No matter what type of business you are in, or whether you market your products online or offline, the backend offers
are the ones which determine whether you are going to make marginal or staggering profits.
Many business owners seldom realize how important reselling their existing customers is. They solely focus on acquiring as many new customers as possible.
Here’s the reasons why you should apply backend sale strategy:
There will be no customer acquisition cost, as you will be selling to customers you have already acquired.
You can cash in upon your goodwill. If you have properly established a firm relationship of trust between you and your customer, as general statistics show, about 35% of your customers will purchase from you again.
For example:
Suppose you sell information products.
Assume that the selling price of your initial product (frontend) is $97, while its original cost price is $30. You run an advertisement for $600, which got you ten customers.
Your gross profit will thus be $670 ($97 X 10 customers) – ($30 X 10 customers), while your net profit will be $70 ($670 gross profit – $600 ad costs) for 10 customers.
Without having applied the ‘backend’ concept, your net profit would only have been $70 for 10 customers. However, if you offer these 10 customers with the backend product or service, which gets sold for $250 a few days later, and 30% of these customers avail it, you will make another $750($250 X 3 customers). Overall, you will make a profit of $820.
This is an example of how powerful the ‘backend’ concept can prove to be. Even if you do not make profit from your initial sale, you can make it up from your ‘backend’ sale.
The backend concept can really help you to raise your profit margin by several notches. Keep supplying your existing customers with additional product offers, as money really lies in backend sale.




