This is simply a way to increase your conversion rate on back end offers. You conversion rate is simply the % of customers you make an offer to, that accept the offer and proceed with the purchase.

For example, as a fitness professional who offers a group class training session (such as spinning class) as well as one on one training, you can offer all your group class students 20% discount on your one on one training simply because they are already in your group class.

Discounts are great, and people always want to save a buck where they can.

I would recommend first recommending an additional service or product to existing customers without a discount. Track the conversion you receive over 3 months and the additional profit generated.

Then offer the same product at a discount and record you conversion and additional profit.

In most cases your conversion will be higher with the discount then without, but if it is not high enough, the revenue you loose offering the discount may put the total profit generated below what was generated at the lower conversion, but without the discount.

You should always track results, conversion, profits and test test test test offers and discounts until you reach the highest profit to discount ratio.

At this point I’m going to stress something very important. You always need to track results, conversion and profits so you can accurately gauge the results you receive from your marketing efforts.

If you don’t do this you could be wasting your time for minimal results, or even do your business harm. Its very easy to do this, so there is no excuse not to, as it has direct effect on your bottom line.

Go here for an article on marketing tracking and metrics.

Next we will discuss service plans.

Right now, im going to start of with a quick example of a back end sales funnel:

As a personal fitness trainer, your core business may be a once-a-week fitness training session, which is what you market and sell to new prospects.

Most personal trainers and other health professionals will only focus on their core offering, and will never realize they now have a customer who has already put their trust in them, and are now prime targets for additional sales!

So, on week 2 at the end of the first session, you may discuss diet with your training customer, whereby you will recommend a great weight loss product that will maximize the results they receive from your fitness service.

Naturally, they can get this product directly from you, or they can purchase it from www.XXX.com (your special internet link whereby you generate commission on every sale).

On week 3, you can now mention to them that they are now ready to go onto the next level of supplementation, so you recommend product B.

On week 4, you mention that you know of an excellent book on dieting that has helped you get to where you are right now, and by following it as well as continuing to take the 2 supplements, they would get excellent results in combination with your training services.

This book and be purchased at www.XXX.com, another special link which generates you commission with every sale.

This is a very simple back end sales process for a fitness professional.

So, lets do some math:

Previously, let’s say the customer was spending R100 per day (1 hour session) for training, or R400 monthly.

Let’s say you have 30 training customers a month.

That’s R12000 per month you get for your fitness training.

Now, if you had implemented your backend process correctly, its easy to get an average of 40% to accept your back end offers.

That’s 12 customers who purchase the two supplements in month 1, as well as the book.

Supplement 1 makes you R100 commission

Supplement 2 makes you R80 commission.

Book makes you $120 commission.

That’s R300 for each of the 12 customers that accepted the other offers, each month.

So 12 customers R300 = R3600.00 additional for that month for only a small bit of time invested in recommending the products to your customers, at no additional cost to you.

Additionally, if the customer keeps purchasing supplement 1 and 2 each month you will get $35 per customer the following months as well.

Not bad eh?

The back end sales funnel can be very powerful and I recommend you experiment as much as possible with making additional offers to existing customers. Obviously each business is very different and you may think this is not possible in your business but I can tell you this is not the case. There is always opportunity to grow a back end in any business.

One important thing to note. You will see from my example that the additional offers to customers were made in the form of a recommendation.

This is very powerful. Remember in the introduction I mentioned that once the customer has already made 1 purchase from you, you now have their trust.

Well, this means that any recommendation you make for an additional product or service that may help them is now coming from somebody they now trust and thus you can expect a very high percentage of them to go with the recommendation.

Actions:

1. Sit down and consider your current customer base. What additional products or services do you think will complement (not compete!) with your current offering. What other products or services are targeted at your specific group of customers?
2. Once you have developed this list, are there any products or services you can offer them directly. Perhaps a new service you can create?

Remember, it is usually more profitable to offer them your own services or products, then it is recommending another service or product for a referral or commission fee.

1. Finally review your current business and customers and try and find points in time and opportunities to make your recommendations.

It’s important to note right now that an offer sooner than later is more likely to result in a sale, as customers are more likely to make another purchase very soon after the last one.

Backend offer 1 and 2 should ideally be made within the first month of the initial offer, after then your conversion will go down.

In the next few articles, we will look at the different types of backend offers and strategies you can employ.