I'm a marketing consultant and at one of my client-companies, a
company that, in less than 10 years, has gone from a $10 million
to a $100 million dollar business one of the people I work with
frequently has jokingly given herself the title, 'Vice President,
Back-End.'
Although that clearly opens her up to be the butt of many jokes,
it does very accurately describe her very, very important area of
responsibility, in direct marketing parlance. At least 80% of the
company's profitability depends on her contributions.
sell your customers after their initial purchase (that first
order is called the "front-end"). For instance, let's say you
sell instructional video tapes to golfers on how to play better.
You advertise in golf magazines and your lead product is a $25
video on putting strategies. That's your "front-end" because
that's what people buy first. But then once people purchase that
first video, you send them a catalog offering them over 50 other
golf videos ranging in price from $50 to $99. Those follow-on
videos are your "back-end."
In many businesses, there is a relatively brief period of time
during which there are significant, exciting profits on the
front-end, that is the very first sale to a customer.
But that happy situation dissolves over time, as you "cream" the
market. And, as you go deeper and deeper into a market, the cost
of making the first sale (acquiring a customer) goes up and up.
For instance, in the above example of the golf videos the first
time you run a magazine ad you might pull 100 orders. But if you
keep running it every month, your order volume will probably drop
off steadily. Within six months, you'd be lucky to be selling 30
videos from the same ad in the same magazine. As some point, it
gets so high it is no longer practical to advertise and sell that
product to that market.
Nothing is forever. This fact of life is what mandates being
smart about making all the money that you can from the back-end.
The good news is that your satisfied customers are probably
willing to buy other things from you -- and they don't even have
to be your own products/services. You can make deals with other
companies to offer their products/services to your customers in
exchange for a piece of the action.
For instance, let's go back to our example of the golf video
company. You might do a "joint venture" with a manufacturer of
special golf clubs which sell for $1,500 a set. You'll mail a
letter to your customers telling them how well these clubs will
improve their golf game and you'll get $750 on each order placed.
If your customers trust you, they'll be much more likely to
respond to your letter than they would be if the golf club
manufacturer mailed to them directly.
Of course you only want to recommend high-quality products and
services which will be of value to your customers. But you get
the idea. You could make similar deals with other companies who
sell what golfers want -- golf apparel, golf trip and excursion
operators, even custom home builders who sell houses near golf
courses. They'd all happily pay you a 'toll' commission to sell
their wares to your customers.
No matter what your business, one of the most valuable assets you
have is a list of satisfied customer, predisposed to buy from you
again. When you control a sizable list of customers who bought
from you, know your name/business name, are happy with what they
bought and with the ensuing relationship ... and are pre-disposed
to read your mail and buy from you again, it's like owning your
own "toll booth."
A pioneer of direct marketing, Harvey Brody, taught me the power
and value of getting into "The Toll Booth Position" and I've been
teaching it for years. Imagine owning your own toll booth on the
highway near your city. Anybody who wants to get to the other
side of that toll booth has to pass through its gates and pay you
money.
As the controller of a responsive customer list, that's exactly
where you are; sitting there in your own toll booth and anybody
who wants to get their appropriate product or service to those
customers you control, has to pay you money.
You can collect a toll through joint ventures, as described above
wherein you do an endorsed mailing to your customers and get a
piece of all sales that result.
Or, if you build a list of 50,000 or more, through outright lists
rentals. I have a number of clients who pay all their overhead
expenses every year just with the checks they get from the list
broker representing their list to others.
I have often paid others to pass through their toll booths ---
and done so cheerfully. I have also been paid by others eager to
get through my toll booth, to my customers, with my endorsement.
In the direct marketing business, it's a well-known fact that
most of the profits is derived from back-end sales to existing
customers. Yet outside that business, I rarely encounter a
company which comes anywhere close to tapping the potential of
establishing their own "toll booth position." Get started
building yours right now and start charging others to go down
your road.
Dan Kennedy is a marketing consultant and copywriter who helps
entrepreneurs cut waste out of advertising, end cold prospecting,
sell at prices higher than competitors and dramatically increase
profits.The author of "No B.S. Business Success" and other books,
as a speaker he has frequently appeared on programs with former
U.S. Presidents, General Colin Powell, Larry King, Zig Ziglar,
Brian Tracy and Jim Rohn. For info on his monthly "No B.S.
Marketing Letter" go to http://www.DanKennedyLetter.com
Copyright 2004 by Dan Kennedy, DanKennedyLetter.com.
NOTE: You may run this article provided you run it with the bio
box intact. Please email a copy of your publication with article
in it to Mr. Kennedy's publicist at ArticleDeptBill@rtir.com
Article Source: http://EzineArticles.com/
Do you ever stand in awe of those people who seem to know everybody and everything? I know I do! Regardless of what you're looking for, these people have their finger on the pulse of the 'Net and know where to find it. Their network of resources and people is incredible! Yours can be, too.
It's actually very simple to create a network that works to bring you business, offers feedback and provides those resources that we all need to have.
---- Make A Wish List
The first step in creating a network that works is making a list of what you want. Go ahead, think of the perfect situation where you would have anything you needed at your fingertips. For example, if you have a Web design business you might find it very helpful to create associations with people who offer services that compliment yours. Why? Because if these people are heavily involved with the process of getting a Web-based business up and going, they could send you many leads and that could turn into paying clients.
What else might you want? Perhaps free advertising or publicity to bring more business your way? Sure! Write it down on the wish list.
---- Making Wishes Come True
Now, the next step is to find the resources you need in order to make those wishes realities. It's not as difficult as it sounds. Just expand on your wish list a bit in the following way.
We mentioned needing associations with service providers that compliment our example of Web design. So write down companies that provide:
Web hosting, merchant accounts, shopping carts, autoresponders, Internet checks, copywriting, graphic design and scripting/programming.
We also said we needed some advertising or publicity. So add to the list the following: ezine ad swaps, banner ad swaps, local newspapers, local TV and radio stations, Chambers of Commerce.
Finally, it's time to go to work. The best way to start is to alert your friends and associates of what you are trying to accomplish. It's simple to send a quick email that states something to the effect of, "I'm in the process of expanding my resources and find I'm in need of the following [provide the list]. If you know of anyone who you highly recommend in one of the above areas, please offer them my phone number and email address. I am interested in arranging a joint affiliation with them in order to increase both our businesses."
You can also send the same message to any lists or bulletin boards you frequent. Most people are more than happy to refer those they have had pleasant working relationships with.
---- Final Decisions
Lastly, once you get the results from your search back, contact the ones you feel most comfortable with. Again, honestly explain what you are doing and that you would like to create a joint partnership with them in order to exchange leads, prospects and services.
Even if someone does not suit your needs at the moment, enter them into your database for future reference. I once had a graphic designer's email address and samples for 6 months before having a need for them. However, because I had already established contact, once my need arose it was smooth sailing!
When you are ready to begin your projects, just contact those on your list who can fill a need. Perhaps you want to advertise your Web design services.
You can ask someone in your network (a Web host, a graphic artist, etc.) to participate in joint advertising with you. This will allow you to get excellent exposure for �½ the price because those costs are shared with your "partner".
You can also set up a referral process. I have several arrangements with others in where we exchange referrals. Some do it for a fee, others just do it on a one-for-one basis. You and your network member can decide what works best for you.
The results of this simple process are normally tremendous. The majority of small business owners are always looking for ways to expand their businesses. Exchanging leads with one another, creating joint affiliations and bartering are great ways to create a broad network that truly does work!
Diane C. Hughes * ProBizTips.com
FREE Report: Amazingly Simple (Yet Super Powerful) Ways To Skyrocket Your Sales And Build Your Business Into A Tower of Profits! ==>> http://madmarketer.com/diane
Article Source: http://EzineArticles.com/
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