Backend Profit Secrets and Viral Marketing
Once you truly understand the power of backend profits,
you'll explode your marketing results and create an
unstoppable viral machine.
The techniques I will reveal to you have often been taught
in many marketing courses and articles...but they are still
underutilized because of two words -- "tunnel vision."
Backend profits means the additional income that you earn
from a customer. The first purchase from a customer is the
front end profits while the second purchase and so forth
will be your backend.
The really good marketers understand that the most money
will be made on the backend.
Here are a couple reasons why:
You can charge higher prices for backend products because
you've already built a relationship with your customer.
They already know the quality of your product and of your
customer service. You no longer have to convince them that
you're credible and that your information is good.
You only have to convince them that your backend product is
higher quality than your front end product and that they
NEED the backend product.
Trust is one of the single most important components of
selling. You can earn that trust by providing a good
front end product.
Most marketers do not truly understand the power of the
backend and that's a fact.
I know because I see very few affiliate programs which pay
higher than 50% commission.
Think about this for a minute.
Let's say you sell your product for $50 and you give 50%
commission. You have 5 affiliates who each make 10 sales
You pocket $1,250 after paying commissions. You now have 50
customers. Five of them end up purchasing your $100 backend
product for a profit of $500. Total profits is $1,750 for
Now let's consider giving away 75% commission to your
By giving away higher commissions, you get 10 affiliates
instead of the 5. Ten affiliates making 10 sales each at
$50 will make you $1,250 -- which is the same front end
profits as before.
Now you have 100 customers and make 10 backend sales for
So how did you end up making more when you increased your
affiliate commissions by 25 percent? You made it on the
Here's what is happening behind the curtain as you increase
You gain more affiliates and subscribers as those
affiliates send you more traffic to your site.
Those affiliates are happier with their higher paycheck
because you gave them higher commissions. Therefore, they
will continue to send traffic to your site.
This cycle increases your traffic over time as you gain
more customers, more affiliates and more subscribers.
It's the ultimate viral marketing machine!
More subscribers equal more profits. More customers equals
more profits. More affiliates equals more profits.
So is all that worth a hit on your front end profits?
The problem most people have is they can't stand to see
their affiliates making more than them. Tunnel vision keeps
them from seeing all the extra subscribers, customers and
affiliates which could be theirs.
Please remember one thing about running your affiliate
A 75% reduction in profits is better than a 100% reduction,
which is the case if the affiliate had not made ANY sale.
In summary, you should create an affiliate program for your
front end product which gives away a majority of the
You should also spend your time creating multiple backend
Gary Huynh is a full-time online information marketer. He
currently earns money from affiliate programs along with
running multiple membership sites. View his weblog at:
www.garyhuynh.com">http://www.garyhuynh.com for more tips and tricks to help
you achieve a full-time work from home business.
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