How To Increase Profits On The Backend – Issue 2

Posted By Carlos Batista on Mar 6, 2017 in Business Topics, Online Business, Uncategorized | 0 comments



Welcome to Issue 2 in this topic.

HAVE MANY OFFERS IN YOUR FUNNEL

If you want to do backend offers, you have to have many products in your inventory. They don’t specifically have to be your own products; they can be affiliate products. However, you need sufficient inventory to mix and match your offers so that people won’t get tired of seeing the same offer every time and get more resistant to being marketed to out of pure boredom.

THE THREE-TIERED SYSTEM

In your inventory should be three categories of products: low-, mid-, and high-range products. The reason for this is that you are going to cycle through the entire line up of products in whatever demographic your customer is in. If they self-identify themselves as being willing to buy in the mid-range, then you can shift them out of the low-range products and start cycling them through the mid-range products, and so on.

This three-tiered system works well because it allows you to keep track of what part of the sales funnel they are in, what they’ve already bought, and what you still need to market until it sells. After that, it’s just a matter of learning when to give incentives to have them buy more on the backend.

GAIN TRUST WITH YOUR LOW-END PRODUCTS FIRST

Some strategies work best with different tiers of products. You can’t really do an immediate backend offer the moment someone buys a low-end product, unless it’s very subtle, like something that is included within the content of a freebie. Otherwise, it’s not enough time for customers on that tier to really ascertain the quality of your products and to trust that you will deliver what you say you will deliver.

If that’s the case, you might want to offer more significant freebies to move them up a notch, like an invitation to a teleseminar or a free coaching session. That way, they can test your products before you actually move into marketing to them for bigger amounts of money.

LIMITED ONE-TIME OFFERS

Once you’ve gotten a mid-level product sale from a customer, you can start to offer them one-time offers on the backend. These offers are great deals for your regular customers, who now understand that you have good products and they have enough trust in you to purchase more. Once they’ve identified themselves in this category due to their moving into the mid-priced level of products, you can start to market the limited one-time backend offer.

BE CLEAR IT IS “ONE TIME”

After the sale of a mid-priced product, send the customer to a sales page with some related product on it. Tell them that because they’ve bought a specific item, they are given this “one time” chance to make another complementary purchase at a discounted price. Make it clear that once they leave the page, that price will no longer be offered. Sweeten the deal by adding some bonuses to your special deal that are also included in your “one-time” offer. These bonus items will no longer be available for free with other packages unless they make this deal. Should they leave the page, the offer is gone forever and so is the discounted price. This really lights a fire under people’s butts and is a great way to make use of a backend offer at just the right time.

WHY IT WORKS

The customer who is led to this backend offer has already indicated that he/she is willing to buy mid-priced products from you, so money is not an issue. They probably are also highly interested in your lineup of products. They might decide to wait until they have more money to come back and buy some more from you later, but if you showed them how they would save tons of money from you by buying now, they are more likely to buy the one-time offer. In addition, one of the psychological triggers that people have is a fear of loss. If a deal is really good, they already trust you, and they know that they will most likely want this product in the future, the fear of loss will get them to buy now, knowing that that offer will never appear again and that they will only have themselves to blame for missing it.

TRY A ONE-TIME OFFER ON YOUR THANK YOU PAGE

Instead of going to a totally separate page upon buying the mid-level product, you can include the one-time offer on your thank you form as a special way to thank people for patronizing your site. This is also a nice way to show people that you are paying attention to your buyers and rewarding them for their loyalty.

BONUS OFFERS

Along with the regular lineup of products in your sales funnel, you should set up multiple bonus offers that you can offer on the backend at various times. You can offer them in an email that confirms a download of a product. You can offer them in email campaigns at specific times when some action is taken, whether it’s joining a forum or participating in a survey. Once you have someone’s attention, it doesn’t hurt to offer him/her something special by way of a thank you during his/her interaction with you.

WHAT TO INCLUDE IN YOUR BONUS OFFER

Include value packages that will wow your customer into buying more from you later on. They should be offers that are unique to your website, even if you’ve decided to offer an affiliate package within it. It should not be a duplicate of a bonus offer located somewhere else or people will feel marketed to instead of feeling honored to be asked to buy.

Value packages can include multiple items that you sell separately, but when packaged together, brings the price down to an unbelievable low price that you wouldn’t get by buying them separately. It has to be a really good deal that shows that you are contributing value to your customer’s day.

BONUS OFFERS WORK WELL IN THE HIGH-INCOME TIER

A good bonus offer can be priced in the hundreds and be sold to high-income tier customers very easily. These are loyal customers who already have given you their utmost trust and are willing to shell out the big bucks. Make many such offers available to your high-income customers, who will see it as an opportunity to buy in bulk and to save individually.

You can fatten up the bonus offer quite well with infoproducts that don’t require additional shipping or handling on your part. While the customer may feel that they’re getting a heck of a deal by getting multiple reports, ebooks, even video courses, they don’t cost you much to produce, offer, and deliver. Thus, the bonus offers can include tons of these items, making them highly valuable to your high-income customers, but they don’t cost you much to give away anyways.

If a person on the mid-level tier buys a high-income bonus offer (which can be offered occasionally as a test), they should immediately be moved to the high-income list. They will have more opportunities to see what other high-value products you have and they’ve self-identified themselves as having a strong interest in your products. This will also help you to target your high-end bonus offers to them more often.

In Issue 3 we will be looking at how strategic upselling works so don’t forget to check back tomorrow.

In the meantime, if you want to discover how you can start a business you love, then click here!

%d bloggers like this: