Backend Sales Done Correctly – An Overview
Okay, before we go too deeply into the ins and outs of backend sales – I want to give you a quick breakdown of what backend sales are and how they’re used. Most marketers have a basic idea of how they’re used over the short term, but when asked to define backend sales, lots seem to trip up.
So, for now… let’s put aside the jargon and take it from the top.
Backend sales are what you offer after building trust with your first offer. For example…
You wouldn’t try and sell strangers a $1500 e-book straight off the bat. Instead, you’d give them something for free, sell them on a smaller product, and move on to the more valuable product when you’ve built enough trust.
It’s a fantastic technique similar to what Gene Schwartz calls “Gradualization.“ It also proves who is willing to spend money and who isn’t. But here’s the thing…
Certain people expect everything for FREE. These are the people you want to avoid like the plague. They have no appreciation of value, even when they receive free products or services. They’re either discarded or forgotten about – because of a non-commitment belief or low self-image (but that’s a story for another post).
A word of warning…
If you’re going to offer FREEBIES or a low introductory product, make sure you “overdeliver.” Don’t fob them off with something of low value – you’ll regret it in the long run.
Alright, so backend methods…
I will explain this in more depth, including product levels, prices, and what form they should take in the coming three tips – but for now, let’s look at the basics.
Short-term backend – You sell a product, and on the thankyou page, you offer the customer a one-time addition to their original offer (some call it an add-on). But we’ll keep it simple… ’cause simple is best. This method will usually add some profit to your deal (assuming your first offer paid for the advertising).
And never forget that trust is being built at every stage of your relationship.
Long-term backend – This is where you give the customer time to appreciate their purchase. Usually, seven days to a month and a half. The advantage of this method is… after experiencing the quality of your first offer – the customer is more likely to take you up on your second one (provided you exceed expectations).
Another advantage is you can charge a higher price, although you’ll lose a percentage of customers. For that reason, you’ll sell a lower volume than short-term. But if you’ve priced your products right… you’ll see much bigger profits over the long term.
And talking of long-term…
When you’ve got enough customers on your books, you’ll be able to determine their lifetime value to your business (LTV). This revenue is crucial for working out your ad spend and customer acquisition strategy. But that’s going off in the deep end – and we’re keeping it simple in this tip, huh?
The point is… once you’ve gained the trust of many customers. You’ll know they’ll be open for many future offers. And remember… you always want to offer high-value, premium-quality products or services.
And not become a fart in a wind tunnel… never to be heard of again.