Want to know how to move from break-even (working for $0) in your business? Want to know how to generate HUGE profits in your business? Then pay attention because I’m going to reveal the answer to these questions.
There are far too many business who never “get” what I’m about to reveal to you – which is exactly why there are so many struggling businesses and why there are so many companies that go out of business.
So what’s this big “secret” that these companies don’t know?
It’s called a BACK-END.
What’s a back-end?
Well, there are many variations. Let’s take a look at some of them:
- When a customer buys your product A, you immediately start selling them on a similar and related product B. As soon as they buy product B, you start selling them on a similar and related product C. If they don’t buy product C within a designated time, you start selling them on a similar and related product D.
- When a customer buys your product A, you immediately start selling them on variation B and then variation C and so on. Book of the month or video of the month type clubs are a good example of this model.
- When a customer buys your product, they get a N day supply. Then, in N days, you bill them again and ship them another limited supply. Or, in N days, they come back into your shop for a new supply. Herbs, supplements, and health supplies are an example of this model. Your grocery store is another example.
- When your customer buys your product, you immediately start selling them on a bigger version. When they buy the bigger version, you start selling them on an even bigger version. This model is seen a lot in the consulting / coaching world where they sell you into the “Bronze” club. Then, they try to up-sell you to the “Silver” club. Then the Gold club, then the Gold+ club, then the Platinum club, etc.
- When a customer buys your product, you immediately start selling them other products that are “down-stream” from what they just bought. For example, if a person has just purchased a domain name, then we can reasonably assume they are looking to develop a web-presence. Based on this, they are likely to be interested in website hosting services, webpage design services, shopping cart services, Internet-based marketing advice, and so on.
- Customers sign up to use your services or facilities and you bill them for usage charges at an appropriate interval. Your telephone and electricity service providers are examples of this model.
Here’s the deal. Obtaining a new customer typically consumes a lot of time, energy, and resources.
Why? Someone who has never done business with you doesn’t know if they can trust you. They don’t know if your product is any good. They don’t know if you will deliver on time. They have a slew of things they don’t know about you and your business that have to be overcome before they will purchase from you.
So, if you only have a one-shot product with no back-end, you will continually face the up-hill battle of finding a new prospect and overcoming all of their objections in order to make a sale.
A much, much easier business model is to make sure that you have a back-end in place so that you can sell each customer (who already knows you and trusts you) over and over and over.
Consumables, memberships, usage fees, related products or services, or advanced / bigger versions are all concepts that you can use to create a back-end of products and services in your business so that you move from break-even to hugely profitable. And by all means, use as many of these back-end concepts as you possibly can.
By the way, there is an important side-implication here. If you have what you think is a great business idea but there’s no back-end to it, forget about it. It’s NOT a good business idea if there isn’t a back-end.
Similarly, if someone approaches you with a business proposition, and it doesn’t have a great back-end, send them on down the road because it’s not a good proposition.
Here’s why this concept of back-end is important to you. An OK product with a GREAT back-end can turn you into a Millionaire For Jesus much more quickly than you might ever imagine.
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