June 7, 2005

Backend Sales The Value of a Customer

What indeed is the value of a customer.  If you only market for upfront profits your missing out on a potential life time of repeat business.  Are you willing to go in the hole and take a loss with the cost of acquiring a customer? What if it cost you $100 to get that new customer and the front end income didn't cover it?

That's where the back-end and up-selling come into the picture. Say you have a product that you want people to promote (Joint Venture Partners) and price it at $10 but the catch is the person promoting it can keep the whole $10. You get a new customer, you can do a one time offer / up-sell after they purchase for an addition amount (which you keep) and you still have a new customer to market to on the backend for future sales. You win big!

Replace the JV partner with ppc cost and your still in the running for future backend sales, oto's. You can see the value of a customer in repeat business can far out weigh the frontend sale. The real money is in the backend sales.

Think on these things,

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