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Creating Back End Income
by Abe Cherian, Multiple Stream Media. www.abecherian.com 

Selling back end products or services to customers that trust you is the most important type of income. It is the selling you do after the first sale, and many companies never realize the huge profits they leave behind by not selling to the same customer!

Majority of the Internet business owners who realize this passive income can tell you first hand that it works well for their business to get residual repeat purchases. This is the type you'll want for your online business, here's why...

The same amount of effort that you put into making the first sale can be done easier and faster on the back end from the same customer who bought from you before. The relationship with your customer has already been established and there is no reason why they should not trust your next recommendation.

You can only generate so much revenue from one-time purchases, but when you add back end income to your balance sheet, you'll discover another source of income that you absolutely can't do without. Doing business online, you already know the cost to get a new customer. Why not create back end selling?

You can create back end income along with most products online. For example, let's say you sell information products for $50 and 20 customers have purchased. That's $1,000 on the first sale. Now let's say you built in a extra offer for $25 and 5 of those same customers purchased. That's an extra $125 back end income that you can use to offset your advertising budget, or anything pertaining to that campaign. 

These figures are just an example, but they show how relatively easy it is to generate extra revenue through a repeated process with the same conditions. Additional back end selling is all about working smarter, not harder! While there should be no added expense incurred, virtually any product or service can be included with the front end sale as long as it fits the theme of the main item.

Of course, the results can vary depending on the quality of your product, how brilliant your sales piece, and how well established your relationships are with your customers. Your goal is to get potential customers to buy from you, and make readily available another offer to those same customers. This has made some Internet marketers a fortune and why they are still successful.

If you are "just breaking even" or "barely getting by," change your pattern of marketing with a little extra effort. When you finally see the numbers increase right in front of you from additional revenues generated by back end products or services you'll never stop doing it as an Internet entrepreneur.

You can easily start by including links to your back end product or services on your "thank you" pages of your web site. These pages are the prime area for presenting your extra offers to your customers. Make every effort to tie the theme of your back end product or service into your main, otherwise your customer might be confused and never purchase.

If you create your own digital products, you'll want to include links to other relevant products you own. If you're an affiliate, and selling for a commission, simply create another similar version. For example; you are selling an ebook on above ground swimming pools for $20. You'll want to include advertisements of the other ebook you create on under ground swimming pools for $15. Since your customers trust the quality of your first edition, a fraction of them will probably be interested in purchasing your other ebook in the series.

For the majority of affiliates who do not have their own product or service and have no intentions to create them, obtaining resell rights they can customize is extremely profitable, but usually with a reasonable fee. Earning back end income this way is the result of the same customers purchasing through an affiliate link found within the same product.

Be Creative! 

Remember, back end selling is just one of the elements that influence your success. You need to define which are relevant for your business and your customers. It’s very important that you do this task with utmost care and detail, because you will find out which elements of your process are your weak spots, and thus fail to satisfy your customers - which help you make the most sales. 

You now want a clear image of where you are failing or what elements are holding you back from achieving greater success in your sales and business. Once you know what these critical factors are, you can study each and see, specifically, what needs to be improved. 

The old saying "a chain is only as strong as its weakest link" is really true here. For example; if you are experiencing difficulty with customers making a purchase, even if all of the other elements are working 100%, you will be losing sales. You won’t be able to supply either the quality your customers seek in your products or an exact time they can expect to receive them. 

In addition, if your customer acquisition and making a sale to a first-time customer are perfect, but you are only making sales on the back end – you are missing out on most of your profits. It won’t help you much if all of your factors are perfect, except one, because that one factor is your weakest link and challenges the integrity of the whole chain. 

It’s enough to hinder your complete process and destroy the effectiveness of the other factors, even though they’re currently perfect. Once you reach the level of knowing what you are doing well and where you need to do better, what your customers want and what they don’t need, then use this to form a competitive advantage over your competition as well as in all of your promotional activities. 

Make certain your customers find out how hard you are working for them and what you are ready and willing to do to make their experience and satisfaction as positive as possible. Know what it is they are getting from you that they aren’t getting anywhere else and you’ve discovered your competitive advantage of back end selling. It will more than likely be the most important, if not the only reason why your customer entered and remains in a business relationship with you.

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