Backend Profits Are Where The REAL Money Is Made

November 7th, 2006

It’s rather ironic actually - the one factor that makes Internet Marketing so accessible to everybody that wants to get involved (which is the low cost and availability of the Internet) is also the reason that most people fail at this business!

All of this time most marketers have been approaching the Internet Marketing business as an opportunity, with the mentality that they must continue to create new product after product in order to continue to make money.

While it is important to create new products, it shouldn’t be viewed as a “launch product, make a lot of money, then move on to the next product” system (if you can call that a system).

Instead it should be viewed as a “launch product, where will this take me next?” system, where the product launch isn’t the only time the product is sold, and back-end products are already in place (or will be shortly) to continue to build revenue from existing customers.

Consider the difference between the “typical” marketer who continues to create new $97 products, compared to the “profitable” marketer who creates a $97 as a front-end, then adds a $250 or $500 product in the back-end with a $97 per month subscription. Later on he/she adds a $997 home-study course which builds momentum towards a $5000 coaching program or seminar.

Now the $97 has more than one purpose. First, it is to gain a customer (and not just a prospect). Second, it is to prepare that customer to purchase the more expensive back-end (which is designed of course to help them even more than the $97 front-end).

Once that kind of system is in place the marketer can then look at how to get more customers to the front-end.

The most profitable way is through alliances and joint-ventures. Sure, the efforts of the marketer to generate traffic can do much for the business (we see examples of John Reese who generates millions of visitors to his websites) but the true power comes in when others who are doing the same work as you share their results, in essence, you “multiply” your efforts by using the efforts of others (and they multiply theirs by using yours).

The real exciting part comes when you build your backend to be so profitable that you realize that your front-end customer is worth far more than that $97, which allows you to spend even more on getting that customer (which your competition can’t afford to do because they have no such process, allowing you to gain even more customers at a much faster rate).

This would have been impossible if all you had was that first $97 (or $47, or $197, whatever it was) sale, and will allow you to eventually profit wildly from your efforts, while creating LESS work for yourself.

All the best,

Matthew Glanfield

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Filed under: Business Strategies, Backend Products, Rich Schefren — Matthew @ 12:00 am


2 comments to “Backend Profits Are Where The REAL Money Is Made”

  1. Daniel Huffman Says:

    Matthew, Great article. Very informative and well produced. Keep up the good work. Thanks Dan.

  2. oboyovwiri hossanah Says:

    i have intreston these program.

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