I’ve been doing a lot of thinking lately about how to set up the perfect sales funnel to maximize my customer value. I’ve been testing this offline but the principles remain the same and you can use this for your online ventures too.
Whatever Customer Acquisition Model you use you always need to be focusing on how to maximize the value of each customer you do business with. Whether they buy a $7 ebook or a basic mobile site design for $197 the question remains the same.
“How can I transform these one time sales into long term customers who will buy from me again and again?”
The answer lies in the backend of your sales funnel and in my opinion it should centre around some sort of recurrent billing type payment. I came to this conclusion because when I started my own offline business I didn’t want to just replace my old “wage slave” existence with a new one.
I wanted more freedom and time to do what I really wanted to do. I didn’t want to be under pressure each month chasing new sales just to make ends meet and the way around this I found to work best is to incorporate recurrent billing into every service you offer.
Even if it’s only something nominal like $30 per month you know that for every 10 new clients you take on you are adding $300 residual monthly income to your bottom line. It may not sound much at the moment but if done on a consistent basis you can be on your way to a nice little retainer each month – even if you don’t take on any new clients!
That is the way I operate and I suggest you have a think about it too. How can you include some sort of recurring payments into your sales funnel so that you’re guaranteed some cash each month?
If you’re operating solely online then perhaps adding a low priced membership on the backend of whatever products you release could be a good idea. Even 100 customers X $4.95 per month amounts to nearly $500 residual each month.
Another benefit of this is that affiliates love recurring commissions and so you may find your launches become more successful as you add these recurring billing products to your backend. I personally know of one major marketer who has combined a lot of his past products and re-purposed them in a membership site which he offers on the backend of every launch that he does.
If like me you also work in the offline world then you are really spoilt for choice on what services you can offer to people. As much as I like a big web design project that pays 4 figures I’d much prefer to take less money upfront and earn more residual income.
It takes a lot of the pressure off my workload and over the lifetime value of each customer I actually earn more. The other upside to this is it makes it easier to upsell other more expensive services down the line.
What I mean by this is you can bait them into your sales funnel at a low-end price point and overtime transform then in higher value customers. That’s pretty much what a lot of IM coaches do, you first off buy their cheap little e-book and overtime you begin to want to learn more from them and in the end join their high end coaching program.
Either way whatever you decide to do I hope I have given you some food for thought and got you thinking about how you can increase your business by adding a recurring element to the backend of your sales funnel.
If you have any other idea’s about how to increase this please leave a comment below. I’d love to hear what you think….
Thanks for reading,
Want to read more posts like this? Then you’ll enjoy these posts from the archive…