The Money Is In Backends

You hear many times that the money is in the list,  but this is a generic statement. We will get one level deeper today to back-end sells.

I read something very interesting in Darren Rose Pro Blogger, he said
“… RSS feeds did not kill email…”
and continue
“… On DPS I currently have a total of 340,784 subscribers: 223,081 of those subscribe via email – 117,703 of them subscribe via RSS. That’s a 2:1(ish) ratio…”

Yes, the list and a good relationship with the list are mandatory.  But it is more…

First definitions:

We call front-end on the blog: the ads and content.

We call back-end on the blog:

• the opt-in list with freebies
• the One Time Offers (OTO) attached to the freebies
• and the list itself as we will send other offers in the futures to the list
  

The rule is that the back-end provides the real money, and it is more profitable vs. the front-end.

To John Chow rule is to reduce time spend on front end and increase time spend on back end, until we get 10% to 90%.

Well, this is a person who make $40,000 per month from blogging alone, so I am listen and learn from him.

I have to confess that my own percentages are probably around 30% to front-end vs. 70% to back-end and I don’t make $40,000 per month, so my own struggle is to work toward those percentages to turn them in a clear advantage for me because I know – it is possible.  The traffic on the test sites is better now, and I am working on

• improving even more the traffic, this week we have had a launch with a brilliant new strategy for traffic, and I already have attached that new idea to my list to do on traffic (you find all about it in traffic module)
• get more out of the existing traffic
  
• enlarge the back-end activity

Now I want to elaborate more on OTOs – One Time Offers and other OTO alike techniques:

• OTO
• Continuity programs
• Up-sells
• Down-sells

One Time Offers (OTO):

Rule 1: The OTO must have real value and must be on the same niche as the freebies you offer. Make sense, as a prospect signs in for your freebie because he/she needs that topic, so if the OTO will offer more in deep knowledge related with same niche, the OTO will entice curiosity and you increase your chance for a sell.

In essence you offer a new product, the sale page starts with:
“Wait! You’re only going to see this offer once…”

At the bottom you create:

• the option to purchase the offer – add a paying button
• the option to decline and download the free item, you have something like “NO, thanks, I’ll pass on this offer…”

Continuity Programs:

Continuity Programs are passive monthly income which include:

• Membership sites with many levels
• Software sites which are life-line serviced which are needed: hosting, autoresponders

Force continuity is something I don’t endorse. Those are trials for $1, and at the end of the trial you automatically start billing monthly membership.

What I endorse is a free trial membership and at the end of the trial, or earlier, the potential customer must decide to upgrade to a different level of membership.

This way

• It is an incentive for the owner to provide real  value
• The value will influence the prospect to upgrade, and this doesn’t look intrusive to him
• It is a great way to build trust
• In time you have a less ratio of cancellations
  

Up-sell

The typical scenario is you offer a freebies but for a small amount of money you offer rights.

A different scenario is to offer a paid Digital Product and add more functionality (other DP, and/or membership, and/or software…) to a higher price.

Down-sell

Down-sell is the opposite of up-sell.  In up-sell you increase the initial price adding more functionality to the product.

In down-sell you cut a part of the functionality and make an offer less  then initial price amount.

This Model, which include all those flavors, is working because you cover all kind of potential customers and wallets.

Important Note: The success of this model is based on:

• A very good planning ahead of all those flavors I just described: OTO, continuity, up-sell, down-sell
  
• A very  good price strategy for each step
• Increase back-ends

Success is not an accident!

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