Marketing Secret #91 The Power Of The Backend!
You want to know how to get really, really rich??
I had a feeling you did!
Okay, here’s the deal:
Your backend is your key to the vault!
What am I talking about?
This: Once you get a new client/customer/patient, you have to understand that the real wealth comes not from getting them, but from getting everything else you can get from them…over time!
We just heard the example of the record (oops) CD Clubs.
Where they get all their money, over time.
From selling more CD’s right?
Well, sort of.
See, they make money lots of ways on their backend. Sure, they sell you more stuff. But that’s only what’s on the surface. The visible business.
How about this other stuff they get from you as time goes by?
- Videos from their Video Club.
- Audio books from their Audio Book Club.
- Books from their Book Club.
- Rental income from selling their names to list brokers.
- Joint venture income from the package inserts that come with the stuff you order.
- Other clubs they get you to join through telemarketing.
- Referrals of your friends and relatives and co-workers.
See the deal?
They could easily make a profit just from their list rental, even if you never bought anything else!
Some companies make ALL of their money from their list rental!
Do you think that those infomercials that Dan Kennedy does make money from selling you the skin goop or hair setter?
They make their money from all the other stuff they sell you, and from renting your names out!
My businesses make all their money from additional sales to members!
If I had to live on the front end (initial sale) revenue, I’d be broke, and out of business!
And you will be broke, or if not broke, always under utilising your potential if you don’t focus on your backend!
Here is a brief idea/creative jogging list of things to think about doing for your backend:
- List selling/swapping.
- More of your original products/services.
- Additional products/services you create.
- Additional products/services you sell created by others, and/or you and others in a joint venture.
- Joint Venture.
- Continuity (automatic) sales of a necessarily repetitive product/service. (Haircuts, food, etc)
- (Ask Bill Gates about how to do this.)
- (Getting a bigger order at the time of the initial order.)
- Frequent buyer packages.
- Preferred buyer programs.
- Related products/services that your people are giving to others, that you can keep for yourself. (A doctor selling health food stuff.)
I think you get the idea!
If you master this concept, you will be amazed at how much more profitable it is to do whatever it is you do! Keep in mind it’s about 10 times more profitable to sell to existing buyers than to go out and get new ones! Work your backend as hard, if not harder than your front end! If you do, you’ll see your profits skyrocket, since you already have the buyer, and don’t have to spend much, if anything, to get them to buy more! Understanding the lifetime value of a client/customer/patient and the backend is the biggest secret of all!