Do You Struggle With Boosting Your Backend Profits?

Boosting Backend Profits

If you are around in the internet marketing niche for any length of time, you might have realized a change in the last few months or so. More and more products are released to the market places in different sub niches that are paying a whopping 100% commission to their affiliates, sometimes even throughout the whole funnel.

While the reason for raising the affiliate commission is obvious, as it attracts more affiliates to promote the product, one might wonder how a product creator can survive giving all the money to their affiliates.

Also product creators can’t live from love and thin air alone…

Just recently I had a chat with one of my online buddies on Facebook and he wondered how he could profit from selling his  product when giving away 100% commission.

The answer can be found in their backend profits.

There are different strategies how to monetize on the backend of a funnel, whether it is a membership site, a download page, or simply a thank you page. And more often than not product creators make much more profit in the backend than they would have done with taking a 50% share of the product price.

Just look at these two examples:

Quick Start Challenge 3.0 Revolution

Quick Start Challenge 3.0 Revolution is a 4 weeks coaching program with weekly webinars by Dean Holland, Craig Crawford and Robert Phillips, who declared to have found the proven formula that allows anyone to get results in 28 days or less.

Now this coaching program sells for $19.95 and pays a 100% commission to its affiliates. Within the funnel they have 3 upsells for $9.95, $14.95 per month and $47 on which they pay 50% commission.

If you hop over to JVZoo and want to calculate what’s left for the product creators, your result will definitely be wrong.

Because JVZoo indicates the sales throughout the funnel, but they won’t show how many sales they did in the backend.

And this is exactly where they promoted the iPro partner program, a $1997 product by Dean Holland.

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The Commission Machine

The second example is The Commission Machine by Michael Cheney, currently selling for $24.95 and paying 100% commission on the front end and 50% commission throughout the rest of the funnel.

Knowing that Michael sold more than 3,000 sold front end products and had a conversion on the upsells of up to 26%, you still won’t be able to calculate what he earned from his product.

Why?

Because he boosted his backend profits with having a free webinar, replay and follow up sequence, in which he promoted a high ticket product to all his customers.

If you wonder what product it was…

It was iPro from Dean Holland.

Although Michael promoted this product as an affiliate, he still received a 50% share of the product price.

If only 3% of his customers decided to jump on board, he added a whopping $100,000 to his bottom line just with monetizing the backend.

 

The Advantage Of Backend Profits

  • Highly targeted traffic
    Visitors seeing the backend products are highly targeted. Not only did they show interest in the topic, they even went so far to buy either a low ticket or mid ticket product and have proven to be willing to pull out their credit card when it comes to purchase a product that solves one of their problems.
  • Pre-sold prospects
    When the product is structured right, it can make the perfect place to pre-sell a high-ticket item to increase backend profits. Like in the example above, the Quick Start Challenge 3.0, where pre-selling started already in the first of four webinars and an additional fifth bonus webinar was dedicated to the iPro partner program only.
  • No commissions to affiliates
    While the product creator paid a certain percentage of commission to their affiliates throughout the funnel, the affiliates are left out when it comes to backend profits. 100% of the product price will end up in the product creators pocket. As the backend is usually the place to sell high ticket items, the earnings are often far beyond what they shared with their affiliates through the sales funnel.

 

How To Generate Backend Profits

If you don’t have a high ticket item, and even more if you don’t even have a product of your own, you might be thinking that generating profits on the backend isn’t for you.

Nothing couldn’t be further away from truth.

Just putting a small banner to another affiliate product on your membership site, download page or even thank you page monetizes your backend already.

But you could even go so far and partner up with one of the seasoned marketers to promote their mid- or high ticket offers in your backend. Whether it is via a live training like Michael Cheney did it, or via a recorded webinar, both either resulting in high commissions or a nice residual income.

 

This is where this nifty little tool called Content Nitrous comes into place and if you are on my list you might have seen it on some of my thank you pages already.

What it does is giving you a shortcode for adding a 3-step box to your membership sites, download pages, thank you pages, or any other page you want to place it.

The box looks like the one in the graphic below and can be easily configured to your liking:

Content Nitrous Stepbox

This is what’s going to happen, when your new subscribers or customers follow the steps outlined in the 3-step box:

  • Whitelist Your Email Address
    Your subscribers will not only be asked to whitelist your email address, they also will see complete instructions on how to do this for all the various email clients. When done, this ensures that your email won’t end up in their spam folder and will increase the deliverability of your emails as well as your open rates.
  • Bonus Live Training
    In the case above, new subscribers can register for a free bonus training. Here you can choose one out of 6 different offers, but you are also free to add your own product if you have one or if you partnered already with another internet marketer.

  • Join Facebook Group
    If you don’t have a Facebook group yet, you might want to create one. It’s not only a great way to handle support requests and answer questions about your product, it’s also a great additional way of interacting and staying in touch with your subscribers. In the end you can look at it as being another list besides your autoresponder.

If you are interested in what Content Nitrous can do for you, then check out this video explaining it in more detail.

Your Turn

Are you using techniques to increase your backend profits? If so and if you don’t mind, please share your thoughts and let us know your ideas and strategies of monetizing it. If you liked this post, please also consider to share it with your friends and followers.

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8 Comments

  • Cory

    Reply Reply August 27, 2015

    Hi Torsten,

    I really like your post and you did a great job. You did explain well about the backend profit. I had this training or a video tutorial about this but seem can’t get to understand how that works. It’s a good thing that you posted this one. Great info and thanks for sharing 🙂 have bookmarked your site ^-^
    Cory recently posted…Introduction to Internet and Internet Marketing Part 2My Profile

  • Keiran

    Reply Reply August 27, 2015

    Hi Torsten, this is a really insightful post, thanks for sharing.

    “The backend”, and backend profits are concepts I’m still coming to grips with, and the examples you provide here really help to illustrate this. I couldn’t understand how internet marketing gurus were supposed to make so much money, and I’ve just started to realise that the products initially promoted are far from the whole story.
    Keiran recently posted…My First Solo Ad CampaignMy Profile

    • Torsten

      Reply Reply August 27, 2015

      Hi Keiran,

      thanks for your comment.

      Making a living from a $7 product isn’t possible, especially when looking at the commissions that are paid to affiliates.

      The only way to achieve this is with having higher priced offers in the backend.

      In the examples above I mentioned a $1,997 product, but it goes much far beyond that.

      In fact I know a marketer personally who sells a much much higher priced offer in the backend.

      Surely we can’t get started like this, but we can start small and slowly work all the way up.

      Good luck with it!
      Torsten
      Torsten recently posted…3 Free Alternatives To Camtasia StudioMy Profile

  • Duane Reeve

    Reply Reply August 27, 2015

    Hi Torsten
    Great post about backend profits, which is written in a style I like (easy to read & understand). I hope to implement backend products in the near future, but will probably piggy-back on an established marketers High-Ticket Product to begin with.
    Duane Reeve recently posted…How to Make Money Online with Affiliate ProductsMy Profile

    • Torsten

      Reply Reply August 27, 2015

      Hi Duane,

      until you have your own high ticket product it’s a great idea to partner with another marketer and offer their product for a commission.

      If you are interested, I can hook you up with someone who pays $800 per sale.

      Cheers,
      Torsten
      Torsten recently posted…How To Waste Time Or Money With Social Media MarketingMy Profile

  • Brian Oliver

    Reply Reply October 6, 2015

    Hi Torsten,
    Absolutely true.
    Thanks for breaking this subject down into great, easy to understand chunks.
    The profit is definitely in the back end.

    Success

    Brian
    Brian Oliver recently posted…How To Speed Up Videos and Increase ProductivityMy Profile

  • Selma Mariudottir

    Reply Reply January 30, 2016

    Hi Torsten,

    Great post about backend profits. I beleive backend profits are something most online business owners miss completely. They either have no idea this is even possible (and how easy this actually is considering you are marketing to existing clients that are more likely to buy again) or they are scared/have no idea how to implement this.

    Best regards, Selma
    Selma Mariudottir recently posted…Free WP Plugin Allows You To Quickly Remove Time And DateMy Profile

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