Back-End Selling

If you ask me, residual (also known as passive income) is the most important type of income of all incomes. Residual income puts money in my pocket without work and effort on my part. It is the right type of income to work for, indeed!

And this is the type of income you should go for as an Internet Business owner. You might not realize it but this is also one of the many fantastic reasons why you engaged in an Online Business in the first place. This is the right type of income you should game for!

For the same amount of work and effort you put into your business, you want to work effectively and efficiently.

In my experience, it is easier to sell to the same customers who bought from you before. This is simply because your previous customers trust you (if your customer service was fantastic, of course!). You have already built a relationship with them and there is no reason why they should not trust your next recommendation.

In order to build residual income or create back-end selling, you sell to the same customers.

Let's face it. You can only earn and spend so much from one-time sales. You can only buy as much as you can sell. Period.

The main problem with one-time sales is that very often, the income is a one-off. You do not get to spend it again and again. That is not a fun type of income to work for!

If you have realized that sort of problem, this may be the compelling reason why you loathe your 9 to 5 job. Your employer only pays you once for the work you done once. If you want to receive another paycheck, you will have to go back to work the next week or month! There is not enough leverage in this type of income.

Since you are going to start an Internet Business, please do not let the same drudgery take over your soul in the name of business! That is totally insane!

If you are reading this and have yet to realize what back-end selling is (or even know what residual income is for that matter), then read this carefully. It might just change your narrow perception on Online Business and you might want to e-mail me a thank you note for sharing with you the good news on the possibilities of earning the same income over and over for a work done once.

If you sell to one customer at a time, you will never make much money online besides profiting from only ONE profit stream. It is also expensive in both time and money to get the next new customer.

So since you can only earn so much from one-time sales, why not create back-end selling?

If you are selling Information Products such as E-books, you can create back-end profits. This could be done through your own products or products you are an affiliate for. Remember that anytime you are selling always create back-end sales items.

If you do not agree with me yet, let's review a case study below:

Assuming I sell a $20 E-book. I have sold 10 copies so I earn $200. Let's say I have spent $100 on advertising so my net income is $100. Not really interesting though it beats a good 90% of the people out there who are not even making any money on the Internet.

$20 x 10 sales = $200 gross income

$200 - $100 (advertising fee) = $100 net income

But if I were smart and with some (just some!) ingenious concepts applied, I built in say, 5 to 10 other offers (same theme as the E-book) for products and services I either own or am an affiliate for within the content of the E-book.

And also assume that I would earn $30 on the average for any one of the products or services sold. That is $30 a sale. If 2 of the same 10 customers buy just one of those items, I would have earned an extra $60.

2 x $30 = $60 back-end sales

I know that the figures are rather small but if the whole process is repeated over 10 times with the same conditions, how much will my income be?

Give me a moment while I use my calculator!

$20 x 100 sales = $2,000 gross income $2,000 - $100(10) (advertising fee) = $1,000 net income

I earn $1,000 net income as a result of 100 sales. If I have included back-end sales:

$1,000 net income + [2(10)x $30 = $600 back-end sales] = $1,600 total income!

That is an additional $600 in my income just by working smarter and not harder. Now do you see where the good money really is? Furthermore, there is no advertising expense incurred to include the back-end sales items within the E-book.

Of course this is just a mock-up case study. The results can vary depending on how respected I am, how good the quality of my E-book is, how I market my E-book and how compelling my sales letter is to get my potential customers to buy from me.

However, this method of creating back-end sales has been put into great practice by top Internet Entrepreneurs from around the world which is what makes them rich and TOP of the world!

If you are living on one-time sales from your products today, then you must do something about it SERIOUSLY. The figures get rather interesting when you count that you actually lose money often or just break even with your advertising expenses.

"So, how do I start?" you ask. "Simple," I say!

If you create your own digital product (E-book, software, template), include links to other relevant products you either own or are an affiliate for.

For example, if you composed an E-book on making vegetable soup and sell it for $20, you will want to include advertisements of the other E-book you composed on making chicken soup and sell it for say, $15. Since your customers trust the quality of your first edition, a fraction of them will probably be interested in purchasing your other E-book in the series!

If you do not have a product of your own and do not intend to create one, then you can source for products with resell rights that you can customize with your own affiliate links for a reasonable fee.

At this time of writing, this is the type of income I am receiving from. I resell other people's product and earn residual income as a result of the same customers purchasing access to a suite through my affiliate link found within the same product.

On the final note, a friend of mine who attends Business School once told me that the biggest expenses in life are taxes and interests. I shook my head and slowly told her, "No. The biggest expense in life is the money you do not make." Who do you agree with?

Copyright (c) Edmund Loh

About the Author: Edmund Loh is the author of the E-Biz Wiz Blog and Starting An Internet Business Special Report with over 6 years of web designing experience before he engaged in an Internet Business. Visit his website for more online business ideas, tips, and information at http://www.ebizmodelsyoucancopy.com/ebizwiz and also get a free copy of his Special Report.

http://store.xiiiv.com/rss
In The News:

Gambling.com Q1 revenue down 28%  Gambling Insider - In-depth Analysis for the Gaming Industry
Better Collective posts 40% revenue growth for Q1 but warns of Q2 decline  Gambling Insider - In-depth Analysis for the Gaming Industry
Tag: CJ Affiliate  Cole of Duty

Online Business Entrepreneur? What You Must Know About Your Affiliates

As an on-line business entrepreneur it is your job to... Read More

How to Grow Your Affiliate Marketing Business

Affiliate marketing is a large business in the internet today... Read More

How to Become a Super-Affiliate

Did you begin your affiliate marketing business like this? You... Read More

Googles Secret Guidelines On Thin Affiliates

Journalist Henk van Ess has caused a flurry of excitement... Read More

Internet Tip of the Week: Reality Check

Every time you turn around it seems you see another... Read More

Secrets of Super Affiliate

Most affiliate program owners say 80% of their affiliate sales... Read More

A Successful Satellite TV Affiliate Website

Satellite TV has exploded on the scene during the last... Read More

Promoting Affiliate Programs through Personal Recommendations

Publishing articles online is a highly effective way to increase... Read More

10 Tips To Help You Create Your Own Money Making Affiliate Program

1. View your affiliate program as a partnership between you... Read More

Affiliate Marketing Step... Set Yourself Apart from the Rest.

I'm sure you've heard the expression, "This is where you... Read More

How to Create Multiple Streams of Income, Part 2

A while back I wrote a little article called "My... Read More

Attracting Good Affiliates

Good affiliates can be hard to get. There could be... Read More

5 Ways to Start And Promote Your Affiliate Program

"What's the Buzz About?""I made $5,000 in one week""I quit... Read More

Home Business Affiliate Marketing

How would you like to make money with a Home... Read More

Affiliate Marketing - Ten Excellent Reasons Why You Should Do It

There are many opportunities to make money working on the... Read More

Finding An Affiliate Online Opportunity Program

Never before has it been easier to find an affiliate... Read More

Is There an Affiliate Free Lunch Program?

"Everything worthwhile has a cost... Whenever you think you are... Read More

Why Building Affiliate Websites Are the Way to Go

It seems that everybody is into making money online these... Read More

Promoting My Affiliate Programs--How?

Getting your website up, is really just the first phase... Read More

Top 3 Things All Affiliate Marketers Need To Use

Every affiliate marketer is looking for exactly what allows those... Read More

Backend Profit Secrets and Viral Marketing

Once you truly understand the power of backend profits, you'll... Read More

AdSense Stats and Performance 101

As more and more people are getting into the AdSense... Read More

8 Reasons Why Affiliate Marketing is the Better Option

Many people are confused when they first become iterested in... Read More

Starting an Online Business - Affiliate Programs Make it Easy

If you have been longing to start a business online... Read More

Writing About How Easy Affiliate Marketing Is, Dont Make It So

It seems that the VERY popular fashion of article writing... Read More

http://store.xiiiv.com/rss