I see som many new Internet Marketers leave before even giving themselves a chance to succeed. It's really sad to see people who really have the drive and desire to make a go of IM up too early. It just becomes too frustrating because they have been misled by GRK (Get Rich Quick) gurus who promise the moon and deliver nothing.
If new marketing than learning the fundamentals of marketing, they could give a fighting chance. So I'm going to cover one of the largest, most influential songs to your success as a distributor. This is called the backend. If you've been around and you encounter any kind of success you probably know what I mean. If you do not, read on and make sure the following is indelibly etched in your mind marketing.
The backend refers to all sales that occur after the first. The fact the backend is a business of somebody is huge as I will show in a moment. But for now back to why the backend is so important. Marketing will focus on decisions that the first sale, as if it was the last sale. If they can not make a profit on the front and then they quit, give up and pack it in. Instead, you should see the first sale as an entryway into more profits and more success. Let me demonstrate.
Let's say you sell on the market for the IM. Mmmm, this is a familiar. You put up a nice little ebook on how to use Google Adwords and sell it for $ 47. Good. For each sale you make you put $ 47 in your pocket. If you get free traffic, you keep everything. But if you advertise the sale and you have to spend $ 20 for a sale. You save $ 27. Now it's your only product and things are going well until your competition arrives.
They have a $ 47 ebook Google too, but they also have a $ 197 home study course study on affiliate marketing that they offer their customers a few weeks after the customer buys the ebook. For this example, 10% of their customers to buy over $ 197 a few weeks later. Suppose they pay the same amount in advertising that you, $ 20, for the first sale. Look at the numbers.
Your company:
10 Sales profit $ 470 - $ 200 (advertising sales for 10) $ 270. Not bad.
Your competitor:
10 Sales $ 470 + $ 197 (10% of sales on the backend) - $ 200 (advertising) $ 467
Hmm.
Your return on investment is $ 270 $ 200 135%
Theirs is $ 467 $ 200 234%
You begin to see the effect? What if your competitor was another product, a coaching program is $ 995 that 10% of customers purchasing home study. Let's see how these figures work. We will now use 100 outlets.
Your company:
100 sales $ 4,700 - $ 2,000 $ 2,700 Profit
Their business:
100 points of sale - $ 4,700 (end open) + $ 1,970 (a backend) + $ 997 (2 backend) - $ 2000 (advertising) $ 5.667
Your return on investment is always 135%.
Their is $ 5,667 $ 2,000 $ 284%
Now you can say that everything is fine and good, because I am 135% on my money and I'm happy. I make a profit and everything is good. Well, it is until your competitor realizes clever they could have more of the market, if you were not around. So they decide they will reduce the price of their final product before $ 20. Ouch! They just put pressure on you now to stay competitive, you have to lower your price too.
You both take a hit on the front, and since you do not have a backend you are forced to leave the market. Your competitor of the other may break even or even lose money on the front because they are on the backend. Too bad for you. Game Over.
Now, I hope this small example you showed both the importance of having an interface and the importance of knowing what your competitors for their backend. When you know how your numbers work on the back, you know what you can pay to acquire customers at the front. The final result you need to understand is that when competition in your market, the marketer who has created the biggest wins back.