Discover the Killer Marketing Strategy I'm Using to Help Increase My Internet Marketing Sales by more than 30%!
People are always coming up to me and asking, "What can you tell me to help increase my Internet marketing sales?"
All too often, when I ask them to tell me about their business models, I discover they're selling only ONE product. So I ask them, "Have you ever considered selling backend products to your customers?"
Backend products are simply products you can offer to your existing customers, after they've made their initial purchase.
Because you know what they've already bought from you, you should have a good idea of other things your customers like to buy. And that should make it easy for you to think of new things they'd want to purchase!
Backend products can be anything you think your target market might be interested in. For example, if your site sells cameras, new products could include:
Add-ons like wide-angle or telephoto lenses for your cameras
eBooks that teach people how to take better pictures
Other complementary products, such as camera cases or tripods
The brilliance of this strategy lies in the fact that you already know what your customers like to buy! So you can easily create highly targeted offers for them -- leading to higher conversion rates and more sales... and more money in your pocket!
The truth is, if you're not following up with your customers and targeting them with highly appealing backend products, you're losing out on a TON of profit.
In fact, by adding just ONE more product to your site, you can increase your revenues by 30% to 50%!
Why you need to think "lifetime value" rather than "single sale"
The other day I got an email from Amazon.com telling me about a new Internet marketing book they just got in stock.
They knew I might be interested in it because I'd bought other Internet marketing books from them before. (Hardly surprising, right? :)
And I was interested in that new one, too! In fact, as soon as I got Amazon's email, I immediately clicked through to their site, checked out the book, and bought it!
And in doing so, I boosted my "lifetime value" to Amazon by another 20 bucks.
Lifetime value is simply the income generated by a single customer over the course of your relationship with him or her. If you sell only one product, then your customers' lifetime value will be limited to the net income that comes from a single sale of that product.
But if you sell a wide range of products, your income will grow exponentially!
And selling to existing customers is easier and cheaper than selling to strangers because you've already cultivated a relationship with them: You've put in the time and money to...
Get their attention
Establish your credibility
Build their trust in you
Overcome any resistance they may have to buying online
Close that first sale
On top of that, you now know what your customers like!
So, after that, it's much easier to sell to people a second time... and a third... and a fourth... and so on.
If you reward your customers for being loyal, they'll reward you by becoming even more loyal!
Take the book I bought from Amazon... all they had to do was send me an email about a product they thought I'd like, based on my previous purchase history. They didn't have to sell themselves as a company to me because I've already bought from them before.
In fact, I've bought maybe one book a month from Amazon over the last five years at an average of $20 each -- meaning my lifetime value to them so far is $1,200!
And it's much easier -- and way cheaper -- for Amazon to sell me 60 books at $20 each than to persuade 60 new customers to each buy one $20 book.
When to follow up with your customers for maximum returns
The best time to offer your customers backend products is when you're given a natural opportunity to follow up with them.
Here are some examples of what I mean: You can...
Follow up after a purchase: Right after someone buys from you, you can send them a "thank-you" message that includes an offer for a related product. For example, if you sell project management software, you could offer your customers an eBook that gives them advanced project management tips and techniques.Or, if you sell "how-to" guides that teach people how to build their own sundeck, you could offer customers a special package deal on the tools they'll need for the job.
Follow up on a purchase anniversary: An easy way to get a follow-up promotion in front of your customers is to send them an offer one month, six months, or even a year after they made their first purchase.Email them to ask how they're enjoying the product, and let them know you've got similar products available at a special discount price that's being offered only to previous customers.
Follow up whenever you can provide new products or information: If, for example, you sell snowboard equipment and clothing, and you've just received stock of a cool new snowboarding jacket, you could contact your customers who bought a snowboard or boots and offer them a jacket at a special discount.They're obviously snowboarders, so there's a good chance they'd be interested in a new jacket.
The important thing to remember is, the backend products you offer HAVE to be things your target market is going to be interested in.
Seven killer backend product ideas you can use to expand your profits by more than 30%
There's no doubt about it: Following up with your customers and offering them backend products is a great way to boost your profits without eating into your marketing budget.
But how do you find the killer products that make this strategy so profitable?
It's a lot easier than you think! For example, you can...
Offer products that complement your initial product: For example, if you sell golf clubs, offer your customers a golf club bag to carry them in.Or you could offer golf balls, golf tees, golf shoes, golf training videos -- the list is endless!
Sell more of the same product at a discounted price: If your product is refillable or needs to be regularly replaced, this strategy works especially well. For example, if you sell things like printer cartridges, camera film, or batteries, you've got it made!But even if your product isn't refillable, you can show your customers you appreciate them by offering them a special discount on the product they've already bought. That way, if they like the product, they can buy it as a gift for family and friends.
Use paid subscriptions as backend products: If you've established yourself as an expert in your industry, you can build on your reputation by offering a subscription to "premium" information, only available to members, as a backend product.For example, if your main product is a fly-fishing kit, you could sell a subscription to an exclusive course on advanced fly-fishing techniques as a backend product. You could deliver this paid-for content through a members-only web site, or by email.
Try splitting up your current product: For example, if you were selling a book on how to "declutter" your home, you could offer a basic version for $9.95 to generate a large volume of sales at a low price. Then, 30 days later, you could offer your customers an advanced, expanded version that includes home office management and scheduling tips for $29.95 or even $39.95 -- and increase your profits dramatically!
Try selling your customers an upgrade to their product: If they've used and liked your basic model, your customers will be open to receiving offers for the upgrade version.For example, if you sell eBooks teaching people how to use a particular piece of software, you can sell updated versions to previous buyers when the software package in question is upgraded.
Write a book or create a video: eBooks are great backend products with high profit margins! Consider writing a short book on a topic that's related to your product or service. For example, if you sell gourmet puppy food, you might consider writing a book titled, "Training Secrets That Will Have Every Puppy Housebroken and Learning Basic Obedience in Less Than One Week!"You could even offer a special video that complements your product or service. For example, if you sell barbecue equipment, you might offer a video that teaches people how to perfect their barbecuing technique.
Offer someone else's product! Probably the fastest -- and EASIEST -- way to add new products to your site is to join another business's affiliate program and recommend their products in exchange for a percentage of each resulting sale.Selling affiliate products can be a very lucrative way to increase your sales, especially since you don't have to spend any time or money developing a new product of your own!To learn more about joining affiliate programs, go to:• www.associateprograms.com• www.refer-it.com• www.affiliatesdirectory.com... or check out IMC's top-rated affiliate program at www.marketingtips.com/assoc.
Whether you create brand-new backend products that complement your existing products, or sell other people's products through an affiliate program, you need to know how to target the right products to the right customers...
Divide and conquer: Segment your list for maximum effect
"Segmentation" simply means dividing your list into smaller, more focused groups so you can send mailings out to more targeted audiences. It's one of the most effective ways to market products or services on the Internet because it allows you to send product offers ONLY to people who are extremely likely to be interested in them.
And, as backend offers obviously go only to previous customers, you can create messages that are specifically tailored to them based on what they bought, when they bought, and other pieces of personal information you've collected from them.
This allows you to create messages that are highly targeted and, importantly, highly PERSONAL.
After all, it makes sense that people respond favorably to offers that are tailored to their own personal wants and needs. (That's why I opened that email from Amazon and bought the book they offered me!)
In fact, a study by MarketingSherpa shows that email marketers who use segmentation have a 72% higher click-through rate than those who don't divide their lists!
We learned firsthand how effective this technique is a few years ago, when we decided to conduct a little marketing experiment. We took a small list of our customers and split it in half, then sent an email to each group that was exactly the same, with only ONE exception.
The subject line of the first email read:
Here's all the info you need
The subject line of the second email, which had EXACTLY the same body as the first email, had been customized to display the recipient's name. For example:
Bob, here's all the info you need
Now, we had a hunch that the personalized subject line would do better than the generic one. But what we discovered surprised even us! The email with the personalized subject line had a response rate 64% higher than the one without!
And that was the ONLY difference between the two campaigns! The body of the email was identical in both cases, and so was the offer. It was that one small change in the subject line that boosted the response by 64%!
As you can see, if you HAVEN'T been personalizing your email promotions, now is definitely a good time to start. Can you imagine what a 64% increase in sales and profits would do for YOUR bottom line?
Of course, you can personalize the body of your email as well as the subject line, and you can use ANY information you've collected about your customers and subscribers, not just their names.
For example, let's suppose you run a travel company and that you know which of your customers are single young women.
Using this information, you can create a promotion that caters specifically to them. You could start your email off like this:
Hi Susan,
I thought you might be interested in learning about the special "Girls' Weekend in Vegas!" promotion we're currently running.
For the low price of just $500 each, we're inviting you and three of your friends on an all-inclusive weekend in America's favorite party town -- including your airfare, hotels, and meals -- PLUS a chance to whoop it up at all of Vegas's hottest night spots!
By sending out such a specifically targeted promotion, you're bound to see greater results than if you offered a general promotion to a large, untargeted group of people.
And once you learn how easy it is to do, you'll be kicking yourself for not getting started sooner!
Final thoughts
The bottom line is, if you're not offering backend products to your customers you're losing out on 30% to 50% more income.
That's because if you sell only one product, your profits will always be limited by the number of new customers you take on.
It takes a LOT more time and money to acquire new customers than it does to sell new products to your existing customer base, so selling only one product can really eat into your profits.
Because you know what kind of products your customers like, it's easy to create brand-new backend products that complement your existing products, or join an affiliate program and sell other people's products.
And if you segment your customer list to target focused groups of customers with products that will appeal specifically to them, you'll show them you understand their particular needs -- and they'll thank you for it by buying more products from you, and staying loyal to your business for years to come!
So that's why, when I'm asked, "What strategy will most help increase my Internet marketing sales?" my answer is always... "Backend selling!"
All too often, when I ask them to tell me about their business models, I discover they're selling only ONE product. So I ask them, "Have you ever considered selling backend products to your customers?"
Backend products are simply products you can offer to your existing customers, after they've made their initial purchase.
Because you know what they've already bought from you, you should have a good idea of other things your customers like to buy. And that should make it easy for you to think of new things they'd want to purchase!
Backend products can be anything you think your target market might be interested in. For example, if your site sells cameras, new products could include:
Add-ons like wide-angle or telephoto lenses for your cameras
eBooks that teach people how to take better pictures
Other complementary products, such as camera cases or tripods
The brilliance of this strategy lies in the fact that you already know what your customers like to buy! So you can easily create highly targeted offers for them -- leading to higher conversion rates and more sales... and more money in your pocket!
The truth is, if you're not following up with your customers and targeting them with highly appealing backend products, you're losing out on a TON of profit.
In fact, by adding just ONE more product to your site, you can increase your revenues by 30% to 50%!
Why you need to think "lifetime value" rather than "single sale"
The other day I got an email from Amazon.com telling me about a new Internet marketing book they just got in stock.
They knew I might be interested in it because I'd bought other Internet marketing books from them before. (Hardly surprising, right? :)
And I was interested in that new one, too! In fact, as soon as I got Amazon's email, I immediately clicked through to their site, checked out the book, and bought it!
And in doing so, I boosted my "lifetime value" to Amazon by another 20 bucks.
Lifetime value is simply the income generated by a single customer over the course of your relationship with him or her. If you sell only one product, then your customers' lifetime value will be limited to the net income that comes from a single sale of that product.
But if you sell a wide range of products, your income will grow exponentially!
And selling to existing customers is easier and cheaper than selling to strangers because you've already cultivated a relationship with them: You've put in the time and money to...
Get their attention
Establish your credibility
Build their trust in you
Overcome any resistance they may have to buying online
Close that first sale
On top of that, you now know what your customers like!
So, after that, it's much easier to sell to people a second time... and a third... and a fourth... and so on.
If you reward your customers for being loyal, they'll reward you by becoming even more loyal!
Take the book I bought from Amazon... all they had to do was send me an email about a product they thought I'd like, based on my previous purchase history. They didn't have to sell themselves as a company to me because I've already bought from them before.
In fact, I've bought maybe one book a month from Amazon over the last five years at an average of $20 each -- meaning my lifetime value to them so far is $1,200!
And it's much easier -- and way cheaper -- for Amazon to sell me 60 books at $20 each than to persuade 60 new customers to each buy one $20 book.
When to follow up with your customers for maximum returns
The best time to offer your customers backend products is when you're given a natural opportunity to follow up with them.
Here are some examples of what I mean: You can...
Follow up after a purchase: Right after someone buys from you, you can send them a "thank-you" message that includes an offer for a related product. For example, if you sell project management software, you could offer your customers an eBook that gives them advanced project management tips and techniques.Or, if you sell "how-to" guides that teach people how to build their own sundeck, you could offer customers a special package deal on the tools they'll need for the job.
Follow up on a purchase anniversary: An easy way to get a follow-up promotion in front of your customers is to send them an offer one month, six months, or even a year after they made their first purchase.Email them to ask how they're enjoying the product, and let them know you've got similar products available at a special discount price that's being offered only to previous customers.
Follow up whenever you can provide new products or information: If, for example, you sell snowboard equipment and clothing, and you've just received stock of a cool new snowboarding jacket, you could contact your customers who bought a snowboard or boots and offer them a jacket at a special discount.They're obviously snowboarders, so there's a good chance they'd be interested in a new jacket.
The important thing to remember is, the backend products you offer HAVE to be things your target market is going to be interested in.
Seven killer backend product ideas you can use to expand your profits by more than 30%
There's no doubt about it: Following up with your customers and offering them backend products is a great way to boost your profits without eating into your marketing budget.
But how do you find the killer products that make this strategy so profitable?
It's a lot easier than you think! For example, you can...
Offer products that complement your initial product: For example, if you sell golf clubs, offer your customers a golf club bag to carry them in.Or you could offer golf balls, golf tees, golf shoes, golf training videos -- the list is endless!
Sell more of the same product at a discounted price: If your product is refillable or needs to be regularly replaced, this strategy works especially well. For example, if you sell things like printer cartridges, camera film, or batteries, you've got it made!But even if your product isn't refillable, you can show your customers you appreciate them by offering them a special discount on the product they've already bought. That way, if they like the product, they can buy it as a gift for family and friends.
Use paid subscriptions as backend products: If you've established yourself as an expert in your industry, you can build on your reputation by offering a subscription to "premium" information, only available to members, as a backend product.For example, if your main product is a fly-fishing kit, you could sell a subscription to an exclusive course on advanced fly-fishing techniques as a backend product. You could deliver this paid-for content through a members-only web site, or by email.
Try splitting up your current product: For example, if you were selling a book on how to "declutter" your home, you could offer a basic version for $9.95 to generate a large volume of sales at a low price. Then, 30 days later, you could offer your customers an advanced, expanded version that includes home office management and scheduling tips for $29.95 or even $39.95 -- and increase your profits dramatically!
Try selling your customers an upgrade to their product: If they've used and liked your basic model, your customers will be open to receiving offers for the upgrade version.For example, if you sell eBooks teaching people how to use a particular piece of software, you can sell updated versions to previous buyers when the software package in question is upgraded.
Write a book or create a video: eBooks are great backend products with high profit margins! Consider writing a short book on a topic that's related to your product or service. For example, if you sell gourmet puppy food, you might consider writing a book titled, "Training Secrets That Will Have Every Puppy Housebroken and Learning Basic Obedience in Less Than One Week!"You could even offer a special video that complements your product or service. For example, if you sell barbecue equipment, you might offer a video that teaches people how to perfect their barbecuing technique.
Offer someone else's product! Probably the fastest -- and EASIEST -- way to add new products to your site is to join another business's affiliate program and recommend their products in exchange for a percentage of each resulting sale.Selling affiliate products can be a very lucrative way to increase your sales, especially since you don't have to spend any time or money developing a new product of your own!To learn more about joining affiliate programs, go to:• www.associateprograms.com• www.refer-it.com• www.affiliatesdirectory.com... or check out IMC's top-rated affiliate program at www.marketingtips.com/assoc.
Whether you create brand-new backend products that complement your existing products, or sell other people's products through an affiliate program, you need to know how to target the right products to the right customers...
Divide and conquer: Segment your list for maximum effect
"Segmentation" simply means dividing your list into smaller, more focused groups so you can send mailings out to more targeted audiences. It's one of the most effective ways to market products or services on the Internet because it allows you to send product offers ONLY to people who are extremely likely to be interested in them.
And, as backend offers obviously go only to previous customers, you can create messages that are specifically tailored to them based on what they bought, when they bought, and other pieces of personal information you've collected from them.
This allows you to create messages that are highly targeted and, importantly, highly PERSONAL.
After all, it makes sense that people respond favorably to offers that are tailored to their own personal wants and needs. (That's why I opened that email from Amazon and bought the book they offered me!)
In fact, a study by MarketingSherpa shows that email marketers who use segmentation have a 72% higher click-through rate than those who don't divide their lists!
We learned firsthand how effective this technique is a few years ago, when we decided to conduct a little marketing experiment. We took a small list of our customers and split it in half, then sent an email to each group that was exactly the same, with only ONE exception.
The subject line of the first email read:
Here's all the info you need
The subject line of the second email, which had EXACTLY the same body as the first email, had been customized to display the recipient's name. For example:
Bob, here's all the info you need
Now, we had a hunch that the personalized subject line would do better than the generic one. But what we discovered surprised even us! The email with the personalized subject line had a response rate 64% higher than the one without!
And that was the ONLY difference between the two campaigns! The body of the email was identical in both cases, and so was the offer. It was that one small change in the subject line that boosted the response by 64%!
As you can see, if you HAVEN'T been personalizing your email promotions, now is definitely a good time to start. Can you imagine what a 64% increase in sales and profits would do for YOUR bottom line?
Of course, you can personalize the body of your email as well as the subject line, and you can use ANY information you've collected about your customers and subscribers, not just their names.
For example, let's suppose you run a travel company and that you know which of your customers are single young women.
Using this information, you can create a promotion that caters specifically to them. You could start your email off like this:
Hi Susan,
I thought you might be interested in learning about the special "Girls' Weekend in Vegas!" promotion we're currently running.
For the low price of just $500 each, we're inviting you and three of your friends on an all-inclusive weekend in America's favorite party town -- including your airfare, hotels, and meals -- PLUS a chance to whoop it up at all of Vegas's hottest night spots!
By sending out such a specifically targeted promotion, you're bound to see greater results than if you offered a general promotion to a large, untargeted group of people.
And once you learn how easy it is to do, you'll be kicking yourself for not getting started sooner!
Final thoughts
The bottom line is, if you're not offering backend products to your customers you're losing out on 30% to 50% more income.
That's because if you sell only one product, your profits will always be limited by the number of new customers you take on.
It takes a LOT more time and money to acquire new customers than it does to sell new products to your existing customer base, so selling only one product can really eat into your profits.
Because you know what kind of products your customers like, it's easy to create brand-new backend products that complement your existing products, or join an affiliate program and sell other people's products.
And if you segment your customer list to target focused groups of customers with products that will appeal specifically to them, you'll show them you understand their particular needs -- and they'll thank you for it by buying more products from you, and staying loyal to your business for years to come!
So that's why, when I'm asked, "What strategy will most help increase my Internet marketing sales?" my answer is always... "Backend selling!"
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