Product Launching: How To Use A Back-End Marketing Strategy To Increase Revenue

If you are launching products online, you need to understand the front end and the back end of your business. More importantly, you need to look at both parts differently when it comes to your marketing.

Front End- The front end is where people will first encounter your product. If you are using paid media, webinars, promotional video & emails or any other tools and material to promote your product, then all of this can be considered the ‘front end’ of your business.

It is here that you are marketing to prospects- people that have not yet bought from you. With that in mind, we need to put a lot of work into creating a burning desire and acquiring the trust necessary to make the sale. 

Back End- The back end of your business is where you communicate with your existing customers. They have already bought your initial product and our goal in the back end is to get them to buy from you again.

The overall purpose of each ‘end’ of your business shocks people when they are first coming to grips with it.

Many people that are new to product launching automatically assume that our goal in the front end is to generate the maximum amount of revenue.

They are wrong.

The front end’s only purpose is to generate the maximum number of new customers.

Now whilst you may not see the difference between acquiring new customers and generating maximum revenue – there really is a massive difference.

Now, keep in mind that the purpose of the back end is to enhance the relationship that you have with your existing customers and to drive additional sales.

You don’t actually need to break even at the front end if you have a solid back end strategy; all of your money is made in the back.

You could spend £1,000 on paid ads and acquire 90 new customers at the front end, which generates £900. On the surface it looks like you made a loss of £100.

But with a solid back end strategy in place, you make sure you look after those 90 customers. They get everything that they were expecting and more.

Then, you seamlessly push them towards your other products or services. Let’s say that roughly 10% will go on to purchase one of your other £100 products, and 2% will join your elite coaching group that costs £300 a month.

Well, now that initial loss of £100 has now turned into a profit of £800 and you now have £300 a month coming in on recurring.

When you have a solid back-end strategy in place, you can afford to spend far more on paid ads then your competition, and you can actually drive them out as a result.

This concept is important in product launching, but also in all business in general. Businesses that are able to spend more in the front end to acquire new customers because their back end is to powerful will control their industry.

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