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Tip 5. Sell Your Back End For Cash

Design your marketing strategy to include a "front" end and a "back" end sales process.

A front-end sale is a qualifying tool.

Remember, "qualified" means someone has gone to the trouble of buying from you before, which "qualifies" them to buy from you again. A buyer that is not qualified is just a "prospect". See my previous tip for more information.

Your front-end process is a great way of separating serious buyers from tire kickers. It will help you focus your attention on developing sales strategies that will put money in your pocket.

It's easier to sell to qualified buyers than it is to sell to a prospect. You have an established relationship with a qualified buyer and if you have pleasantly surprised them then you're almost guaranteed a repeat sale. You have to convince a prospect that they should buy from you in the first place.

A back–end sale is a secondary product or service sold to someone who has bought from you before (i.e. qualified buyer).

Quite often the front-end item is sold at cost (or even at a small loss). Businesses can afford to do this because the backend process is so profitable.

Let's look at cell phone companies. Some companies offer cell phones for $1 or even for free on certain contracts. They incur a loss because cell phones are expensive to make, so how can they afford to offer this deal?

It's because the backend, in this case telephone calls over the contract period, more than makes up for the front end loss.

A good marketing friend of mine says a successful business has a threefold marketing strategy "back-end, back-end, back-end".

But what if you only have one product? How can you back end then?

Form an affiliate relationship (or joint venture) with another person and sell their product. This is the basis of successful network marketing. You don't have to be selling soap powder to your best friend to profit from network marketing. In fact, most Internet sales are based on selling someone else's product.

If you have nothing else to sell, sell someone else's product (as a recommendation).

A word of caution. You must be helping your customers, not selling them things that won't benefit them in the long run. Otherwise you'll lose credibility fast.

Think about the products or services that you have recently purchased "on the backend". Were you more inclined to buy? How can your business profit from back end selling?

Steps For Immediate Results

  1. Do you have a back end process? If not then consider implementing one immediately. Sell something that will enhance the customer's purchase and enable them to receive more benefit. For example, if you're a realtor, consider recommending a particular high class removals company in your area when the family wants to move out. Offer them a special deal, for which you receive a referral fee.

  2. Keep track of your mix between front and back–end sales. Set a goal for the optimum mix for your company. If possible, automate the back-end process to free up your time to plan other business strategies.

  3. If you're at a complete loss about what to do then write down a list of services or products that complement your services / products. Approach suppliers of those services / products to discuss establishing an affiliate program.

 




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