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Using backend sales
From wes at Straight Shootin Golf on 26 March '99
Hey deadlock gang,
I was just writing a report and thought some of you may find it useful.Hope it helps ya!

Don't overlook backend sales!

Backend sales are by far one of the most overlooked marketing techniques and one of the biggest mistakes a business can make by not using them. Using backend sales can skyrocket your profits much faster and can build a better relationship with your new and existing customers.

What is a backend sale?

A backend sale is a sale made after your customer has already purchased a product from you. Example: A customer buys a product from you, when he ordered you got all of his contact information, then you send him a sales letter or an email on one of your other products. If he has bought from you before, and you provided a good product or service and kept your promises, why wouldn't he buy from you again, right?

Using backend sales to skyrocket your profits.

There are a few ways to use backend sales to make more money. Some are very simple and some are more complicated. I'll give you 2 ways (one is quite simple and one is a little complicated) to use them and you pick which one is best for your business.

A : Simple- The easiest way to make a backend sale. If you have a product that has to be mailed out to people after they order, simply put an envelope in the package box with a few sales letters or direct mail pieces (or a backend flyer) in with the product. These letters act like little salesmen and if you have a powerful sales letter, they can bring in 10% more sales.

B: More complicated- Using your phone to close another sale. The reason why this is more complicated is (1)most people can't sell over the phone.(2) It requires more effort than just sending them a sales letter. Although this is more complicated, it brings in anywhere from 5-10% more backend sales than just sending them a sales letter. Depending on how good you are at selling.

Downselling for profit!

Ok, lets say you picked option B to make your backend sale. Here is a good technique to use over the phone to close the sell. Its called downselling and its quite simple. Say your selling a product for $100 and it only cost you $20 to get. This means you have an $80 profit margin. I know a lot of people who will try to sell it for $100 on the phone and when the customer says no they say "ok thanks for your time" and then just hang up. Are they crazy!! There is still plenty of room to sell it cheaper and still make a substantial profit. If you use downselling and lower the price to make the sale, the customer thinks he is getting a deal and 50% of the time, he changes his mind. You can keep downselling until he buys or you run out of profit margin. If you only spent $20 for it and you are selling it for $100, i'd be willing to go as low as $40 to make the sale. There is nothing wrong with doubling your money.

Post a reply and tell me if it helps you.


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