Wednesday, August 02, 2006

You CAN make 6 figures online day 6

Key #3: Increase Your "Lifetime Value"
The third key to growing your affiliate marketing business and making more money is to "increase your 'lifetime value' ". In other words, sell more to your existing customers. You've worked hard to get the customer, so make the most of it.
You don't want to merely make one sale to your customers, but rather multiple sales.

There are a couple of ways to earn more lifetime value from your customers, both of which are important…
1. Multiple offers. One way to earn more lifetime value is to make multiple offers to your customers over time. Whether they are products you've created yourself, products
you've purchased rep rint rights to sell, or affiliate program products, you can increase the amount of profit per customer by selling them multiple products.
NOTE: What works especially well for multiple offers is to “graduate” your customers to higher priced items. They may initially buy a $20 ebook from you, but could easily be convinced to buy a $47-$97 video or membership. Then, you could work to get them to buy a $297-$497 home study course or reprint rights package. From there, you could move them on to personalized coaching or 2-3 day workshops for fees from $997-$4997 or even more. What started out as a $20 ebook could easily be turned into hundreds or even thousands of dollars being spent with you.
2. Residual offers. Another way to earn more lifetime value is through residual offers - where an existing customer pays you for the same offer over and over again. These are primarily service-based offers. Online examples include web hosting, autoresponders, match-making, private membership sites, paid newsletters, etc. The customer pays a monthly fee for the service for as long as they remain an active member.
It takes much less effort to get an existing customer to buy something additional from you than it does to go out and find more customers.
And, as you begin to saturate your market (I.E. Finding all of the customers who might do business with you), it will become more and more important to have "backend" offers in place to increase your profit from the customers you get.
As you "run out" of new customers available, it's critical to continue profiting from the database of folks already doing business with you.

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