Back-end sales is one of the most important concepts to understand in order to run a successful online business. You’ll earn as much as eight times more with your back-end sales than your front-end sales.
What exactly are back-end sales? How do you use back-end sales to build your business? Let’s take a look.
Back-End Sales: What They Are and Why They’re Important
Back-end sales are sales you make after the first sale. The first sale is called the front-end sale, while all subsequent sales are called back-end sales.
Most online business owners tend to focus on making just that first sale to new customers.
They tend to focus on how to get traffic to their website and how to convert those visitors into buyers. They’ll focus on their fulfillment process, their web design and the product itself, but often forget to focus on back-end sales.
Yet any experienced marketer will tell you: the money is in the back end, not the front end.
Why the Money Is in the Back End
Most money in business is made from people who buy from you again and again and again. This is true for both online and offline businesses.
To illustrate the point, let’s take a look at Starbucks.
Starbucks doesn’t make the majority of its money from one-time visitors. Instead, they make most of their money from people who make Starbucks part of their morning routine and buy from them again and again.
They might earn $2 for a cup of coffee. If someone visits twenty times a month, that’s $40 a month, $480 a year. Compare that to a measly $2 if Starbucks was aiming for a one-time sale.
The same is true with online businesses. If you sell a $20 product for example, you’re leaving a lot of money on the table if you don’t also have $40, $200 and $500+ products to sell.
How to Build Out Your Back End
The trick to building a solid back end is to do it one product at a time.
Build your front-end product, then start promoting your site and your product. Simultaneously, start planning for back-end products.
Once you have some success with your front-end product and start to have a customer base, release your second product.
Keep up this parallel track of promotion and product development. Just as you should never stop promoting your business, you should also never stop increasing or improving your product base.
Try to have a product for every price range in your market. If you can sell a $10 product, do so – but also sell a $5,000 product if you can. That way you make the most money possible from each visitor, no matter what their budget.
Building a good back end is critical to any successful online business. Start with one product, but plan to expand your product line from the very beginning.