Internet Profit Building Method #6
Create Backend Profits
You can't make it in the 21
st
century with only one profit stream. That's the
fastest way to bankruptcy that I know of. If you only sell to a customer
ONE TIME and then look for other customers, you'll never make much
money online.
It is expensive in both time and money to get a new customer. So when you
get one, you have to find ways to earn multiple streams of income from
them.
This could be done through your own products, products you affiliate with,
or through products you license. Anytime you're selling, you should have
backend sales items.
Let's say that you're selling a $20 ebook. You spend $100 on advertising
and get 6 sales. You just made $20 (once you multiply in processing fees
you actually earned less). That's not much money. Let's say you do this 10
times and now have 60 customers total. You've made a total profit of $200.
Not bad but nothing to get too excited about.
What if you were smart though and built in 10 offers for products and
services from other affiliate programs right into the text of the ebook itself.
Let's say that the average selling price from those programs is $100 and you
get 40%...that's $40 a sale. If only 20% of you customers buy just ONE of
those items, you would have earned an extra $480.
60 customers x 20% buy = 12 customers x $40 each = $480
That's more than twice the money you made selling your own ebook. What
if we get the percentage higher? What if each of those customers buy more
than one of the backend items?
Do you see how the big money quickly starts growing on the backend? The
backend has NO advertising expenses. So it is where the real money is.
The numbers get even more interesting once you count that you often lose
money or just break even on many of your ads. Most large companies lose
36
Unlimited Web Hosting
|
|
|
|
TotalRoute.net Business web hosting division of Vision Web Hosting Inc. All rights reserved. |