Online business Success

Backend Products and Affiliate Programs

by Dan Murray on March 23rd, 2009

 

If you can successfully master the art of backend marketing, you will be able to combat the drooping sales once and for all. The techniques and methods that are often taught in reference to backend marketing have been underutilized, given the restricted vision of marketing professionals.

Backend marketing is in fact a relatively easy exercise for a salesman because once the client has purchased the product he has shown that he believes in the production company and has thus invested his money.

This also shows that they trust your services and won’t be averse to buying something recommended by you. You do not have to spend time building up their trust in you by proving that your company has excellent credentials.

80% of your net profit can be derived from backend products. Here’s how:

Once you have been trusted by the customer, you could charge more on the backend product without his questioning him. The customer is aware of your services and the quality of the merchandise, and he approves of it. It is your task to persuade the customer that he requires that particular backend product. And the chief prerequisite in such a sale is that the principal product is of a reliable quality.

This is the power of backend marketing that could boost your income within a few days, yet most marketers do not understand the potential of this technique. This is proved by the fact that most affiliate programs pay less than 50% commission on such products.

Say, you put up for sale your manufactured goods for $50 and you offer 50% commission. You have five associates who have made ten sales each.

You earn $1,250 after paying their fee. Consequently you have fifty customers. If five of them end up purchasing your $100 backend product for a profit of $500, your profit will be $1,750.

If you give away 75% as payment or commission to your affiliates, by giving away higher fees, you obtain ten affiliates. For every hundred customers you can make backend profit of $1000.

Even after increasing the associate commissions by twenty five percent, you make more profit. And you tend to gain more affiliates who are content with the higher percentage of commission they obtain. The more customers they direct to your website, the more you profit!

So, you have more subscribers, more affiliates and more customers. This runs like a profit reaping machine!

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