Hopefully today’s post will get you thinking about what you can do to actually boost your profit from each and every one of your customers.  After all, you’ve spent considerable time and money working to acquire your customers through your lead generation and marketing efforts, but what’s the lifetime value of each one of your customers?

If you’re like most online business owners, you probably never really thought about it… but it’s an important question you should ask yourself.

Why?  Because if you only sell to each one of your customers one time, then you are leaving a lot of money on the table and greatly lowering the lifetime value of each one of your customers.  Let me explain the whole concept of lifetime value by putting some real numbers on it.

Let’s say that you use pay-per-click search engines to generate traffic to one of your products and that you spend $20 on clicks to generate one sale of a $49 product.  That means that you make a profit of only $19 with that campaign.  If you don’t have a backend campaign in place to maximize your profits, then the lifetime value of each customer is only $19.

Not bad, but let’s look at a different scenario…

Let’s say that you’ve acquired your customer above, but instead you have an extensive backend marketing campaign in place.  You sell the original $49 product first at a profit of $19, then you keep in touch with them over time and make another sale of $97 with a $60 profit, then sell them a $297 product with a $260 profit, then cross sell them on a a few affiliate products that create an affiliate commission of $362.

That means that you’ve made $1,001 from the same customer that you only spent $20 to acquire!

That’s the power of backend marketing!

Imagine how much you can make by continuing to offer new products or companion products on the backend. You’ll make thousands more without the extra cost of acquiring the customer.

Some businesses even offer initial products to their customers that lose them money because they know that they can more than make it up on the backend. They know that the money is in the backend sale.

So, think about it… Are you leaving money on the table?

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Filed under: Backend Marketing • General Online Business

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