The Back End Marketing System

Quote of the day "If many people don't understand you, then you are on the fast track to success. The reason is because the majority of those who don't understand you are not successful themselves."

In purchasing the "Secret Affiliate Weapon" program from super Internet Affiliate Ewin Chia, he mentioned "The Backend System" a number of times. As i read Allen Robert book on "Multiple streams of income", then i begin to understand why Backend system is so important, not only for Internet Marketing business but also for traditional marketing.

As an example given in the book "Multiple streams of income" by Allen Robert, he differentiates between a publisher and Infopreneur.

This is the example that he give:
A publisher publish 10,000 copies of a certain cashflow management books and sell it for an wholesale price of $12. The retail price of the book is $25. Minus off the money for author royalties, bookbinding, staff, administrative duties etc, it the earning per book is $2. Thus the net profit is $20,000. That's it. The publisher does not have a list of the customers that have purchase the book... so as to built relationship with them or even to up sell or size sell them.

For an Infopreneurs, as in this case of the author of the book, he offer a free audio clip or some value added ebook that the readers can download from his website. In so doing, the web site has a opt-in list to capture the reader username and email address before releasing the free audio clip or ebook. Suppose with some repeated mailings (pre-saleing), about 10% of the readers attend one of the seminar conducted by the author on cashflow management. That's 1,000 customers. If the seminar cost per head is about $300. That's will be a cool $300,000 for profit. And that's not all, you can continue to warm up those readers in your list who has not attend the seminar with USP. U stand for Ultimate Advantage, S stand for Sensational Offer, P stand for Powerful Promise... eg. give them value added bonuses, and offer the price of seminar to $100 with money back guarantee if not satisfy with the service. Say in this instant, 5,000 cutomers sign up and the author will have pocket another cool $100 x 5,000 = $500,000. All in all... until now.. the author has packet $500,000 + $300,00 + $20,000 = $820,000 compare to the publisher with only $20,000 to show after all the hard work.

This is amazing.. simple concept like this mean so much to the earning of the publisher and the infopreneur. In addition, the author in this example can upsell his existing customers with a advanced cashflow seminar and can do all sort of innovative methods to make his existing subscribers list to buy from him. Selling to existing satisfy customer is easier than to sell to a complete stranger... especially on the Internet.

Indeed, Google has raised the fees for its adwords advertising program on the internet as a result of smart Internet marketers who use opt-in list together with google adsword to minimize the acquisition dollars. What do i mean? Give you an example to illustrate my point.

An Internet marketer can use www.pixelfast.com/overture to select a list of lowest cost or under-bid keywords and bid your advertisement on them via google adwords. In our example, let say that PPC (price per click) is 10 cents. If 30,000 surfers click on from google link to your web site and suppose you are able to capture the information of 10,000 of them on your website opt-in list, then essentially, you are spending (30,000*0.1)/10,000 = $0.3 per captured subscriber list. This is the acquisition cost in marketing term. In tradition advertisement on the paper, for $30,000 advertisement fee, you may only capture less than a hundred people. The acquisition cost in this case will be $30,000/100 = $300. So which method would you like to choose for advertisement?

As you can see, Internet is a good media for advertisement. With Opt-in list, the Internet marketer will not need to go back to google for advertisement if he is satisfy with the subscriber base that he has captured. This is bad news for google. That's the reason why google has since raised it fees for google adword advertisement.