1. Using Back-end Products to Create Lifetime Customers
“Back-end Strategy”
Using Back-end Products to Create Lifetime Customers

2. What is Next?
You did it…. You got a visitor to sign up to your squeeze page. You even got them to convert to a sale and have a real paying customer.
Now it’s time for your “Back-end Strategy Plan”.

3. Having A Backend Strategy Benefits
Higher overall profits
Higher quality customers
Better JV partners
Speaking opportunities
Differentiation
Less competition
Bigger impact on clients
Fewer customer service issues
Better testimonials
Guru status
Creative compensation
Higher credibility
YOU ARE NOW IN CONTROL

4. The Big Marketers Myth
Myth: Create a hundred page e-book, sell it for $37 and make a fortune.
Truth: One ebook does not contain the key to make you rich, you’ll be lucky if you break even. Right now many successful people online are losing money on that first product that you see. That’s why you have to learn Backend strategies
If you think a fortune is $1 million, then you have to sell 27,028 e-books. Not going to happen. Ever. Sorry.
Even if you think a fortune is $100,000, you would still have to sell 2703 books, which is almost impossible as well.
100 copies of your $20 with NO Upsell
100 copies at $20
Upsell available (1 in 10 actually buy upsell)
100 x 20 (NO Upsell) =$2000
(100 x 20) = $ $500 each = $7,000
The front end sales only purpose is: Create a relationship to continue selling.

5. Back-end Marketing
Describes strategies for generating sales of additional products to an existing customer list.
Extremely important for long-term business growth and overall success.
Inexpensive form of marketing. the largest expense relating to marketing (customer acquisition) has already been incurred
Response rates and conversions will typically be much higher. Customers already know, respect and trust you
This term is used to describe strategies and tactics for generating sales of additional products and services to an existing customer list. Back-end marketing is extremely important for long-term business growth and for the overall success of a sales and marketing venture.
Back-end marketing can be an inexpensive form of marketing because the largest expense relating to marketing (customer acquisition) has already been incurred.
Another important benefit of back-end marketing is that your response rates and conversions will typically be much higher because your customers already know, respect and trust you.

6. Back-end Marketing, cont….
Despite the benefits of back-end marketing (low cost, higher conversions, higher profits, etc.), it’s the most ignored form of marketing strategy.   To be successful in marketing and sales in the long run, a business MUST become successful at back-end marketing.

7. Examples of Back-ending
If you own a computer you might be sold on an upgrade after a year, printers, computer desk, etc.
If you open a bank account you might be sold on further financial services like loans and/or investing.

8. Tips for Successful Back-end Marketing
The primary product must be of the highest quality.
Customer service and support are key.
Make sure that the additional product is related.
Properly positioned in the mind of customer
The primary product must be of the highest quality. This will give customers confidence that with your company, they will receive good products and services.
Customer service and support are another key factor; always make sure you give extra attention to this and over-deliver.
Make sure that the additional product is a related item that the customer would find useful.

9. What Type of Products or Services Can I Use In My Backend Strategy?
Bootcamps
Workshops
Coaching programs
Home study courses
Field trips
Mastermind groups
Do-it-for-them services
Membership sites
Physical version of your digital product.
Consider breaking your product into two separate offers.
And much, much more
Offer the “what comes next”.
Always consider upselling the physical version of your digital product. For example if you have audio online, you can upsell the CD and ship it to the customer using a fulfillment service.
Consider breaking your product apart if it makes sense to build two separate offers.
Offer the “what comes next”.

10. Building Backend Strategy
Step 1: List Building, (Create A Lead-Generation System)
The first step in building your sales funnel should be to get as many people in the “door” as possible
Capture Name and
Highest cost is getting the first sale

11. Step 2: Create A System To Earn More Money During The Sales Process
Up-selling
Cross-selling
OTOs (One Time Offers)

12. The Upsell
FACT: People are far more likely to make another purchase when their wallet, purse, credit card, etc. is already on the table than at any other time in the purchase cycle.
Offering your customer a chance to upgrade.
Upsells can double or even triple the amount of revenue.
Think of up-selling as tacking on a product that can enhance the value of the original product.
Do you need them? No, but it sure does add extra money.
Many marketers fail to capitalize on upselling.
Marketers are leaving an insane load of cash on the table by not asking their customers to buy more.

13. What is Upselling?
Upsell – Win – Win, You are happier and your customer is happier.
An upsell is an offer given to a customer during an initial purchase to bump them to another purchase.
Customer must get a good deal so the extra value they receive must be worth more than the extra price. Clearly see benefits.
The customer needs to see that at the time of the sale in order for the higher priced item to make sense
Continue to believe it after the sale. (low refunds- Higher trust factor)
If you buy a computer you are “upsold” on things like the memory, hard drive space, monitor size, etc.
Upselling is used worldwide in business and is a common practice.
McDonalds used to use “Would you like to super-size that?”

14. Upsell Examples
Sell a $47 info product you can easily up-sell to a platinum version which includes the written transcripts for only $67.
Up-sell to an 'Inner Circle Members Only' monthly webinar series for an additional $29/month! Call it your "Super Success Program".
Sell a $17.00 e-book and upsell a video training course showing them the how to step by step process you outlined in the e-book for

15. When Should I Upsell? Always Have Something of value to Offer
Upsell any time a customer makes a purchase from you.
Upsell products that fit and flow with your offer.
Create a Sense of Urgency
The general rule in business is to always have something of value to offer. We are always upselling because we know the customer wants what we have.
Selling points such as “limited time offer” or “limited quantities on hand” create a sense of urgency and improving the conversion rates of upsells.

16. More Upsell Ideas
Deluxe Upsell- sell a basic product and tell people for a little more money they can receive the deluxe edition
Make Money Upsell- offer people the rights to sell the product they are buying
Time Upsell- offer them a discount to subscribe for a full year
Free Upsell- offer a free sample or trial of your product (membership).
Deluxe Upsell - You could sell a basic product and tell people for a little more money they can receive the deluxe edition.
Make Money Upsell - You could offer people the rights to sell the product they are buying.
Time Upsell - If you're selling a product or service people subscribe to monthly, offer them a discount to subscribe for a full year.
Free Upsell - You could offer a free sample or trial of your product (membership).

17. Upselling is Big
On initial sales, 70-80% of our profit comes from the upsell.
Should you even consider launching a product without an upsell?
That’s the difference between $30,000 and $100,000.
Are you giving your upsell process the attention it deserves?
Nearly all of our profits come from upselling and back-end products. On initial sales, 70% of our profit comes from the upsell.
Should you even consider launching a product without an upsell? While this is entirely up to you, I wouldn’t want to leave 70% of my money laying on the table.
That’s the difference between $30,000 and $100,000.
With money like that on the line, are you giving your upsell process the attention it deserves?

18. Cross-sell
Sell related products to your current customers either at the point of sale or at a later time.
Example: Purchase a video camera and you cross-sell a tripod
Cross-selling is used to sell products that may be related to the original product, instead of upgrades, add-ons, or more expensive versions like up-selling consists of.

19. One-Time Offer A one-time offer is extremely powerful.
An OTO is shown to the customer only once, immediately after the customer has paid for your front end offer.
An OTO has to be compelling
An OTO has to impart a sense of urgency
An OTO must make sense in the mind of the buyer
Simple PHP script that will allow the page to come up only once on a particular computer
Understanding the guidelines of how to create a successful one-time offer is the most important step that most people forget to take.

20. The Upsell (OTO) Process
Initial Purchase
Customer Checkout Page
Upsell or One Time Offer Page
Thank You Page or 2nd Upsell

21. Upsell Or One Time Offer
The Bump Process
Bump
A bump is used to increase the price of the initial offer and is usually a 10-30% increase.
Initial Purchase
Bump Offer
Checkout Page
Upsell Or One Time Offer
Thank You Page

22. Step 3: Create Your System to Make Sales After the Initial Purchase
Offers directly after the sale
Product recommendations (Affiliate Marketing)
Physical mailing (postcards about special deals)
Telephone follow-ups (30-min phone consultation)
Follow Up s
Thank You and Download Pages
Webinars & Teleseminars

23. Thank You Page, Product Page,
& Follow Up
"Thank You" Page
#1. reassure the customer that the order has been processed
#2. make another offer that compliments initial purchase just made.
The sooner you can communicate your back-end offer with your customer in that time, the better the results.
Any product or service that can benefit the customer's purchase should be systematically offered and reinforced.
It goes without saying that this works best when your initial front-end product is quality, has depth and offers a high ROI for the consumer.

24. Product Page
Deliver the product promised and then give them another opportunity to buy again once they see how great the initial purchase is.
Add Unadvertised bonus!

25. Email Follow Up and Broadcast Emails
Automated way for you turn one-time customers into repeat customers
Develop a real depth of relationship with your customers
Build Trust Factor
Pre-selling - Pre-Selling is positioning your offer in the mind of the visitor so that it makes sense to buy!

26. Affiliate Marketing Product Recommendation
Product recommendation… promote Affiliate products in your backend
compliment your products
position to make sense
Your Affiliate product recommendations (if well-chosen and positioned) should provide an additional service and provide appreciated value for your visitors who will in turn reward you when they open their wallet and give back to you!
The affiliate model is an excellent backend revenue source. (It always make sense and I recommend that you always diversify your income sources)

27. Step 4: Set up systems to Entice “Stale” Customers to purchase again.
Limited time discounts
Special offers or unique products
Set up special offers for customers who request refunds or cancel memberships
Set up a survey and ask customer why they are cancelling or refunding. Once they select best answer it directs them to product to help them solve the problem they are having

28. Downsell Offered if your offer is rejected. Generally cheaper.
May not require a big decision and commitment.
Can move would-be lost prospects quickly back to being customers.
A downsell is what is offered if the upsell is rejected.
The upsell may be rejected because it is too expensive, so a downsell is generally cheaper.
Downsells may not require a big decision and commitment of the buyer’s time and money.
Down-selling lets the would-be lost customers quickly move from prospect to customer.

29. Downsell, cont….
Gives the opportunity for the customer to enter the product funnel.
Allows you further preselling and positioning of your higher margin products.
Serves as a great opportunity to introduce who you are and what you can do for your customers.
Effective at establishing new relationships.
Helps build trust and credibility.
Downselling gives the opportunity for the customer to enter the product funnel and allows you to position your higher margin products.
Downsells serve as great opportunities for you to introduce who you are and what you can do for your customers.
They are effective at establishing new relationships, and also help build trust and credibility.

30. Easy Back-end Example With an eBook
eBooks
If you’ve written your own eBook, you know enough on the subject to be considered a bona fide expert.
And anyone that buys your eBook from you believes this... otherwise they wouldn't be wasting time and money on your product.
While $27 sales are great, there's a whole lot more money to be made using your eBook.
Leverage your expertise.

31. Links to other products… Your own and Affiliate
Example:
In this chapter we are going to be showing you how to set up your follow up message sequence.
Before you get started you will need an autoresponder service that will house you list and allow you automatically start sending out your follow up series to your new list.
My recommendation for a top quality autoresponder would be Aweber or Get Response

32. Imagine if at the very back of your eBook, you were to place a small ad that said something like this:

33. What other kind of services can you offer that compliment your eBook?
Consulting with you, coaching and mentoring
Package deals
Whatever the subject of your eBook, there is a higher-dollar service you can perform that compliments it.
Be specific about what your consulting package will include and how it will benefit your customer.
Offer package deals where you actually put your system into action for the customer. If you teach people how to set up websites, actually offer the service of setting up websites for them.
Instead of making a few bucks for each eBook sale, you’re actually able to simply use the eBook as a lead generator for your more expensive personal service.

34. The Real Funnel
The real product funnel used by millionaires is simple:
Create front end offers that rarely change and constantly improve on your back-end offers.
Usually your front end products will be lower in price to get more customers into your product funnel.

35. Information Back-end Funnel
First research your niche.
Get to know your potential clients.
Create series of products. Know what comes next
Position Backend products so they make sense in the mind of customer.
First research your niche – Before you fill your funnel with different products, research your niche to know what is needed and missing in the market.
Get to know your potential clients – Spend time with them finding out what they would like to achieve/learn, their big burning questions, their problems they experience, and their preferences.
Create series of products – Develop different products that will address the varying needs of your potential clients. Next fill your funnel with several low, middle, and high-end products, depending on the skill level of your customer base.

36. Example of an information-based funnel could be…
Low-end products – $10-$100 eBooks, newsletters, short ecourses and reports.
Middle-end products – $100-$500 DVD tutorials, webinars, short teleseminar series, audio and CD series.
High-end products – $1,000-$10,000 advanced coaching programs, one-on-one coaching, advanced teleseminar programs, boot camps, workshops and offline seminars.

37. Using PLR To Create Your Backend
Challenges of Backend marketing:
No Time
No Money
No Idea Of What To Create
This is where PLR or 'Private Label Rights' products come to the rescue.
Time Saver – Who wouldn’t want more time in their day? Product creation takes time PLR gives back time.
Inexpensive – PLR is easier on the wallet. Who doesn’t like that! 
Flexibility – Rewrite it, Re-brand, and add your own spin and personality
Profitable – Very high return on investment
Idea Generator

38. Using PLR To Create Your Backend
Find several and take pieces and parts from each of them and create a brand new product for your backend.
Find high end training courses that compliment your front end
Use PLR as bonus offers for increasing your backend Affiliate product recommendations to increase conversions.

39. In Summary
If you don’t offer your customers what they want to buy, someone else will. Don’t do them a disservice.
ABU - Always Be Upselling!
Consistently improve on your back-end offers to achieve the highest LCV possible.
The quickest way out of the business of selling informational products on the Internet is to NOT HAVE A BACKEND STRATEGY!
Getting a first-time customer isn’t easy. When you get one you need to make sure that you keep him, keep him happy and make him want to buy from you again and again.
You do this by having excellent customer service, staying in contact with you customers building good relationships to know your customer and by having great back-end products to offer him.
It is much easier to sell to and existing customer than it is to get a new customer.