The Money Is In The List! I’m sure you’ve heard that saying and it is very true, if you have an online business then you should be building a list of subscribers. Email marketing is a very powerful tool to grow your business and your profits. A good email marketing campaign can increase your profits by eight times more. With email marketing there are some points you need to learn to be successful, such as understanding the typical buying cycle, using follow up emails and using backend sales.
Understanding the Buying Cycle
Around 99% of visitors to a website will not buy the first time that they visit the site. Although they don’t buy when they first visit the site they may still be interested in the product you are selling but are still considering their options.
If a visitor comes to your website and then just leaves, you are losing a potential sale. Even though they are not ready to buy just yet, you can still profit from that visitor by capturing their details so you can follow up with them and possibly make a future sale.
Using Follow Up Emails
If 99% of visitors leave your site without buying then you are only getting a 1% sales conversion. Wouldn’t you like to change that 1% conversion rate to perhaps as much as 8% conversion? Capturing your visitors details and using follow up emails can increase that conversion rate by as much as 800% to a 8% conversion.
Many people won’t buy a product because they don’t know who you are or if they can trust you, after all this is the first time they have visited your website. By capturing their email address you can follow up with emails over time and build trust with those people. When a person begins to know and trust you from your emails they may then decide to purchase your product.
Using Backend Sales
As well as purchasing the original product you are selling, your subscribers may also buy other products from you in the future which will increase your profits even further. Promoting other products or services after the original sale is called your backend sales. Backend selling is where the real money is made in online business and many Internet Marketers miss out on a lot of profits by neglecting to sell backend products and only focusing on the one product.
For example, let’s say the main product you promote sells for $50 and you make 50 sales a month for a total monthly profit of $2500. To increase profits many business owners would focus on increasing the number of sales that they make each month.
But what if you took the backend sales approach instead. What if you tried to sell another product to those existing 50 customers, let’s say a $200 product. If 20% of those customers bought the second $200 product you would have an extra profit of $2,000.
That extra $2,000 profit will come without too much extra work as you already have the details from those customers who have bought the original product and they already know and trust you.
Another option could be to sell a membership product to those original 50 buyers. What if you offered a program that cost another $50 a month membership, if 50% of those 50 people joined that membership program you would make $1,250 extra profit, not only for that month but on a monthly basis until they left the program. If even just 10 of those people remained members for 12 months that is $6,000 profit for a year. If you have 10 extra people joining your membership program every month, that profit will grow higher and higher.
So you can see that a backend product or membership program can be extremely profitable for your business and it is often easier to sell to your existing customers than trying to find new customers.
Email marketing really is a necessity for any online business if you want to build your business and achieve high profits.
Building a relationship with your customers is the best way to sell more products and build a good, solid customer base. Understanding how and when customers buy, how to use follow up emails and implement backend sales will take your business to a whole new level.