How Much The Multi-Millionaire Internet Marketers Average Per $ale

by JasonParker 30 replies
I did a little research today based on one of my new mentors (well, I pretty much just know him and investigate his business model and strategies) who's a multi-millionaire internet marketer. You would definitely know who he is if I said...

You might find this post interesting, maybe not.

...But I averaged what how much per sale he made in a year he made well over a million bucks.

It turns out he averaged $442 per sale.

Thing is... he sells low-priced front end products, mid-end products, and high end products and services.

One of his sales funnels looks something like this...

Low, low priced irresistible offer to get the paying customers in the door > customer is also taking a trial offer by which he/she will pay about $30/mo after 30 days and can cancel at any time > OTO upsell for a mid to high-end product > upsell to a coaching program priced in the thousands


BTW, affiliates get commissions at every step in the funnel.
#main internet marketing discussion forum #$ale #average #internet #marketers #multimillionaire
Avatar of Unregistered
  • Profile picture of the author mdunn123
    That actually is very interesting and makes you wonder a bit about whether doing the things the common and simple way of selling one product and putting them on your list is even the right way to go anymore.
    {{ DiscussionBoard.errors[38010].message }}
    • Profile picture of the author Kyle Tully
      Originally Posted by mdunn123 View Post

      That actually is very interesting and makes you wonder a bit about whether doing the things the common and simple way of selling one product and putting them on your list is even the right way to go anymore.
      Who said that was ever the right way to go?

      It's only common because:

      a) It's simple
      b) People don't know any better

      The real money has always been made on the backend.
      Signature
      {{ DiscussionBoard.errors[38020].message }}
      • Profile picture of the author Jeremy Kelsall
        I was a little surprised when I saw the average sale figure...

        Definitely food for thought.

        Jeremy
        {{ DiscussionBoard.errors[38024].message }}
        • Profile picture of the author lacraiger
          $442 damn what is he selling?
          {{ DiscussionBoard.errors[38031].message }}
        • Profile picture of the author jhongren
          Hi Jeremy,

          Good to see you again and how are you? =)

          I agree with Kyle money is always made at the backend.

          Reed shared with me that I have to be willing to give up 100% commission if I am to explode my business.

          In the past, I have never understood the product funnel.

          Now as I know more, I find that it should be a structure for us to follow generally.

          it can be:
          1. free item or low ticket item to entice the customers
          2. middle ticket such as OTO, email course, subscription basis, trial offers and so on
          3. high ticket item such as seminars, workshop, programmes, home-study courses, coaching, mentorship, helping you to set up the business blah blah blah.

          The options are plenty and it is how innovative we are to spin the funnel in whatever it entice our customers list.

          Again, knowing what our customers want is really important.

          John
          {{ DiscussionBoard.errors[38039].message }}
          • Profile picture of the author Tristan Bull
            Definitely a great sales funnel to model yourself after
            {{ DiscussionBoard.errors[38371].message }}
            • Profile picture of the author John_Reese
              Just thought I'd chime in here...

              Yes, the backend is important. Yes, the backend raises the overall value of a customer. BUT...

              It's not always the key to big money in some markets. There are MANY markets that don't support backend products very well. After a customer buys the front-end (or only product) there's nothing more to sell them; at least not something that directly compliments that original product.

              I've personally had niche businesses that have done over $1MM/year off *one* product and no backend. I know several others that have as well. And I'm talking about frontend products under $100 dollars, not a $500 frontend. ;-)

              So a backend is not always necessary to make a lot of money.

              -John Reese
              {{ DiscussionBoard.errors[38601].message }}
              • Profile picture of the author lakshaybehl
                I personally don't bother selling $47 stuff. I can easily pull off $147 sales through Myspace and youtube traffic who already feel they have a relationship with me...

                WSO's are a differnet thing. I'll be getting one soon and that might be cheaper!

                -Lakshay

                P.S. I am in no way opposed to the idea of a funnel! I fact, i am a BIG fan of the marketing funnel myself. So its cool!
                {{ DiscussionBoard.errors[38607].message }}
              • Profile picture of the author Roy Carter
                John - Very interesting, but not everyone knows how to make that one off sale over and over again I guess. That would involve continuously getting new customers for that type of product over and over.

                Wouldn't you say that the easiest approach for most people would be to create that funnel?
                Easier than the one-off sale model at least?

                Roy
                Signature
                "How To Hang Out On Various Exotic Islands
                Whilst Still Making Shed Loads Of Money...and stuff!"


                Get your FREE ISSUE entitled...'A Quick, Easy $2,000 In Your Pocket By This Weekend!'
                >> ---> http://LettersFromASmallIsland.com/sq1.html <--- < <
                {{ DiscussionBoard.errors[38616].message }}
              • Profile picture of the author Kyle Tully
                Originally Posted by John_Reese View Post

                I've personally had niche businesses that have done over $1MM/year off *one* product and no backend.
                I said real money John. :p

                No doubt you can make some nice coin selling a single product, but in most cases adding a backend component (even if it means re-configuring your frontend offer) is both possible and more profitable.

                I've sold niche products that solved very specific health issues -- with no obvious backend -- and my unconventional backend offer more than doubled sales.
                Signature
                {{ DiscussionBoard.errors[38632].message }}
              • Profile picture of the author John Taylor
                Originally Posted by John_Reese View Post

                There are MANY markets that don't support backend products very well. After a customer buys the front-end (or only product) there's nothing more to sell them; at least not something that directly compliments that original product.
                John raises an interesting point.

                I'd add a little bit of extra information about the differences
                between types of market.

                Yes, there are niche markets where you may be limited to just
                one or two sales with little opportunity to upsell. For example
                office equipment such as printers.

                But then there are other markets that offer you the opportunity
                to sell the same product multiple times. Printer ink would be a good
                example because it ties in with the one off sale of a printer.

                Sometimes it's a good idea to look at the big picture. Selling printers
                and signing up the customer for an ink supply contract offers a much
                better lifetime customer value.

                John
                {{ DiscussionBoard.errors[38655].message }}
              • Profile picture of the author JasonParker
                This is something I wouldn't expect you to say, John.

                Here's what I mean...

                You make a good point, for sure. I just hope some newby doesn't read this and take it the wrong way by neglecting their backend.

                ...Because focus seems to almost always be 100% on the front end for rookies. And they're leaving potentially thousands on the table.

                ...Also, you say "There are MANY markets that don't support backend products very well."

                Can you name the type of market you're talking about? It seems there's always a line of products for every niche. I'd just like to know more about what you mean.

                I'm obviously NOT marketing in a niche like this. I probably wouldn't be able to pay any bills at all if I relied solely on my front end product.



                Originally Posted by John_Reese View Post

                Just thought I'd chime in here...

                Yes, the backend is important. Yes, the backend raises the overall value of a customer. BUT...

                It's not always the key to big money in some markets. There are MANY markets that don't support backend products very well. After a customer buys the front-end (or only product) there's nothing more to sell them; at least not something that directly compliments that original product.

                I've personally had niche businesses that have done over $1MM/year off *one* product and no backend. I know several others that have as well. And I'm talking about frontend products under $100 dollars, not a $500 frontend. ;-)

                So a backend is not always necessary to make a lot of money.

                -John Reese
                {{ DiscussionBoard.errors[40654].message }}
                • Profile picture of the author Jelasco
                  Originally Posted by JasonParker View Post

                  ...Also, you say "There are MANY markets that don't support backend products very well."

                  Can you name the type of market you're talking about? It seems there's always a line of products for every niche. I'd just like to know more about what you mean.
                  Any market where your infoproduct is supposed to solve their problem, especially something like health.

                  If your product is "How to rid yourself of X" what are you supposed to sell them next?
                  {{ DiscussionBoard.errors[40678].message }}
                  • Profile picture of the author JasonParker
                    I guess I'm still not "getting it" but thanks for your reply.

                    I can't seem to think of any case where you couldn't follow up with another offer.

                    Originally Posted by Jelasco View Post

                    Any market where your infoproduct is supposed to solve their problem, especially something like health.

                    If your product is "How to rid yourself of X" what are you supposed to sell them next?
                    {{ DiscussionBoard.errors[40690].message }}
                  • Profile picture of the author Kyle Tully
                    Originally Posted by Jelasco View Post

                    Any market where your infoproduct is supposed to solve their problem, especially something like health.

                    If your product is "How to rid yourself of X" what are you supposed to sell them next?
                    Look at the example I gave above.

                    There isn't necessarily an obvious backend product for these types of products, but there is nearly always something else you can tie in.

                    For example:

                    Let's say you cure someone's health problem with an ebook proposing a specific diet. There's a good chance these people will have an emotional attachment to this new type of diet and will join a membership site about healthy living and getting the most out of their new life.

                    Or you solve someone's sweating problem... do you think they might now be ripe for a dating product? Perhaps, it's worth a test

                    No, you probably won't see awesome conversions with these loosely related backend products... but you only need a few sales of a higher end product to make it profitable.

                    And remember you can test everything out using affiliate programs until you find the sweet spot offer. Then develop your own product and you're off to the races.
                    Signature
                    {{ DiscussionBoard.errors[40719].message }}
                  • Profile picture of the author sylviad
                    Originally Posted by Jelasco View Post

                    Any market where your infoproduct is supposed to solve their problem, especially something like health.

                    If your product is "How to rid yourself of X" what are you supposed to sell them next?
                    It would depend on what "X" is. Once "X" is resolved, what is the positive side? If it's to get rid of acne, what lies behind that goal? To look better. So you can approach the cured acne sufferer with other items that enhance their look, which can be almost anything. If the acne is stress-related, you can sell them the acne cure as well as a spa treatment or exotic holiday to get away from the rat-race. Once "X" is cured, respond with prevention.

                    Or, you can suggest they reward/treat themselves for their success and feeling better. Perhaps new shoes, jewelry... something they couldn't use as long as they had "X". For acne, perhaps new anti-allergenic skin care products to disguise any remaining scars - maybe cosmetic laser treatment.

                    You can do that with practically anything.

                    In terms of offering a front-end product at low or no cost, this is a tradition that comes right out of the dark ages (well, almost). Waaaay back in the days of the Fuller Brush Men who came a-knockin', housewives were given small 'gifts' for their time. Of course, the gift had in large print the name, Fuller Brush, as a reminder to the prospect. This 'gift', which was often a miniature of a more expensive brush, demonstrated the quality of their products.

                    They did it because it works, and it will continue to work. People like to 'try before you buy'. Samples and low priced items give them that opportunity.

                    Sylvia
                    Signature
                    :: Got a dog? Visit my blog. Dog Talk Weekly
                    :: Need articles, ebooks written? - Award-winning Journalist is taking new projects. Warrior Discounts!
                    {{ DiscussionBoard.errors[40781].message }}
                    • Profile picture of the author Jelasco
                      Originally Posted by sylviad View Post

                      Or, you can suggest they reward/treat themselves for their success and feeling better. Perhaps new shoes, jewelry... something they couldn't use as long as they had "X". For acne, perhaps new anti-allergenic skin care products to disguise any remaining scars - maybe cosmetic laser treatment.

                      You can do that with practically anything.
                      That's not really a back end, more like recommending just about anything. How do you keep people on a list doing that? "Now that your acne is cleared up, how about some shoes?"

                      Sounds like the kind of offers people here complain about!

                      What if your email reminds them that their acne didn't clear up and leads to a refund?

                      BTW when I posted earlier in this thread, I didn't notice that John Reese had already written this: "There are MANY markets that don't support backend products very well. After a customer buys the front-end (or only product) there's nothing more to sell them; at least not something that directly compliments that original product."

                      That's pretty much what I said, and I think he knows more about this than most of us.
                      {{ DiscussionBoard.errors[41077].message }}
                      • Profile picture of the author jhongren
                        BTW when I posted earlier in this thread, I didn't notice that John Reese had already written this: "There are MANY markets that don't support backend products very well. After a customer buys the front-end (or only product) there's nothing more to sell them; at least not something that directly compliments that original product."
                        Hi Jelasco, You made a good point to reinforce what John has mentioned.

                        Market research is really important and laying out a proper is important too.

                        As the cliche says "Fail to plan, plan to fail"

                        Understanding our own battle plan is utmost important. If we don't know what we are doing, who else does.

                        Cheers,
                        John
                        {{ DiscussionBoard.errors[41137].message }}
                      • Profile picture of the author dsiomtw
                        Agree with John on this one. I think too many people try to get too fancy with their sales funnels, OTO's, backend this and that, constantly creating products and trying to get more and more JVs etc. Not that this isn't one way to build a business. But like John said it is easy to make $1 mil+ a year selling a single low end product, promoting CPA offers that payout $50 etc. I don't like doing all that fancy stuff. I specialize in creating simple sites, scaling them, getting massive amounts of traffic, and generating 100s of sales or leads per day for a single product per site. Works for me. I have some basic backend stuff that generates a bit more, but that's just gravy.
                        {{ DiscussionBoard.errors[41155].message }}
                      • Profile picture of the author JasonParker
                        Originally Posted by Jelasco View Post

                        That's not really a back end, more like recommending just about anything. How do you keep people on a list doing that? "Now that your acne is cleared up, how about some shoes?"

                        Sounds like the kind of offers people here complain about!

                        What if your email reminds them that their acne didn't clear up and leads to a refund?

                        BTW when I posted earlier in this thread, I didn't notice that John Reese had already written this: "There are MANY markets that don't support backend products very well. After a customer buys the front-end (or only product) there's nothing more to sell them; at least not something that directly compliments that original product."

                        That's pretty much what I said, and I think he knows more about this than most of us.
                        About the refund... if your product doesn't work, then you shouldn't sell it in the first place.

                        ...I agree that John Reese is THE MAN in IM who has probably forgotten more about marketing than I know. I'm just using this thread to dig deeper into what he's talking about, not trying to show him up. That would be like trying to fight Mike Tyson with my hands tied behind my back.

                        "There are MANY markets that don't support backend products very well. After a customer buys the front-end (or only product) there's nothing more to sell them; at least not something that directly compliments that original product."

                        At least in infomarketing, I'd like to know exactly what sort of products we're talking about here. Because you can go on Amazon, for example, and find out what products other customers bought with a certain product.
                        {{ DiscussionBoard.errors[41566].message }}
                        • Profile picture of the author macchiavelli
                          I need to get me a funnel like that!
                          But I think the hardest part is creating products that people are willing to spend more then $100 dollars on.
                          {{ DiscussionBoard.errors[41714].message }}
                          • Profile picture of the author Kyle Tully
                            Originally Posted by macchiavelli View Post

                            I think the hardest part is creating products that people are willing to spend more then $100 dollars on.

                            ***The Only WSO That Can Make You $1000 A MONTH If You Really Implement It, NO upfront investment, NO Website, No NOTHING!***
                            Notice the discrepancy?

                            You're saying you can make someone $1000 per month from scratch... yet you say it's hard to get people to fork over $100.

                            $1000 recurring for a $100+ investment is a no-brainer.

                            The hardest part isn't creating products that people are willing to spend more than $100 dollars on, it's changing your mindset to see that you already have
                            Signature
                            {{ DiscussionBoard.errors[41733].message }}
                      • Profile picture of the author sylviad
                        Originally Posted by Jelasco View Post

                        That's not really a back end, more like recommending just about anything. How do you keep people on a list doing that? "Now that your acne is cleared up, how about some shoes?"

                        Sounds like the kind of offers people here complain about!

                        What if your email reminds them that their acne didn't clear up and leads to a refund?
                        Of course you're right. I knew I was going overboard with the shoes , but certainly a product to disguise any remaining scars would be a good backend.

                        Your last line... if it didn't work your email is a reminder... That could happen regardless. So, you recommend a product, it doesn't work. They ask for a refund. You pitch them another similar product. Will they trust your judgment and recommendations after that first failure? There's always that risk.


                        Sylvia
                        Signature
                        :: Got a dog? Visit my blog. Dog Talk Weekly
                        :: Need articles, ebooks written? - Award-winning Journalist is taking new projects. Warrior Discounts!
                        {{ DiscussionBoard.errors[45600].message }}
                        • Profile picture of the author JayXtreme
                          Being valuable in the backend is such a strong position to be in...

                          This guy probably is a legend in the mind of his lists... he provides value in the backend which makes him a "go-to" guy and allows him soooooo much playroom

                          Jay
                          Signature

                          Bare Murkage.........

                          {{ DiscussionBoard.errors[45627].message }}
              • Profile picture of the author JasonKing
                Originally Posted by John_Reese View Post


                I've personally had niche businesses that have done over $1MM/year off *one* product and no backend. I know several others that have as well. And I'm talking about frontend products under $100 dollars, not a $500 frontend. ;-)

                So a backend is not always necessary to make a lot of money.

                -John Reese

                I understand the intent of the post.. even though man oh man is there opportunity here.

                New customer acquisition is the hardest work there is..
                {{ DiscussionBoard.errors[42023].message }}
  • Profile picture of the author Lance K
    Originally Posted by JasonParker View Post

    ...But I averaged what how much per sale he made in a year he made well over a million bucks.

    It turns out he averaged $442 per sale.
    How did you settle on this figure?
    Signature
    "You can have everything in life you want if you will just help enough other people get what they want."
    ~ Zig Ziglar
    {{ DiscussionBoard.errors[40723].message }}
    • Profile picture of the author JasonParker
      Originally Posted by Lance K View Post

      How did you settle on this figure?
      Simple division.
      {{ DiscussionBoard.errors[40783].message }}
      • Profile picture of the author Lance K
        Originally Posted by JasonParker View Post

        Simple division.
        So you have access to this marketer's sales data?
        Signature
        "You can have everything in life you want if you will just help enough other people get what they want."
        ~ Zig Ziglar
        {{ DiscussionBoard.errors[40816].message }}
Avatar of Unregistered

Trending Topics