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How big is your back end?

No, it’s not what you are thinking.

I mean how much time and effort have you put into building a strong back-end sales process for your business?

That’s where the real profit is you know.

You would be hard-pressed to find a single successful Internet entrepreneur who would disagree.

The way to make significant profits online is by selling more products to existing customers — on the “back end” — after the initial sale is made.

You see, it costs a lot to acquire a single customer. So if all your efforts are focused on customer acquisition (front-end sales), then you will always be in a marginal profit situation. Your per- sale costs will always be high.

But as soon as you begin to (on average) make more than one sale to each existing customer, profits will climb dramatically.

As we discussed yesterday, Lifetime Customer Value (LCV) is the most powerful metric you can track in your business.

The way to improve LCV is to create an *automated* back-end sales process. This is true of any business, but fortunately, it is incredibly easy to do in an online business.

Simply create an email series that is delivered to your customers on a timed basis.

In your email series, you want to do two things:

1) Add value to your customer relationship by providing helpful information

and

2) Make offers for additional products that will help your customers reach their goals.

It’s really very simple to go from concept to completion with this strategy.

After your prospects purchase from you. Make sure you add them to a special autoresponder list. Use a separate list for each product.

Then write some short email articles that provide additional information that relates to the product your customers purchased.

If you sell information products, this is easy, just pick a topic from your info product and cover it from a different angle, or drill down to provide more detail.

If you sell software, publish tips and tricks related to the software, or share case studies showing how others have used your application in particularly effective or productive ways.

The most important thing is to add value to your customer relationship. Don’t just send commercial offers - provide great information.

But also make sure that you *do* include a series of offers in your emails as well. You can sell your products or other people’s products as an affiliate — any relevant and valuable offer will help you increase your LCV *and* deepen your relationship with your customers.

The best part is, when you make additional sales to your customers, you net 100% of the profits because it costs virtually nothing to promote these offers to existing customers.

Do you see the power here?

It’s a simple way to reach multiple business goals and especially effective for increasing the ‘magic metric’ LCV.

If you focus on building a “big back end” I promise you will be amazed at your results.

All my best,

Doug Hudiburg

PS. If your target audience includes Internet Entrepreneurs, the Daily Marketing Ace affiliate program can help you increase your LCV. It is a plug-n-play back-end sales offer that generates profit and goodwill among your customers — everybody wins I’ve even pre-written an email series that you can copy and paste into your autoresponder — instant implementation.

http://www.DailyMarketingAce.com/affiliates