Once you really understand the power of backend profits, your marketing results will skyrocket and you'll be able to make a viral machine that can't be stopped.
Many marketing classes and articles have taught the techniques I'm going to show you, but people still don't use them because of two words: "tunnel vision."
Backend profits are any extra money you make from a customer. Front-end profits come from a customer's first purchase, while back-end profits come from their second purchase and so on.
Once you really understand the power of backend profits, your marketing results will skyrocket and you'll be able to make a viral machine that can't be stopped.
Many marketing classes and articles have taught the techniques I'm going to show you, but people still don't use them because of two words: "tunnel vision."
Backend profits are any extra money you make from a customer. Front-end profits come from the first thing a customer buys, while back-end profits come from the second thing they buy, and so on.
The best marketers know that the most money will be made at the end of the process.
Here are some of the reasons:
Because you already know your customer, you can charge them more for your backend products.
They know how good your product is and how good your customer service is. You don't have to show them that you're trustworthy and that your information is good anymore.
You only have to convince them that your backend product is better than your frontend product and that they NEED the backend product.
Getting people to trust you is one of the most important parts of selling. You can get people to trust you by giving them a good first impression.
It's a fact that most marketers don't really understand the power of the backend.
I know this because I don't see many affiliate programmes that pay commissions of more than 50%.
Take a moment to think about this.
Let's say your product sells for $50 and you give a 50% commission. You have 5 affiliates, and each of them brings in 10 sales.
After you pay the commissions, you get $1,250. Now you have 50 clients. Five of them buy your $100 backend product, giving you a $500 profit. The total money you make is $1,750.
Now, let's say you give your affiliates 75% of your commission.
You get 10 affiliates instead of 5 if you offer higher commissions. If 10 affiliates each make 10 sales at $50, you'll get $1,250. This is the same amount of money you made on the front end before.
Now you have 100 customers and 10 back-end sales, which means you made $1,000.
So how did increasing your affiliate commissions by 25% help you make more money? You did well in the end.
Here's what's going on behind the scenes as your commissions go up.
As those affiliates send more people to your site, you get more affiliates and subscribers.
Because you gave them higher commissions, those affiliates are happier with how much money they are making. Because of this, they will keep sending people to your site.
As you get more customers, affiliates, and subscribers, this cycle will bring in more people.
It's the best way to spread a message.
More subscribers equal more profits. More customers equals more profits. More affiliates equals more profits.
So, is all of that worth having your front-end profits go down?
Yes!
Most people can't stand it when their affiliates make more money than they do. They can't see all the extra subscribers, customers, and affiliates who could be theirs because they have tunnel vision.
Please keep one thing in mind when you run your affiliate programme.
A drop in profits of 75% is better than a drop of 100%, which would happen if the affiliate hadn't made any sales at all.
In short, you should set up an affiliate programme for your front-end product that gives away most of the profits.
You should also spend time making several backend products.
If the type of product you're selling requires manual work and it wouldn't be worth it for you to offer higher commissions, you could make a different front-end product that acts as a gateway to your other products.
The main reason you make a "intro" product is to get more people to visit your site. When you get traffic, you should get as many potential customers into your marketing funnel as you can.
When you have more leads in your marketing funnel, you can control where they go by telling them what to do in your follow-up emails.
