For Coaches, Consultants and Info Marketers – High-Ticket, Back-End Sales Are Where the BIG Dollars Are Made
- Posted by Jeff Vacek
- On May 27, 2016
- 0 Comments
- Back-End Sales, Jeff Vacek
The best way I know to quadruple your online revenue is by designing big-ticket paydays into your sales funnel – while at the same time giving your customers what they really want. This is EXACTLY what we do with our clients to make them MASSIVE dollars every single month.
A lot of new and even somewhat seasoned ‘expert-based’ internet entrepreneurs hope that they will be able to build a six- to seven-figure online business based around a single product, book, etc. While there are certainly some success stories to be found, the number of people who have made huge money online from a single product are very few. And its certainly not sustainable as a long-term business.
In fact, the secret to generating massive dollars as an expert is to create what I call high-ticket, back-end sales. Simply put, back-end sales are sales of additional products to people who purchased your original product. And we take them up a notch or 2 and go ‘high-ticket’ (more on that in a minute).
Why is this so valuable to you?
- Number one, the customers who bought your initial product are already warm. These are people who are familiar with you and are predisposed to be interested in what you’re offering.
- Number two, they’re already buyers. These people aren’t freebie seekers. They are “conditioned” to pay you money for your products.
- Number three, you know they want the exact kind of product you’re selling, because they’ve already bought from you. There is no better, more receptive group of prospects for high-ticket, back-end sales than people who have already bought your products.
Each additional product that you offer in your back-end will be more expensive and therefore will have fewer buyers, so the more people you can bring along in the sales funnel, the more successful you will be. As each customer buys more, his or her “lifetime value” to you increases. This is important because it costs you money to find each customer, and with an inexpensive first product, you may not get much profit off that first sale. But as the sales mount up, your profits grow as well.
Here, let’s look at an example. Let’s say the profit you clear from your initial information product is $29 per unit. If you sell 500 units, your profit is $14,500.
Initial product: $29 profit X 500 units = $14,500
Next, you offer a add-on product that enhances your base product as your first higher-ticket, back-end product, on which you make $97 profit per unit. Let’s say thirty per cent of your original buyers, or 150 people, purchase it.
First back-end product: $97 profit X 150 units = $14,550
Now, you’ve doubled your profits with less than a third of the number of buyers.
And we’ve haven’t really gone very ‘high’ yet.
Next you offer (to the entire original list of 500) a private strategy session with you or your team on which your profit is $197, and this time you sell 100 units.
Second back-end product: $197 profit X 100 units = $19,700
Next you offer a small group, 6-week coaching program that yields you a profit of $999. Maybe 20 people sign up for it.
Third back-end product: $999 X 20 units = $19,980
You can see how the revenue from a single customer begins to add up VERY quickly when your customers are in a sales funnel where you continue to offer additional products that will help them fulfill their goals. This is how multi-million-dollar expert businesses are born.
Not every customer will buy all your back-end products. Only a certain percentage of your customers will be interested in spending more with you. But that’s all you need to see your business grow. And of course, you will continue to find new customers to enter your funnel and start the passage toward bigger and bigger sales.
Creating Back-End Products
So where will you get these back-end products? Just look at what your customers tell you they want. Take note of the kind of questions they ask. What are the topics they’re telling you they want to know more about? When you fully understand what kind of information and help your customers want, you can create back-end products that fully satisfy those wants.
You see, your customers don’t want their problems solved half way. Customers who are desperate to find a solution will be willing to pay serious money to get extra access, done-for-them services, private coaching, etc. Once you’ve contacted your group of interested prospects, it will be easy to get them to buy your product because what you are selling them is what they’re looking for to help them get on with it bigger, better and faster.
You can help them even more with your back-end products. And you will get paid a lot of money in exchange for the value you deliver.
You may be thinking it could take months or years to develop products and services that can be sold for such large amounts of money. But nothing could be farther from the truth! In fact, once your core product has been created and marketed properly, creating high-ticket back-end products can take almost no time at all. In some cases, it may take just a few hours.
Let’s look at examples of some of these back-end products that will be so easy to create:
Live Q and A – You’d be surprised how much people will pay just to have access to ask you and/or your team questions on a weekly, bi-weekly or monthly basis. This ‘access’ level has a VERY high-perceived value. And the value is there because they get to ask you questions about their specific pains, wants, needs, desires, etc. related to the niche or market you’re in. The cool thing is that you’re not really creating a product. You and/or your team just has to show up! Q and A sessions can be priceless and they really help you build rapport with your customers, while being a vehicle that is simple for oyu to fulfill on.
Services – Perhaps there’s some kind of service you can provide (possibly outsourced) that your customers will find hugely valuable. For example, let’s say your product is a course on how to take art photography. You may offer to critique your students’ work, or provide special photo development and framing services. Think of what services you would like and would be willing to pay money for, and that’s what you can offer to your buyers.
Coaching Programs – You can offer programs that provide one-on-one or even small group coaching. Coaching is the ultimate vehicle for creating an “experience” for your customer that can cause a huge, positive impact for them. A lot of people want that extra helping hand and in-depth access to you and your team. They also (even though they might not admit it) want the accountability that comes with a coaching program. This is intensified in a small group structure. A small group coaching program participant DOES NOT want to be the one showing up without having made any progress! This type of accountability is priceless and will create HUGE success stories for you, your programs and your brand.
These are just a few suggestions for what you can do. The truth is that the list is endless for what you could create as a back-end product or service. It could even be an event, a trip or experience, a mastermind group… Again the possibilities are virtually endless. Use your imagination; think of what is valuable to you; ask your customers what they would like. They will guide you in the direction you should go and tell you what they want.
Keep in mind that you are using your expertise through different mediums and distribution channels to meet your customers’ core wants. They want their problems solved all the way. At the same time, you want to generate a consistent, expanding and long-term income.
Both of these goals can be achieved through back-end sales. Especially, those that are priced higher. They really are the secret to long-term wealth and prosperity as an expert or authority making money online.
Thanks for reading!