Why Traffic and Conversion Aren’t Enough

traffic and conversion

Imagine this scenario.

You do your initial research and enter a new market, because you see a company that is successfully selling a $10 ebook to their audience.

You come out with a more effective system and price it at $10. You tap into some of the same traffic sources they’re using, and you generate a 2% conversion rate to cold traffic (that’s very good for cold traffic).

You review the numbers and find you’re losing money for every visitor you generate. You earn 20 cents per visitor, but they’re costing over $1 apiece.

Generating more traffic will only mean losing money faster!

The average ‘internet marketer’ looks at this and starts looking for ways to tap into cheap sources of traffic (which often don’t convert as well).

But that’s not the solution.

Even though you’re generating traffic and you’re converting them into sales, you’re missing another important ingredient.

Your business model doesn’t work.

What you likely failed to realize was how the back-end process worked for the competitor you investigated.

If you would have purchased their product, you would have seen the immediate upsells they offered for $39 and $99.

You would have been invited to the bonus webinar where they offered their $500 course.

You would have received the courtesy phone call where they offered a free consultation that led into their $5,000 mastermind group.

And that’s not even counting the joint venture deals they had in place to promote other people’s products and services to their list.

Great marketing can’t overcome bad math.

Start thinking about your backend offers and your ‘Ultimate Offer’ before you develop your first product for the market.

Your first sale to a customer is simply the cost of buying a new customer.

From here, you can create a Value Ladder of other products and services that help them solve their problems and reach their goals.

For example, in an information business, you may offer ebooks or books on the low end, digital courses at a little higher level, group coaching, one-on-one coaching, and even done-for-you services.

Recently I’ve been helping one of my clients develop a fixed term group coaching program that will probably be priced at $3,000 to $5,000.

But we know going in that a portion of those buyers would still prefer to pay someone else to do it for them. So we’re also discussing a potential $3,500/month done-for-you backend where my client delivers the exact service he teaches them about in the program.

That service is going to give a lot of FREEDOM in promoting the group coaching program.

In another completely different scenario, a client sells a $47 front-end package that’s followed up by 2 additional upsells. That’s just the entrance fee for the customers. The majority of his actual profits are generated from a $29.95/month continuity program.

You can’t develop all of this on day one. You have to take it one step at a time by testing the waters on very low volume. But you should have several potential back-end ideas ready to create once you see some action.

I cover all of this…including how to come up with all these ideas along with your ‘Ultimate Offer’…how to create products quickly…and how to choose the right traffic sources for you in the Internet Lifestyle System.

This is the quickest and easiest way to create passive income streams you can be proud of…free you from your job, and fuel your Internet Lifestyle for decades…

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About The Author

Terry Dean

Terry Dean has been in full-time internet business since 1996 and has helped thousands of entrepreneurs get started online through his articles and products. He lives in Ocala, Florida with his wife and 2 dogs. Find out more about how the Monthly Mentor Club can help you today.