Backend Profit Secrets and Viral Marketing

Once you truly understand the power of backend profits,you'll explode your marketing results and create an unstoppable viral machine.

The techniques I will reveal to you have often been taughtin many marketing courses and articles...but they are stillunderutilized because of two words -- "tunnel vision."

Backend profits means the additional income that you earnfrom a customer. The first purchase from a customer is thefront end profits while the second purchase and so forthwill be your backend.

The really good marketers understand that the most moneywill be made on the backend.

Here are a couple reasons why:

You can charge higher prices for backend products becauseyou've already built a relationship with your customer.

They already know the quality of your product and of yourcustomer service. You no longer have to convince them thatyou're credible and that your information is good.

You only have to convince them that your backend product ishigher quality than your front end product and that theyNEED the backend product.

Trust is one of the single most important components ofselling. You can earn that trust by providing a goodfront end product.

Most marketers do not truly understand the power of thebackend and that's a fact.

I know because I see very few affiliate programs which payhigher 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 saleseach.

You pocket $1,250 after paying commissions. You now have 50customers. Five of them end up purchasing your $100 backendproduct for a profit of $500. Total profits is $1,750 foryou.

Now let's consider giving away 75% commission to youraffiliates.

By giving away higher commissions, you get 10 affiliatesinstead of the 5. Ten affiliates making 10 sales each at$50 will make you $1,250 -- which is the same front endprofits 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 youraffiliate commissions by 25 percent? You made it on thebackend.

Here's what is happening behind the curtain as you increaseyour commissions.

You gain more affiliates and subscribers as thoseaffiliates send you more traffic to your site.

Those affiliates are happier with their higher paycheckbecause you gave them higher commissions. Therefore, theywill continue to send traffic to your site.

This cycle increases your traffic over time as you gainmore customers, more affiliates and more subscribers.

It's the ultimate viral marketing machine!

More subscribers equal more profits. More customers equalsmore 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 seetheir affiliates making more than them. Tunnel vision keepsthem from seeing all the extra subscribers, customers andaffiliates which could be theirs.

Please remember one thing about running your affiliateprogram.

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 yourfront end product which gives away a majority of theprofits.

You should also spend your time creating multiple backendproducts.

Gary Huynh is a full-time online information marketer. Hecurrently earns money from affiliate programs along withrunning multiple membership sites. View his weblog at:http://www.garyhuynh.com for more tips and tricks to helpyou achieve a full-time work from home business.