plan, etc… This is smart marketing.
When you are creating your products, you should give some serious thought to what you will promote on the back end. Some excellent ideas are a monthly subscription or membership plan. Another great idea is to start a coaching program. Both of these are very easy to set up and run.
You could even combine online and offline methods for these offers. Write a monthly newsletter. Maybe even include a cd or a dvd as part of the package. A great service for producing these are kunaki dot com. They are also very affordable. You could even outsource the writing, typesetting and design of your monthly newsletter. If you have even less time available, another way of quick newsletter creation is to create an audio of what you want wrote and then send that to a freelance writer.
Incidentally, a professional monthly package like this really carries a very high perceived value. Your customers will be impressed to see a high-quality newsletter along with a professionally crafted cd (or dvd). This will also build credibility and trust with your customers. Then, you will be able to market more back end products to them.
Another great idea for a back end product is a monthly coaching program. What is your initial product about? Could you provide some extra training on one aspect of that topic? Obviously, it helps if you are a genuine expert in this area or market niche. Then again, even if you are not, just scour the internet and find the information you need.
The conclusion is that you never want simply to create a single product. You need to think what can be added to it to create extra value and higher profits. Make them all build on each other. Then you can afford to spend more money than your competitors to acquire customers. And you will make money. Back end sales are really where your profits lie.
Tags: Home Business, Online Profits, Promotion, Selling, Small Business
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