Developing a Business Plan | Back-End Sales


Every successful business begins with a plan. The components of your plan should include:

1) Your Market
2) Your Solution
3) Your Traffic
4) Back-End Sales

4) Back-End Sales
A "back-end" sale is a sale that you make as a follow-up to your original sale - the "front-end". The front-end offer is the offer that gets the customer in the door. You've probably seen the door-buster products that retailers offer customers on Black Friday (the day after Thanksgiving). These great deals are often "lost leaders", which are products sold below cost in hopes that customers who buy them will also buy something else. Retailers do this because they know that the back-end sale is where they will make the majority of their profits.

Let's say you are interested is becoming an affiliate for electronic and digital pianos.

Your back-end products might include:

  • Piano Benches
  • Electronic Keyboard Stands
  • Electronic Sustain Pedal/Foot Switch
  • Instructional Videos/Software

You have determined that this is a hot market, and you are ready to begin selecting products. Having a product is a beginning. Having a plan maximizes your success.

The Amazon Marketplace is perhaps the finest example on the web of how to maximize profits through back-end sales. They capture your credit card information on your first purchase, and then make it incredibly easy to check-out when you decide to make subsequent purchases. They present you with your "Recently Viewed Items", and with recommendations through their "Customers Who Bought This Item Also Bought" feature. They even provide you with an opportunity create an Amazon product "Wish list" to send to your friends and relatives. Each one of these strategies is designed to maximize the lifetime value of each customer that visits the Amazon website.

The back-end sale should not be under valued. Building a solid business plan that will maximize the lifetime value of each customer that visits your website is of paramount importance. It will divide you from the weekend hobbist, making you a leader in your chosen market.

by Andrew Fling


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