Website owners have found that they can increase their profits by eight times or more simply by using web based email marketing. It’s important to understand the typical buying cycle, the importance of follow up and how a back end increases your bottom line in order to understand how email marketing can affect your business.
Understand the Buying Cycle
The majority of people simply will not buy the first time they see your website. About 99% of your visitors will land on your website and leave without buying anything.
That doesn’t mean they weren’t interested in your product. It just means they weren’t interested right now. Or perhaps they just don’t trust you or know you enough yet.
Letting these people go is like letting 99% of your advertising dollars go to waste. Instead, to really maximize your profits you must learn to follow up and get sales from the remaining 99% who didn’t buy the first time around.
Follow Up for Major Sales Increase
But you still can turn 1% visitor into buyer by following up which is as much as 8% in the long run. That’s an 800% increase in revenue!
However, if you follow up then over time they’ll start to see that you’re a real business that will take care of their customers. They’ll begin to know and trust you.
You’ll also get your message in front of them at different points in their life, and you have a relatiionship with them when they are ready to buy.
Back End Is Importance to Your Bottom Line
Your real money is in your backend because these are the products and services they will see after a customer made their first order. Most business owners neglect this and focus only at front end sales.
Let’s say each month you make 30 sales at $100 for a total of $3,000. Most business owners would focus on getting those 30 sales to 40 sales.
Instead, a savvy business person would try and sell a $400 product to all 30 of those who bought. If about 20% take them up on it, that’s a $2,400 bump right off the bat .
Then a savvy business owner might try and sell a $1,000 product. With the right marketing, about 10% will buy. That’s an extra $3,000.
Finally, a savvy business person will likely try and implement some kind of membership program. At $97 a month , if it’s tied into the original product about 50% will sign up for about 4 months. That’s (15 times $97 times 4 equals) and extra $5,820 a month.
That’s an extra $11,220 on top of the $3,000 you’re already making from just 30 sales a month. As you can tell, selling more to your existing customers is much more profitable than trying to get more new customers.
The best way to sell more to existing customers is through web based email marketing. It’s the only free way to consistently follow up.
You now know the how the typical buying cycle works, you understand the importance of follow up and you know how much a good back end can boost your business. Apply this and web based email marketing to help your business explode its profits.
Brenda Bunney
bdbunney@gmail.com
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Monday, 15. June 2009
Hey Brenda,
Another good post my friend. When do you find time to do all this? I’m impressed. Looking forward to your next bit of knowledge that I can use. Thanks!
Friends 4 Life!
Tuesday, 16. June 2009
i have been told that break even is good for getting a new client and then as you say make the money on the back end
Tuesday, 16. June 2009
Thanks for a great article. You are right. With Internet Marketing you want to attract visitors to your web site but you also want to keep those visitors as potential buyer. It is true that most people will not buy on their first visit. One needs to understand the buying cycle in order to follow up. Today there is so much competition. It is easy to visit many sites. How many of us are bookmarking a site with the intention to come come back later? Email marketing is thus a powerful tool in reminding them to come back. Those that do, as you show it, will generate more sales and increase profit.
Tuesday, 16. June 2009
Hi Brenda,
Very wise advice you’re giving about marketing to a list of people who’ve visited your website. Staying in contact with them over time, and offering products, one after the other, is the way to inspire them to do business with you.
People seem to appreciate stability and remarketing over time.
Tuesday, 16. June 2009
Email marketing can be a great asset when done correctly. Providing valuable and timely information is key allowing you to make a connection with your visitors and then build a trusting relationship. Beyond that understanding the buying cycle and fact that people have to be exposed several times before conditions are typically right is another important factor in email marketing.
Tuesday, 16. June 2009
Brenda, though the ICANN Act makes e-mail marketing more tedious and difficult, it is still one tool for the online business person. I will maintain an e-mail strategy alongside other strategies such as social media marketing. As you stated, there is a certain “itch” cycle and e-mail marketing can oftentimes scratch right where it itches. Thanks!
Tuesday, 16. June 2009
Seems like a great way to follow up with clients and referrals, with low cost in mind. Great post, thanks for the pointers.
Tuesday, 16. June 2009
I remember learning that it can take 7 or more times for a buyer to make a purchase. That means you need the opportunity to get in front of the prospect after the initial visit. Securing an email address to follow up, and providing valuable information, brings you a much better chance of doing business with a website visitor.
Thursday, 18. June 2009
Hey, great post, really well written. You should post more about this.