Internet Marketing
Are
You Neglecting 70% to 90%
of Your Internet Profits
By Terry Dean
At the very beginning of this
article, I want to tell you about a horrible mistake I have been
making lately. I have been neglecting the place where 70% - 90% of
most Internet profits come from.
I would normally keep a
mistake like this to myself, but I also recognize that probably 9
out of every 10 of my readers are making the exact same mistake.
This just shouldn't be happening.
My business is extremely
profitable, but by neglecting this one technique I have been
ignoring tens of thousands of dollars in additional profits.
The direct marketing rule that
I been neglecting to give attention to lately is that of backend
selling. I know and have taught backend selling to thousands of
Internet businesses, but in the past 6 months of my own business I
have been letting it slide.
For my business this means
that I am ignoring additional profit centers. For many Internet
businesses which aren't as profitable as mine this one mistake
could easily spell the death of their entire endeavor.
To give you a quick idea of
just how profitable backend selling can be for your business,
let's give the following example.
Let's say you are in an
information business selling a low cost audio tape set and a
larger video package. The first product you have sells for $50.00
(and costs $25.00 for drop shipping from the owner) while your
second package sells for $300.00 (and costs $150.00 drop shipping
from the owner).
If the first product you sell
to customers sells for $50.00 and costs you $25.00 to fulfill, you
have $25.00 potential earnings from it where you have to pay
advertising expenses from. If it costs you on average $20.00
advertising expense for each new customer, you would only be
earning a $5.00 profit on every new customer.
What would happen if you
included a sales letter for your $300.00 course in every $50.00
package people bought?
If 1 out of every 5 customers
you brought in on the first product would also buy your second
product for $300.00, you would be earning an extra $150.00 off of
every 5 customers. Your front end profits would have been $25.00
for these 5 customers and your backend profits would have been
$150.00 without spending more than a couple of cents extra for the
sales letter included in the packages.
You would only be earning
$25.00 a day in your startup Internet business is you were selling
5 packages a day. Once you add in your backend product, your
profits jump up to $175.00 a day!
For many businesses, having a
backend product determines whether your business succeeds or not.
You must have a specific backend in mind whenever you are planning
your web site, choosing a product, or designing a product.
On the Internet, it is so easy
to come up with backend products! If you don't own any additional
products or services to place on a backend, then you can simply
join an affiliate program with a high quality product or find a
business owner who will drop ship products for you.
There are thousands of
companies out there which have affiliate programs or who drop ship
for you. All you have to do is search for "drop
shipping" or "affiliate" and thousands upon
thousands of sites will come up.
If you see someone who has a
product you would like to sell, see if they will set up a drop
shipping program just for you. This type would often end up being
the most profitable for you since you wouldn't be competing with
thousands of other affiliates.
The key to backend profits in
your business is to actually start doing something. So, I have
included 4 easy ways your Internet business can start profiting
from backend selling today!
4 Ways ANY Internet Business
Can Easily Start Making Backend Sales Immediately...
1. Point of Purchase
The absolute best point for a
backend offer on any sale is right after the initial sale while
the customer still has their credit card out. For example,
whenever I go buy a pair of shoes it always seems like once you
have the shoes picked out the salesperson will then ask you if you
would like laces, polish, etc.
If you go buy a suit, then
they ask if you would like dress shirts, ties, etc. Any smart
retailer will figure out what other products they have that
naturally go with the purchases most often being made. Then, they
will offer an up-sell immediately at the point of sale.
How can you apply this to your
Internet business? The easiest method and the most profitable is
to offer the up-sell right after your customer has made their
purchase and still has their credit card out. In other words, put
the additional product or products on the thank you page right
after the purchase is made through your secure order forms.
At that point, your customer
has their credit card out and is in a buying mood. By listing one
to three similar products on this page, you should be able to
increase your overall sales by 10% - 30% immediately.
2. With Product Delivery
The second key time to send a
backend offer is when the products are shipped. Wise marketers
throw in a catalog of other products and services they offer with
every order.
Possibly offer a 30 day
special coupon in the package. If they order something else from
you within thirty days they get $10.00 off or 10% off or something
similar to this. Just remember that there has to be some incentive
to ordering now.
If you have someone else
fulfilling the order for you by drop shipping out the products,
then just send out your own thank you letter with the backend
offer enclosed.
3. Follow-up
You should send out follow-up
sales letters to all of your current customers. Top direct
marketers report that it is 7 times as easy to sell to an existing
customer than it is to develop a new one. Put the odds to work for
you instead of against you and start selling more to your current
customers.
The correct time to send out
this letter depends on what you sell. If you sell a consumable
product such as food, nutritional, body care, etc., then you send
out the letter whenever the average customer will run out of the
current supply.
If you sell other types of
products, then the correct time will often be around every 3
months. Newsletter publishers will often advertise a new product
in each new issue of the publication that goes out. It all depends
on your products and your customers. Learn the correct time frame
for sending out letters based on testing.
4. Leads that Don't Buy
From You.
Here is an area that most
Internet marketers don't even consider, but it could quickly
become a new profit center for your business. What do you do with
those leads who contact you but don't end up buying?
In most businesses, they just
throw them away. The smart marketer who wants to get maximum
profit out of every second of their time and out of every dollar
they spend will put these leads to use also.
They are obviously interested
in what you are selling since something you had caused them to
originally contact you for more information. They didn't want to
buy your product, but what if you offer another similar product or
service to them instead once you have finished your regular
follow-up system for your main product.
This is definitely an area
that you need to start testing out. You could also try working
with another marketer who sells a similar product and work out a
lead trade. You will offer your product to his leads that weren't
sold and he will offer his to your leads you couldn't sell. Since
the cost of follow-up online is virtually nothing, this type of
additional profit center is definitely something every business
should look into.
The question I am going to ask
you is, "Are You Going to Leave 70% - 90% Of Your Profits
Behind?"
Above are four simple
techniques you can use to start making more profits out of your
online business. What are you going to do about it? Are you going
to at least start trying out a couple of these techniques in your
business...or are you satisfied with what you are making right now
when there is so much more available?
Terry
Dean, a 5 year veteran of Internet
marketing, will Take You By The Hand
and Show You Exact Results of All the
Internet Marketing Techniques he tests
and Uses Every Single Month"
Click here to Find Out More: http://www.netbreakthroughs.com
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