Online Business & List Building – Why List Building Is So Important For Your Online Business

I was having lunch with a friend of mine today and he is not into internet marketing but was wondering how he could make money selling some of his books online.

I told him that the first book he sold would not make him any money and proceeded to explain why.

By the way, this principle works the same for all online products, not just books. It could be jewelry, dog toys, or medical supplies. No matter.

You see, it will cost you about the same to get a new customer as the cost of the product, in the long run. That is a basic economic principle for any well-developed market. And the internet is doing well in many of the general markets, although I think there is still room for entry-level arbitrage in some of the niche markets. But eventually, even niche markets will start to break even at the front end.

The real money is earned on the backend, once the customer has already spent money with you.

The first customer must be convinced to open their wallet and pull out a credit card and use the one with the lowest limit in case it is a scam. So if they lose, it’s not a big deal. So you may need to get 200 visitors to get a sale.

But once they buy from you, and you deliver the promised product, and you actually overdeliver the promised product, it’s more than they thought they were getting, and they see that you only charged them once for the product, and you didn’t. . rip them off, then it’s much easier to get them to buy from you again.

And the good news is that, aside from around $20 per month for a quality autoresponder, there is no cost for them to visit your website a second time. You can spend $50 generating enough traffic to make a $50 sale the first time they buy, but once they’ve bought, you may only need to spend $5 to make the next $50 sale.

The backend is where the real money is made. Stop worrying about your frontend and just make sales, then focus on your backend.