Business and Register Online : Online Business and 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 in internet marketing, but asked how he could make money selling some of his books online.
I told him the first book he sold was not going to make any money, and continued to explain to him why.
By the way, this principle works the same for every online product, not just books. It could be jewelry, or dog toys, or medical supplies. It does not matter.
You see, it costs about as much to get a new customer as the product costs, in the long run. This is the basic economic principle for any well-developed market. And the internet is doing well in many general markets, although I believe there is still room for entry-level arbitrage in some niche markets. But in the long run, even the niche market will start to break even on the front end.
Real money is made on the backend, after customers spend money with you.
The first customer should be convinced to open their wallet and take out a credit card and use the one with the lowest limit just in case you get scammed. So if they lose, it’s no big deal. So you may have to get 200 visitors to get one sale.
But once they buy from you, and you ship the promised product, and you actually ship the promised product, it’s more than they thought, and they see that you only charged them once for the product, and you didn’t cheat on them, then it is much easier to get them to buy from you again.
And the nice thing is, apart from about $20 per month for a quality autoresponder, there’s no second time for them to visit your website. You may spend $50 to generate enough traffic to make a $50 sale the first time they buy, but once they buy, you may only need to spend $5 to make the next $50 sale.
The backend is where real money is made. Stop worrying about your frontend, and just make a sale, then focus on your backend.