Part 6 - The Importance of "Backend" and
Upsell Products
The section could probably make you more
money than any other so far, so imagine how it could be best applied to your
online information business.
An "upsell" is when you offer a
deluxe or more expensive package right when the customer is ordering or when
your product is being delivered or a few days later. A "backend" is a
product or service you sell your customer after the initial sale.
It is important for you to understand that
once you have the trust of someone and they have purchased from you, it is much
easier to sell them something else because they have already bought from you.
So it is very important for you to maintain an accurate database of your
customers, which will become a gold mine for you as your business grows. You
can keep going back to it and digging out the gold (getting more sales).
It is also important for you to know that the
80/20 rule also comes into play on your database of customers. You will find
that 20% of your customers will bring you 80% of repeat sales. This 20% will
buy again and again. So in the long term, this is where you want to spend your
time and effort, not on the 80% that don't repeat order.
A lot of people in business fail to
understand the potential of the lifetime value of a customer; they only see the
immediate value of a customer.
If you offer a good product or service, good
value and customer service, the customer will be yours for a long time.
Your current customer base is a gold mine.
Statistics show that 28 to 36% of the people that have bought something from
you will buy again if you have something similar to offer Think of the
potential here. This is where a lot of your income can come from.
Let's say you have 500 customers that have
bought something from you for £20.00. You send them an email (costs you
nothing) and sell 200 of them another £50.00 worth of your products, that's
£10,000 in sales that you otherwise would never have seen.
It is important that you sit down and figure
out how much a customer is potentially worth to you. I cannot emphasise this
enough. Do you see how important backends are yet?
It is proven that you should keep in contact
with your customers regularly for maximum sales. This has been proven time and
time again by marketing gurus such as Jay Abraham, Ted Nicholas and Gary
Halbert. (I have seen all three of these speak live at Tony Robbins events).
These are people that charge up $15,000 up front just to write a sales letter
for you, and then they get 5% of the gross sales from your product.
What is an Upsell and How to use them to
Skyrocket your Profits!
The upsell is a variation on what we have
been talking about. It is a second offer right when customers make an initial
purchase.
Your upsell could be a "deluxe"
package of what you sold initially, an offer to upgrade to something better or
even something associated with the product your customers initially bought.
How many times have you bought something from
a shop like a shirt and they try and sell you some ties to go with it for
example?
It all comes back to targeting your market.
The cost of making the first sale to a customer is greatly offset by upsells or
backend products.
If you don't have other products right away
to sell to your customers, why not try looking at other companies in the same
market place and do a deal to sell their products and split the profits.
What are the best ways to maximise your
profits with backends?
1. A few days after a customer orders, recommend a complimentary product
(they will most likely buy something similar as they are currently in the
market).
2. Later (up to 30 Days), offer something else you sell, as they will be
more likely to buy another product from you once they have evaluated that the
first product you sent them was what they expected and what you promised it to
be.
3. Keep emailing sales letters, special offers, new information, articles,
etc, to repeat customers.
For example if I am selling a report about
anti-ageing, I would send another sales letter about an anti-ageing cream.
Which would then bring in repeat monthly orders?
To find practically any product you could
wish to find ever go to www.alibaba.com this
web site is a gold mine. |
