Ido quite a bit of consulting for people who are creating their first online product or service. Many of these people believe that if they create a good quality product and sell it for $20 or $30 they will get rich. The question I always ask them is “Okay, then what?” I usually get a blank response. When you look around online you don’t see many products being sold for high dollar amounts, you see ebooks, software, memberships, etc. with a low ticket price, rarely higher than $97.00. What you don’t see is what’s on the backend. What is being sold after the initial sale is what brings in the real money. In fact, many websites take a bit of a loss or only break even on their first product just to get the customer into their sales funnel.

Once you sell a product or service to someone it’s the BEGINNING, not the end. When you first get a customer you have to search for them, you have to advertise and bring several people to your sales page, and in most cases you have to spend a lot of time and money to do so. If you want another customer you have to repeat this process all over again. But how much do you think it’s going to cost you to present another offer to your already existing customer? Nothing of course. And what if you offer something with more value and a much higher profit? You’re going to make even more money.

Okay, so I think you get the point. Selling on the backend can make you more money and it’s cheaper to sell to an existing customer than finding a brand new one, plus you already know your existing customer trusts you (or should if you gave them a fair deal). So let’s say you have your original product and you have sold quite a few of them, we’ll say 200. You made an average of $15 profit for each sale. That’s a very nice $3,000 profit. Now you decide to sell a product to your existing customers on the backend that costs $295 and your profit is $170. Well, remember these people are your loyal customers, they have done business with you once already and they already trust you so your conversion rate should be much higher than normal, yet even if only 10% of them purchase you will of still made an extra $3,400! If you set this up on autopilot you’ve more than doubled your overall customer value and put it on autopilot!

You don’t always need to present high priced offers, although they are the most profitable, you can do any price offers, as long as you are actually presenting them you will make more money overall. Yet, following up on the backend and presenting HIGH PRICED offers will blow your profits through the roof.

Here are just a few backend offer ideas you could present after the initial sale…

• Coaching or Consulting on your product or service.
• A deeper in-depth course or program related to your initial product.
• A class or seminar about your topic.
• Other people’s related products that you can become an affiliate for.
• If you are sellling software then upgrades or additional hardware can be on your backend.
• A pack of various related materials including audio and/or video.

As you can see, there are infinite ways you can create products for your backend. A little creativity and work can quadruple your income using your existing customer base and website. Remember, my example showed only ONE backend offer. What if you had multiple ongoing backend offers?

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One Comment on “Backend Products for Big Profits”

1. 
   Comment by luo - May 19, 2006 @ 5:26 am

   Cool idea, I will practice it soon.

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