Award Winning Businessman Andrew Reynolds Explains How To Unearth Hidden Profits In A Cash on Demand Business…
One of the most fulfilling aspects of having developed and wrote the cash on demand home study course is that it enables me to directly help individuals as they are building their businesses. Its this aspect which has actually made the course an evolving one. A course which can react to the needs of individual students at any given time and to the changes in marketing methods.
Recently for example I had an email from a cash on demand subscriber who sells ebooks – wondering why he was not making a lot of money. I talked him through, by email, his whole selling process and we gradually found all the possible ways that he could add extra profits to his bottom line –for not too much more work. In effect he had been leaving a load of profit unclaimed.
Now because of this kind of feedback and interaction I am able to quickly insert additional information into the cash on demand course which is useful to all students. This was such a case where through my conversations with one student I was able to include a kind of a tick list of ‘Do’s and ‘Don’ts’ so that others don’t make the same mistakes. In this instance, to make sure that on your current or future projects – you don’t leave profits for someone else to go and grab – when the money could be going in your pocket.
Now of course, we’ve discussed ad nauseum, the funnel technique of Cash on Demand Marketing and how the money is ‘in the back end’ – but there are some small changes to your funnel model that you could make almost immediately to add those extra ‘hidden’ profits.
Now as you may already know, generally front-end products (i.e. the first product you offer prospective customers) on their own are not going to make you rich. Yes, you can make decent profits from front-end products but the whole cash on demand system is really geared around making MASSIVE PROFITS … the kind of which have made me a Multi-Millionaire.
And to do that you need Back-End Products …i.e. higher priced products that are in some way connected to the initial product.
For example, a front-end product might be a single DVD introducing people to the profit potential of buying property abroad. A typical front-end product like this might retail at between £19.95 to £49.95.
A cash on demand back-end product in this example might be a step-by-step home study course which shows that customer exactly how to make say £100,000 a year from overseas property … where to invest … provide all the contacts etc.
A course like this might retail at around £697. It’s here where you begin to make your major profits…
For a start, you are only offering this back-end course to those people which have just bought the front-end DVD.
In other words, this is a highly targeted market who have shown their interest in making money from the overseas property market by sending you money already. In this situation the conversion ratio increases dramatically. For the front-end product for instance you might expect a good offer to return you 3% – that is for every 100 people that look at your offer 3 will buy.
Thus for a 20,000 mailing, you’ll get 600 sales (of course you don’t have to mail 20,000 at a time, you could mail out 5,000 per month).
If the DVD pack was retailing at £49.95 you’d therefore receive a return of £14,985.
Of course the profit per DVD sold would be high since it only costs say £1.50 to duplicate that DVD, but naturally you have the costs of mailing to 20,000 people just to get those 600 sales to take into consideration.
But here is where your big profits now come in. By offering the £697 Overseas Property Course to those 600 front-end buyers you don’t have the high costs of mailing to thousands of people … your conversion rates are generally far higher, up to 20% … and the profits on the actual back end product cab be huge.
For instance, let’s say you made a £500 profit per course with your cash on demand project. From the 600 highly targeted front-end buyers you are offering this to, around 120 will now buy the course at £697. If your profits are £500 per course you will therefore pocket £60,000 PROFIT!!!
And from here you could actually take it a step further by offering another back-end product. Maybe say a £5,000 one-day workshop where your PROFIT WAS £4,000 PER CLIENT.
Run one of these with say 25 customers attending and now you’ve made yourself another quick £100,000 PROFIT in your pocket.
So from a simple £14,985 front-end return (where maybe you only made a little profit) you have now made £160,000 PROFIT – usually this would come in within 2-3 months if you’ve planned it right.
Do that 3 or 4 times a year … like I use the cash on demand system for … and suddenly you’re talking about profits in the region of OVER £1/2 MILLION POUND for what amounts to a single project … or almost £10,000 PER WEEK in other words.
This is how the cash on demand system works … i.e. a system based on the Funnel Marketing approach I’ve talked to you so much about throughout this course.
However, the one part of this system which I have found gets individuals new to this ‘game’ nervous is oddly the very first part. That is when making the front-end offer.
And this is because it is perceived as being the part of the whole system where your risks are higher. The potential profits are small compared to outlay true, in fact many of those in the trade … myself included … often are quite prepared to make a loss on the front-end product.
We know what we’re doing and are thus extremely confident that the big profits … the HUNDREDS OF THOUSANDS OF POUNDS … will come rolling through on the back-end follow-up offers.
Indeed, I have perfected the Cash on Demand System so much that I don’t think I have EVER made a loss on a project…
However, the potential lose which can occur at the front-end is something which does scare many would-be Cash On Demand Millionaires from even starting. Which is such a shame when a wonderful life could be just around the corner for them. In fact, even if they have a break-even or small-profit front-end product it’s enough to stop them in their tracks.
And as I said it really is a crying shame when they could be so close to completely altering the entire course of their life for the better. Let’s put it this way, if I had stopped on my first front-end product because of a small lose, I would have literally been walking away from £30,000,000 POUNDS … and a personal wage of around £2 MILLION POUNDS A YEAR!
So to help you not to lose your courage … not to throw your dream away … I thought you might like me to show you how to AVOID anything which is going to lose you money … even on the front-end.
And we can do that through something known as Hidden Sales. So what Exactly Are “Hidden Sales”?
Well maybe it’s best to think of hidden sales as “Overlooked Profit Opportunities”. You see by finding these hidden profit opportunities within your cash on demand project and taking advantage of them, you’ll be able to increase the amount of money that EACH customer pays you WITHOUT having to increase your front end product price.
And more importantly WITHOUT having to spend more money on marketing … Classified Ads or Adwords, for example … to get that extra revenue..
To make this clearer let me take break down hidden sales opportunities into easier terms. Right, let’s begin by looking at some facts.
Cash on Demand FACT ONE – Once a person buys a front-end product from you, it’s EASIER to get them to buy again…
So imagine you’ve overcome that huge first hurdle of getting a targeted individual to say yes to your offer. In other words, you have built sufficient trust in your offer to get them to be ready to part with their money and purchase your front-end product offer.
Now it’s at this ‘point of sale’ … while they are in the buying mood if you like …that by offering a little something extra to them is a great way (and easy) of encouraging them to spend more money there and then. Supermarkets have been doing it for years. How many times do you get to the check out for instance and there are some tasty looking Sweets by the till and you end up buying those too (especially if you’ve got children with you). Or maybe there’s a Magazine by the till with a compelling headline on the front cover which just grabs your attention and you end up putting it in your shopping basket.
Or another example you can find in a supermarket … and which we nearly all yield to … are those ‘Three For Two’ offers. You had NO intention of buying three packs of biscuits for instance on that particular shopping trip but you’ve been ‘caught’ at the right time when your mind is attuned to buying and you thus place those items into your shopping trolley .. items remember which you never intended to purchase in the first place.
Of course, this buying process gets even easier with time since when a customer is already there in your ‘Sales Funnel’. It is so much easier to sell more to an existing customer than to try to acquire and sell to new customers.
In fact, although I bring in thousands of NEW customers a year I still have thousands of customers that have been loyal to me for up to 10 years.
The way I’ve achieved that is to keep offering them products that are so exciting that they want to buy my latest offer.
Cash on Demand FACT 2: – Most people who buy your front-end product WON’T come back and buy more by themselves…
Don’t expect them to come to you … you have to keep the sales process continually alive. Customer or yours isn’t going to wake up one morning and suddenly think “I wonder if they have another product I can buy…”.
The onus is ALWAYS on you which is why you therefore MUST grab their contact information as early as possible … or to put it another way, when they are FRESH to your business (at the front-end stage).
In particular, if you are using Websites to sell your products … maybe from Classified Ad leads, or from Google Adwords or even direct mail traffic to the site … BEFORE a person has a chance to leave your site use the simple techniques that are available to get them to stay.
To get them to take action, or to get them into your funnel so that you can continue to advertise to them.
Once you understand these two Cash on Demand fundamental facts … and you learn to incorporate the hidden sales opportunity ‘added revenue’ techniques then you’ll find YOUR OVERALL CASH ON DEMAND SALES AND PROFITS WILL EXPLODE!