Backend profits means the additional income that you earn from a customer. The first purchase from a customer is the front end profits while the second purchase and so forth will be your backend. The really good marketers understand that the most money will be made on the backend. Here are a couple reasons why: You can charge higher prices for backend products because you’ve already built a relationship with your customer. They already know the quality of your product and of your customer service. You no longer have to convince them that you’re credible and that your information is good.

You only have to convince them that your backend product is higher quality than your front end product and that they NEED the backend product. Trust is one of the single most important components of selling. You can earn that trust by providing a good front end product. Most marketers do not truly understand the power of the backend and that’s a fact.



We know a very few affiliate programs which pay higher than 50% commission. Think about this for a minute. Let’s say you sell your product for $50 and you give 50% commission. You have 5 affiliates who each make 10 sales each. You pocket $1,250 after paying commissions. You now have 50 customers. Five of them end up purchasing your $100 backend product for a profit of $500. Total profits is $1,750 for you. Now let’s consider giving away 75% commission to your affiliates. By giving away higher commissions, you get 10 affiliates instead of the 5. Ten affiliates making 10 sales each at $50 will make you $1,250 – which is the same front end profits as before. Now you have 100 customers and make 10 backend sales for $1,000 profit. So how did you end up making more when you increased your affiliate commissions by 25 percent? You made it on the backend.

Here’s what is happening behind the curtain as you increase your commissions. You gain more affiliates and subscribers as those affiliates send you more traffic to your site. Those affiliates are happier with their higher paycheck because you gave them higher commissions. Therefore, they will continue to send traffic to your site. This cycle increases your traffic over time as you gain more customers, more affiliates and more subscribers. It’s the ultimate viral marketing machine! More subscribers equal more profits. More customers equals more profits.

More affiliates equals more profits. So is all that worth a hit on your front end profits? Yes! The problem most people have is they can’t stand to see their affiliates making more than them. Tunnel vision keeps them from seeing all the extra subscribers, customers and affiliates which could be theirs. Please remember one thing about running your affiliate program. A 75% reduction in profits is better than a 100% reduction, which is the case if the affiliate had not made ANY sale. In summary, you should create an affiliate program for your front end product which gives away a majority of the profits. You should also spend your time creating multiple backend products. If the type of product you’re selling requires manual work and it’s not worth it for you to give higher commissions then an option for you is to create a different front-end product which will serve as a portal into your product line. Your main goal in creating an ‘intro’ product is to use it to gain more traffic to your site.

When you get the traffic, you should capture as many prospects as you can into your marketing funnel. When you have more leads in your marketing funnel, you can control where they go by directing them within your follow-up emails.

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If you would just take your time to know your way around, you could discover a lot of premium products and services being offered for free. What’s best is that there is a seemingly endless number of these wonderful finds, what with the Internet being a vast network of constantly evolving ideas and all!

Among these magnificent benefits is the chance to be able to promote your business, any business, online, free of charge! It doesn’t matter if your enterprise is a purely online or offline venture, the World Wide Web is home to a great number of marketing opportunities that you could avail of, with no damage to your business’ budget whatsoever.

Advertising can be a big problem otherwise. A lot of companies reserve a big chunk of their budgets to cover marketing expenditures. Sometimes, these gambles pay off, but there are occasions when they fail miserably, putting to waste some good money that could have been used in other areas of development for the business involved.



But with the many channels available online, marketing has become a less risky course of action. There so many avenues available online where you could advertise your business for free and attain more exposure for your products or services. Here are some of them.

- You could advertise through your own website. Ordinarily, you should pay a nominal fee for web hosting and your domain name. A paid web hosting service is more reliable. Your own domain name would impress upon your visitors an immediate sense of professionalism. But if you don’t want to spend for them, there are a lot of free web space providers on the Internet!

- You could advertise through other people’s websites. And you could do this in a lot of ways too! You could create a banner that would summarize your business’ offers and have it displayed on existing pages. Or if you have your won website for your business, you could use the said banner to link to your pages, or you could even settle for simple links. Additionally, you could have other webmasters rave about your venture and they could talk about it in their own websites.

- You could create your own affiliate program. By giving commissions as incentive, you could invite a lot of Internet users to become your affiliates. Each affiliate would work to help you make a sale. It’s like having a battalion of sales representatives that you’d only have to pay if they manage to refer a willing customer!

- You could try viral marketing. Viral marketing is the online equivalent of word o mouth advertising. By giving away something for free, for as long as that something has a link or a simple reference to your business, you’re encouraging the recipient to spread the word about your business to the people he knows. This would result in the exponential expansion of your business message like wildfire.

- You could advertise in online communities. Forums and mailing lists are popular venues that could likewise convey your business message. Membership to these groups is usually free. Additionally, you could also create your own mailing list and start capturing leads for future sales by doing some helpful follow-ups.

The Internet is a great place for promoting your business. There are five million people online at any given time and the world is, quite literally, your market. It would be best for your business to capitalize on this wonderful opportunity and expand your audience a thousand fold bigger!

And you wouldn’t even have to spend a penny while you’re at it.

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