Win A Trip To Meet Rich And Agora

Hey Guys,

Tonight’s teleconference with Michael Masterson has already filled up. All 1,000 lines were reserved in JUST 90 minutes!

If you were one of the lucky few to get in, then I congratulate you and look forward to you joining us tonight.

And if you missed it, DON’T worry, we have some more calls lined up. Please don’t call the office and ask if you can sneak on, it’s not physically possible.

But to those of you that did get in… You’re NOT off the hook just yet. Registrations were coming in SO quickly we couldn’t turn the page off in time…

To be exact, we handed out 1061 registrations.

Please be sure to call in early so you ensure you don’t get booted. If you were lucky enough to get
registered in time, then you definitely DON’T want to miss this call.

Win A Trip To South Florida to Meet Rich and Agora

If you haven’t read the Final Chapter, here’s a damn good reason why you should.

And if you have read it..

You have a better understanding of what you need to do in order to grow your business to the next level.

What if I told you that I would PERSONALLY pick you up at the airport, in my Porsche, and let you rack my brain for an ENTIRE afternoon?

Imagine starting out at my office and my team and I brainstorming ideas on your business. Then taking off for a power lunch. Imagine heading over to Agora (the Early To Rise office) and their team spending the rest of the afternoon working hard to solve your biggest challenges.

Well, that’s EXACTLY what we’re going to do.

If this is not a once in a lifetime opportunity, then I don’t know what is…So for one VERY LUCKY person, we’re going to foot the bill for this very exclusive trip.

How do you win? Follow these instructions.

1.) Click “Comment” Below

2.) Summarize why it’s critical that your business has a consistent series of back end offers and why it’s important that you build alliances within your marketplace.

The person who has the best summary will be chosen and notified that they’ve won.

Please don’t ask for more direction, we simply CANNOT answer all of your questions right now, as we’ve been swamped with inquires regarding the Final Chapter.

The winning entry will be based on merit, and not based on need. So keep your summary ON topic, and show us just how smart you really are.

Rich

P.S. Good luck with your summary, and don’t plan on packing tons of luggage… my Porsche can barely store two gallons of milk. 😉

518 thoughts on “Win A Trip To Meet Rich And Agora”

  1. Bottom line, it’s the difference between a viral and long-term sustainable business that will become a behemoth in its marketplace (with systems in place, and correctly co-opetating with so-called competitors to share lists and revenues) versus a Mom & Dad pop shop Do-It-Yourselfer (where it’s a dog eat dog attitude, and the business works you with the owner in it vs you working on the business).

    Reply
  2. Bottom line, it’s the difference between a viral and long-term sustainable business that will become a behemoth in its marketplace (with systems in place, and correctly co-opetating with so-called competitors to share lists and revenues) versus a Mom & Dad pop shop Do-It-Yourselfer (where it’s a dog eat dog attitude, and the business works you with the owner in it vs you working on the business).

    Reply
  3. Hey rich,

    Here’s the deal:

    1. It’s important to have a consistent series of backend offers for your market because That’s where all the REAL money is made… and… you need these backends in place and automated and consistend because the most competition, the most testing and the most time and focus should be spent on your customer aquisition pieces.

    The front end of your business requires the most thought, focus and time and attention because it is here there is the most competition.

    and…

    2. You need to build strategic alliances because without renting and sharing and JV’ing with the other businesses in your marketplace/related niche… you won’t grow to the maximum size or profitability that you could.

    Because for one reason or another you’re not going to be able to get as many names and customers into your business model as 5 different businesses in your marketplace… and you’ll eventually saturate the buyers in your market if you are the ONLY one continually marketing to them.

    (it’s like what happened to Clayton Makepeace and his Weiss client in the financial newsletter markets, they were mailing 20 million pieces a year or something while others were lucky to mail 12 million pieces a year… and eventually they had saturated their marketplace and response and revenues dropped. all because there were no new names being added into that market by other companies mailing successfully.)

    There ya go! Short, concise, and correct 🙂

    Reply
  4. Hey rich,

    Here’s the deal:

    1. It’s important to have a consistent series of backend offers for your market because That’s where all the REAL money is made… and… you need these backends in place and automated and consistend because the most competition, the most testing and the most time and focus should be spent on your customer aquisition pieces.

    The front end of your business requires the most thought, focus and time and attention because it is here there is the most competition.

    and…

    2. You need to build strategic alliances because without renting and sharing and JV’ing with the other businesses in your marketplace/related niche… you won’t grow to the maximum size or profitability that you could.

    Because for one reason or another you’re not going to be able to get as many names and customers into your business model as 5 different businesses in your marketplace… and you’ll eventually saturate the buyers in your market if you are the ONLY one continually marketing to them.

    (it’s like what happened to Clayton Makepeace and his Weiss client in the financial newsletter markets, they were mailing 20 million pieces a year or something while others were lucky to mail 12 million pieces a year… and eventually they had saturated their marketplace and response and revenues dropped. all because there were no new names being added into that market by other companies mailing successfully.)

    There ya go! Short, concise, and correct 🙂

    Reply
  5. Well, the backend must be consistent because obviously we need to have a “control backend” in order to be able to continually test what is the optimum (more profitable, and the most statistically probable for our customer to follow) path of our backends.

    Alliance partners will help us in exponentially grow NOT our backend but mainly our front-end, bring our customers “home” in order them start to follow our customer most likely path (backend)

    Reply
  6. Well, the backend must be consistent because obviously we need to have a “control backend” in order to be able to continually test what is the optimum (more profitable, and the most statistically probable for our customer to follow) path of our backends.

    Alliance partners will help us in exponentially grow NOT our backend but mainly our front-end, bring our customers “home” in order them start to follow our customer most likely path (backend)

    Reply
  7. Back end offers are where the real profit is realized. Once you have paid the price to get your customer, back end offers are where you profit from your initial cost to get them. I was very impressed by your concept to have many niche websites “focused” on a single niche. It was a “light bulb” moment for me. Cross promoting your “back end” offers with this strategy is very powerful.

    Building alliances within your marketplace has several advantages. You stay at the top of you market knowing the trends. You create a synergy that makes you more powerful. You learn and at the same time teach. As a prior martial arts instructor I am aware that a good teacher learns as he teaches. Alliances also get you in before the herd knows what is happening allowing you to profit as trends and opportunities arise.

    I have not read your three pdf’s. I just got them yesterday. I have seen a video you did months ago. My problem was one link led to another that led to another that led to another and all the sudden I am watching this powerful video presentation. I thought I bookmarked it. And I lost connection to you. I was going through my bulk or spam folder and once again connected to you. I am so happy I did. I will read your pdf’s starting tomorrow.

    Thanks and if I am not picked I want to congratulate the winner in advance.

    Lee Barclay

    Reply
  8. Back end offers are where the real profit is realized. Once you have paid the price to get your customer, back end offers are where you profit from your initial cost to get them. I was very impressed by your concept to have many niche websites “focused” on a single niche. It was a “light bulb” moment for me. Cross promoting your “back end” offers with this strategy is very powerful.

    Building alliances within your marketplace has several advantages. You stay at the top of you market knowing the trends. You create a synergy that makes you more powerful. You learn and at the same time teach. As a prior martial arts instructor I am aware that a good teacher learns as he teaches. Alliances also get you in before the herd knows what is happening allowing you to profit as trends and opportunities arise.

    I have not read your three pdf’s. I just got them yesterday. I have seen a video you did months ago. My problem was one link led to another that led to another that led to another and all the sudden I am watching this powerful video presentation. I thought I bookmarked it. And I lost connection to you. I was going through my bulk or spam folder and once again connected to you. I am so happy I did. I will read your pdf’s starting tomorrow.

    Thanks and if I am not picked I want to congratulate the winner in advance.

    Lee Barclay

    Reply
  9. A consistent series of backend offers is the only part of your business that needs less time, energy, and rescources devoted to it, once you have established it as successful at upselling and turning intial customers into life long customers. Having that set up is what really creates the huge profit margins on the initial customer aqcuisition, but more importantly having that consistent back end set up leaves you room to focus on different areas far more competetive, so you can demolish your competition.

    It allows you to focus more rescources on competitive anaylsis, front end marketing, and that huge list of other things you need to do to build a mutli million dollar business.

    The example of the european info companies compared to the american companies such as agora clearly shows how important it is to leverage the power of other people’s lists of customers. It allows everyone to share and grow explosively rather then slowly through the focus of ONLY your own efforts. I think the explosive growth is the most important part because when having those alliances you can 10x the size of your business with access to all those new customers you never would have had access to. And the quicker that happens, the more money you have to create an even bigger business and the more resources you have to actualize that. Without the JV partners, and industry networking you are setting yourself up for the mediocre slow path, rather then the explosive I’m going to do what I have to do to build a multi-million or hundred million dollar business ASAP path.

    Thanks for letting me share.

    Reply
  10. A consistent series of backend offers is the only part of your business that needs less time, energy, and rescources devoted to it, once you have established it as successful at upselling and turning intial customers into life long customers. Having that set up is what really creates the huge profit margins on the initial customer aqcuisition, but more importantly having that consistent back end set up leaves you room to focus on different areas far more competetive, so you can demolish your competition.

    It allows you to focus more rescources on competitive anaylsis, front end marketing, and that huge list of other things you need to do to build a mutli million dollar business.

    The example of the european info companies compared to the american companies such as agora clearly shows how important it is to leverage the power of other people’s lists of customers. It allows everyone to share and grow explosively rather then slowly through the focus of ONLY your own efforts. I think the explosive growth is the most important part because when having those alliances you can 10x the size of your business with access to all those new customers you never would have had access to. And the quicker that happens, the more money you have to create an even bigger business and the more resources you have to actualize that. Without the JV partners, and industry networking you are setting yourself up for the mediocre slow path, rather then the explosive I’m going to do what I have to do to build a multi-million or hundred million dollar business ASAP path.

    Thanks for letting me share.

    Reply
  11. My point of view after learning Rich Schefren’s material is very simple. But in all business systems there is always an inherent simplicity. If you can just find that inherent simplicity, you can manage, control and improve the whole system.

    In order to build a business on Internet you need to control some crucial elements.

    1) Create targeted traffic.
    2) Convert that visitors into customers.
    3) Optimize the system and processes and increase profits using:
    A)Automated system of back-end produts.
    B)Building strategic alliances to create exponential growth.
    C)Tweaking and optimizing the whole system using testing procedures.

    As I said this can be seen as very simple system, but apply this system with consistency, properly positioning yourself in the appropiate market niches and RESULTS and PROFITS will flow smoothly.

    Just my view.

    Francisco Moriones

    Reply
  12. My point of view after learning Rich Schefren’s material is very simple. But in all business systems there is always an inherent simplicity. If you can just find that inherent simplicity, you can manage, control and improve the whole system.

    In order to build a business on Internet you need to control some crucial elements.

    1) Create targeted traffic.
    2) Convert that visitors into customers.
    3) Optimize the system and processes and increase profits using:
    A)Automated system of back-end produts.
    B)Building strategic alliances to create exponential growth.
    C)Tweaking and optimizing the whole system using testing procedures.

    As I said this can be seen as very simple system, but apply this system with consistency, properly positioning yourself in the appropiate market niches and RESULTS and PROFITS will flow smoothly.

    Just my view.

    Francisco Moriones

    Reply
  13. Back end = Where the real money is.

    Succinct enough?

    Perhaps not. Let’s elaborate a bit more:

    For Podcasting Adventures Online, it’s critical that I entice people with the offer of an easy way to learn podcasting and how important it can be to their small business. Whet their appetite with a low-end but high-value product.

    To follow up on the back end, the two best approaches I can conjure are:

    1) Show them how ber their own podcaster via a full-blown online podcasting curriculum
    2) Become their professional audio production source

    Either of those pathways leads to the opening of many doors, including upsells to higher end podcast production, marketing assistance, website development, SEO, etc., of which I currently have most of the key players in my Rolodex and willing to play in this terrific little (big?) game.

    Naturally, this leads to even more growth, such as informercials, copy-writing, product creation, consultation and the cycle starts all over again.

    Sort of like a self-replicating Alien. But without the drool.

    Reply
  14. Back end = Where the real money is.

    Succinct enough?

    Perhaps not. Let’s elaborate a bit more:

    For Podcasting Adventures Online, it’s critical that I entice people with the offer of an easy way to learn podcasting and how important it can be to their small business. Whet their appetite with a low-end but high-value product.

    To follow up on the back end, the two best approaches I can conjure are:

    1) Show them how ber their own podcaster via a full-blown online podcasting curriculum
    2) Become their professional audio production source

    Either of those pathways leads to the opening of many doors, including upsells to higher end podcast production, marketing assistance, website development, SEO, etc., of which I currently have most of the key players in my Rolodex and willing to play in this terrific little (big?) game.

    Naturally, this leads to even more growth, such as informercials, copy-writing, product creation, consultation and the cycle starts all over again.

    Sort of like a self-replicating Alien. But without the drool.

    Reply
  15. Do I get to drive the Porsche?

    The reason it is important that our business has a series of consistant backend products.
    We will be the leader in selling audio and video content created by our customers. It is important for us to keep our customers up todate on all knowledge to improve there learning skills in this industry. If we educate our buyers to the best of our abillity, they will in return educate there customers to become long term customers.
    If we fail to have such knowledge for our customers, they more than likely will no longer be our customers.
    This is our main goal to educate on a never ending scale. The more they want to learn the more we will provide.
    This will pay off in building future alliances in our business. That our customers know that we will be always looking out for there best interest in bringing them the most up to date tecnology in our field.
    Along with a structure to put it into place quickly and timely manner to create more long term wealth for them.
    We will show them how to lead in there chosen industry.
    Because “We have what it takes, to make people listen to YOU”
    Thanks, Law

    Reply
  16. Do I get to drive the Porsche?

    The reason it is important that our business has a series of consistant backend products.
    We will be the leader in selling audio and video content created by our customers. It is important for us to keep our customers up todate on all knowledge to improve there learning skills in this industry. If we educate our buyers to the best of our abillity, they will in return educate there customers to become long term customers.
    If we fail to have such knowledge for our customers, they more than likely will no longer be our customers.
    This is our main goal to educate on a never ending scale. The more they want to learn the more we will provide.
    This will pay off in building future alliances in our business. That our customers know that we will be always looking out for there best interest in bringing them the most up to date tecnology in our field.
    Along with a structure to put it into place quickly and timely manner to create more long term wealth for them.
    We will show them how to lead in there chosen industry.
    Because “We have what it takes, to make people listen to YOU”
    Thanks, Law

    Reply
  17. A consistent series of back end offers keeps a client’s interest so that you maintain them. The initial cost to obtain that client would have to be calculated at the beginning whether they purchase from you or not. The more good back ends the higher the rate of return from each client. The faster that you can spread the word about the offers through alliances the lower the competition and the revenue is exponentially greater.
    Maureen Otto
    http://adoorshallopen.com
    http://abusinessassociation.com

    Reply
  18. A consistent series of back end offers keeps a client’s interest so that you maintain them. The initial cost to obtain that client would have to be calculated at the beginning whether they purchase from you or not. The more good back ends the higher the rate of return from each client. The faster that you can spread the word about the offers through alliances the lower the competition and the revenue is exponentially greater.
    Maureen Otto
    http://adoorshallopen.com
    http://abusinessassociation.com

    Reply
  19. The backend marketing is critical to converting new customers to loyal customers as well as for retention of existing customers.

    In my “J.O.B” we learn that a new prospect is not a customer until they have purchased from you 4 times. The percentage of retention goes up to over 80% after the fourth purchase. Competitors come in the door; business as usual – purchasing from current “known” suppliers are much easier until the customer builds trust and develops a new buying pattern. When they begin reaching out for answers or solutions from you the fourth time – a habit has been developed and a new relationship is nurtured. The backend purchases must be in a timely manner as well – in order to cement the new buying habit. The closer together those purchases are the more loyal the customer becomes.

    Not only is the backend process important for client retention and new client implementation but it is critical for the business owner for proper marketing analysis.

    If you don’t have a clear understanding of how many sales it takes to retain a prospect as a customer – you have no way of knowing if a particular campaign is working or not. If the process is not systematic and consistent the data will be irrelevant.

    You must have a clear understanding of what you expect from client behavior in order to measure your success and make adjustments to your programs and campaigns. How else will you know how much it costs you to win and retain a client?

    If you don’t have a clear measuring tool for your backend process you could be spending more money than you are taking in to get new customers. It costs more to get new customers than it costs to retain an existing customer.

    Build a loyal, responsive (hyper responsive) following by building a customer base that totally trusts and anticipates your new products. Do this by developing products that go above and beyond what you promise and always exceed expectations.

    Strive for continual improvement and for the advancement of all of your customers – ahead of your own advancement and a funny thing will happen…you will achieve levels of success unexpected in common circles!

    You need to know where to direct your marketing and who your customers really are. All business has the same 80/20 rule – 80% of your business will come from 20% of your customers. You MUST know who your customers really are in order to invest your time and marketing dollars wisely.

    Another critical factor customer retention in backend marketing is offering a variety of programs, services or systems that make it more difficult for your customers to leave you. The more “invested” they are in time and money in your process the more difficult it is for them to go somewhere else and potentially have to “start over”.

    Lastly, a customer is only a customer if they are actually buying from you. So, unless you have something of value to continually offer your customers – you are giving away your clientele!

    One of the best ways to accomplish the above is by developing strategic alliances with other highly successful leaders in your marketplace.

    You can partner with someone who has a similar client base but a completely different product offering. Both you and your strategic partner win and so do your customers.

    I’m writing a book so – the only other thing I want to say is…

    I’d look great in a Porche!

    🙂
    Fran

    Reply
  20. The backend marketing is critical to converting new customers to loyal customers as well as for retention of existing customers.

    In my “J.O.B” we learn that a new prospect is not a customer until they have purchased from you 4 times. The percentage of retention goes up to over 80% after the fourth purchase. Competitors come in the door; business as usual – purchasing from current “known” suppliers are much easier until the customer builds trust and develops a new buying pattern. When they begin reaching out for answers or solutions from you the fourth time – a habit has been developed and a new relationship is nurtured. The backend purchases must be in a timely manner as well – in order to cement the new buying habit. The closer together those purchases are the more loyal the customer becomes.

    Not only is the backend process important for client retention and new client implementation but it is critical for the business owner for proper marketing analysis.

    If you don’t have a clear understanding of how many sales it takes to retain a prospect as a customer – you have no way of knowing if a particular campaign is working or not. If the process is not systematic and consistent the data will be irrelevant.

    You must have a clear understanding of what you expect from client behavior in order to measure your success and make adjustments to your programs and campaigns. How else will you know how much it costs you to win and retain a client?

    If you don’t have a clear measuring tool for your backend process you could be spending more money than you are taking in to get new customers. It costs more to get new customers than it costs to retain an existing customer.

    Build a loyal, responsive (hyper responsive) following by building a customer base that totally trusts and anticipates your new products. Do this by developing products that go above and beyond what you promise and always exceed expectations.

    Strive for continual improvement and for the advancement of all of your customers – ahead of your own advancement and a funny thing will happen…you will achieve levels of success unexpected in common circles!

    You need to know where to direct your marketing and who your customers really are. All business has the same 80/20 rule – 80% of your business will come from 20% of your customers. You MUST know who your customers really are in order to invest your time and marketing dollars wisely.

    Another critical factor customer retention in backend marketing is offering a variety of programs, services or systems that make it more difficult for your customers to leave you. The more “invested” they are in time and money in your process the more difficult it is for them to go somewhere else and potentially have to “start over”.

    Lastly, a customer is only a customer if they are actually buying from you. So, unless you have something of value to continually offer your customers – you are giving away your clientele!

    One of the best ways to accomplish the above is by developing strategic alliances with other highly successful leaders in your marketplace.

    You can partner with someone who has a similar client base but a completely different product offering. Both you and your strategic partner win and so do your customers.

    I’m writing a book so – the only other thing I want to say is…

    I’d look great in a Porche!

    🙂
    Fran

    Reply
  21. Hi Rich,

    The purpose of having a consistent series of back end offers is to keep and maintain the relationship you have with your customers by providing consistent and relevant offers for them to keep them happy and coming to you as the expert, the go-to guy.

    The purpose of building alliances within your marketplace is to cultivate a relationship with the partners to leverage their customer relationship to build your own relationship with their customers, not to take away from your partner but to build upon it.

    Thank you Rich,

    Scott Lucas

    Reply
  22. Hi Rich,

    The purpose of having a consistent series of back end offers is to keep and maintain the relationship you have with your customers by providing consistent and relevant offers for them to keep them happy and coming to you as the expert, the go-to guy.

    The purpose of building alliances within your marketplace is to cultivate a relationship with the partners to leverage their customer relationship to build your own relationship with their customers, not to take away from your partner but to build upon it.

    Thank you Rich,

    Scott Lucas

    Reply
  23. Its critical that your business has a consistent series of back end offers because simply put…..The Money Is In The Backend.

    Backend offers determine whether you make mediocre or extraordinary profits. This is regardless of the types of
    business, and is also regardless of whether you’re marketing your products and/or services online or offline.

    Its important to build alliances within your marketplace because it is crucial to your long-term success. Long term success
    takes long term efforts. These alliances can introduce you to new prospects and/or sales on a consistent and qualified basis.
    They will also allow you to meet indiividuals with whom you can partner when rolling out new products within your business.

    Forming alliances takes mutual commitment and time, but your efforts will be well rewarded in the long run financially
    and otherwise.

    Reply
  24. Its critical that your business has a consistent series of back end offers because simply put…..The Money Is In The Backend.

    Backend offers determine whether you make mediocre or extraordinary profits. This is regardless of the types of
    business, and is also regardless of whether you’re marketing your products and/or services online or offline.

    Its important to build alliances within your marketplace because it is crucial to your long-term success. Long term success
    takes long term efforts. These alliances can introduce you to new prospects and/or sales on a consistent and qualified basis.
    They will also allow you to meet indiividuals with whom you can partner when rolling out new products within your business.

    Forming alliances takes mutual commitment and time, but your efforts will be well rewarded in the long run financially
    and otherwise.

    Reply
  25. Rich,
    my business model is creating membership sites that offer subscribers consisten high value.

    To do this, I have to partner with other suppliers and experts in the fields. Not only does this use your outsourcing methods, but is a way to continually provide new, valuable content and products
    for members.

    This model has the added benefit of creating new traffic for all the partners involved which relates to more profits for them as well.

    So instead of viewing ourselves as competition, suppliers in the sunject can unite to help each others business and provide continued and valuable (to the customers) backend products to the customers.

    Thanks for all your great info.

    Glenn Heaton

    Reply
  26. Rich,
    my business model is creating membership sites that offer subscribers consisten high value.

    To do this, I have to partner with other suppliers and experts in the fields. Not only does this use your outsourcing methods, but is a way to continually provide new, valuable content and products
    for members.

    This model has the added benefit of creating new traffic for all the partners involved which relates to more profits for them as well.

    So instead of viewing ourselves as competition, suppliers in the sunject can unite to help each others business and provide continued and valuable (to the customers) backend products to the customers.

    Thanks for all your great info.

    Glenn Heaton

    Reply
  27. There are several things: strategy and tactics alike.

    1. Backends are essential because people “want” additional quality and quantity.

    When they get enough quantity, they want more quality, when they have enough quality, they want more quantity.

    2. People want a developmental path.

    As life goes on, people mature and develop. Providing them with a means to their ends is essential part of spiritual growth.

    3. A back-end is almost always customer focused.

    A good backend allows you to begin to differentiate the customer and what they want, what they buy, how they buy it…which is why the “amazon” engine works, it’s customizing, and learning all the time based on the actions of the customer.

    4. A Back-end has heart.

    If it doesn’t, then you don’t know what it is you’re really doing. Backends get to the heart of why people are there, why they are looking for their hope, dreams and solutions to mitigate their fears.

    5. Back-ends are smart systems.

    Smart =
    Self-organizing
    Adapting
    Learning
    Inferring
    Sensing
    Anticipating
    Asynchronous
    Relational

    In the end, the backend is adhocable based on customer needs…and the ability to create a need before they know they have it.

    But most of all, backends separate the leaders from the also-rans. Backends are tough to make work as well as they can, they require dedication, systemization and follow-through.

    In the end, is the beginning.

    Reply
  28. There are several things: strategy and tactics alike.

    1. Backends are essential because people “want” additional quality and quantity.

    When they get enough quantity, they want more quality, when they have enough quality, they want more quantity.

    2. People want a developmental path.

    As life goes on, people mature and develop. Providing them with a means to their ends is essential part of spiritual growth.

    3. A back-end is almost always customer focused.

    A good backend allows you to begin to differentiate the customer and what they want, what they buy, how they buy it…which is why the “amazon” engine works, it’s customizing, and learning all the time based on the actions of the customer.

    4. A Back-end has heart.

    If it doesn’t, then you don’t know what it is you’re really doing. Backends get to the heart of why people are there, why they are looking for their hope, dreams and solutions to mitigate their fears.

    5. Back-ends are smart systems.

    Smart =
    Self-organizing
    Adapting
    Learning
    Inferring
    Sensing
    Anticipating
    Asynchronous
    Relational

    In the end, the backend is adhocable based on customer needs…and the ability to create a need before they know they have it.

    But most of all, backends separate the leaders from the also-rans. Backends are tough to make work as well as they can, they require dedication, systemization and follow-through.

    In the end, is the beginning.

    Reply
  29. If I don’t present my customers with a series of back end offers, I’ll never receive the full revenue potential from my customers. I won’t even know which of my customers are still my customers. As such, it is critical to present scheduled offers to each of my customers.

    Given that customer acquisition costs represent one of my largest business expenses, it makes sense to shortcut this process wherever possible. The most successful way to do this is to form alliances within my marketplace where I allow other businesses access to my customer base in exchange for access to theirs. In this way, we can both quickly build our businesses by helping our customers get more of what they already want.

    Reply
  30. If I don’t present my customers with a series of back end offers, I’ll never receive the full revenue potential from my customers. I won’t even know which of my customers are still my customers. As such, it is critical to present scheduled offers to each of my customers.

    Given that customer acquisition costs represent one of my largest business expenses, it makes sense to shortcut this process wherever possible. The most successful way to do this is to form alliances within my marketplace where I allow other businesses access to my customer base in exchange for access to theirs. In this way, we can both quickly build our businesses by helping our customers get more of what they already want.

    Reply
  31. Hi Rich,

    Well, it’s critical that your business has a consistent series of back end offers because…
    …not only is this where most of your profits can be made, but if you don’t continually satisfy the thirst of your market with the new products they yearn for, they will eventually become inactive and no longer be *customers*. You have an obligation to do your best to deliver the help (in the form of products) that your audience came to you for in the first place. If you stop filling that need with back end offers, they will eventually have to find “someone else” who will.

    And, it’s important to build alliances within your marketplace because… its all about leverage. If you’re not focused on building alliances in your marketplace, you still don’t see the big picture. In order to maximize your efforts and potential, you simply must leverage the efforts and successes of other big players, join forces with them, and cooperate to magnify all your successes far beyond what you could have ever achieved individually.

    I absolutely loved this trilogy – thanks, and very best regards Rich

    Looking forward to a powerful ‘brain dump’ in my future, fingers crossed…

    Kathy

    Reply
  32. Hi Rich,

    Well, it’s critical that your business has a consistent series of back end offers because…
    …not only is this where most of your profits can be made, but if you don’t continually satisfy the thirst of your market with the new products they yearn for, they will eventually become inactive and no longer be *customers*. You have an obligation to do your best to deliver the help (in the form of products) that your audience came to you for in the first place. If you stop filling that need with back end offers, they will eventually have to find “someone else” who will.

    And, it’s important to build alliances within your marketplace because… its all about leverage. If you’re not focused on building alliances in your marketplace, you still don’t see the big picture. In order to maximize your efforts and potential, you simply must leverage the efforts and successes of other big players, join forces with them, and cooperate to magnify all your successes far beyond what you could have ever achieved individually.

    I absolutely loved this trilogy – thanks, and very best regards Rich

    Looking forward to a powerful ‘brain dump’ in my future, fingers crossed…

    Kathy

    Reply
  33. I am a distributor for LifeWave nanotech patches. It’s an MLM and as such, there are some restrictions on what I may say on my website. My site is in the process of being reworked and shall provide a lot more information on these products, nanotech, health & wellness. This is a healing product that balances the body’s meridians. I want this invention to be available EVERYWHERE in the world to anyone who wants it. In order to do that, I need to sell it online thru my site and thru direct sales letters. However, I am in kindergarten when it comes to understanding how to do this and I need mentoring. From the first day I put on these patches 2 years ago, I knew they were abundance and would be huge. I just didn’t know how to get there.I want to learn about affiliates, back ends, everything. Ay an age when my contemporaries are thinking of retiring, I’m just getting going!

    Heidi Walter
    LifeWave Patch Distributor
    http://www.patch4wellness.com

    Reply
  34. I am a distributor for LifeWave nanotech patches. It’s an MLM and as such, there are some restrictions on what I may say on my website. My site is in the process of being reworked and shall provide a lot more information on these products, nanotech, health & wellness. This is a healing product that balances the body’s meridians. I want this invention to be available EVERYWHERE in the world to anyone who wants it. In order to do that, I need to sell it online thru my site and thru direct sales letters. However, I am in kindergarten when it comes to understanding how to do this and I need mentoring. From the first day I put on these patches 2 years ago, I knew they were abundance and would be huge. I just didn’t know how to get there.I want to learn about affiliates, back ends, everything. Ay an age when my contemporaries are thinking of retiring, I’m just getting going!

    Heidi Walter
    LifeWave Patch Distributor
    http://www.patch4wellness.com

    Reply
  35. Without a strong series of backend offers, we have no way of knowing our customer. Without a consistant series of backend offers we don’t know who is still a customer, what our customers really want and what we need to do to get those people who have previously purchased from us to help us grow.
    Alliance partners are mandatory if we are to participate in the changing, expanding quantity, but subdividing and shrinking niche markets.

    Reply
  36. Without a strong series of backend offers, we have no way of knowing our customer. Without a consistant series of backend offers we don’t know who is still a customer, what our customers really want and what we need to do to get those people who have previously purchased from us to help us grow.
    Alliance partners are mandatory if we are to participate in the changing, expanding quantity, but subdividing and shrinking niche markets.

    Reply
  37. A consistent series of back-end offers allows you to reap the most profits from your list. The back-end is far more responsive and multiple offers allow you to create better customers and identify premium products and sub-niches to further grow your business.

    Strategic alliances allow you to compensate for the reduction in the available customer universe. Alliances allow you to profitably identify, reach and serve smaller markets.

    Reply
  38. A consistent series of back-end offers allows you to reap the most profits from your list. The back-end is far more responsive and multiple offers allow you to create better customers and identify premium products and sub-niches to further grow your business.

    Strategic alliances allow you to compensate for the reduction in the available customer universe. Alliances allow you to profitably identify, reach and serve smaller markets.

    Reply
  39. Rich,

    A consistent series of back end offers is critical to the success of a business because the profit is in the back end. Establishing a series of offers enables you to maximize your Lifetime Customer Value and generate more capital to invest into distribution of the front end offer.

    Building alliances within your marketplace is crucial because it allows you to leverage your assets, exponentially compounding the amount of time, money, distribution power, and other resources devoted to your company’s success.

    Thanks Rich!
    Rebekah

    Reply
  40. Rich,

    A consistent series of back end offers is critical to the success of a business because the profit is in the back end. Establishing a series of offers enables you to maximize your Lifetime Customer Value and generate more capital to invest into distribution of the front end offer.

    Building alliances within your marketplace is crucial because it allows you to leverage your assets, exponentially compounding the amount of time, money, distribution power, and other resources devoted to your company’s success.

    Thanks Rich!
    Rebekah

    Reply
  41. If I had the answers, I wouldn’t have to write a summary. Rich, I have a product that is deperately needed by most of the population, and I want you to tell ME how we can both make a million dollars with the main product, then follow up with the many hundreds of complimentary products available in this field. This is not your info based product, this is real life help yourself to get well product, which needs your expertise to get the message out there.

    Reply
  42. If I had the answers, I wouldn’t have to write a summary. Rich, I have a product that is deperately needed by most of the population, and I want you to tell ME how we can both make a million dollars with the main product, then follow up with the many hundreds of complimentary products available in this field. This is not your info based product, this is real life help yourself to get well product, which needs your expertise to get the message out there.

    Reply
  43. WHY YOU NEED BACK-END OFFERS:
    1. To maximize your sales & profits and increase your lifetime value of each customer.

    2. To maximize the value you provide your customers and to build a lasting relationship with them so you keep them forever.

    3. Because you can afford to spend more acquiring customers if you have a back-end. Between two competitors, whoever can afford to spend the most acquiring a new customer will win in the end.

    WHY YOU NEED TO BUILD ALLIANCES:
    1. You can get access to millions of potential new customers you could never reach on your own.

    2. You will get a much higher conversion rate (3 – 5 times)with an endorsement from an alliance partner than you would ever get sending the same offer to the same people on your own.

    3. By working with others in your industry with a spirit of cooperation instead of competition, you will create synergy so that 1 + 1 = 3.

    Joe

    Reply
  44. WHY YOU NEED BACK-END OFFERS:
    1. To maximize your sales & profits and increase your lifetime value of each customer.

    2. To maximize the value you provide your customers and to build a lasting relationship with them so you keep them forever.

    3. Because you can afford to spend more acquiring customers if you have a back-end. Between two competitors, whoever can afford to spend the most acquiring a new customer will win in the end.

    WHY YOU NEED TO BUILD ALLIANCES:
    1. You can get access to millions of potential new customers you could never reach on your own.

    2. You will get a much higher conversion rate (3 – 5 times)with an endorsement from an alliance partner than you would ever get sending the same offer to the same people on your own.

    3. By working with others in your industry with a spirit of cooperation instead of competition, you will create synergy so that 1 + 1 = 3.

    Joe

    Reply
  45. There are a number of reasons why consistent back-ends are critical to the success of your business.
    1) you will have customers falling off the back as quickly as you are adding them to the front causing you to work harder to keep adding new ones,
    2) you be losing the “easier” revenue from someone you worked very had to make a customer, but because your backend offerings were inconsistent, you will have a very difficult time developing the trust and rapport needed to turn them into a valued customer and it is very likely they will wind up spending their money elsewhere, with others who are supplying them with what they are looking for on the timetable they desires.
    a. Customers/prospects are not like cheese – they don’t get better with aging. Getting that prospects attention and/or making that first sale is like a woman who is “only” going window shopping. She isn’t really going to “buy” anything…she is only going to look. But…once she buys that dress, then she needs a pair of shoes to go along with the dress and a purse to go with the shoes and some jewelry to go with the whole outfit. Without a consistent backend, it’s really hit or miss and you risk losing out on the sale of the shoes or purse or jewelry or all of the above to someone else.
    3) Without consistent back ends, you have no idea what the true lifetime value of a customer really is or how much money you can actually make from a customer before they stop buying from you. Therefore, you have no idea how much money you can spend on your front end acquisitions and you can’t make accurate growth projections for your business. In my previous direct mail business, we actually lost money on the front end mailings of some lists because not only could we make it up with the back ends, but also because there we many advantages to having a lot of buyers for list rental and for use in bargaining when dealing with other mailers whose lists we rented. This gave us an advantage when we wanted priority mailing positions and protection against competitive offers, which on the good lists made up for the slight loss on the marginal lists.
    4) Once someone has purchased from you more than once – the chances of them continuing to buy your offers is greatly increased. That means that you can set up your back ends on autopilot and then spend the majority of your time creating, testing and implementing front end offers. This is where the money is… the more front end buyers – the more backend buyers. The bigger your list of buyers – the more attractive you become to potential strategic partners when it comes to doing JV deals. I found from my previous business, that the backends remained “fresher” longer than did the front end mailings and therefore required less attention, although testing was still required. I also found that once I had a new front end – I could take my old front end and rework it and test it against my current backends and often replace a backend or add a new one.

    Strategic alliances in your marketplace are important for several reasons:
    1) The right alliances give you a source of more back end products for you to sell to your customers and thus increase your revenues without having to create new products.
    2) Typically, the best buyer for your product is the buyer of a similar product. Therefore your product should sell better to your strategic alliance partners than to the general market place. They are easier to find and identify because they have already raised their hand. Years ago, the magazine industry wouldn’t rent their customer lists to each other because they feared they would lose their customers. What they discovered was (much like in the newsletter example) that the best lists they could rent were those of other, like magazines and the businesses grew as a result.
    3) You can learn a tremendous amount from the sharing of information and knowledge and people that are allies are typically more “free” with what they share with each other.
    4) You can grow bigger, quicker when you ally yourself with strategic partners are bigger than you – they have more customers to recommend your product to!

    Reply
  46. There are a number of reasons why consistent back-ends are critical to the success of your business.
    1) you will have customers falling off the back as quickly as you are adding them to the front causing you to work harder to keep adding new ones,
    2) you be losing the “easier” revenue from someone you worked very had to make a customer, but because your backend offerings were inconsistent, you will have a very difficult time developing the trust and rapport needed to turn them into a valued customer and it is very likely they will wind up spending their money elsewhere, with others who are supplying them with what they are looking for on the timetable they desires.
    a. Customers/prospects are not like cheese – they don’t get better with aging. Getting that prospects attention and/or making that first sale is like a woman who is “only” going window shopping. She isn’t really going to “buy” anything…she is only going to look. But…once she buys that dress, then she needs a pair of shoes to go along with the dress and a purse to go with the shoes and some jewelry to go with the whole outfit. Without a consistent backend, it’s really hit or miss and you risk losing out on the sale of the shoes or purse or jewelry or all of the above to someone else.
    3) Without consistent back ends, you have no idea what the true lifetime value of a customer really is or how much money you can actually make from a customer before they stop buying from you. Therefore, you have no idea how much money you can spend on your front end acquisitions and you can’t make accurate growth projections for your business. In my previous direct mail business, we actually lost money on the front end mailings of some lists because not only could we make it up with the back ends, but also because there we many advantages to having a lot of buyers for list rental and for use in bargaining when dealing with other mailers whose lists we rented. This gave us an advantage when we wanted priority mailing positions and protection against competitive offers, which on the good lists made up for the slight loss on the marginal lists.
    4) Once someone has purchased from you more than once – the chances of them continuing to buy your offers is greatly increased. That means that you can set up your back ends on autopilot and then spend the majority of your time creating, testing and implementing front end offers. This is where the money is… the more front end buyers – the more backend buyers. The bigger your list of buyers – the more attractive you become to potential strategic partners when it comes to doing JV deals. I found from my previous business, that the backends remained “fresher” longer than did the front end mailings and therefore required less attention, although testing was still required. I also found that once I had a new front end – I could take my old front end and rework it and test it against my current backends and often replace a backend or add a new one.

    Strategic alliances in your marketplace are important for several reasons:
    1) The right alliances give you a source of more back end products for you to sell to your customers and thus increase your revenues without having to create new products.
    2) Typically, the best buyer for your product is the buyer of a similar product. Therefore your product should sell better to your strategic alliance partners than to the general market place. They are easier to find and identify because they have already raised their hand. Years ago, the magazine industry wouldn’t rent their customer lists to each other because they feared they would lose their customers. What they discovered was (much like in the newsletter example) that the best lists they could rent were those of other, like magazines and the businesses grew as a result.
    3) You can learn a tremendous amount from the sharing of information and knowledge and people that are allies are typically more “free” with what they share with each other.
    4) You can grow bigger, quicker when you ally yourself with strategic partners are bigger than you – they have more customers to recommend your product to!

    Reply
  47. It is critical that your business has a consistent series of back end offers because:

    If your business has a consistent series of back end offers, you will be able to find out:

    1. How many “customers” you have

    – By knowing how many real “customers” you have, you can accurately predict your future profit and set asides budgets and expenses accordingly.

    2. The days in between 2 purchases or conversion steps (latency)

    – By knowing the latency, you will be able to make offers according to that time frame. i.e. It would be silly for you to send an extra offer before the latency period. And if a customer has not make a second purchase after the latency period, you will want to take additional action to put them “back on track”

    3.How long you have a customer for (customer life cycle)

    – By knowing a customer life cycle, you will be able to determine the life value of a customer (how much the customer is worth); you can also formulate your selling around the life cycle of your customers, by making your customers make subsequent commitments to you (buying), you can move them up the chain from initial conversion to hyper-responsive customer.

    4.How much a customer is worth (customer life value)

    – By knowing how much a customer is worth, you will know how much you can afford to obtain a customer (cost per acquisition).

    5.Who are the “hotter” buyers

    – By identifying who are the “hotter” buyers, you can contact or sell to the hotter prospect first.

    6.When the buyers are “in heat”

    – By providing products to buyers who are “in heat”, not only will you sell more, you will also prevent buyers to go to competitors to fulfil their need, thereby increasing customer’s loyalty to you.

    It is important that you build alliances within your marketplace because:

    An alliance can share the amount of time a valuable resource has available to you that you cannot
    Fill, thereby making use of economies of scale.

    Good alliances can provide you with access and connections to world class talents.

    Due to micro-niching and fragmentation of the marketplace, consumers are now forced to get their information from many different sources because each guru only knows a small specialized fraction of the whole market and most people are on many different lists.

    As a result, strategic alliances provide business owners a way to compensate for the reduction in the available customer universe due to the above phenomenon by
    1.increasing income through cross promotion of products
    2.using alliances’ lists to grow your own list
    3.give you an opportunity to engage customers in another purchasing “commitment”, therefore enhancing customer lifetime value and loyalty

    Reply
  48. It is critical that your business has a consistent series of back end offers because:

    If your business has a consistent series of back end offers, you will be able to find out:

    1. How many “customers” you have

    – By knowing how many real “customers” you have, you can accurately predict your future profit and set asides budgets and expenses accordingly.

    2. The days in between 2 purchases or conversion steps (latency)

    – By knowing the latency, you will be able to make offers according to that time frame. i.e. It would be silly for you to send an extra offer before the latency period. And if a customer has not make a second purchase after the latency period, you will want to take additional action to put them “back on track”

    3.How long you have a customer for (customer life cycle)

    – By knowing a customer life cycle, you will be able to determine the life value of a customer (how much the customer is worth); you can also formulate your selling around the life cycle of your customers, by making your customers make subsequent commitments to you (buying), you can move them up the chain from initial conversion to hyper-responsive customer.

    4.How much a customer is worth (customer life value)

    – By knowing how much a customer is worth, you will know how much you can afford to obtain a customer (cost per acquisition).

    5.Who are the “hotter” buyers

    – By identifying who are the “hotter” buyers, you can contact or sell to the hotter prospect first.

    6.When the buyers are “in heat”

    – By providing products to buyers who are “in heat”, not only will you sell more, you will also prevent buyers to go to competitors to fulfil their need, thereby increasing customer’s loyalty to you.

    It is important that you build alliances within your marketplace because:

    An alliance can share the amount of time a valuable resource has available to you that you cannot
    Fill, thereby making use of economies of scale.

    Good alliances can provide you with access and connections to world class talents.

    Due to micro-niching and fragmentation of the marketplace, consumers are now forced to get their information from many different sources because each guru only knows a small specialized fraction of the whole market and most people are on many different lists.

    As a result, strategic alliances provide business owners a way to compensate for the reduction in the available customer universe due to the above phenomenon by
    1.increasing income through cross promotion of products
    2.using alliances’ lists to grow your own list
    3.give you an opportunity to engage customers in another purchasing “commitment”, therefore enhancing customer lifetime value and loyalty

    Reply
  49. First, a consistent series of back end offers (i.e., bigger ticket sales)is the main cash-flow generator in your business. The more automated your marketing, sales, and delivery of these to the client, the more reliable and efficient your business cash flow. This is where your passion, expertise, and hard work have been converted into assets that generate residual income and grow your business by allowing you to do other, more creative and forward-thinking projects with your time. Once you are free to focus on the passion that drives your business missions and purposes, you continue to create new back end products and services that meet your markets’ needs. This is a virtuous cycle that keeps you and your business evolving and developing new sources of revenue. The entrepreneur thrives on learning, creativity, and growth that solves client problems. Your passion is providing complete and comprehensive sets of solutions to your markets’ problems. In this way, you create customers for life and continually seek to anticipate their next need in the cycle of goals, problems, and solutions.

    Second, you must build alliances within your marketplace, not to “crush the competition,” but to reach as many potential customers as possible. And to learn what you do not yet know. And because it is just plain more fun! The world wide web is more than a way of doing business. It is a constantly-evolving model of knowledge aquisition, cross-fertilization, and collaboration. The web has no strand that is not interdependent with another strand. It is alive and we co-create with it. There is no “I” in web. For those who wish to be excellent at solving client problems, joining forces with other passionate entrepreneurs is completely natural. Synergy comes from reaching out, not withdrawing inward. Go forth and be excellent.

    Reply
  50. First, a consistent series of back end offers (i.e., bigger ticket sales)is the main cash-flow generator in your business. The more automated your marketing, sales, and delivery of these to the client, the more reliable and efficient your business cash flow. This is where your passion, expertise, and hard work have been converted into assets that generate residual income and grow your business by allowing you to do other, more creative and forward-thinking projects with your time. Once you are free to focus on the passion that drives your business missions and purposes, you continue to create new back end products and services that meet your markets’ needs. This is a virtuous cycle that keeps you and your business evolving and developing new sources of revenue. The entrepreneur thrives on learning, creativity, and growth that solves client problems. Your passion is providing complete and comprehensive sets of solutions to your markets’ problems. In this way, you create customers for life and continually seek to anticipate their next need in the cycle of goals, problems, and solutions.

    Second, you must build alliances within your marketplace, not to “crush the competition,” but to reach as many potential customers as possible. And to learn what you do not yet know. And because it is just plain more fun! The world wide web is more than a way of doing business. It is a constantly-evolving model of knowledge aquisition, cross-fertilization, and collaboration. The web has no strand that is not interdependent with another strand. It is alive and we co-create with it. There is no “I” in web. For those who wish to be excellent at solving client problems, joining forces with other passionate entrepreneurs is completely natural. Synergy comes from reaching out, not withdrawing inward. Go forth and be excellent.

    Reply
  51. Why it’s critical that your business has a consistent series of back end offers:

    The reasons given in your report are threefold: testing for the best sequence of offers to make the most amount of money, to enable a business to develop predictive modelling systems to maximize revenues from every customer, and, most importantly, the only way a business can keep their customers current is to keep them buying, i.e. to keep the attrition rate low.

    Why it’s important that you build alliances within your marketplace:

    Organizations cannot always cope with increasingly complex environments from internal resources alone. They may see the need to obtain materials, skills, know-how, finance or access to markets, and recognize that these may be as readily available through co-operation as through their ownership.

    Also, if a company takes too much time to introduce new products to the market, it can result in others copying their products and capturing leadership on the market, both domestic and foreign. A company, both large and small, should form longstanding strategic alliances (licenses, joint ventures, consortia, etc.) with companies that operate in each market segment that the company is active in, simultaneously establishing market leadership. This strategy would provide a sufficient size market to justify the large initial investment and lower unit costs. In addition, if entering into foreign markets, the company need not worry about being kept out by trade barriers, since its partners would be “insiders” in the foreign markets. On domestic markets, its partners would have the skills, know-how or other resource that your company needs for its growth and for the expansion of the market.

    Reply
  52. Why it’s critical that your business has a consistent series of back end offers:

    The reasons given in your report are threefold: testing for the best sequence of offers to make the most amount of money, to enable a business to develop predictive modelling systems to maximize revenues from every customer, and, most importantly, the only way a business can keep their customers current is to keep them buying, i.e. to keep the attrition rate low.

    Why it’s important that you build alliances within your marketplace:

    Organizations cannot always cope with increasingly complex environments from internal resources alone. They may see the need to obtain materials, skills, know-how, finance or access to markets, and recognize that these may be as readily available through co-operation as through their ownership.

    Also, if a company takes too much time to introduce new products to the market, it can result in others copying their products and capturing leadership on the market, both domestic and foreign. A company, both large and small, should form longstanding strategic alliances (licenses, joint ventures, consortia, etc.) with companies that operate in each market segment that the company is active in, simultaneously establishing market leadership. This strategy would provide a sufficient size market to justify the large initial investment and lower unit costs. In addition, if entering into foreign markets, the company need not worry about being kept out by trade barriers, since its partners would be “insiders” in the foreign markets. On domestic markets, its partners would have the skills, know-how or other resource that your company needs for its growth and for the expansion of the market.

    Reply
  53. “Minds are like parachutes – they only function when open” by Thomas Dewar.

    I want my customers minds open, functioning, focused on my products, and ready to buy from me as much as possible. So backend offers are critical in this process. Continually exposing and offering high quality products that your customers are looking for thru backend repetitive offers are critical to automating huge revenues. I know every time I send out an offer with new products a certain % will open the email and a certain % will buy.

    “Know yourself, and know your competition. If your competition is better than you are, you need to offer some quality they lack” by Donald Trump.

    I think building alliances allows you understand and know your competition, help determine what your real strengths are and at the same time you can benefit from others strengths. Then you can ultimately be on top as you will know exactly what qualities in a product need to be offered in your particular market.

    Rob-

    Reply
  54. “Minds are like parachutes – they only function when open” by Thomas Dewar.

    I want my customers minds open, functioning, focused on my products, and ready to buy from me as much as possible. So backend offers are critical in this process. Continually exposing and offering high quality products that your customers are looking for thru backend repetitive offers are critical to automating huge revenues. I know every time I send out an offer with new products a certain % will open the email and a certain % will buy.

    “Know yourself, and know your competition. If your competition is better than you are, you need to offer some quality they lack” by Donald Trump.

    I think building alliances allows you understand and know your competition, help determine what your real strengths are and at the same time you can benefit from others strengths. Then you can ultimately be on top as you will know exactly what qualities in a product need to be offered in your particular market.

    Rob-

    Reply
  55. Here is how it works…say I show up in Florida. Then get that ride in a conspiciously small vehicle, even a Porche.

    That is the front end…or this message is…the ride is a part.

    Whilst taking that ride, with a captive audience and speaking with a slight German accent for credibility, I make a rude comment about the compactness and the difference in a Mercedes. To create a very fertile ground too; just happening to have items for sale to rememdy that little—literally, problem…and sell them…that not only will be aimed at my initial market but will bring in the big bucks. Do you realize how much funding Rich has?

    Reply
  56. Here is how it works…say I show up in Florida. Then get that ride in a conspiciously small vehicle, even a Porche.

    That is the front end…or this message is…the ride is a part.

    Whilst taking that ride, with a captive audience and speaking with a slight German accent for credibility, I make a rude comment about the compactness and the difference in a Mercedes. To create a very fertile ground too; just happening to have items for sale to rememdy that little—literally, problem…and sell them…that not only will be aimed at my initial market but will bring in the big bucks. Do you realize how much funding Rich has?

    Reply
  57. A consistent backend is essential for a thriving business because it really doesn’t do any good to get customers if you can’t keep them. You put in a lot of front end work to get them, but that is not the end of the job. To keep the business alive and growing, you must then create very satisfied cumtomers. Happy, satisfied customers return. Back-end products are more lucrative
    products, so your business cycle is complete and continuous.
    Building alliances within the marketplace strengthens the business and will make it exponentially more successful! Hoarding information or knowledge is not the way to success. Working together and collaborating gets more results than working alone!
    I would love to have this opportunity! I would love some guidance in building an online business. Thanks for the consideration.

    Reply
  58. A consistent backend is essential for a thriving business because it really doesn’t do any good to get customers if you can’t keep them. You put in a lot of front end work to get them, but that is not the end of the job. To keep the business alive and growing, you must then create very satisfied cumtomers. Happy, satisfied customers return. Back-end products are more lucrative
    products, so your business cycle is complete and continuous.
    Building alliances within the marketplace strengthens the business and will make it exponentially more successful! Hoarding information or knowledge is not the way to success. Working together and collaborating gets more results than working alone!
    I would love to have this opportunity! I would love some guidance in building an online business. Thanks for the consideration.

    Reply
  59. Too many small business owners are struggling. Not to make $1 million dollars, not to make $100,000 – some of them are struggling to make their first dollar, or just to make enough to support their businesses, without having to take away from the family income.

    As was mentioned in the “Final Chapter” more than 75% of all businesses are going to fail in the first five years. The main reasons? According to SCORE and the SBA, it’s because:
    1. Lack of a business plan and/or failure to follow the plan
    2. Lack of sufficient business capital
    3. Lack of training/experience on the part of the owner
    4. Isolation, not enough connections.
    I have a win/win solution – for my business, but also for other entrepreneurs who are struggling.

    A critical part of this solution is to be able to consistently provide a series of cutting edge backend products and services – that are snapped up by consumers everytime they come on the market.

    From the begining,a part of the proceeds from all sales of will go into a special micro loan/grant fund for entrepreneurs in the program – and is also used to pay other business owners for providing necessary training to those in the program. (The trick is to continually provide real backend products/services that aren’t “fluff” or watered down versions of the pablum that’s floating around the Net.

    The products/services have to meet these requirements:
    1. Honest and real – information/tools/resources that will actually give the buyer the answers they were looking for.
    2. Are purchased at a fair price from entrepreneurs who are a part of the network – whenever possible. (The laborer is worthy of his hire).
    3. Sold at a fair price while making enough of a profit that eventually the proceeds fund the rest of the project (an endowment fund).

    But that’s only half of the story. Short Version: The rest comes from creating a series of strong alliances between entrepreneurs within the network. They provide each other with needed support (mastemind team, brainstorming, sharing resources), cost-effective marketing (co-op list and marketing campaigns) and business building programs (creating partnerships and joint ventures, and offering their expertise and knowledge as mentors to new members). Because each business is unique, step-by-step training is done in a “cafeteria” style – each entrepreneur chooses from the “menu” the training/tools/resources they need the most.

    In order to maximize resources, we’ll show members how they can resarch, track down and apply for the services or programs they need the most. (Creative Business Capital Resources). We’ll also work with them and show them that creating forward thinking, strategic plans for building allaiances and creating long-term partnerships.

    While in the training portion of the program, each entrepreneur creates a strategic business plan – that uses their own innate strengths as well as the carefully planned strengths of their buisness.

    Business funding is then applied for either through a microenterprise grant(which requires an agreement to provide service for a set number of hours within the “community” – either virtual or the entrepreneur’s own with a nonprofit organization of their choice), or a micro-loan.

    Experts in different fields are paid or provide ongoing training as volunteers. Grants committee oversees each project, and makes recommendations or provides additional support as needed.

    Loan recipients work with a peer lending group, and are assigned a mentor to help them build their business.

    If a grant was received, once the community service hours are completed, the applicant can apply for a loan.

    As the loan is paid off, the recipient can apply for a larger amount of money.

    Some basic training/resources/tools are always provided for free to anyone who needs help.

    Because the “community” is online, geography is not an issue. Neither is age, gender or type of business (with a few exceptions).

    The only requirements for acceptance into the program are:
    1. A solid business plan (or idea)
    2. Creating a solid business strategy based on each entrepreneur’s own core values, strengths and successful business models.
    3. Working with their team and mentor.
    4. Taking action – and learning from mistakes.
    5. The willingness to give back to the community and help others.

    Thanks – yet again – for sharing some really amazing ideas, inspiration and motiviation. You’ve created a kind of “quiet revolution” for a lot of us – and I look forward to seeing what happens next, when the volume – and bar – are raised.

    Warmly,

    Cheryl

    Reply
  60. Too many small business owners are struggling. Not to make $1 million dollars, not to make $100,000 – some of them are struggling to make their first dollar, or just to make enough to support their businesses, without having to take away from the family income.

    As was mentioned in the “Final Chapter” more than 75% of all businesses are going to fail in the first five years. The main reasons? According to SCORE and the SBA, it’s because:
    1. Lack of a business plan and/or failure to follow the plan
    2. Lack of sufficient business capital
    3. Lack of training/experience on the part of the owner
    4. Isolation, not enough connections.
    I have a win/win solution – for my business, but also for other entrepreneurs who are struggling.

    A critical part of this solution is to be able to consistently provide a series of cutting edge backend products and services – that are snapped up by consumers everytime they come on the market.

    From the begining,a part of the proceeds from all sales of will go into a special micro loan/grant fund for entrepreneurs in the program – and is also used to pay other business owners for providing necessary training to those in the program. (The trick is to continually provide real backend products/services that aren’t “fluff” or watered down versions of the pablum that’s floating around the Net.

    The products/services have to meet these requirements:
    1. Honest and real – information/tools/resources that will actually give the buyer the answers they were looking for.
    2. Are purchased at a fair price from entrepreneurs who are a part of the network – whenever possible. (The laborer is worthy of his hire).
    3. Sold at a fair price while making enough of a profit that eventually the proceeds fund the rest of the project (an endowment fund).

    But that’s only half of the story. Short Version: The rest comes from creating a series of strong alliances between entrepreneurs within the network. They provide each other with needed support (mastemind team, brainstorming, sharing resources), cost-effective marketing (co-op list and marketing campaigns) and business building programs (creating partnerships and joint ventures, and offering their expertise and knowledge as mentors to new members). Because each business is unique, step-by-step training is done in a “cafeteria” style – each entrepreneur chooses from the “menu” the training/tools/resources they need the most.

    In order to maximize resources, we’ll show members how they can resarch, track down and apply for the services or programs they need the most. (Creative Business Capital Resources). We’ll also work with them and show them that creating forward thinking, strategic plans for building allaiances and creating long-term partnerships.

    While in the training portion of the program, each entrepreneur creates a strategic business plan – that uses their own innate strengths as well as the carefully planned strengths of their buisness.

    Business funding is then applied for either through a microenterprise grant(which requires an agreement to provide service for a set number of hours within the “community” – either virtual or the entrepreneur’s own with a nonprofit organization of their choice), or a micro-loan.

    Experts in different fields are paid or provide ongoing training as volunteers. Grants committee oversees each project, and makes recommendations or provides additional support as needed.

    Loan recipients work with a peer lending group, and are assigned a mentor to help them build their business.

    If a grant was received, once the community service hours are completed, the applicant can apply for a loan.

    As the loan is paid off, the recipient can apply for a larger amount of money.

    Some basic training/resources/tools are always provided for free to anyone who needs help.

    Because the “community” is online, geography is not an issue. Neither is age, gender or type of business (with a few exceptions).

    The only requirements for acceptance into the program are:
    1. A solid business plan (or idea)
    2. Creating a solid business strategy based on each entrepreneur’s own core values, strengths and successful business models.
    3. Working with their team and mentor.
    4. Taking action – and learning from mistakes.
    5. The willingness to give back to the community and help others.

    Thanks – yet again – for sharing some really amazing ideas, inspiration and motiviation. You’ve created a kind of “quiet revolution” for a lot of us – and I look forward to seeing what happens next, when the volume – and bar – are raised.

    Warmly,

    Cheryl

    Reply
  61. Rich,

    Thank you for this opportunity. You most definitely give more in “use value” than you ever expect to receive in “cash value.” It’s greatly appreciated.

    I’m always reminded of this Will Roger’s quote whenever I read anything you have written or said:

    “The fellow that can only see a week ahead is always the popular fellow, for he is looking with the crowd. But the one that can see years ahead, he has a telescope but he can’t make anybody believe that he has it.” ~Will Rogers

    Rich, you are unquestionably the man with the telescope! I hope my summary demonstrates that you have also helped us believe and understand the vision—it’s what makes you so popular!

    “Why is a consistent series of back-end offers and building alliances in my marketplace important?”

    In a nutshell, the back-end process means I have a profit model! Building alliances in my target market is the difference between thriving and surviving; they mean massive growth instead of a slow, frustrating death.

    Expanded version:

    A formalized back-end process with a consistent series of offers allows me to identify, and exploit, the emotional need of my “hotter” customers to make purchases, thereby turning them into loyal, “hyper-responsive customers” who refer new customers. This means higher profits and time saved to focus on the front-end.

    Building alliances within my marketplace is important in order to leverage the efforts of successful marketers and their list-building activities. This is a synergistic partnership that leads to substantial expansion of both the business and the market.

    You asked that we show you how smart we are, so I threw in the expanded version. But like Will Rogers, I like the simple straight-forward approach. So I stand by my nutshell summary and prefer it.

    I wish you continued success,

    ~Tom

    Reply
  62. Rich,

    Thank you for this opportunity. You most definitely give more in “use value” than you ever expect to receive in “cash value.” It’s greatly appreciated.

    I’m always reminded of this Will Roger’s quote whenever I read anything you have written or said:

    “The fellow that can only see a week ahead is always the popular fellow, for he is looking with the crowd. But the one that can see years ahead, he has a telescope but he can’t make anybody believe that he has it.” ~Will Rogers

    Rich, you are unquestionably the man with the telescope! I hope my summary demonstrates that you have also helped us believe and understand the vision—it’s what makes you so popular!

    “Why is a consistent series of back-end offers and building alliances in my marketplace important?”

    In a nutshell, the back-end process means I have a profit model! Building alliances in my target market is the difference between thriving and surviving; they mean massive growth instead of a slow, frustrating death.

    Expanded version:

    A formalized back-end process with a consistent series of offers allows me to identify, and exploit, the emotional need of my “hotter” customers to make purchases, thereby turning them into loyal, “hyper-responsive customers” who refer new customers. This means higher profits and time saved to focus on the front-end.

    Building alliances within my marketplace is important in order to leverage the efforts of successful marketers and their list-building activities. This is a synergistic partnership that leads to substantial expansion of both the business and the market.

    You asked that we show you how smart we are, so I threw in the expanded version. But like Will Rogers, I like the simple straight-forward approach. So I stand by my nutshell summary and prefer it.

    I wish you continued success,

    ~Tom

    Reply
  63. 1. You have to build long-term mutually benefitial relationships with your customers to really grow your business. To grow your relationship, you should think through hard in advance about all the specific products/services to give to your customers once you get them to satisfy their needs in a semi-automatic fashion so that you can concentrate on fierce competition on front-end to acquire customers.
    2. You can own only a partial list of potential customer universe with your only own effort and cross-marketing with your JV partners will strengthen your marketing effort by expanding customer reach and also product offerings. That way, you will also get more branding and market recognition as well.

    Reply
  64. 1. You have to build long-term mutually benefitial relationships with your customers to really grow your business. To grow your relationship, you should think through hard in advance about all the specific products/services to give to your customers once you get them to satisfy their needs in a semi-automatic fashion so that you can concentrate on fierce competition on front-end to acquire customers.
    2. You can own only a partial list of potential customer universe with your only own effort and cross-marketing with your JV partners will strengthen your marketing effort by expanding customer reach and also product offerings. That way, you will also get more branding and market recognition as well.

    Reply
  65. If a business owner does not understand the lifetime value of a customer, they won’t ‘get’ the need to build relationships with their customers, and provide them with a series (hopefully ongoing and ever-evolving) of back-end offers – designed to enrich the lives of their customers. Most of us know how much more expensive it is to acquire a new customer, and that the easiest sale is to our existing customers, who have already proven to us that they are hungry for what we have to offer. We’ve already developed a level of trust with them, and can continue to ask them what they want, which helps us to develop more back end products.

    The business models may vary a little, but generally call for a ‘funnel’ mechanism to bring clients along a path to higher-priced ‘investments’ over time. The expectation is that fewer and fewer customers will opt into the higher-priced offerings, which explains the ‘funnel’ analogy.

    Thus, with a combination the initial purchase, recurring billing (such as subscription sites or newsletters) and additional back-end offers, and joint offers with partners, a business can attempt to maximize the lifetime value of its customers.

    As to the alliance question, it’s pretty easy to look at what has happened historically, such as the case cited in the final chapter reprot where US companies exploded their revenues while European companies stagnated.

    Alliance partners provide an introduction for you, immediately elevating you to a level of trust, making it easier for you to make your initial sale. And these prospects will likely be on a list that is at least peripherally related to your industry. Your partner believes in you and is willing to stick his neck out on your behalf, because he’s seen how you operate and he trusts you.

    Because of your relationship with your partner, you now have a boatload of new hungry and primed prospects who want and need what you have to offer. How much easier is it to convert these prospects to customers, as compared to a ‘cold’ list of prospects, regardless of how good that source may be?

    In addition to growing your customer list, you’ll have the opportunity to learn (a LOT) from each other as you go through the process of forging your new friendships. There is likely more value in these new relationships than in the list-building that happens as a result of the partnerships!

    Reply
  66. If a business owner does not understand the lifetime value of a customer, they won’t ‘get’ the need to build relationships with their customers, and provide them with a series (hopefully ongoing and ever-evolving) of back-end offers – designed to enrich the lives of their customers. Most of us know how much more expensive it is to acquire a new customer, and that the easiest sale is to our existing customers, who have already proven to us that they are hungry for what we have to offer. We’ve already developed a level of trust with them, and can continue to ask them what they want, which helps us to develop more back end products.

    The business models may vary a little, but generally call for a ‘funnel’ mechanism to bring clients along a path to higher-priced ‘investments’ over time. The expectation is that fewer and fewer customers will opt into the higher-priced offerings, which explains the ‘funnel’ analogy.

    Thus, with a combination the initial purchase, recurring billing (such as subscription sites or newsletters) and additional back-end offers, and joint offers with partners, a business can attempt to maximize the lifetime value of its customers.

    As to the alliance question, it’s pretty easy to look at what has happened historically, such as the case cited in the final chapter reprot where US companies exploded their revenues while European companies stagnated.

    Alliance partners provide an introduction for you, immediately elevating you to a level of trust, making it easier for you to make your initial sale. And these prospects will likely be on a list that is at least peripherally related to your industry. Your partner believes in you and is willing to stick his neck out on your behalf, because he’s seen how you operate and he trusts you.

    Because of your relationship with your partner, you now have a boatload of new hungry and primed prospects who want and need what you have to offer. How much easier is it to convert these prospects to customers, as compared to a ‘cold’ list of prospects, regardless of how good that source may be?

    In addition to growing your customer list, you’ll have the opportunity to learn (a LOT) from each other as you go through the process of forging your new friendships. There is likely more value in these new relationships than in the list-building that happens as a result of the partnerships!

    Reply
  67. Smart business is big business. Building consistent series of back end products and alliances is smart business. Both will give your business the boost it needs to enter the “big leagues.”

    Now why would having a SERIES of CONSISTENT back end products be smart business? Having a series is smart because: 1) more money is made from repeat business than the first purchase, 2) if a person buys from you twice he/she is more likely to buy from you a third time (this could either be because of more credibility on your part, or the person knows where to go to get what they want, etc.), 3) if you only have one back end product you are seriously missing out on extra sales you could be generating.

    Having consistent back end products is even more important than having a series of products. Why: 1) You have no idea what that particular customer is looking for, except for products that are consistent with ones they ALREADY bought, 2) You establish yourself as more of an expert in your field when you follow up your sales with similar products that help your customers solve the same problem, 3) Your customers will trust that you are looking out for THEIR welfare rather than just trying to make a quick buck.

    The trick to building alliances with other companies is to do so with companies who share your same target market. If you don’t do it that way, you will not have as much success. Why? If you both target the same people then each of your customer bases can profit from what the other company offers. But, for instance, if I am a clothing company that targets young teenagers, I would not be able to profit from teaming up with a drug company that targets elderly people with Alzheimer’s. So, building alliances with other companies within your marketplace is important because: 1) You can produce products or services together that neither of you would be capable of on your own; 2) because of your ability to produce things you couldn’t on your own, you can increase in sales when other companies similar to yours may be losing sales; 3) you improve your market share by coming into contact with customers you may never have found without the alliance, 4) you are able to act as a larger company than you really are, which means you can beat out other competition more easily.

    Reply
  68. Smart business is big business. Building consistent series of back end products and alliances is smart business. Both will give your business the boost it needs to enter the “big leagues.”

    Now why would having a SERIES of CONSISTENT back end products be smart business? Having a series is smart because: 1) more money is made from repeat business than the first purchase, 2) if a person buys from you twice he/she is more likely to buy from you a third time (this could either be because of more credibility on your part, or the person knows where to go to get what they want, etc.), 3) if you only have one back end product you are seriously missing out on extra sales you could be generating.

    Having consistent back end products is even more important than having a series of products. Why: 1) You have no idea what that particular customer is looking for, except for products that are consistent with ones they ALREADY bought, 2) You establish yourself as more of an expert in your field when you follow up your sales with similar products that help your customers solve the same problem, 3) Your customers will trust that you are looking out for THEIR welfare rather than just trying to make a quick buck.

    The trick to building alliances with other companies is to do so with companies who share your same target market. If you don’t do it that way, you will not have as much success. Why? If you both target the same people then each of your customer bases can profit from what the other company offers. But, for instance, if I am a clothing company that targets young teenagers, I would not be able to profit from teaming up with a drug company that targets elderly people with Alzheimer’s. So, building alliances with other companies within your marketplace is important because: 1) You can produce products or services together that neither of you would be capable of on your own; 2) because of your ability to produce things you couldn’t on your own, you can increase in sales when other companies similar to yours may be losing sales; 3) you improve your market share by coming into contact with customers you may never have found without the alliance, 4) you are able to act as a larger company than you really are, which means you can beat out other competition more easily.

    Reply
  69. As the Final Chapter shows, success requires all the critical elements to be in place and THE DIFFERENCE between successful companies and OUTRAGEOUSLY SUCCESSFUL Companies is the ability to leverage your affiliates customers and visa versa — we can see in our business that alliances are helpful and thank you for putting this into such a clear picture

    We help kids who learn differently and with these strategies and tactics we can increase the students we reach manyfold

    Reply
  70. As the Final Chapter shows, success requires all the critical elements to be in place and THE DIFFERENCE between successful companies and OUTRAGEOUSLY SUCCESSFUL Companies is the ability to leverage your affiliates customers and visa versa — we can see in our business that alliances are helpful and thank you for putting this into such a clear picture

    We help kids who learn differently and with these strategies and tactics we can increase the students we reach manyfold

    Reply
  71. All business plateau.
    A businesses success in a niche market actually causes it to plateau – a market is siphoned or saturated.
    Because of this gradual business decline (An ‘S-Curve’ inflection point, when it begins to move from growing to aging.) or “tail off” (The long tail), a backend selling strategy thus becomes necessary for new business growth. This back-end can, in turn, cumulatively outnumber or outweigh the initial portion of any “front-end” sales capacity, such that in total the back-end profit actually comprises the majority of long term revenue thus creating a truly sustainable long term business . The problem then becomes supply to the multiplying back-end opportunity (Long Tail sub-niches) or “hunger” of a hyper-responsive group, hence the need, nay, the necessity of alliance partners, JV relationships etc, to help supply back-end offers.

    Reply
  72. All business plateau.
    A businesses success in a niche market actually causes it to plateau – a market is siphoned or saturated.
    Because of this gradual business decline (An ‘S-Curve’ inflection point, when it begins to move from growing to aging.) or “tail off” (The long tail), a backend selling strategy thus becomes necessary for new business growth. This back-end can, in turn, cumulatively outnumber or outweigh the initial portion of any “front-end” sales capacity, such that in total the back-end profit actually comprises the majority of long term revenue thus creating a truly sustainable long term business . The problem then becomes supply to the multiplying back-end opportunity (Long Tail sub-niches) or “hunger” of a hyper-responsive group, hence the need, nay, the necessity of alliance partners, JV relationships etc, to help supply back-end offers.

    Reply
  73. It’s critical for Love Quitting Smoking to have a consistent series of back-end offers so that we can offer the best value to our customers.

    By developing long term relationships and loyalty 3 major things are accomplished.

    1. We become experts at creating both front-end and back-end products that meet the needs of our customers.

    2. We offer a great assist to our company growth by increasing our customer retention rate (while continually adding new customers – i.e we do more than spin our wheels)

    3. We are able to generate more income and more leverage financially and as a brand. (and ultimately make more of a difference in the world.)

    It’s critical that I build strategic alliances within my marketplace for 2 key reasons

    1. So that I am strong enough to dominate the competition (or keep new ones at bay)

    2. Because it’s better, easier, more efficient, and inspiring to work towards mutual gains while reaching the maximum people in my target market then to piddle around alone serving a handful.

    And, the bonus of developing a consistent back-end system while building strategic alliances for me, personally, is that (if I get this right) I can continue to create services that can really make a difference and in doing so make a difference in my mine and my own family’s future -creating limitless possibilities for my 3 yr. old daughter.

    Thank you for this opportunity.

    I look forward to speaking with you and meeting you soon.

    All the Best,
    Joey Keim
    http://www.lovequittingsmoking.com

    Reply
  74. It’s critical for Love Quitting Smoking to have a consistent series of back-end offers so that we can offer the best value to our customers.

    By developing long term relationships and loyalty 3 major things are accomplished.

    1. We become experts at creating both front-end and back-end products that meet the needs of our customers.

    2. We offer a great assist to our company growth by increasing our customer retention rate (while continually adding new customers – i.e we do more than spin our wheels)

    3. We are able to generate more income and more leverage financially and as a brand. (and ultimately make more of a difference in the world.)

    It’s critical that I build strategic alliances within my marketplace for 2 key reasons

    1. So that I am strong enough to dominate the competition (or keep new ones at bay)

    2. Because it’s better, easier, more efficient, and inspiring to work towards mutual gains while reaching the maximum people in my target market then to piddle around alone serving a handful.

    And, the bonus of developing a consistent back-end system while building strategic alliances for me, personally, is that (if I get this right) I can continue to create services that can really make a difference and in doing so make a difference in my mine and my own family’s future -creating limitless possibilities for my 3 yr. old daughter.

    Thank you for this opportunity.

    I look forward to speaking with you and meeting you soon.

    All the Best,
    Joey Keim
    http://www.lovequittingsmoking.com

    Reply
  75. Having alliances in the market place leverages their marketing efforts along with yours, their list along with yours. Share a cut and achieve enormous growth. Presenting an ongoing array of products is much cheaper than acquiring new customers and is easier to sell to them since you already have a trusted relationship = more profit..

    Reply
  76. Having alliances in the market place leverages their marketing efforts along with yours, their list along with yours. Share a cut and achieve enormous growth. Presenting an ongoing array of products is much cheaper than acquiring new customers and is easier to sell to them since you already have a trusted relationship = more profit..

    Reply
  77. I don’t know anything about front-end or back-end offers. What I do know is that unless we switch to the use of renewable energy we wont have a world in which to worry about either. So I need all the help I can get to promote this opportunity. What we are combining is a community-oriented marketing approach, the presentation of only suppliers and products that are environmentally friendly for building homes and any other type of structure with a superior composite material made from waste that replaces concrete block, concrete & lumber–which like oil we are depleting at a rapid rate–wind, solar, geothermal systems, and more. We need people like Rick Shefren and the others at Agora to help with this initiative. So I hope I get to meet you. All the best, Dr. George
    902-657-0345
    Nova Scotia, Canada.

    Reply
  78. I don’t know anything about front-end or back-end offers. What I do know is that unless we switch to the use of renewable energy we wont have a world in which to worry about either. So I need all the help I can get to promote this opportunity. What we are combining is a community-oriented marketing approach, the presentation of only suppliers and products that are environmentally friendly for building homes and any other type of structure with a superior composite material made from waste that replaces concrete block, concrete & lumber–which like oil we are depleting at a rapid rate–wind, solar, geothermal systems, and more. We need people like Rick Shefren and the others at Agora to help with this initiative. So I hope I get to meet you. All the best, Dr. George
    902-657-0345
    Nova Scotia, Canada.

    Reply
  79. Rich,

    Thanks for the great info…I learned a lot from reading your report.

    It’s critical that your business has a consistent series of back end offers so that you can measure and realize your lifetime customer value.

    It’s important that you build alliances within your marketplace because it’s just too hard
    to do it all yourself, you need to be a part of an inter-dependent community.

    Thanks again.

    Looking forward to meeting you 🙂

    Reply
  80. Rich,

    Thanks for the great info…I learned a lot from reading your report.

    It’s critical that your business has a consistent series of back end offers so that you can measure and realize your lifetime customer value.

    It’s important that you build alliances within your marketplace because it’s just too hard
    to do it all yourself, you need to be a part of an inter-dependent community.

    Thanks again.

    Looking forward to meeting you 🙂

    Reply
  81. backends are damn important coz selling to ‘live’ customers converts the best. plus it’s our duty to keep selling to them coz they want more & more. and that’s the ONLY way to have them as loyal & live customers.

    and JVs are important because..
    if we won’t do it.
    we’d have to conquer the whole world (our market) ourselves..
    which is damn hard & kinda silly.

    Reply
  82. backends are damn important coz selling to ‘live’ customers converts the best. plus it’s our duty to keep selling to them coz they want more & more. and that’s the ONLY way to have them as loyal & live customers.

    and JVs are important because..
    if we won’t do it.
    we’d have to conquer the whole world (our market) ourselves..
    which is damn hard & kinda silly.

    Reply
  83. With less time involved to make choices and the multitude of choices available to us, our purchasing decisions will be based on locating someone who is an expert or an expert referral from a company we have previously done business with. The beauty of the internet is that there are many uncontested niches that are inexpensive to reach but these niches subdivide into smaller niches that can make a business’s long-term viability almost impossible. Strategic Alliances allow a company to compensate for the reduction in customers in their individual niches by expanding their potential customer base exponentially faster than the company could on their own.
    You end up with:
    • More Customers
    • New or Additional Distribution Channels
    • New Products or Services
    • Specialized Knowledge, Expertise or Experience
    Everyone begins to nurture and grow each other’s lists.

    Is your customer list still profitable?
    A customer who isn’t buying is a customer with no value and will soon lose interest in your business.
    If you don’t give your customer an opportunity to buy, your business will soon have no value…and you will lose your business.
    If you don’t have a back end product it is impossible to determine who is still a customer, whether your customer base is shrinking or growing or what your customer value is. So unless you have ongoing services or products to sell, your customer may just be someone who hasn’t bothered to have you remove them from your mailing list or simply deletes your newsletters.
    If you have a large number of customers spending only at the lower level of your offerings, then you are missing those higher value customers. Customers may experience your offerings at the lower levels and then wish to purchase more valuable services at higher prices. Wouldn’t you rather have 20% of your customer base bringing in 80% of your revenues while slowly moving them up to more expensive offerings?

    Reply
  84. With less time involved to make choices and the multitude of choices available to us, our purchasing decisions will be based on locating someone who is an expert or an expert referral from a company we have previously done business with. The beauty of the internet is that there are many uncontested niches that are inexpensive to reach but these niches subdivide into smaller niches that can make a business’s long-term viability almost impossible. Strategic Alliances allow a company to compensate for the reduction in customers in their individual niches by expanding their potential customer base exponentially faster than the company could on their own.
    You end up with:
    • More Customers
    • New or Additional Distribution Channels
    • New Products or Services
    • Specialized Knowledge, Expertise or Experience
    Everyone begins to nurture and grow each other’s lists.

    Is your customer list still profitable?
    A customer who isn’t buying is a customer with no value and will soon lose interest in your business.
    If you don’t give your customer an opportunity to buy, your business will soon have no value…and you will lose your business.
    If you don’t have a back end product it is impossible to determine who is still a customer, whether your customer base is shrinking or growing or what your customer value is. So unless you have ongoing services or products to sell, your customer may just be someone who hasn’t bothered to have you remove them from your mailing list or simply deletes your newsletters.
    If you have a large number of customers spending only at the lower level of your offerings, then you are missing those higher value customers. Customers may experience your offerings at the lower levels and then wish to purchase more valuable services at higher prices. Wouldn’t you rather have 20% of your customer base bringing in 80% of your revenues while slowly moving them up to more expensive offerings?

    Reply
  85. The point at which I have installed a consistent series of backends is the point at which I can finally understand my metrics and therefore my business. Without a consistent series of backends, I am unable to understand what my lifetime customer value is and as a result I do not understand what my cost per acquisition can and should be. Understanding that the money is in the backend is nothing new. The real genious behind what Rich has shared with us is that the understanding of the business model (or metrics) is in the backend. Think about it. When my backends are consistent, I can start measuring the lifetime customer value. If my backends keep changing, it is impossible for me to measure the lifetime customer value because focusing on creating different backends will create different results. And therefore it is impossible to have a good understanding of what the customer lifetime value is.
    Because the backend is consistant I can also focus on the part of my business that requires greater and greater innovation, the front end. In the Information (overload)Age, it is harder and harder to get people to enter your customer life-cycle. Setting up my backend correctly also means that I know exactly how to move them through their customer life cycle. So once they are in, it is much easier to move them through. When they enter into the customer life-cycle I can figure out each step they need to go to in each part of the lifetime customer value.

    By focusing on the frontend, I can spend the majority of my time on the part of my business that needs me most.

    Once I know the lifetime customer value, I can then determine what cost of acquisition of each customer makes sense. By knowing these metrics and what the competition is doing, I can enter a market I know I will win in.

    Alliances within my marketplace are essencial because without them I am capped. There is only so much I can do without them. I can achieve a good lifestyle and even wealth but there will be a limit to them. I am limited to the amount of growth I can achieve and possibly the life of the business. If I don’t make the correct alliances, those that do will more than likely put me out of business. I need to make as many good alliances as possible to maintain my business growth and even keep my business from being squashed by those who enter the market to win.

    Reply
  86. The point at which I have installed a consistent series of backends is the point at which I can finally understand my metrics and therefore my business. Without a consistent series of backends, I am unable to understand what my lifetime customer value is and as a result I do not understand what my cost per acquisition can and should be. Understanding that the money is in the backend is nothing new. The real genious behind what Rich has shared with us is that the understanding of the business model (or metrics) is in the backend. Think about it. When my backends are consistent, I can start measuring the lifetime customer value. If my backends keep changing, it is impossible for me to measure the lifetime customer value because focusing on creating different backends will create different results. And therefore it is impossible to have a good understanding of what the customer lifetime value is.
    Because the backend is consistant I can also focus on the part of my business that requires greater and greater innovation, the front end. In the Information (overload)Age, it is harder and harder to get people to enter your customer life-cycle. Setting up my backend correctly also means that I know exactly how to move them through their customer life cycle. So once they are in, it is much easier to move them through. When they enter into the customer life-cycle I can figure out each step they need to go to in each part of the lifetime customer value.

    By focusing on the frontend, I can spend the majority of my time on the part of my business that needs me most.

    Once I know the lifetime customer value, I can then determine what cost of acquisition of each customer makes sense. By knowing these metrics and what the competition is doing, I can enter a market I know I will win in.

    Alliances within my marketplace are essencial because without them I am capped. There is only so much I can do without them. I can achieve a good lifestyle and even wealth but there will be a limit to them. I am limited to the amount of growth I can achieve and possibly the life of the business. If I don’t make the correct alliances, those that do will more than likely put me out of business. I need to make as many good alliances as possible to maintain my business growth and even keep my business from being squashed by those who enter the market to win.

    Reply
  87. It’s rather ironic actually – the one factor that makes Internet Marketing so accessible to everybody that wants to get involved (which is the low cost and availability of the Internet) is also the reason that most people fail at this business!

    All of this time most marketers have been approaching the Internet Marketing business as an opportunity, with the mentality that they must continue to create new product after product in order to continue to make money.

    While it is important to create new products, it shouldn’t be viewed as a “launch product, make a lot of money, then move on to the next product” system (if you can call that a system).

    Instead it should be viewed as a “launch product, where will this take me next?” system, where the product launch isn’t the only time the product is sold, and back-end products are already in place (or will be shortly) to continue to build revenue from existing customers.

    Consider the difference between the “typical” marketer who continues to create new $97 products, compared to the “profitable” marketer who creates a $97 as a front-end, then adds a $250 or $500 product in the back-end with a $97 per month subscription. Later on he/she adds a $997 home-study course which builds momentum towards a $5000 coaching program or seminar.

    Now the $97 has more than one purpose. First, it is to gain a customer (and not just a prospect). Second, it is to prepare that customer to purchase the more expensive back-end (which is designed of course to help them even more than the $97 front-end).

    Once that kind of system is in place the marketer can then look at how to get more customers to the front-end.

    The most profitable way is through alliances and joint-ventures. Sure, the efforts of the marketer to generate traffic can do much for the business (we see examples of John Reese who generates millions of visitors to his websites) but the true power comes in when others who are doing the same work as you share their results, in essence, you “multiply” your efforts by using the efforts of others (and they multiply theirs by using yours).

    The real exciting part comes when you build your backend to be so profitable that you realize that your front-end customer is worth far more than that $97, which allows you to spend even more on getting that customer (which your competition can’t afford to do because they have no such process, allowing you to gain even more customers at a much faster rate).

    This would have been impossible if all you had was that first $97 (or $47, or $197, whatever it was) sale, and will allow you to eventually profit wildly from your efforts, while creating LESS work for yourself.

    All the best,

    Matthew Glanfield
    http://www.affiliateminute.com

    Reply
  88. It’s rather ironic actually – the one factor that makes Internet Marketing so accessible to everybody that wants to get involved (which is the low cost and availability of the Internet) is also the reason that most people fail at this business!

    All of this time most marketers have been approaching the Internet Marketing business as an opportunity, with the mentality that they must continue to create new product after product in order to continue to make money.

    While it is important to create new products, it shouldn’t be viewed as a “launch product, make a lot of money, then move on to the next product” system (if you can call that a system).

    Instead it should be viewed as a “launch product, where will this take me next?” system, where the product launch isn’t the only time the product is sold, and back-end products are already in place (or will be shortly) to continue to build revenue from existing customers.

    Consider the difference between the “typical” marketer who continues to create new $97 products, compared to the “profitable” marketer who creates a $97 as a front-end, then adds a $250 or $500 product in the back-end with a $97 per month subscription. Later on he/she adds a $997 home-study course which builds momentum towards a $5000 coaching program or seminar.

    Now the $97 has more than one purpose. First, it is to gain a customer (and not just a prospect). Second, it is to prepare that customer to purchase the more expensive back-end (which is designed of course to help them even more than the $97 front-end).

    Once that kind of system is in place the marketer can then look at how to get more customers to the front-end.

    The most profitable way is through alliances and joint-ventures. Sure, the efforts of the marketer to generate traffic can do much for the business (we see examples of John Reese who generates millions of visitors to his websites) but the true power comes in when others who are doing the same work as you share their results, in essence, you “multiply” your efforts by using the efforts of others (and they multiply theirs by using yours).

    The real exciting part comes when you build your backend to be so profitable that you realize that your front-end customer is worth far more than that $97, which allows you to spend even more on getting that customer (which your competition can’t afford to do because they have no such process, allowing you to gain even more customers at a much faster rate).

    This would have been impossible if all you had was that first $97 (or $47, or $197, whatever it was) sale, and will allow you to eventually profit wildly from your efforts, while creating LESS work for yourself.

    All the best,

    Matthew Glanfield
    http://www.affiliateminute.com

    Reply
  89. Rich,

    1. It is critical to have a consistent series of backends because that’s where the money is and the bigger the backend the more you can spend on front end marketing and client aquistion – which allows you to crush the competition, position yourself as the expert, and dominate your market.

    2. You must build alliances within your marketplace because that is the best way to leverage your position as the expert, dominate the market, and increase backend opportunities through affiliates, jv’s, cross-selling, etc.

    BTW – this business building program has changed everything about how I think about business, approach the market, and develop my strategic plans and I’m forever grateful Rich. Thanks!

    Reply
  90. Rich,

    1. It is critical to have a consistent series of backends because that’s where the money is and the bigger the backend the more you can spend on front end marketing and client aquistion – which allows you to crush the competition, position yourself as the expert, and dominate your market.

    2. You must build alliances within your marketplace because that is the best way to leverage your position as the expert, dominate the market, and increase backend opportunities through affiliates, jv’s, cross-selling, etc.

    BTW – this business building program has changed everything about how I think about business, approach the market, and develop my strategic plans and I’m forever grateful Rich. Thanks!

    Reply
  91. Your pool of customers who have purchased a front-end product contains some that don’t care for you very much, some that like you, some that like you a lot and some that love you.

    It is your “lovers” that make your business the real money.

    If you don’t have an adequate back-end you will never identify your lovers – they will simply be customers.

    It is through your back-end offers that you give your lovers – the “hyper responsives”, the value they crave and in return they give you lots of cash. The more value you can offer them the more they will give you.

    It is your duty to fully and profitably satisfy their cravings and the only way to do this is to have the right mix of back-end offers.

    By having better back-ends offers than your competitors, it means you have a higher lifetime customer value than your competitors which means you can afford to pay more on the front-end to acquire customers than your competitors. This gives you a lot of market power.

    Market alliances are crucial for a number of reasons.

    Firstly some alliances give you “endorsed access” to a pool of potential new customers. From this will come new lovers.

    Secondly, there are alliances which provide you with additional back-end offers with which to service your lovers.

    Alliances greatly speed up the processes of customer acquisition and/or product development and hence create rapid growth.

    The combination of great back-end offers with great strategic alliances is exceptionally powerful.

    Reply
  92. Your pool of customers who have purchased a front-end product contains some that don’t care for you very much, some that like you, some that like you a lot and some that love you.

    It is your “lovers” that make your business the real money.

    If you don’t have an adequate back-end you will never identify your lovers – they will simply be customers.

    It is through your back-end offers that you give your lovers – the “hyper responsives”, the value they crave and in return they give you lots of cash. The more value you can offer them the more they will give you.

    It is your duty to fully and profitably satisfy their cravings and the only way to do this is to have the right mix of back-end offers.

    By having better back-ends offers than your competitors, it means you have a higher lifetime customer value than your competitors which means you can afford to pay more on the front-end to acquire customers than your competitors. This gives you a lot of market power.

    Market alliances are crucial for a number of reasons.

    Firstly some alliances give you “endorsed access” to a pool of potential new customers. From this will come new lovers.

    Secondly, there are alliances which provide you with additional back-end offers with which to service your lovers.

    Alliances greatly speed up the processes of customer acquisition and/or product development and hence create rapid growth.

    The combination of great back-end offers with great strategic alliances is exceptionally powerful.

    Reply
  93. I’ll break this up into two posts then:
    ————————
    Part 1
    ————————

    It’s rather ironic actually – the one factor that makes Internet Marketing so accessible to everybody that wants to get involved (which is the low cost and availability of the Internet) is also the reason that most people fail at this business!

    All of this time most marketers have been approaching the Internet Marketing business as an opportunity, with the mentality that they must continue to create new product after product in order to continue to make money.

    While it is important to create new products, it shouldn’t be viewed as a “launch product, make a lot of money, then move on to the next product” system (if you can call that a system).

    Instead it should be viewed as a “launch product, where will this take me next?” system, where the product launch isn’t the only time the product is sold, and back-end products are already in place (or will be shortly) to continue to build revenue from existing customers.

    Consider the difference between the “typical” marketer who continues to create new $97 products, compared to the “profitable” marketer who creates a $97 as a front-end, then adds a $250 or $500 product in the back-end with a $97 per month subscription. Later on he/she adds a $997 home-study course which builds momentum towards a $5000 coaching program or seminar.

    Now the $97 has more than one purpose. First, it is to gain a customer (and not just a prospect). Second, it is to prepare that customer to purchase the more expensive back-end (which is designed of course to help them even more than the $97 front-end).

    Reply
  94. I’ll break this up into two posts then:
    ————————
    Part 1
    ————————

    It’s rather ironic actually – the one factor that makes Internet Marketing so accessible to everybody that wants to get involved (which is the low cost and availability of the Internet) is also the reason that most people fail at this business!

    All of this time most marketers have been approaching the Internet Marketing business as an opportunity, with the mentality that they must continue to create new product after product in order to continue to make money.

    While it is important to create new products, it shouldn’t be viewed as a “launch product, make a lot of money, then move on to the next product” system (if you can call that a system).

    Instead it should be viewed as a “launch product, where will this take me next?” system, where the product launch isn’t the only time the product is sold, and back-end products are already in place (or will be shortly) to continue to build revenue from existing customers.

    Consider the difference between the “typical” marketer who continues to create new $97 products, compared to the “profitable” marketer who creates a $97 as a front-end, then adds a $250 or $500 product in the back-end with a $97 per month subscription. Later on he/she adds a $997 home-study course which builds momentum towards a $5000 coaching program or seminar.

    Now the $97 has more than one purpose. First, it is to gain a customer (and not just a prospect). Second, it is to prepare that customer to purchase the more expensive back-end (which is designed of course to help them even more than the $97 front-end).

    Reply
  95. —————–
    Part 2
    —————–

    Once that kind of system is in place the marketer can then look at how to get more customers to the front-end.

    The most profitable way is through alliances and joint-ventures. Sure, the efforts of the marketer to generate traffic can do much for the business (we see examples of John Reese who generates millions of visitors to his websites) but the true power comes in when others who are doing the same work as you share their results, in essence, you “multiply” your efforts by using the efforts of others (and they multiply theirs by using yours).

    The real exciting part comes when you build your backend to be so profitable that you realize that your front-end customer is worth far more than that $97, which allows you to spend even more on getting that customer (which your competition can’t afford to do because they have no such process, allowing you to gain even more customers at a much faster rate).

    This would have been impossible if all you had was that first $97 (or $47, or $197, whatever it was) sale, and will allow you to eventually profit wildly from your efforts, while creating LESS work for yourself.

    All the best,

    Matthew Glanfield
    http://www.affiliateminute.com

    Reply
  96. —————–
    Part 2
    —————–

    Once that kind of system is in place the marketer can then look at how to get more customers to the front-end.

    The most profitable way is through alliances and joint-ventures. Sure, the efforts of the marketer to generate traffic can do much for the business (we see examples of John Reese who generates millions of visitors to his websites) but the true power comes in when others who are doing the same work as you share their results, in essence, you “multiply” your efforts by using the efforts of others (and they multiply theirs by using yours).

    The real exciting part comes when you build your backend to be so profitable that you realize that your front-end customer is worth far more than that $97, which allows you to spend even more on getting that customer (which your competition can’t afford to do because they have no such process, allowing you to gain even more customers at a much faster rate).

    This would have been impossible if all you had was that first $97 (or $47, or $197, whatever it was) sale, and will allow you to eventually profit wildly from your efforts, while creating LESS work for yourself.

    All the best,

    Matthew Glanfield
    http://www.affiliateminute.com

    Reply
  97. Hi Rich,

    It’s critical for my business to have a consistent series of back end offers because then I’ll be able to focus on the front end. In The Final Chapter you had discussed the back end as having higher conversion rates and makes bigger profits. The back end is where the money is made; the initial sale is just to get the potential customer over the hump or fear of purchasing from you. Once they have shown that they will buy and have a good experience during the initial transaction with you they can become very valuable clients for life and you can guide them through your marketing funnel. Having a consistent series of back end offers allows you to test the best sequence of offers, allows you to develop a predictive modeling system, allows you to monitor the attrition rate by watching the latency period and find the 20% of the most profitable customers. Once you have that back end established you can work on the front end which is the hardest sale to make, faces the most competition and requires constant innovation.

    It is important that you build alliances so that you can leverage the resources of others and grow both your business as well as the business of your alliances. Potential clients are not a single product purchaser; they purchase a wide variety of products and services that may be associated with the field that you’re in. So you can cross sell and do joint venture promotions to people. By aligning yourself with alliance partners you can acquire front end traffic and clients much more easily than most other methods for free or very low cost. Also, you can promote similar but non-competitive products and services to your alliances list. After people have outgrown your products or services you can direct them to an alliance member and get a small or large commission. Having alliances means leveraging and growing the potential pool of people who can come in contact with you exponentially.

    Your business can only market and do so much, but by leveraging alliances the marketing, customer, and awareness of your products and services is multiplied geometrically or exponentially at little to not cost from you.

    Regards,

    Ted

    Reply
  98. Hi Rich,

    It’s critical for my business to have a consistent series of back end offers because then I’ll be able to focus on the front end. In The Final Chapter you had discussed the back end as having higher conversion rates and makes bigger profits. The back end is where the money is made; the initial sale is just to get the potential customer over the hump or fear of purchasing from you. Once they have shown that they will buy and have a good experience during the initial transaction with you they can become very valuable clients for life and you can guide them through your marketing funnel. Having a consistent series of back end offers allows you to test the best sequence of offers, allows you to develop a predictive modeling system, allows you to monitor the attrition rate by watching the latency period and find the 20% of the most profitable customers. Once you have that back end established you can work on the front end which is the hardest sale to make, faces the most competition and requires constant innovation.

    It is important that you build alliances so that you can leverage the resources of others and grow both your business as well as the business of your alliances. Potential clients are not a single product purchaser; they purchase a wide variety of products and services that may be associated with the field that you’re in. So you can cross sell and do joint venture promotions to people. By aligning yourself with alliance partners you can acquire front end traffic and clients much more easily than most other methods for free or very low cost. Also, you can promote similar but non-competitive products and services to your alliances list. After people have outgrown your products or services you can direct them to an alliance member and get a small or large commission. Having alliances means leveraging and growing the potential pool of people who can come in contact with you exponentially.

    Your business can only market and do so much, but by leveraging alliances the marketing, customer, and awareness of your products and services is multiplied geometrically or exponentially at little to not cost from you.

    Regards,

    Ted

    Reply
  99. Rich,

    The reason that your business needs a consistent series of back end offers is because without them, you don’t have a business, you have a promotion. There’s no leverage.

    The reason you need to build alliances within your marketplace is to leverage the “longtail.” It will provide you with an ever expanding supply of new markets for you to enter with very little cost.

    Reply
  100. Rich,

    The reason that your business needs a consistent series of back end offers is because without them, you don’t have a business, you have a promotion. There’s no leverage.

    The reason you need to build alliances within your marketplace is to leverage the “longtail.” It will provide you with an ever expanding supply of new markets for you to enter with very little cost.

    Reply
  101. Why businesses need consistent backends, it helps promote the business when most needed. The reason for building alliances within the marketplace, is that it gives more sustainability within the business.

    Reply
  102. Why businesses need consistent backends, it helps promote the business when most needed. The reason for building alliances within the marketplace, is that it gives more sustainability within the business.

    Reply
  103. Rich,

    Wow what a great opportunity to spend an afternoon with you and the Agora Publishing Group.

    To answer the questions in simple a straight format. All post agree Number

    1) The backend is the profit center of the business and the customer relation department. This is where you build loyalty, retention, repetitive buyers, total brand awareness…

    If you do not have the backends in place and more importantly on an automated systems of follow ups, upsells, upgrades etc you’re losing money and some one else is picking it up. You need the “proverbial machine” running and developing the business “YOU”.

    From this more offers will be found and new products introduced as the demand requests them.

    All of this cannot be accomplised without the front end aquiring of prospects, leads and initial buyyers. This is where the strategic partners will make this process happen much more effectively than trying to break in to it buy yourself. As well as the market break n you are able to broaden your market share to a base of customers that you never had before. Also new opportunities arise from these alliances, new profit models and new products as a result.

    One big idea turns into a one hundred million dollar business by the process of business’ working together for the common goal of growth and profits.

    Reply
  104. Rich,

    Wow what a great opportunity to spend an afternoon with you and the Agora Publishing Group.

    To answer the questions in simple a straight format. All post agree Number

    1) The backend is the profit center of the business and the customer relation department. This is where you build loyalty, retention, repetitive buyers, total brand awareness…

    If you do not have the backends in place and more importantly on an automated systems of follow ups, upsells, upgrades etc you’re losing money and some one else is picking it up. You need the “proverbial machine” running and developing the business “YOU”.

    From this more offers will be found and new products introduced as the demand requests them.

    All of this cannot be accomplised without the front end aquiring of prospects, leads and initial buyyers. This is where the strategic partners will make this process happen much more effectively than trying to break in to it buy yourself. As well as the market break n you are able to broaden your market share to a base of customers that you never had before. Also new opportunities arise from these alliances, new profit models and new products as a result.

    One big idea turns into a one hundred million dollar business by the process of business’ working together for the common goal of growth and profits.

    Reply
  105. The backend is all about relationship. The more you “talk” to your customers, the better they feel they know you and that you know and understand them. A good backend program should feel like a good buddy helping you out, not like you are being sold.
    No surprise here; affiliates work the same way. There are people that don’t know you, but know and love writers on other sites because they have been successfully nurtured with their backend programs. Since these people trust these writers, they will respond positively to a recommendation of your product because they trust the source.
    It is not about all the complex behind the scenes technology and nerdware. It is about friends buying from friends.
    And to close the loop I feel compelled to provide a backend offer of my own. I’ll pick you up at the airport in Calgary and take you skiing in Banff to continue the mutually profitable discussion we began in Florida.

    Reply
  106. The backend is all about relationship. The more you “talk” to your customers, the better they feel they know you and that you know and understand them. A good backend program should feel like a good buddy helping you out, not like you are being sold.
    No surprise here; affiliates work the same way. There are people that don’t know you, but know and love writers on other sites because they have been successfully nurtured with their backend programs. Since these people trust these writers, they will respond positively to a recommendation of your product because they trust the source.
    It is not about all the complex behind the scenes technology and nerdware. It is about friends buying from friends.
    And to close the loop I feel compelled to provide a backend offer of my own. I’ll pick you up at the airport in Calgary and take you skiing in Banff to continue the mutually profitable discussion we began in Florida.

    Reply
  107. I just had a scary thought. Imagine if Rich started consulting for Microsoft.

    Microsoft has succeeded in spite of the fact that they don’t form alliances within their marketplace. Nor do they present their customers with a series of back end offers.

    Imagine if they did.

    On second thoughts… it’s not so scary, the results may be the best thing that’s ever happened to the software world.

    Reply
  108. I just had a scary thought. Imagine if Rich started consulting for Microsoft.

    Microsoft has succeeded in spite of the fact that they don’t form alliances within their marketplace. Nor do they present their customers with a series of back end offers.

    Imagine if they did.

    On second thoughts… it’s not so scary, the results may be the best thing that’s ever happened to the software world.

    Reply
  109. You need a back end for your business because without a back end, you are in sales, not business. Strategic alliances are important because they multiply your growth speed – they give you access to a proven segment of the market that it could take you years and years to find on your own.

    Reply
  110. You need a back end for your business because without a back end, you are in sales, not business. Strategic alliances are important because they multiply your growth speed – they give you access to a proven segment of the market that it could take you years and years to find on your own.

    Reply
  111. Ok, here’s the cut and dried version:

    A true business is a process, a complete set of steps that generates on-going residual profits, hopefully without you being there. The first of those steps, the front end, encompasses lead generation and conversion. The front end is the relationship builder. But, it’s just the tip of the iceberg.

    The back end is the rest of the iceberg, just hanging there waiting to be milked. The back end allows us to reinforce that relationship built by the front end. A consistent series of back end offers will determine how long we keep that relationship, which will determine the lifetime value of our client. So without those continuous offers, all the effort of the front end fall’s away faster.

    Alliances = market reach = leverage.

    Alliances speed up the front end and give us the ability to exponentially grow income and profits, while minimising our own efforts. Your alliance partner is really doing your front end work for you. Having a number of partners also increases the number of different ways you generate income. If one falls away, you might experience a small drop in revenue but the business won’t fail.

    Kind regards,
    Peter

    Reply
  112. Ok, here’s the cut and dried version:

    A true business is a process, a complete set of steps that generates on-going residual profits, hopefully without you being there. The first of those steps, the front end, encompasses lead generation and conversion. The front end is the relationship builder. But, it’s just the tip of the iceberg.

    The back end is the rest of the iceberg, just hanging there waiting to be milked. The back end allows us to reinforce that relationship built by the front end. A consistent series of back end offers will determine how long we keep that relationship, which will determine the lifetime value of our client. So without those continuous offers, all the effort of the front end fall’s away faster.

    Alliances = market reach = leverage.

    Alliances speed up the front end and give us the ability to exponentially grow income and profits, while minimising our own efforts. Your alliance partner is really doing your front end work for you. Having a number of partners also increases the number of different ways you generate income. If one falls away, you might experience a small drop in revenue but the business won’t fail.

    Kind regards,
    Peter

    Reply
  113. Ok, I’ll take a crack at this. At the risk of losing points for brevity, I’ll summarize the reasons as succintly as I can.
    First, it is important to have a consistent array of backend offers so that you can fully monetize each customer. Since the most expensive part of the process has been achieved by the front end offer and it is much easier and cheaper to sell an existing customer than to aquire a new one, it is critical to continue to be able to sell to existing customers as long as they are willing to buy.
    The pyramid that Rich illustrated in the Final Chapter is, essentially, the marketing funnel turned upside down. Within that funnel there are people who are willing to buy products at different price points. The way to fully monetize these customers is to give each of them what they want.
    For example, if a customer is willing to continue to buy products at a low or medium price point but is never going to buy the high end product it is important to have additional products at this price range that you can continue to sell him. If the customer is interested in the upsell to the higher priced products, it is important to have products to offer him in the highest range that he is willing to go to. If you don’t have a wide array of consistent products to fill the needs of both of those customers, you will leave money on the table that you could have gotten because the cutomer was still willing to buy.
    Also, using the examples in the Final Chapter, having a wide array of consistent products on the backend can fill the needs of the “hyper-responsives” because they will not run out of things to buy and also of the “in heat” customer because there will be a large number of products that are already available while they are still in the buying mood.
    Secondly, it is important to build alliances in your marketplace for two main reasons. The first is the obvious advantages of networking and sharing ideas and resources.
    The second is that it can make marketing much easier by allowing instant exposure to the customer lists of the people you are allied with during joint ventures. This can allow you to reach a much wider audience without spending anything. Also,because the offer comes through someone that these customers are already willing to buy from, the conversion rates will be high.
    The alliance partners can help each other pre-sell by building up the person who is doing the offer to their own lists. It is easy for them to create “buzz” for another person before the offer (marketing making selling unnecessary) because it is easier to say very complimentary things about another person than about themselves. This endorsement builds credibility and trust in advance.
    Since alliance partners aren’t selling directly competing products it is a win-win for all.
    Well, gee, I guess that wasn’t as brief as I thought it would be but I wanted to cover all the main points.
    John

    Reply
  114. Ok, I’ll take a crack at this. At the risk of losing points for brevity, I’ll summarize the reasons as succintly as I can.
    First, it is important to have a consistent array of backend offers so that you can fully monetize each customer. Since the most expensive part of the process has been achieved by the front end offer and it is much easier and cheaper to sell an existing customer than to aquire a new one, it is critical to continue to be able to sell to existing customers as long as they are willing to buy.
    The pyramid that Rich illustrated in the Final Chapter is, essentially, the marketing funnel turned upside down. Within that funnel there are people who are willing to buy products at different price points. The way to fully monetize these customers is to give each of them what they want.
    For example, if a customer is willing to continue to buy products at a low or medium price point but is never going to buy the high end product it is important to have additional products at this price range that you can continue to sell him. If the customer is interested in the upsell to the higher priced products, it is important to have products to offer him in the highest range that he is willing to go to. If you don’t have a wide array of consistent products to fill the needs of both of those customers, you will leave money on the table that you could have gotten because the cutomer was still willing to buy.
    Also, using the examples in the Final Chapter, having a wide array of consistent products on the backend can fill the needs of the “hyper-responsives” because they will not run out of things to buy and also of the “in heat” customer because there will be a large number of products that are already available while they are still in the buying mood.
    Secondly, it is important to build alliances in your marketplace for two main reasons. The first is the obvious advantages of networking and sharing ideas and resources.
    The second is that it can make marketing much easier by allowing instant exposure to the customer lists of the people you are allied with during joint ventures. This can allow you to reach a much wider audience without spending anything. Also,because the offer comes through someone that these customers are already willing to buy from, the conversion rates will be high.
    The alliance partners can help each other pre-sell by building up the person who is doing the offer to their own lists. It is easy for them to create “buzz” for another person before the offer (marketing making selling unnecessary) because it is easier to say very complimentary things about another person than about themselves. This endorsement builds credibility and trust in advance.
    Since alliance partners aren’t selling directly competing products it is a win-win for all.
    Well, gee, I guess that wasn’t as brief as I thought it would be but I wanted to cover all the main points.
    John

    Reply
  115. Backend offers are the determinants of whether you make marginal or staggering profits. If you recognize the power of “backend” and apply this concept in your business, you’ll almost have an unlimited profit stream for your business.

    Here’s why…

    You’ll earn the biggest profits by selling to your existing customers. This is because you’ve already acquired the customers and the costs of selling to them again is negligible; you don’t incur any more customer acquisition costs.

    Furthermore, since they’re your existing customers, there’s already a certain level of trust established between you and your customers which makes it easier for you to sell to them again. All it takes for you to reap the rewards of this goodwill is to offer them additional products or services.

    In today’s competitive marketplace, alliances provide value-enhancing opportunities for companies to share information, capitalize on synergies, explore new areas of research, and bring unique products to market.

    Businesses use strategic alliances to:

    – achieve advantages of scale, scope and speed
    – increase market penetration
    – enhance competitiveness in their targeted markets
    – enhance product development
    – develop new business opportunities through new products and services
    – expand market development
    – increase sales or exports
    – diversify
    – create new businesses
    – reduce costs.

    Reply
  116. Backend offers are the determinants of whether you make marginal or staggering profits. If you recognize the power of “backend” and apply this concept in your business, you’ll almost have an unlimited profit stream for your business.

    Here’s why…

    You’ll earn the biggest profits by selling to your existing customers. This is because you’ve already acquired the customers and the costs of selling to them again is negligible; you don’t incur any more customer acquisition costs.

    Furthermore, since they’re your existing customers, there’s already a certain level of trust established between you and your customers which makes it easier for you to sell to them again. All it takes for you to reap the rewards of this goodwill is to offer them additional products or services.

    In today’s competitive marketplace, alliances provide value-enhancing opportunities for companies to share information, capitalize on synergies, explore new areas of research, and bring unique products to market.

    Businesses use strategic alliances to:

    – achieve advantages of scale, scope and speed
    – increase market penetration
    – enhance competitiveness in their targeted markets
    – enhance product development
    – develop new business opportunities through new products and services
    – expand market development
    – increase sales or exports
    – diversify
    – create new businesses
    – reduce costs.

    Reply
  117. After reading the entire series, including the final chapter it was quite apperant that the only thing to this point I was on track with was that I was concentraing on a great backend.

    Now it’s time to get the front end aligned and the “Business” charted. This one report just made me a business owner instead of a proir business owner.

    I can’t thank you enough!

    Wes
    PrincessCrafts
    TwasTheNightScrapbook.com

    Reply
  118. After reading the entire series, including the final chapter it was quite apperant that the only thing to this point I was on track with was that I was concentraing on a great backend.

    Now it’s time to get the front end aligned and the “Business” charted. This one report just made me a business owner instead of a proir business owner.

    I can’t thank you enough!

    Wes
    PrincessCrafts
    TwasTheNightScrapbook.com

    Reply
  119. Business Growth = Systems – Constraints = Wealth

    A consistent series of back end offers is the culmination of a well designed business system: It possesses minimum friction and constraint – It is your “fulcrum” to the exponential leverage of wealth; Equally necessary and vibrant alliances are the “lever” matching message to marketplace – When properly harnessed, wealth results. Continual growth in business relies upon harnessing this perpetual motion of wealth, be it capital, skills, or funds into your business coffers without creating friction or constraints.

    It is the art of where less, becomes more…

    Reply
  120. Business Growth = Systems – Constraints = Wealth

    A consistent series of back end offers is the culmination of a well designed business system: It possesses minimum friction and constraint – It is your “fulcrum” to the exponential leverage of wealth; Equally necessary and vibrant alliances are the “lever” matching message to marketplace – When properly harnessed, wealth results. Continual growth in business relies upon harnessing this perpetual motion of wealth, be it capital, skills, or funds into your business coffers without creating friction or constraints.

    It is the art of where less, becomes more…

    Reply
  121. What is the REAL reason for a well planned back-end offer?

    Why do you Teach that alliances, JV’s, partnerships, etc. are KEY ELEMENTS for success?

    The answers…?

    Because the whole point of the Manifesto and your message is that you want us to approach our businesses LIKE BUSINESSES.

    So we can succeed long term, build sustainable business models that we can grow into whatever we want them to become – and also, so there are others of like mind and long term potential for you, Agora, me, and other’s to partner with, right?

    There are many specific benefits and advantages to building a solid, well thought out back-end (and front end – and middle for that matter!) and developing long term alliances with other successful business owners, as listed by everyone who has commented on this great blog.

    The point is that you want us to see our businesses as well thought out; sustainable, expandable, entities that are also seen that way by others who are building similar business models and who also need alliances with like-minded professionals to grow their businesses.

    Kinda’ creative for you and Agora to take a Henry Ford philosophy and put it to good use…(i.e. his creation of a strategic wage program that provided enough income for his employees to buy the product that they were producing! In essence – he not only created the product, he created the buyer. What most folks don’t get when they see this is that he also ensured that the product quality would be the best – hey, if they are building their own cars, what kind of quality workmanship would they possibly embrace?)

    You and Agora are creating your own credible alliances and partners by telling (and showing) us how to, well, be qualified for the priviledge!

    Brilliant – simply brilliant.

    I imagine that Agora didn’t grow to be the powerhouse that it is by aligning themselves with ‘opportunity seekers’ who they knew would not be around for long. In fact, their willingness to share their lists with, and from, others you covered in the Manifesto as a primary reason for their success.

    Rich, thank you for scaring the living mess out of me with the Final Chapter – because it helped me to see that if a person is going to be in this highly competitive and ever changing technologically driven new world for long – he/she will need to get serious about his business.

    One hit wonders will be swallowed up eventually by those who are willing and able to take the time to build a REAL business.

    Frankly, I’m starting over. I plan on being here for a long time and helping others to do the same.

    You scared me – straight. Thanks.

    Look forward to learning more from you and watching what you and Agora are up to next.

    Warmest Regards,

    Steve Odette

    Reply
  122. What is the REAL reason for a well planned back-end offer?

    Why do you Teach that alliances, JV’s, partnerships, etc. are KEY ELEMENTS for success?

    The answers…?

    Because the whole point of the Manifesto and your message is that you want us to approach our businesses LIKE BUSINESSES.

    So we can succeed long term, build sustainable business models that we can grow into whatever we want them to become – and also, so there are others of like mind and long term potential for you, Agora, me, and other’s to partner with, right?

    There are many specific benefits and advantages to building a solid, well thought out back-end (and front end – and middle for that matter!) and developing long term alliances with other successful business owners, as listed by everyone who has commented on this great blog.

    The point is that you want us to see our businesses as well thought out; sustainable, expandable, entities that are also seen that way by others who are building similar business models and who also need alliances with like-minded professionals to grow their businesses.

    Kinda’ creative for you and Agora to take a Henry Ford philosophy and put it to good use…(i.e. his creation of a strategic wage program that provided enough income for his employees to buy the product that they were producing! In essence – he not only created the product, he created the buyer. What most folks don’t get when they see this is that he also ensured that the product quality would be the best – hey, if they are building their own cars, what kind of quality workmanship would they possibly embrace?)

    You and Agora are creating your own credible alliances and partners by telling (and showing) us how to, well, be qualified for the priviledge!

    Brilliant – simply brilliant.

    I imagine that Agora didn’t grow to be the powerhouse that it is by aligning themselves with ‘opportunity seekers’ who they knew would not be around for long. In fact, their willingness to share their lists with, and from, others you covered in the Manifesto as a primary reason for their success.

    Rich, thank you for scaring the living mess out of me with the Final Chapter – because it helped me to see that if a person is going to be in this highly competitive and ever changing technologically driven new world for long – he/she will need to get serious about his business.

    One hit wonders will be swallowed up eventually by those who are willing and able to take the time to build a REAL business.

    Frankly, I’m starting over. I plan on being here for a long time and helping others to do the same.

    You scared me – straight. Thanks.

    Look forward to learning more from you and watching what you and Agora are up to next.

    Warmest Regards,

    Steve Odette

    Reply
  123. A consistent series of back end offers is critical fow two reasons. 1) Because your lifetime customer value can be maximized with minimum ongoing effort. 2) Your lifetime customer value can be easily tracked.

    Building alliances in your marketplace is important for keeping your front end funnel full of pre qualified prospects as well as reducing your customer acquisition cost.

    Reply
  124. A consistent series of back end offers is critical fow two reasons. 1) Because your lifetime customer value can be maximized with minimum ongoing effort. 2) Your lifetime customer value can be easily tracked.

    Building alliances in your marketplace is important for keeping your front end funnel full of pre qualified prospects as well as reducing your customer acquisition cost.

    Reply
  125. Dear Rich,

    Question #1: ” Summarize why it’s critical that YOUR business has a consistent series of back end offers…” Answer: Because I am in the most powerful business opportunity of all time, that being “energy marketing”. As you discussed in The Final Chapter, the front end can’t be put onto autopilot so you must continue to acquire new customers. The good news about being at the tip of the spear when it comes the new energy market is that the cost per acquisition is low and I have an opportunity to create the lifetime customer value. With so much interest in energy, but with very little information brokers out in the marketplace, the ability to get the most out of your process marketing is wide open at this particular moment. So with the front end wide open, it is critical to find the back end offerings for one main reason. They lead the “longtail ” toward a new niche or alliance. Incidently, if you do view my website, this is just one of a number of sites which I am currently working with and don’t let the amateaur look fool you….SBI is working just fine for that market niche.

    Question #2: ” Why it’s important that you build alliances within your marketplace? ” Answer: In the energy business there are an incredible amount of business units which can be penetrated. Many already have some type of database, but have not been approached from the energy angle. These include utilities, builders, home owners, engineering companies, insulation companies…and the list goes on and on. Each unit can be partnered up with our information system to allow them to educate and sell. It is in fact ability to sell the picks and shovels to the goldminers that is available and looking for a major player to step in and take advantage of the opportunity. Like the Agora model, the opportunity to cross sell the data is enormous.

    One final thought. When I look at all of the current Agora business units…travel, financial, real estate, health, etc….I just have to wonder if energy would be worth their pursuit. I think it would be. Like all the other categories, it is universal in nature and full of many different niche opportunities if it addressed with strategic purpose.

    Rich, keep up the good work and thanks for opening up many of our eyes to the workings of the ” real ” internet. I always wondered what was behind the curtain!

    Regards
    Bill Collins

    Reply
  126. Dear Rich,

    Question #1: ” Summarize why it’s critical that YOUR business has a consistent series of back end offers…” Answer: Because I am in the most powerful business opportunity of all time, that being “energy marketing”. As you discussed in The Final Chapter, the front end can’t be put onto autopilot so you must continue to acquire new customers. The good news about being at the tip of the spear when it comes the new energy market is that the cost per acquisition is low and I have an opportunity to create the lifetime customer value. With so much interest in energy, but with very little information brokers out in the marketplace, the ability to get the most out of your process marketing is wide open at this particular moment. So with the front end wide open, it is critical to find the back end offerings for one main reason. They lead the “longtail ” toward a new niche or alliance. Incidently, if you do view my website, this is just one of a number of sites which I am currently working with and don’t let the amateaur look fool you….SBI is working just fine for that market niche.

    Question #2: ” Why it’s important that you build alliances within your marketplace? ” Answer: In the energy business there are an incredible amount of business units which can be penetrated. Many already have some type of database, but have not been approached from the energy angle. These include utilities, builders, home owners, engineering companies, insulation companies…and the list goes on and on. Each unit can be partnered up with our information system to allow them to educate and sell. It is in fact ability to sell the picks and shovels to the goldminers that is available and looking for a major player to step in and take advantage of the opportunity. Like the Agora model, the opportunity to cross sell the data is enormous.

    One final thought. When I look at all of the current Agora business units…travel, financial, real estate, health, etc….I just have to wonder if energy would be worth their pursuit. I think it would be. Like all the other categories, it is universal in nature and full of many different niche opportunities if it addressed with strategic purpose.

    Rich, keep up the good work and thanks for opening up many of our eyes to the workings of the ” real ” internet. I always wondered what was behind the curtain!

    Regards
    Bill Collins

    Reply
  127. BACK END OFFERS:
    A consistent series of back end offers build relationships. Building relationships is at the foundation of internally cultivating the customer list. The customer list is the biggest asset a business has thus it should be given the most attention when formulating strategies in the attainment of your vision. Relationship building occurs by giving people what they desire. A consistent series of back end offers meets that requirement.
    A consistent series of back end offers is representative of a system. A system eliminates open loops. Open loops are energy, time, and resource vampires. Closing loops facilitates more energy, time, and resources to be allocated to front end activity. This opens up new channels to flow into the back end system which cultivates growth and strength in the customer list. It may have been Emerson who said and I am paraphrasing, “when the mystery is gone so am I.” If you don’t keep the creative juices flowing on the front end you can bet the customer will be going bye bye.

    ALLIANCES
    Alliances are a reflection of the proper mindset, an understanding of what the goal really is…to increase the size of the customer list in your respective industry. If your customer list grows the market grows and if the market grows so do the opportunities for creative expression in the market. Alliances understand that competition is with other markets for the attention and disposable income of the customer not within. From within you have another business putting a comparable amount of value in the cultivation of their customer list. This is something only they can provide making it extremely valuable.

    SYNERGY
    Modifiable factors
    Customer list = Alliances (external) + relationship building (internal)
    Relationship building = sophistication of back end system + creativity of front end activity

    A customer list is facilitated through relationship building (internal) and alliances (external). The business that neglects one of these key factors will ultimately fail while the business that honors these two key factors above all else will thrive. The growth of the customer list is determined by your ability to offer what the customer/potential customer desires, which is determined through the sophistication of your back end system and the creativity of your front end activity.

    Thank you for the opportunity I found great value in exploring this topic further and answering the question Rich.

    Reply
  128. BACK END OFFERS:
    A consistent series of back end offers build relationships. Building relationships is at the foundation of internally cultivating the customer list. The customer list is the biggest asset a business has thus it should be given the most attention when formulating strategies in the attainment of your vision. Relationship building occurs by giving people what they desire. A consistent series of back end offers meets that requirement.
    A consistent series of back end offers is representative of a system. A system eliminates open loops. Open loops are energy, time, and resource vampires. Closing loops facilitates more energy, time, and resources to be allocated to front end activity. This opens up new channels to flow into the back end system which cultivates growth and strength in the customer list. It may have been Emerson who said and I am paraphrasing, “when the mystery is gone so am I.” If you don’t keep the creative juices flowing on the front end you can bet the customer will be going bye bye.

    ALLIANCES
    Alliances are a reflection of the proper mindset, an understanding of what the goal really is…to increase the size of the customer list in your respective industry. If your customer list grows the market grows and if the market grows so do the opportunities for creative expression in the market. Alliances understand that competition is with other markets for the attention and disposable income of the customer not within. From within you have another business putting a comparable amount of value in the cultivation of their customer list. This is something only they can provide making it extremely valuable.

    SYNERGY
    Modifiable factors
    Customer list = Alliances (external) + relationship building (internal)
    Relationship building = sophistication of back end system + creativity of front end activity

    A customer list is facilitated through relationship building (internal) and alliances (external). The business that neglects one of these key factors will ultimately fail while the business that honors these two key factors above all else will thrive. The growth of the customer list is determined by your ability to offer what the customer/potential customer desires, which is determined through the sophistication of your back end system and the creativity of your front end activity.

    Thank you for the opportunity I found great value in exploring this topic further and answering the question Rich.

    Reply
  129. The customers that have the greatest potential value are the ones that are acquired most recently, so it’s essential to keep working the front end, i.e., new business with new clients. The front end is more difficult, faces more competition and requires constant innovation—so it is where you should expend the most effort. Nevertheless, it’s the back end that should become far and away the most profitable part of your business. Your business’ biggest asset is your current client list, and the only way to retain a client is to keep them buying.

    The back end is intended to maximize the profitability of each client relationship. Thus, if you don’t have a relatively small minority of the customers accounting for a large majority of your business profits, it usually means that you don’t have enough back-end vehicles in place. Your best clients are always looking for the “next level” product, and they’ll go to your competitors to get it if they have to. As Elbert Hubbard said, “It’s not what you sell, it’s what else you sell that’s important.”

    One of the best things a small company (or individual) can do is to partner or build alliances with a large company or other like-minded entrepreneurs. Most niche markets are getting smaller through division and therefore the customer universe for each sub-niche becomes more limited. Strategic alliances provide marketers and business owners a way to compensate for the reduction in the available customer universe and keep their pipelines full.

    When you understand advanced marketing strategies AND have access to alliance partners, your business can achieve explosive growth!

    Reply
  130. The customers that have the greatest potential value are the ones that are acquired most recently, so it’s essential to keep working the front end, i.e., new business with new clients. The front end is more difficult, faces more competition and requires constant innovation—so it is where you should expend the most effort. Nevertheless, it’s the back end that should become far and away the most profitable part of your business. Your business’ biggest asset is your current client list, and the only way to retain a client is to keep them buying.

    The back end is intended to maximize the profitability of each client relationship. Thus, if you don’t have a relatively small minority of the customers accounting for a large majority of your business profits, it usually means that you don’t have enough back-end vehicles in place. Your best clients are always looking for the “next level” product, and they’ll go to your competitors to get it if they have to. As Elbert Hubbard said, “It’s not what you sell, it’s what else you sell that’s important.”

    One of the best things a small company (or individual) can do is to partner or build alliances with a large company or other like-minded entrepreneurs. Most niche markets are getting smaller through division and therefore the customer universe for each sub-niche becomes more limited. Strategic alliances provide marketers and business owners a way to compensate for the reduction in the available customer universe and keep their pipelines full.

    When you understand advanced marketing strategies AND have access to alliance partners, your business can achieve explosive growth!

    Reply
  131. Back-end offers are critical to continued nurturing of the client/business relationship. The expense is acquiring the client the first time, with nurturing the relationship will continue to grow past any initial “impulse buys” to a stable, solid footing built on trust.

    Good JV Partners allow you to broaden your client base without the expense of cultivation. Just as a stone thrown into water will create a ripple effect on the entire surface, JV Partners allow you to cast your stone into other ponds, thereby reaching an ever larger base and avoiding saturation of any market.

    Reply
  132. Back-end offers are critical to continued nurturing of the client/business relationship. The expense is acquiring the client the first time, with nurturing the relationship will continue to grow past any initial “impulse buys” to a stable, solid footing built on trust.

    Good JV Partners allow you to broaden your client base without the expense of cultivation. Just as a stone thrown into water will create a ripple effect on the entire surface, JV Partners allow you to cast your stone into other ponds, thereby reaching an ever larger base and avoiding saturation of any market.

    Reply
  133. Why it’s critical that a business have a consistent series of back end offers is because it will keep a website more profitable in the long run, it increases the lifetime customer value and builds a relationship with those customers. It also brings in new customers with effective front end promotions. Finally, you can track your most responsive customers through back end promotions.

    It’s also important to build alliances within your marketplace because it enables you to cross promote products, embark on joint ventures and expand your knowledge base of your market and changes within it. Building alliances give a business more leverage and thus increases profits.

    This mutual relationship with alliances is crucial to success in any market because you can’t take a business to the next level without alliances. It is optimal to have alliances formed of people who have already done what you want to do and know the way. As the saying goes two minds work better than one and thus more gets done.

    Reply
  134. Why it’s critical that a business have a consistent series of back end offers is because it will keep a website more profitable in the long run, it increases the lifetime customer value and builds a relationship with those customers. It also brings in new customers with effective front end promotions. Finally, you can track your most responsive customers through back end promotions.

    It’s also important to build alliances within your marketplace because it enables you to cross promote products, embark on joint ventures and expand your knowledge base of your market and changes within it. Building alliances give a business more leverage and thus increases profits.

    This mutual relationship with alliances is crucial to success in any market because you can’t take a business to the next level without alliances. It is optimal to have alliances formed of people who have already done what you want to do and know the way. As the saying goes two minds work better than one and thus more gets done.

    Reply
  135. Ok, I’ll try this again…

    Hi Rich,

    Back-end sales are the ones you get after having acquired the customer. These sales have the lowest cost of aqcuisition, the highest conversion rates, and produce the real profits. This is the section that produces the 80% from 20%. Getting that 20% is a crap shoot, done in the front-end. If its ignored, then 80% of your potential profits are completely missed.

    Alliances allow a person to sub-specialize into a sub-niche of a sub-market, basically becoming the Great White Shark in a fish bowl. The problem is that with being too specialized, the market base shrinks to a point where the business starves if left by itself. Good alliances allow the allied partners to feed off of each others customer lists, giving highly specific services to each others customers. This in turn increases the customers satisfaction in the specialised products that are purchased, which in turn increases the customers trust in the original referring business. By continually meeting a customers needs in this manner, the alliance keeps out competitiors who cannot afford to specialise because of a lack of affiliation. Each alliance that a business makes allows it to network within a different group of companies, potentially with a completely different array of products and services, thus gaining contact with a much larger demographic diversification than its own advertising could normally meet.

    The two items become more powerful when the back-end potential is leveraged with the alliance partners. Having already made the initial contact and shared it with a group of allies, the company increases its trust within the eyes of the customer by providing high quality links for other services. This reassures the customer about the original purchase and that he is dealing with a good firm, which enables back-end sales to occur not only with the originating firm, but also with the various alliance partners. Thus, it becomes possible for a group of companies to spend once to acquire a customer, sharing that cost, and then leverage back-end sales on a long-term basis for each specific sub-niche as that customer becomes aware of an unfulfilled need. By keeping a customer within a group, that individual stays as a customer for each business for a much longer period of time than otherwise. This further reduces the costs of new customer acquisitions, since that customer doesn’t have to be re-acquired, even if they don’t buy anything for an extended period of time.

    Richard 🙂

    Reply
  136. Ok, I’ll try this again…

    Hi Rich,

    Back-end sales are the ones you get after having acquired the customer. These sales have the lowest cost of aqcuisition, the highest conversion rates, and produce the real profits. This is the section that produces the 80% from 20%. Getting that 20% is a crap shoot, done in the front-end. If its ignored, then 80% of your potential profits are completely missed.

    Alliances allow a person to sub-specialize into a sub-niche of a sub-market, basically becoming the Great White Shark in a fish bowl. The problem is that with being too specialized, the market base shrinks to a point where the business starves if left by itself. Good alliances allow the allied partners to feed off of each others customer lists, giving highly specific services to each others customers. This in turn increases the customers satisfaction in the specialised products that are purchased, which in turn increases the customers trust in the original referring business. By continually meeting a customers needs in this manner, the alliance keeps out competitiors who cannot afford to specialise because of a lack of affiliation. Each alliance that a business makes allows it to network within a different group of companies, potentially with a completely different array of products and services, thus gaining contact with a much larger demographic diversification than its own advertising could normally meet.

    The two items become more powerful when the back-end potential is leveraged with the alliance partners. Having already made the initial contact and shared it with a group of allies, the company increases its trust within the eyes of the customer by providing high quality links for other services. This reassures the customer about the original purchase and that he is dealing with a good firm, which enables back-end sales to occur not only with the originating firm, but also with the various alliance partners. Thus, it becomes possible for a group of companies to spend once to acquire a customer, sharing that cost, and then leverage back-end sales on a long-term basis for each specific sub-niche as that customer becomes aware of an unfulfilled need. By keeping a customer within a group, that individual stays as a customer for each business for a much longer period of time than otherwise. This further reduces the costs of new customer acquisitions, since that customer doesn’t have to be re-acquired, even if they don’t buy anything for an extended period of time.

    Richard 🙂

    Reply
  137. Simple, the back end is where real wealth is acquired. Once a business understands the life time value of a client, it gives that business the advantage of determining what to spend to acquire new clients at break even or a small loss and still make a handsome profit over the buying life of the client. This helps to develop customer loyalty over time and lowers the resistance barriers to future purchases. Done properly and consistantly, enormous profits are realized.

    Building alliances with the marketplace represents a system of leverage. Someone else has already put the sweat wquity and capital into their business and sells to an already predisposed client list. To the extent you can offer goods and services that benefit someone elses client base, and if you know the lifetime value of your current clients, it makes sense to structure deals that create win-win-win relationships. In other words, Company A makes money by providing their clients goods and services at no our of pocket cost to them (all profit), not to mention increased customer loyalty which = long term profits. Company B makes money by having a lower than normal out of pocket acquisition cost for each clinet and huge back end potential plus the added benefit of adding to their list. Finally, the client benefits by being exposed to more value added goods and services.

    Bottom line: back end sales + strong alliances = long term wealth.

    Reply
  138. Simple, the back end is where real wealth is acquired. Once a business understands the life time value of a client, it gives that business the advantage of determining what to spend to acquire new clients at break even or a small loss and still make a handsome profit over the buying life of the client. This helps to develop customer loyalty over time and lowers the resistance barriers to future purchases. Done properly and consistantly, enormous profits are realized.

    Building alliances with the marketplace represents a system of leverage. Someone else has already put the sweat wquity and capital into their business and sells to an already predisposed client list. To the extent you can offer goods and services that benefit someone elses client base, and if you know the lifetime value of your current clients, it makes sense to structure deals that create win-win-win relationships. In other words, Company A makes money by providing their clients goods and services at no our of pocket cost to them (all profit), not to mention increased customer loyalty which = long term profits. Company B makes money by having a lower than normal out of pocket acquisition cost for each clinet and huge back end potential plus the added benefit of adding to their list. Finally, the client benefits by being exposed to more value added goods and services.

    Bottom line: back end sales + strong alliances = long term wealth.

    Reply
  139. The front-end provides the initial sale; the back-end sustains the ongoing business. Alliances fill the funnel with pre-qualified prospects to grow the business.

    Reply
  140. The front-end provides the initial sale; the back-end sustains the ongoing business. Alliances fill the funnel with pre-qualified prospects to grow the business.

    Reply
  141. Dear Rich;
    Why back end sales and strong alliances? It is because it is the way life is. It is the way life works. We expect a date, a deli, a church or synagogue, a teacher, a parent, a guru, or any place or person we look up to–to not only to have more to offer, but also to have solid connections in their own world.

    Hence, we rightfully distrust Johnny one note and we won’t spend much time there. We want to buy from abundance and in an abundant atmosphere. In this sense, life is connection and we
    want its fullness as buyers and
    sellers and colleagues. Back end and strong alliances are ultimately about love and growth.

    I expect a deli to have more to offer and I hope they are learning from Boar’s Head. I expect Jay Abraham to have more to offer and I hope he is learning from Rich Schefren.
    The opposite of this is greed,
    smallness, isolation, arrogance and true poverty. Back ends and strong alliances in my sphere show that I am worthy to get in your Porsche.

    Reply
  142. Dear Rich;
    Why back end sales and strong alliances? It is because it is the way life is. It is the way life works. We expect a date, a deli, a church or synagogue, a teacher, a parent, a guru, or any place or person we look up to–to not only to have more to offer, but also to have solid connections in their own world.

    Hence, we rightfully distrust Johnny one note and we won’t spend much time there. We want to buy from abundance and in an abundant atmosphere. In this sense, life is connection and we
    want its fullness as buyers and
    sellers and colleagues. Back end and strong alliances are ultimately about love and growth.

    I expect a deli to have more to offer and I hope they are learning from Boar’s Head. I expect Jay Abraham to have more to offer and I hope he is learning from Rich Schefren.
    The opposite of this is greed,
    smallness, isolation, arrogance and true poverty. Back ends and strong alliances in my sphere show that I am worthy to get in your Porsche.

    Reply
  143. Re: Rich Shefren,
    (To Be Urgently Considered…)

    Who the hell do I think I am? For the sake of your question Rich, I am going to keep it simple- the way it should be for your answer. Only thing here is, I am going to add a little some’some…

    Seriously, after reading and re-reading EVERYTHING that you have published and over 3 times today from start to buttom your “Final Manifesto”…indeed…

    **DOES NOT HAVE THE ASNWER**…

    But in my opinion by getting to follow and read deep inside in more than words your last chapter, what you want to read/hear for yourself is something like this…

    “Back-End Offer= You Established Trust”— “You Establish Trust= You Get The Glory”…

    $$$Lifetime Value Result If System Set Properly$$$ *?*

    Rich Passive CashCow.

    Not the ordinary answer Rich, consider an airport drive with a guy who has ALMOST seen everything and probably has the same taste as you…

    And you start enriching hundreds if not 1,000’s of Puerto Ricans that desire a better life—

    That’s what you need to read, it’s in my blood. You just got served with my vision and upcoming passion, did my answers helped?

    Thanks from La Isla Bonita,
    Joaquin R.

    Reply
  144. Re: Rich Shefren,
    (To Be Urgently Considered…)

    Who the hell do I think I am? For the sake of your question Rich, I am going to keep it simple- the way it should be for your answer. Only thing here is, I am going to add a little some’some…

    Seriously, after reading and re-reading EVERYTHING that you have published and over 3 times today from start to buttom your “Final Manifesto”…indeed…

    **DOES NOT HAVE THE ASNWER**…

    But in my opinion by getting to follow and read deep inside in more than words your last chapter, what you want to read/hear for yourself is something like this…

    “Back-End Offer= You Established Trust”— “You Establish Trust= You Get The Glory”…

    $$$Lifetime Value Result If System Set Properly$$$ *?*

    Rich Passive CashCow.

    Not the ordinary answer Rich, consider an airport drive with a guy who has ALMOST seen everything and probably has the same taste as you…

    And you start enriching hundreds if not 1,000’s of Puerto Ricans that desire a better life—

    That’s what you need to read, it’s in my blood. You just got served with my vision and upcoming passion, did my answers helped?

    Thanks from La Isla Bonita,
    Joaquin R.

    Reply
  145. backend:

    It’s critical to have constant backend offers as this will be the lifeblood of my business and most importantly…

    Backend basically is a constant relationship that keeps customers, cutomers, and keep them coming back to me instead of looking elsewhere.

    This develop my brand of one, me, and they identify and commit more and more with my message.

    Backend shows me who are my actual customers and it keeps as many previous customers as current customers by constantly have that relationship going and growing,and build trust. The consistent calls to action makes them hyper responsive customers that act and respond to my calls to action, as i teach them to do so through my consistent backend offers and funnel. Through that they develop that response to my message, which is me.

    It keep customers, remove the people “not worth it”, qualify new ones, find who are my important customers that i should spend more time and energy on, and allows me to find out what they want and their interest
    through their actions and behaviors as they go through my backend marketing funnel.

    alliances=
    -tap into new pools of prospects through cross promotion so that business grows.
    (because things are either growing or dying.)

    -solidify my brand of one and foothold in the marketplace by being next to and collaborating with some of the most respected people around.

    – Alliances leads to collaboration on the creation and marketing of more new back end offers. So more backends that are of more value by tapping into each others strenght, that are seen by more eyeballs, thanks to alliances.

    In conclusion about alliances:
    scratch my back + i ll scratch yours = more backends= more and better customers from cross promotion = more jvs(my list is an asset people wanna jv for) = more and better products =more customers= bigger brand of one = bigger foothold in the market ….

    Reply
  146. backend:

    It’s critical to have constant backend offers as this will be the lifeblood of my business and most importantly…

    Backend basically is a constant relationship that keeps customers, cutomers, and keep them coming back to me instead of looking elsewhere.

    This develop my brand of one, me, and they identify and commit more and more with my message.

    Backend shows me who are my actual customers and it keeps as many previous customers as current customers by constantly have that relationship going and growing,and build trust. The consistent calls to action makes them hyper responsive customers that act and respond to my calls to action, as i teach them to do so through my consistent backend offers and funnel. Through that they develop that response to my message, which is me.

    It keep customers, remove the people “not worth it”, qualify new ones, find who are my important customers that i should spend more time and energy on, and allows me to find out what they want and their interest
    through their actions and behaviors as they go through my backend marketing funnel.

    alliances=
    -tap into new pools of prospects through cross promotion so that business grows.
    (because things are either growing or dying.)

    -solidify my brand of one and foothold in the marketplace by being next to and collaborating with some of the most respected people around.

    – Alliances leads to collaboration on the creation and marketing of more new back end offers. So more backends that are of more value by tapping into each others strenght, that are seen by more eyeballs, thanks to alliances.

    In conclusion about alliances:
    scratch my back + i ll scratch yours = more backends= more and better customers from cross promotion = more jvs(my list is an asset people wanna jv for) = more and better products =more customers= bigger brand of one = bigger foothold in the market ….

    Reply
  147. The goal of every marketer is to achieve profit. We arbitrage time and labor over and over with the eye on putting less and less time and labor in play against increasing profit. That being said we aquire customers, ckients, accounts by various mechanisms. This initial acquisition is always the most costly. To mitigate that acqusition cost you need to followup with a backend offer that ads value to your customer and in the process reduces your overall cost of acqusition. With each succesive offer you build trust, a relationship over time with your customer which you should value. The goal is to offer enough backend to an existing base to the ppoint wher your ROI is equilibrium + so that your cost of acqusition is reduced to zero. Once acheived all succesive offers are 100% profit. If your enterprise can achieve a significant percentage of income from an existing base then the the longevity of the enterprise is extended ad infinitum. Now This leads to the next issue of strategic alliances. As a marketer you are hard pressed to provide suitable backend offers over time. I mean even Einstein ran out of ideas or at least got stuck on one. Strategic alliances put you into position to provide backend offers to your base by allowing your Allies to offer there related products services etc. They also have a side effect of giving your offers additional exposure. These are just a few reasons to support the importance of these type of Alliances. The two together spell success. The consistent flow of backend offers to your existing base and the strategic alliances in your marketplace work together for longevity and strength to set a frim foundation for growth and viability.

    Reply
  148. The goal of every marketer is to achieve profit. We arbitrage time and labor over and over with the eye on putting less and less time and labor in play against increasing profit. That being said we aquire customers, ckients, accounts by various mechanisms. This initial acquisition is always the most costly. To mitigate that acqusition cost you need to followup with a backend offer that ads value to your customer and in the process reduces your overall cost of acqusition. With each succesive offer you build trust, a relationship over time with your customer which you should value. The goal is to offer enough backend to an existing base to the ppoint wher your ROI is equilibrium + so that your cost of acqusition is reduced to zero. Once acheived all succesive offers are 100% profit. If your enterprise can achieve a significant percentage of income from an existing base then the the longevity of the enterprise is extended ad infinitum. Now This leads to the next issue of strategic alliances. As a marketer you are hard pressed to provide suitable backend offers over time. I mean even Einstein ran out of ideas or at least got stuck on one. Strategic alliances put you into position to provide backend offers to your base by allowing your Allies to offer there related products services etc. They also have a side effect of giving your offers additional exposure. These are just a few reasons to support the importance of these type of Alliances. The two together spell success. The consistent flow of backend offers to your existing base and the strategic alliances in your marketplace work together for longevity and strength to set a frim foundation for growth and viability.

    Reply
  149. Great Call! I always get a ton of great stuff! – My Summary:

    There is a tremendous amount of “noise” in the marketplace; it crosses all endeavors, products and services. Unfortunately, if you are in a low “noise” zone you are also in a low revenue zone. Mom and pop can live there, however, adapting to earplugs is a side effect of moving up to larger economies. Being sheltered from competition has a counter intuitive quality to it.

    Having multiple options dynamically expands a market. On one side participants fractionate and specialize (the word niche comes to mind). On the other, there is commoditization and economies of scale. Both roads lead to strategic business advantages that support the unique selling position of the company.

    If there are many strong payers in a market, there is a built in advantage of “social proof” that consumers should participate in that market. If market leaders have a policy that is too aggressive regarding “customer jealousy” they inadvertently restrict the ability for the market as a whole to grow. By example, when the computer company Apple was in dire financial straights, before the ipod, Microsoft supported them with millions of dollars so as not to weaken the overall personal computer market.

    There must be recognition on my part as an entrepreneur that the way to cut through the “noise” is by having a quality that differentiates my product or service. At the same time I must embrace my competition as fuel to grow my business. This will be my biggest challenge as new ideas have the burden of creating space as opposed to defending it. Defending space, by law of the universe, is always easier because a frame of reference born from familiarity is always in place. In addition, the fear of scarcity for customers must be resisted as it is without merit, hence, the “noise”.

    Upon success of capturing the interest of a lead, the unwritten rule of marketing 101, that it is always easier to make more money form an existing customer then it is to get a new one will play itself out.

    There is a necessity to execute on the backend because that is the area where the “confidence gap” of your customers is at it lowest and therefore your margin can be at its highest. The sales cycle is also shorted as the desire of the consumer to align themselves with what market represents intensifies.

    Equally important is the need for consistency throughout all your offerings. To vary your product line away from your introduction is to again invite comparison and contrasting views from your competition. This lack of clarity creates a fragile state where you can loose the metal grip you have on your customer as being the obvious choice and reintroduce the “noise”.

    Reply
  150. Great Call! I always get a ton of great stuff! – My Summary:

    There is a tremendous amount of “noise” in the marketplace; it crosses all endeavors, products and services. Unfortunately, if you are in a low “noise” zone you are also in a low revenue zone. Mom and pop can live there, however, adapting to earplugs is a side effect of moving up to larger economies. Being sheltered from competition has a counter intuitive quality to it.

    Having multiple options dynamically expands a market. On one side participants fractionate and specialize (the word niche comes to mind). On the other, there is commoditization and economies of scale. Both roads lead to strategic business advantages that support the unique selling position of the company.

    If there are many strong payers in a market, there is a built in advantage of “social proof” that consumers should participate in that market. If market leaders have a policy that is too aggressive regarding “customer jealousy” they inadvertently restrict the ability for the market as a whole to grow. By example, when the computer company Apple was in dire financial straights, before the ipod, Microsoft supported them with millions of dollars so as not to weaken the overall personal computer market.

    There must be recognition on my part as an entrepreneur that the way to cut through the “noise” is by having a quality that differentiates my product or service. At the same time I must embrace my competition as fuel to grow my business. This will be my biggest challenge as new ideas have the burden of creating space as opposed to defending it. Defending space, by law of the universe, is always easier because a frame of reference born from familiarity is always in place. In addition, the fear of scarcity for customers must be resisted as it is without merit, hence, the “noise”.

    Upon success of capturing the interest of a lead, the unwritten rule of marketing 101, that it is always easier to make more money form an existing customer then it is to get a new one will play itself out.

    There is a necessity to execute on the backend because that is the area where the “confidence gap” of your customers is at it lowest and therefore your margin can be at its highest. The sales cycle is also shorted as the desire of the consumer to align themselves with what market represents intensifies.

    Equally important is the need for consistency throughout all your offerings. To vary your product line away from your introduction is to again invite comparison and contrasting views from your competition. This lack of clarity creates a fragile state where you can loose the metal grip you have on your customer as being the obvious choice and reintroduce the “noise”.

    Reply
  151. The key word for me is “consistency” in your back end. That is, a consistent theme that is like a golden thread through all your marketing. For example, you have a consistent theme in your marketing Rich of giving quality information. If, after experiencing this “quality” I then experience a back end that is trying to take advantage of me the consumer, my perception of you would change. Consistency requires the same theme, with customer centric products at great value – it is the winning trifecta . If I have just purchased on the front end and you give me something “extra” in the back end it is easy for me to say yes twice. If I sense in any way that it is a sales pitch, then I will steer away from the offer

    Strategic Alliance partners are crucial to business success, either off or on line. The glaring difference with online business is that we welcome JV’s with perceived competitors, where we steer away from them in off line businesses. Alliance partners enable us to stand on the shoulders of people who have an equal commitment to growing their business, and yours in the process.

    I am enjoying your work Rich.

    Reply
  152. The key word for me is “consistency” in your back end. That is, a consistent theme that is like a golden thread through all your marketing. For example, you have a consistent theme in your marketing Rich of giving quality information. If, after experiencing this “quality” I then experience a back end that is trying to take advantage of me the consumer, my perception of you would change. Consistency requires the same theme, with customer centric products at great value – it is the winning trifecta . If I have just purchased on the front end and you give me something “extra” in the back end it is easy for me to say yes twice. If I sense in any way that it is a sales pitch, then I will steer away from the offer

    Strategic Alliance partners are crucial to business success, either off or on line. The glaring difference with online business is that we welcome JV’s with perceived competitors, where we steer away from them in off line businesses. Alliance partners enable us to stand on the shoulders of people who have an equal commitment to growing their business, and yours in the process.

    I am enjoying your work Rich.

    Reply
  153. Rich,
    Thank you for the many hours that you have put in to “The Manifesto”. It is, as you say, chuck full of stuff we should have already known. I’m embarrassed I didn’t know, but I am tremendously grateful that you have shared it.
    I now make every effort to fully answer the 2 questions that you asked to be summarized.

    Why is it critical that your business has a consistent series of back end offers?

    Simply put, it is critical to run our businesses like businesses, and not like greedy gold miners crazy opportunists obsessed to stake our claim. As savvy entrepreneurs it is imperative that we have in our business model well planned and thoroughly thought out back end series to offer our customers. Following is a summary of why that is so critically important:

    1. In an attention deficit society it is “critical” to “consistently” deliver on the promises you make to get the potential customer to become an actual customer.
    a. Critical = imperative, your life depends on it, absolutely can’t get by without.
    b. Consistent = on going, diligent, can put trust in, reliable, dependable, credible.
    c. Series = not just one, many, support for the foundation.
    Politicians that make promises and don’t deliver on those promises cannot expect to maintain a strong constituency. Business customers are even more fickle than that – they will loose loyalty faster than you can blink so it is ”critical” to have a “consistent” “series” of backend offers that deliver on the promises made in the front end.
    “Promise big and deliver even bigger – or under promise and over deliver.” I personally like the first – it’s what the attention deficit society is looking for – experts who promise big and deliver even bigger.

    2. Broaden your offerings to more than one sub-divided niche market increasing your horizontal reach. i.e.
    a. Have better relationships (main niche)
    i. With your family (subdivided)
    1. Your spouse (subdivided again)
    2. Your children (subdivided again)
    ii. In your employment/ business (subdivided)
    1. With your boss (subdivided again)
    2. With your coworkers (subdivided again)
    So instead of marketing an offer that dealt only with “How to have better relationships” you can provide quality backend series to each of the subdivided niches.

    3. With out a consistent series of back end offers for your customers you have no way to measure the true lifetime value of a customer, and therefore have no criteria to determine who is still a customer or not. Because you have no way of measuring the true value of your customers then you also have no way of knowing if you are succeeding or failing (if your business is growing or shrinking, nor at what rate it is growing or shrinking). You could be leaving lots of money on the table and not even know it. Once consistent series are put in place then methods to measure success and failure can also be put in place to determine how to maximize\optimize customer lifetime, and minimize attrition of customers.

    4. Your best customers expect the “next level” product from your business. If you do not have a back end series that is consistently delivering to your best customers they will look elsewhere for the “next level” product – you will loose them as your customer. It is “critical” as a business owner to give the customer what they want so that they don’t go looking elsewhere. Some of your best customers will only be on your best customers list for very short time (maybe even only hours) If you have a good back end offer and catch your customer while they are in heat you may be able to lengthen the life of those short lived “best customers”.

    5. A consistent back end allows you to put in place tests, methods, systems that determine the trends and buying steps that lengthen out the true life cycle of your customer. Knowing the successive buying steps also helps you know when your customer is not a customer, or when your customer is getting cold.

    6. Basically – if you do not have a consistent back end series of offers in place your business will soon not be a business, and if it does stay in business it won’t be making the highly successful advances that it could be making if it did have a consistent back end series to offer its true customers.

    Why is it important to build alliances within your marketplace?

    Since 70% of small businesses fail because the owner of the business fails to recognize weaknesses, has lacking skills, and necessary knowledge it is extremely important that strategic alliances are built. The following six reasons illustrate why:

    1. Probably the greatest reason to building alliances is that it is intelligent marketing. A savvy well established business that has already cultivated and pampered a large customer base that is willing to share your offer with them only means that you now have the opportunity of bringing that customer base to desire your product or service – intelligent marketing!

    2. One of the best strategies that a small company should do is to find ways in which they can partner with a larger company in their marketplace, especially if that company is at the top of their game.

    3. CREDIBILITY! Small unknown bands get to “warm up’ the audience for the headliners. Almost every huge name band started that way. They earned credibility and soon became headliners themselves.

    4. Who better to get inside information on all the ins and outs of your marketplace than someone who has been doing it successfully already? Why reinvent the wheel when someone else has already gone to all the trouble and heartache? Learn from them and improve upon what they have already done, but don’t go it alone.

    5. Strategic alliances within your marketplace is a great way to get your back scratched. “You scratch my back and I’ll scratch yours.” Favors, helps, cheats, free information, and top level advice can come in handy and possibly save you from expensive or even detrimental mistakes. No two people are alike – maybe your strengths are what the next guy lacks – and maybe his strengths are just what you need to help you get past the hard spots.

    6. It’s been said, “keep your friends close but keep your enemies closer.” In business it is imperative to know your competition within your market. If you have an alliance within your marketplace with even your strongest competition then you have an in-house spy keeping tabs on what and why your competition is doing. This isn’t to be ruthless or evil it’s just to help you strategize better what you should or shouldn’t do within your marketplace. Remember the best kind of alliances go both ways – so your competition will also know some of your next moves too, that’s OK, but keep your best cards hidden till you are ready to play them – then play them to win.

    Again, thank you for your inspired work. I have been enlightened, and owe you a debt of gratitude. I am hopeful now that I can better plan my business and succeed.

    To your continued success,

    Michael Claridge

    Reply
  154. Rich,
    Thank you for the many hours that you have put in to “The Manifesto”. It is, as you say, chuck full of stuff we should have already known. I’m embarrassed I didn’t know, but I am tremendously grateful that you have shared it.
    I now make every effort to fully answer the 2 questions that you asked to be summarized.

    Why is it critical that your business has a consistent series of back end offers?

    Simply put, it is critical to run our businesses like businesses, and not like greedy gold miners crazy opportunists obsessed to stake our claim. As savvy entrepreneurs it is imperative that we have in our business model well planned and thoroughly thought out back end series to offer our customers. Following is a summary of why that is so critically important:

    1. In an attention deficit society it is “critical” to “consistently” deliver on the promises you make to get the potential customer to become an actual customer.
    a. Critical = imperative, your life depends on it, absolutely can’t get by without.
    b. Consistent = on going, diligent, can put trust in, reliable, dependable, credible.
    c. Series = not just one, many, support for the foundation.
    Politicians that make promises and don’t deliver on those promises cannot expect to maintain a strong constituency. Business customers are even more fickle than that – they will loose loyalty faster than you can blink so it is ”critical” to have a “consistent” “series” of backend offers that deliver on the promises made in the front end.
    “Promise big and deliver even bigger – or under promise and over deliver.” I personally like the first – it’s what the attention deficit society is looking for – experts who promise big and deliver even bigger.

    2. Broaden your offerings to more than one sub-divided niche market increasing your horizontal reach. i.e.
    a. Have better relationships (main niche)
    i. With your family (subdivided)
    1. Your spouse (subdivided again)
    2. Your children (subdivided again)
    ii. In your employment/ business (subdivided)
    1. With your boss (subdivided again)
    2. With your coworkers (subdivided again)
    So instead of marketing an offer that dealt only with “How to have better relationships” you can provide quality backend series to each of the subdivided niches.

    3. With out a consistent series of back end offers for your customers you have no way to measure the true lifetime value of a customer, and therefore have no criteria to determine who is still a customer or not. Because you have no way of measuring the true value of your customers then you also have no way of knowing if you are succeeding or failing (if your business is growing or shrinking, nor at what rate it is growing or shrinking). You could be leaving lots of money on the table and not even know it. Once consistent series are put in place then methods to measure success and failure can also be put in place to determine how to maximize\optimize customer lifetime, and minimize attrition of customers.

    4. Your best customers expect the “next level” product from your business. If you do not have a back end series that is consistently delivering to your best customers they will look elsewhere for the “next level” product – you will loose them as your customer. It is “critical” as a business owner to give the customer what they want so that they don’t go looking elsewhere. Some of your best customers will only be on your best customers list for very short time (maybe even only hours) If you have a good back end offer and catch your customer while they are in heat you may be able to lengthen the life of those short lived “best customers”.

    5. A consistent back end allows you to put in place tests, methods, systems that determine the trends and buying steps that lengthen out the true life cycle of your customer. Knowing the successive buying steps also helps you know when your customer is not a customer, or when your customer is getting cold.

    6. Basically – if you do not have a consistent back end series of offers in place your business will soon not be a business, and if it does stay in business it won’t be making the highly successful advances that it could be making if it did have a consistent back end series to offer its true customers.

    Why is it important to build alliances within your marketplace?

    Since 70% of small businesses fail because the owner of the business fails to recognize weaknesses, has lacking skills, and necessary knowledge it is extremely important that strategic alliances are built. The following six reasons illustrate why:

    1. Probably the greatest reason to building alliances is that it is intelligent marketing. A savvy well established business that has already cultivated and pampered a large customer base that is willing to share your offer with them only means that you now have the opportunity of bringing that customer base to desire your product or service – intelligent marketing!

    2. One of the best strategies that a small company should do is to find ways in which they can partner with a larger company in their marketplace, especially if that company is at the top of their game.

    3. CREDIBILITY! Small unknown bands get to “warm up’ the audience for the headliners. Almost every huge name band started that way. They earned credibility and soon became headliners themselves.

    4. Who better to get inside information on all the ins and outs of your marketplace than someone who has been doing it successfully already? Why reinvent the wheel when someone else has already gone to all the trouble and heartache? Learn from them and improve upon what they have already done, but don’t go it alone.

    5. Strategic alliances within your marketplace is a great way to get your back scratched. “You scratch my back and I’ll scratch yours.” Favors, helps, cheats, free information, and top level advice can come in handy and possibly save you from expensive or even detrimental mistakes. No two people are alike – maybe your strengths are what the next guy lacks – and maybe his strengths are just what you need to help you get past the hard spots.

    6. It’s been said, “keep your friends close but keep your enemies closer.” In business it is imperative to know your competition within your market. If you have an alliance within your marketplace with even your strongest competition then you have an in-house spy keeping tabs on what and why your competition is doing. This isn’t to be ruthless or evil it’s just to help you strategize better what you should or shouldn’t do within your marketplace. Remember the best kind of alliances go both ways – so your competition will also know some of your next moves too, that’s OK, but keep your best cards hidden till you are ready to play them – then play them to win.

    Again, thank you for your inspired work. I have been enlightened, and owe you a debt of gratitude. I am hopeful now that I can better plan my business and succeed.

    To your continued success,

    Michael Claridge

    Reply
  155. In reading the replies, it appears that the most common reason provided for ensuring strong backend and alliances is ego. The language may change: higher profits, increased revenue, the 80/20 principle, cost of acquisition, lifetime value, etc. While the reasons given are valid, they smack of opportunism, which is precisely what Rich has been trying to warn us about.

    Michael Masterson started his interview tonight by saying “Life is about more than just money” and in this Internet game we seem to forget that. While important, money is not the be-all and end-all of our existence.

    The lesson I believe Masterson was trying to get through is that by focusing on these two elements of a business, one creates a leveraged machine. The analogy he used was that of a hamster wheel. Without a robust backend and alliances we end up constantly on the wheel. With these elements in place, the wheel becomes a cog in a larger series of cogs. Specifically, according to Masterson, the effort required to go from a $10m business to a $50m business is less than getting to the first $5m, provided these systems are in place.

    I believe this was the true insider secret, invisible to most outsiders, that he was trying to convey. Since most of us are not insiders, the import of this message was lost on us, and we’ve applied our own reasoning (wealth creation) for ensuring strong backends and alliances.

    Trust this has been helpful in looking at backends, alliances and indeed business in a slightly different light.

    Reply
  156. In reading the replies, it appears that the most common reason provided for ensuring strong backend and alliances is ego. The language may change: higher profits, increased revenue, the 80/20 principle, cost of acquisition, lifetime value, etc. While the reasons given are valid, they smack of opportunism, which is precisely what Rich has been trying to warn us about.

    Michael Masterson started his interview tonight by saying “Life is about more than just money” and in this Internet game we seem to forget that. While important, money is not the be-all and end-all of our existence.

    The lesson I believe Masterson was trying to get through is that by focusing on these two elements of a business, one creates a leveraged machine. The analogy he used was that of a hamster wheel. Without a robust backend and alliances we end up constantly on the wheel. With these elements in place, the wheel becomes a cog in a larger series of cogs. Specifically, according to Masterson, the effort required to go from a $10m business to a $50m business is less than getting to the first $5m, provided these systems are in place.

    I believe this was the true insider secret, invisible to most outsiders, that he was trying to convey. Since most of us are not insiders, the import of this message was lost on us, and we’ve applied our own reasoning (wealth creation) for ensuring strong backends and alliances.

    Trust this has been helpful in looking at backends, alliances and indeed business in a slightly different light.

    Reply
  157. 1. Why is it critical that your business has a consistent series of back end offers?

    Anyone who has been through the stress of planning their wedding can answer this one. Why would you go through all that planning and worry if you just got married and then never saw each other again? OK, the consummation of the marriage on the first night is good fun (the profits from your first product), but a marriage is about building a long-term relationship with your partner (more back end offers!). Ermm, was there a double-entendre there? Sorry, didn’t mean it, just came out that way.

    2. Why it’s important that you build alliances within your marketplace.

    “Keep your friends close, and your enemies closer.” Sun-tzu, Chinese general and military strategist (c.400 BC). Building alliances is one of the smartest ways to turn your competitors into your collaborators. Make peace, not war. It’s more profitable.

    Reply
  158. 1. Why is it critical that your business has a consistent series of back end offers?

    Anyone who has been through the stress of planning their wedding can answer this one. Why would you go through all that planning and worry if you just got married and then never saw each other again? OK, the consummation of the marriage on the first night is good fun (the profits from your first product), but a marriage is about building a long-term relationship with your partner (more back end offers!). Ermm, was there a double-entendre there? Sorry, didn’t mean it, just came out that way.

    2. Why it’s important that you build alliances within your marketplace.

    “Keep your friends close, and your enemies closer.” Sun-tzu, Chinese general and military strategist (c.400 BC). Building alliances is one of the smartest ways to turn your competitors into your collaborators. Make peace, not war. It’s more profitable.

    Reply
  159. A consistent backend is critical because…

    It will dramatically increase the lifetime value of my customer, which is one of the 2 most important metrics.

    Costs me much less and is much easier to sell them compared to what it will cost me to acquire them on the frontend.

    The Backend consists of 5 concepts…

    1. Have clear definitions of who and how many real customers I actually have.

    2. Know my customer life-cycle,

    3. Who are my hottest buyers?

    4. Do I sell these hottest buyers faster

    5. Do I have a workable profit model

    It is critical to build alliances because it could be the single difference that determines my fate.

    Here’s my story.

    I own a direct marketing company, I market a book that has sold over 3 million copies via offline channels…magazine, newspaper, and direct mail. Not doing much online, though

    I know magazine and newspaper advertising, and direct mail postage costs are going up, making it harder and harder to acquire new customers.

    I would be wise to form an alliance with someone on the top of their game in internet marketing to help me branch out.

    That could be the critical difference for my business.

    Reply
  160. A consistent backend is critical because…

    It will dramatically increase the lifetime value of my customer, which is one of the 2 most important metrics.

    Costs me much less and is much easier to sell them compared to what it will cost me to acquire them on the frontend.

    The Backend consists of 5 concepts…

    1. Have clear definitions of who and how many real customers I actually have.

    2. Know my customer life-cycle,

    3. Who are my hottest buyers?

    4. Do I sell these hottest buyers faster

    5. Do I have a workable profit model

    It is critical to build alliances because it could be the single difference that determines my fate.

    Here’s my story.

    I own a direct marketing company, I market a book that has sold over 3 million copies via offline channels…magazine, newspaper, and direct mail. Not doing much online, though

    I know magazine and newspaper advertising, and direct mail postage costs are going up, making it harder and harder to acquire new customers.

    I would be wise to form an alliance with someone on the top of their game in internet marketing to help me branch out.

    That could be the critical difference for my business.

    Reply
  161. Hi Rich,

    I am simply going to respond to this in the context of “The Final Chapter” concepts.

    To summarize why it is imperative to have back end offers in place is many fold, but common sense all the same.

    For these responses I’ll use the map image right from the cover of the report to simplify.

    Your front end customer aquisition is just that. A tool used to covert leads to customers in your respective sales funnel. As mentioned above this is the most difficult and costly part of any business so it requires the most focus.

    Having said that, the back end offers allow your business to keep your customers buying and build solid relationships to further them through the funnel. It also provides a means to filter out those who are no longer truly customers so that the maximum lifetime value can be leveraged from the proper customers.

    Following this model and in direct relation to your report, this falls under the powerful tactics category. If a business does not have a solid back end then clearly there will be sluggish results where results could have been improved exponetially with the right system of backends in place.

    In regards to strategic alliances this is a no brainer. It all pertains to long term growth described in the process map once again. No alliance partners causes a business to stagnate and limit long term growth.

    Every business begins in a market with a potential life cycle and a definite “market reach”.

    Forming alliances within your marketplace accomplishes several things that will take an average business into the model described on page 57 even further.

    Here is why.

    Your alliance partners extend your market reach for that funnel where it otherwise would not have existed. It allows a lowering of customer aquisition costs, new opportunites for back end offers that are congruent with your market and thus leverages more customers.

    Since you begin with a limited reach these alliances create leads where previously it may not have been cost effective to do so.

    The alliances also add further credibility to your business by endorsements from partners.

    Furthermore, with the constant micro-segmentation of any market that you describe, having these partners allows all parties to share and extend the longetivity and profitability of their respective businesses through leverage.

    One final point that should not be overlooked.

    Once this portion of your business is optimized this way, one can have a strong candidate manage and be responsible for that portion of your business.

    This is immensely powerful because now you are free to repeat the process to a different market segment under the same umbrella or even create a new related market and start the process over again causing explosive growth over time (much less time) than the single model could ever produce due to saturation.

    You clearly described Agora’s model being designed in a similar fashion, what more needs to be said?

    That is my view in the context of the questions presented.

    Thanks again Rich, it would be a fantastic opportunity just to engage a mind with your kind of concise and practical genius when it comes to long term strategic business success.

    Kind Regards,

    Jason

    Reply
  162. Hi Rich,

    I am simply going to respond to this in the context of “The Final Chapter” concepts.

    To summarize why it is imperative to have back end offers in place is many fold, but common sense all the same.

    For these responses I’ll use the map image right from the cover of the report to simplify.

    Your front end customer aquisition is just that. A tool used to covert leads to customers in your respective sales funnel. As mentioned above this is the most difficult and costly part of any business so it requires the most focus.

    Having said that, the back end offers allow your business to keep your customers buying and build solid relationships to further them through the funnel. It also provides a means to filter out those who are no longer truly customers so that the maximum lifetime value can be leveraged from the proper customers.

    Following this model and in direct relation to your report, this falls under the powerful tactics category. If a business does not have a solid back end then clearly there will be sluggish results where results could have been improved exponetially with the right system of backends in place.

    In regards to strategic alliances this is a no brainer. It all pertains to long term growth described in the process map once again. No alliance partners causes a business to stagnate and limit long term growth.

    Every business begins in a market with a potential life cycle and a definite “market reach”.

    Forming alliances within your marketplace accomplishes several things that will take an average business into the model described on page 57 even further.

    Here is why.

    Your alliance partners extend your market reach for that funnel where it otherwise would not have existed. It allows a lowering of customer aquisition costs, new opportunites for back end offers that are congruent with your market and thus leverages more customers.

    Since you begin with a limited reach these alliances create leads where previously it may not have been cost effective to do so.

    The alliances also add further credibility to your business by endorsements from partners.

    Furthermore, with the constant micro-segmentation of any market that you describe, having these partners allows all parties to share and extend the longetivity and profitability of their respective businesses through leverage.

    One final point that should not be overlooked.

    Once this portion of your business is optimized this way, one can have a strong candidate manage and be responsible for that portion of your business.

    This is immensely powerful because now you are free to repeat the process to a different market segment under the same umbrella or even create a new related market and start the process over again causing explosive growth over time (much less time) than the single model could ever produce due to saturation.

    You clearly described Agora’s model being designed in a similar fashion, what more needs to be said?

    That is my view in the context of the questions presented.

    Thanks again Rich, it would be a fantastic opportunity just to engage a mind with your kind of concise and practical genius when it comes to long term strategic business success.

    Kind Regards,

    Jason

    Reply
  163. Back-End Sales Strategy

    Why Your Business Needs One

    The most important reason for a Back-End sales strategy is Money. With a good Back-End Sales Strategy your business will make More Money. Without it you are just leaving Money on the table.

    The name of the game is in Internet Marketing is Customer Acquisition and Conversion, attracting the potential new Customer and Converting that Customer into Dollars.

    The Sales Process looks like this:

    Customers > In — Dollars > Out

    Once you go to all the steps for to acquire a new customer, and make the sale, it is essential that you have a Back-End Sales Strategy or Plan in place. While you cannot predict exactly what a customer will buy, when they will by, or how much they will by, there is a good chance that if they bought from you once, they will buy from you again. So when the customer is ready to buy, you had better have something to sell to them.

    When is the best time to offer a Back-End Sale? How about right after the make their first purchase. Why Not, they have their credit card in hand and they are in the buying mood. Offer an upgraded version of your product, or another complimentary product for a few dollars more. Not all of them will take it, but many will, and this means more Sales and more Dollars.

    Now in the Life Cycle of a customer they will buy from you again if you have properly developed your relationship with them and built a trust factor. They know you, they like you, they trust you, they will buy from you again. So you need to have several Back-End products or services in the pipeline available to them.

    Now the Sales Process looks like this:

    Customers > In — Dollars > More Dollars > More Dollars > Out

    This is only a brief summary. To cover the entire Back-End Sales concept could take an entire book. And I’m sure there are books devoted to this. If not, I think I will write one and use it as a Back-End sales product.

    To Your Online Success!

    Steve Renner
    Marketing Director
    http://www.affiliatecommunity.net

    Reply
  164. Back-End Sales Strategy

    Why Your Business Needs One

    The most important reason for a Back-End sales strategy is Money. With a good Back-End Sales Strategy your business will make More Money. Without it you are just leaving Money on the table.

    The name of the game is in Internet Marketing is Customer Acquisition and Conversion, attracting the potential new Customer and Converting that Customer into Dollars.

    The Sales Process looks like this:

    Customers > In — Dollars > Out

    Once you go to all the steps for to acquire a new customer, and make the sale, it is essential that you have a Back-End Sales Strategy or Plan in place. While you cannot predict exactly what a customer will buy, when they will by, or how much they will by, there is a good chance that if they bought from you once, they will buy from you again. So when the customer is ready to buy, you had better have something to sell to them.

    When is the best time to offer a Back-End Sale? How about right after the make their first purchase. Why Not, they have their credit card in hand and they are in the buying mood. Offer an upgraded version of your product, or another complimentary product for a few dollars more. Not all of them will take it, but many will, and this means more Sales and more Dollars.

    Now in the Life Cycle of a customer they will buy from you again if you have properly developed your relationship with them and built a trust factor. They know you, they like you, they trust you, they will buy from you again. So you need to have several Back-End products or services in the pipeline available to them.

    Now the Sales Process looks like this:

    Customers > In — Dollars > More Dollars > More Dollars > Out

    This is only a brief summary. To cover the entire Back-End Sales concept could take an entire book. And I’m sure there are books devoted to this. If not, I think I will write one and use it as a Back-End sales product.

    To Your Online Success!

    Steve Renner
    Marketing Director
    http://www.affiliatecommunity.net

    Reply
  165. Alliances are key to a successful business because many people working for the same goal have a greater force than one. The ideal alliance is one with a shared goal. If you need to get to the other side of the river to make a sale, find three other people who also need to get to the other side of the river. Four people in a boat working together will blow by a competitor who rows alone.

    When you have achieved an initial sale, consistent back end offers are critical to increase profits and further the relationship with the customer. Handled properly back end offers will be viewed as ongoing interest in the customer’s well-being. A good back end offer will reinforce the idea that your company has valuable products and/or services, provide an opportunity for customer feedback AND increase profits. A bad back end process will make the customer sorry that they ever gave contact information to your company. Back end offers strengthen the relationship between the customer and the business, so that both sides profit as much as possible.

    Reply
  166. Alliances are key to a successful business because many people working for the same goal have a greater force than one. The ideal alliance is one with a shared goal. If you need to get to the other side of the river to make a sale, find three other people who also need to get to the other side of the river. Four people in a boat working together will blow by a competitor who rows alone.

    When you have achieved an initial sale, consistent back end offers are critical to increase profits and further the relationship with the customer. Handled properly back end offers will be viewed as ongoing interest in the customer’s well-being. A good back end offer will reinforce the idea that your company has valuable products and/or services, provide an opportunity for customer feedback AND increase profits. A bad back end process will make the customer sorry that they ever gave contact information to your company. Back end offers strengthen the relationship between the customer and the business, so that both sides profit as much as possible.

    Reply
  167. Why is it critical that your business has a consistent series of back end offers

    The ‘front end’ brings clients in. The ‘back end’ offers keep them coming back.
    If you don’t continuously present ‘back end’ offers, you will lose these clients.

    Why is it important that you build alliances within your marketplace.

    Imagine your marketplace as a glass of water. The purchases your clients make from you reduce
    the amount of water in the glass. As you continue to sell, the water level goes
    down and down until there is no water left. The glass is also shrinking unless you are bringing
    in new clients. New products refill the glass and new clients make the glass larger, but you
    still only have this one glass.

    Building an alliance gives you access to other glasses of water. And allowing your alliance
    partners to drink from your glass generates additional income for you.

    Reply
  168. Why is it critical that your business has a consistent series of back end offers

    The ‘front end’ brings clients in. The ‘back end’ offers keep them coming back.
    If you don’t continuously present ‘back end’ offers, you will lose these clients.

    Why is it important that you build alliances within your marketplace.

    Imagine your marketplace as a glass of water. The purchases your clients make from you reduce
    the amount of water in the glass. As you continue to sell, the water level goes
    down and down until there is no water left. The glass is also shrinking unless you are bringing
    in new clients. New products refill the glass and new clients make the glass larger, but you
    still only have this one glass.

    Building an alliance gives you access to other glasses of water. And allowing your alliance
    partners to drink from your glass generates additional income for you.

    Reply
  169. Backend is where the profit lies! It is where the true ROI of your business is realised.

    You need to build alliances within your marketplace because you can’t do it all yourself! Creating synergy allows you to maximise your backend returns thus allowing greater profit.

    Que

    Reply
  170. Backend is where the profit lies! It is where the true ROI of your business is realised.

    You need to build alliances within your marketplace because you can’t do it all yourself! Creating synergy allows you to maximise your backend returns thus allowing greater profit.

    Que

    Reply
  171. Rich, my hero, thank you, thank you, thank you!! The last installment is GREAT, and though I never wrote you about it, I think the Manifesto trio is INCREDIBLE!! I just loved it! The Final Chapter specifically answered several nagging questions I’ve been letting slide (including “How DO I measure customer value?” And yes, I also love that you reliably, but unpatronizingly, busted our chops throughout about really knowing our businesses. Thank you for raising the bar so straightforwardly.)

    I also really liked the two business model slides. The new one is spot on, and I certainly am familiar with some of those final results… yeah. I was thinking hard about why they are similar, and then all of a sudden it occurred to me that they both display what’s not working, or more specifically business “design flaws”. (I bet there’s something even juicier though, and I want to know what it is! 🙂 )

    Well, about those two questions…

    A consistent series of back-end offers is critical because without it I either simply have no customer after that first purchase (eek!) or else I’m offering a hodgepodge that can’t be tracked/measured/analyzed/built upon. I’m still probably losing customers only I have no way of knowing it or of fixing the problem. In both cases I am missing out on gobs o’ dough AND I’m losing customers.

    Wow. This business is bleeding like crazy. Sounds like death is imminent. (Hmm, now I think I’m getting why you asked for our summary. Nothing like having to explain something to really learn it. And having a contest as an incentive to invest a bit more time and thought on these answers… Holy cow–awesome teaching design! You are very smart.)

    The other bit is that when the back-end offers are *consistent*, they generate more money and they free me to devote more energy/resources to getting new customers to feed into the system.

    Alliances are important because niches are getting smaller with specialization, and a small niche is… well, small. With alliances, businesses easily get access to more brain power/experience and lots more customers who are really good prospects because a customer purchasing in one small specialized branch of a niche will often be interested in other related small branches of that niche. Through an alliance they can be exposed to the whole dang tree! Net result: lots of customers buying lots more stuff. All alliance partners learn and profit, and customers get connected to everything–YAY!!

    Thanks again for your generous contribution to the community and for telling it like it is! All the best!
    Liz

    PS: Chris Crompton’s reply was good, and concise!
    PPS: I wanna ride in your Porsche with you! He can join us for lunch… ;-D

    Reply
  172. Rich, my hero, thank you, thank you, thank you!! The last installment is GREAT, and though I never wrote you about it, I think the Manifesto trio is INCREDIBLE!! I just loved it! The Final Chapter specifically answered several nagging questions I’ve been letting slide (including “How DO I measure customer value?” And yes, I also love that you reliably, but unpatronizingly, busted our chops throughout about really knowing our businesses. Thank you for raising the bar so straightforwardly.)

    I also really liked the two business model slides. The new one is spot on, and I certainly am familiar with some of those final results… yeah. I was thinking hard about why they are similar, and then all of a sudden it occurred to me that they both display what’s not working, or more specifically business “design flaws”. (I bet there’s something even juicier though, and I want to know what it is! 🙂 )

    Well, about those two questions…

    A consistent series of back-end offers is critical because without it I either simply have no customer after that first purchase (eek!) or else I’m offering a hodgepodge that can’t be tracked/measured/analyzed/built upon. I’m still probably losing customers only I have no way of knowing it or of fixing the problem. In both cases I am missing out on gobs o’ dough AND I’m losing customers.

    Wow. This business is bleeding like crazy. Sounds like death is imminent. (Hmm, now I think I’m getting why you asked for our summary. Nothing like having to explain something to really learn it. And having a contest as an incentive to invest a bit more time and thought on these answers… Holy cow–awesome teaching design! You are very smart.)

    The other bit is that when the back-end offers are *consistent*, they generate more money and they free me to devote more energy/resources to getting new customers to feed into the system.

    Alliances are important because niches are getting smaller with specialization, and a small niche is… well, small. With alliances, businesses easily get access to more brain power/experience and lots more customers who are really good prospects because a customer purchasing in one small specialized branch of a niche will often be interested in other related small branches of that niche. Through an alliance they can be exposed to the whole dang tree! Net result: lots of customers buying lots more stuff. All alliance partners learn and profit, and customers get connected to everything–YAY!!

    Thanks again for your generous contribution to the community and for telling it like it is! All the best!
    Liz

    PS: Chris Crompton’s reply was good, and concise!
    PPS: I wanna ride in your Porsche with you! He can join us for lunch… ;-D

    Reply
  173. For me the whole concept of back-end offers and JV partners builds my business in two meaningful ways:
    1. I consistently build my relationship with my clients by giving them what they want, how they want it, when they want it. Both Dabblers and Divers will feel their needs met in a way that furthers our relationship.

    2)I consistently build my revenue stream by leveraging JV’s and strategic alliances who bring their good recommendations, products and relationships to the table.

    All of this means less stress and labor for me, yet continues to build on my business priorities: relationships and cashflow.

    That’s my interpretation for my business. Thanks so much for the insight!

    Sarah

    Reply
  174. For me the whole concept of back-end offers and JV partners builds my business in two meaningful ways:
    1. I consistently build my relationship with my clients by giving them what they want, how they want it, when they want it. Both Dabblers and Divers will feel their needs met in a way that furthers our relationship.

    2)I consistently build my revenue stream by leveraging JV’s and strategic alliances who bring their good recommendations, products and relationships to the table.

    All of this means less stress and labor for me, yet continues to build on my business priorities: relationships and cashflow.

    That’s my interpretation for my business. Thanks so much for the insight!

    Sarah

    Reply
  175. Back-End offers are absolutely crucial if my small businesses plan to compete in any market where there are established online competition.

    I’ll use pay-per-click advertising as an example. One of my businesses is in the golf industry. For a particular product, I would like to appear in the top 4 for Google. However, the prices appear to be absolutely insane! There is nobody that can make a profit with the best copywriting for both ads and content, right?

    Right… but I’m looking at the wrong thing. What they are paying for up front (hopefully) is a lifetime stream of earnings, like one would pay for an annuity.

    These backend sales also provide the revenue by which I can optimize my sales processes at much higher rates of improvement than my competition. This provides exponential results that slowly squeeze out competition that does not follow in my footsteps.

    In theory I know these things. My issues are knowing the best steps to put them into practice, and having the wisdom to set up systems so tasks will be completed in the right order at the right time. That… is where I need a mentor. Or at least an afternoon with one who has come back of the mountain victorious.

    Reply
  176. Back-End offers are absolutely crucial if my small businesses plan to compete in any market where there are established online competition.

    I’ll use pay-per-click advertising as an example. One of my businesses is in the golf industry. For a particular product, I would like to appear in the top 4 for Google. However, the prices appear to be absolutely insane! There is nobody that can make a profit with the best copywriting for both ads and content, right?

    Right… but I’m looking at the wrong thing. What they are paying for up front (hopefully) is a lifetime stream of earnings, like one would pay for an annuity.

    These backend sales also provide the revenue by which I can optimize my sales processes at much higher rates of improvement than my competition. This provides exponential results that slowly squeeze out competition that does not follow in my footsteps.

    In theory I know these things. My issues are knowing the best steps to put them into practice, and having the wisdom to set up systems so tasks will be completed in the right order at the right time. That… is where I need a mentor. Or at least an afternoon with one who has come back of the mountain victorious.

    Reply
  177. Consistently cultivating a series of back ends means that you create a continium process of opportunity to create and expand new alliances and joint ventures.
    You are serving others by providing them a mechanism/platform to promote their products and services – thus ensuring an organically expanding system, supported by reciprocation of gratitude on part of your ever-growing team of alliance partners.

    Reply
  178. Consistently cultivating a series of back ends means that you create a continium process of opportunity to create and expand new alliances and joint ventures.
    You are serving others by providing them a mechanism/platform to promote their products and services – thus ensuring an organically expanding system, supported by reciprocation of gratitude on part of your ever-growing team of alliance partners.

    Reply
  179. 1.) Click “Comment” Below

    2.) Summarize why it’s critical that your business has a consistent series of back end offers and why it’s important that you build alliances within your marketplace.

    Answer: Read “The Final Chapter”

    Reply
  180. 1.) Click “Comment” Below

    2.) Summarize why it’s critical that your business has a consistent series of back end offers and why it’s important that you build alliances within your marketplace.

    Answer: Read “The Final Chapter”

    Reply
  181. It’s critical that your business has a consistent series of back end offers, because back-end offers are what your customer wants. If you don’t give your customer what they want, they will go elsewhere and your business will never come close to reaching it’s full potential.

    It’s important that you build alliances within your marketplace, because alliances give you access to many more potential customers. Without alliances you limit your customer base to the customers you can aquire, rather than leveraging the customers that your alliances can aquire.

    Reply
  182. It’s critical that your business has a consistent series of back end offers, because back-end offers are what your customer wants. If you don’t give your customer what they want, they will go elsewhere and your business will never come close to reaching it’s full potential.

    It’s important that you build alliances within your marketplace, because alliances give you access to many more potential customers. Without alliances you limit your customer base to the customers you can aquire, rather than leveraging the customers that your alliances can aquire.

    Reply
  183. My writing and editing business is brand new. I’m on the cusp of a great book editing contract, where I’ll meet some exciting names in the business world. I know little about creating back-end products and I have far to go. But I’m going. I’m going as far as I can go, which to me is immeasurably far. Also, I’m a quick study and will maximize your counseling immediately.

    Reply
  184. My writing and editing business is brand new. I’m on the cusp of a great book editing contract, where I’ll meet some exciting names in the business world. I know little about creating back-end products and I have far to go. But I’m going. I’m going as far as I can go, which to me is immeasurably far. Also, I’m a quick study and will maximize your counseling immediately.

    Reply
  185. Hello Rich.
    After reading the answers to your questions from all that are listed here, the answers are mostly the same. We all know that back end is needed and why.
    Is the first product anygood? Will it lead to the backend treasure chest? That means for the client and seller. The product should be for world wide use. A product that improves the way people live,that can increase there standard of living by just having the product. Improve there bottom line by the total value of the product. The J.V. value of the back-end of this New product World Wide should be beyond Microsoft, Nike, Ford, GE, and many others. That is what a Back-end value should be. A person has to be able to see the forest, beyond the trees in life.
    I am 71 years young, Age is a number that does not matter. Life is what you keep on seeing.
    I have listen to Agora and M.M. for 15 years as a lifetime member of O.Club and others. It has been fun.

    Reply
  186. Hello Rich.
    After reading the answers to your questions from all that are listed here, the answers are mostly the same. We all know that back end is needed and why.
    Is the first product anygood? Will it lead to the backend treasure chest? That means for the client and seller. The product should be for world wide use. A product that improves the way people live,that can increase there standard of living by just having the product. Improve there bottom line by the total value of the product. The J.V. value of the back-end of this New product World Wide should be beyond Microsoft, Nike, Ford, GE, and many others. That is what a Back-end value should be. A person has to be able to see the forest, beyond the trees in life.
    I am 71 years young, Age is a number that does not matter. Life is what you keep on seeing.
    I have listen to Agora and M.M. for 15 years as a lifetime member of O.Club and others. It has been fun.

    Reply
  187. Hello Rich.
    After reading the answers to your questions from all that are listed here, the answers are mostly the same. We all know that back end is needed and why.
    Is the first product anygood? Will it lead to the backend treasure chest? That means for the client and seller. The product should be for world wide use. A product that improves the way people live,that can increase there standard of living by just having the product. Improve there bottom line by the total value of the product. The J.V. value of the back-end of this New product World Wide should be beyond Microsoft, Nike, Ford, GE, and many others. That is what a Back-end value should be. A person has to be able to see the forest, beyond the trees in life.
    I am 71 years young, Age is a number that does not matter. Life is what you keep on seeing.
    I have listen to Agora and M.M. for 15 years as a lifetime member of O.Club and others. It has been fun.

    Reply
  188. I hit the wrong key and sent out my comment without corrections. I hope you can get by those mistakes.
    Best to all and I hope everyone that goes to meet with Agora gets everything they need and want. I do not see how it will not happen for everyone.
    Larry

    Reply
  189. I hit the wrong key and sent out my comment without corrections. I hope you can get by those mistakes.
    Best to all and I hope everyone that goes to meet with Agora gets everything they need and want. I do not see how it will not happen for everyone.
    Larry

    Reply
  190. Why consistent series backends?

    Four reasons:
    1) Profit and cashflow is earned on the backend.
    2) Equally important is the continual, procedural qualification of customers that results from consistent offers.
    3) And perhaps most important, the consistent series of back end offers best facilitates determination of the lifetime value of a customer…which drives the amount of money a business builder should be willing to spend on the front end. Always spending less, but willing to spend what seems exhorbitant, knowing that you’ll more than make up the front end expense on the back end and alliance revenue.
    4) Lastly, having consistency in the backend enables teh business builder to focus energies and resources on the front end and alliances.

    Alliances reduce your front end customer acquisition costs, provide products/services to offer on your back end (where you share in the revenue), and give you high margin channels to sell your portfolio of producst services through. Basically, alliances convert non-alliance front-end costs into revenue for the alliance.

    Reply
  191. Why consistent series backends?

    Four reasons:
    1) Profit and cashflow is earned on the backend.
    2) Equally important is the continual, procedural qualification of customers that results from consistent offers.
    3) And perhaps most important, the consistent series of back end offers best facilitates determination of the lifetime value of a customer…which drives the amount of money a business builder should be willing to spend on the front end. Always spending less, but willing to spend what seems exhorbitant, knowing that you’ll more than make up the front end expense on the back end and alliance revenue.
    4) Lastly, having consistency in the backend enables teh business builder to focus energies and resources on the front end and alliances.

    Alliances reduce your front end customer acquisition costs, provide products/services to offer on your back end (where you share in the revenue), and give you high margin channels to sell your portfolio of producst services through. Basically, alliances convert non-alliance front-end costs into revenue for the alliance.

    Reply
  192. Rich,

    A business will suck without a series of systemized backend offers. There are a number of reasons why. First, a systemized backend means a business owner can focus his time and energy on the front-end and bring more customers into the pool. Second, a systemized backend means a business owner can categorize his customers into differenet categories easily and give them each offers most pertinent to them. That’s one way to get more even out of your low-end customers. Third, a systemized backend means more profits all around. Fourth, you’ll have much happier customers because they are each gettting a buying experience tailored to them. They see the products they want to buy, and they can buy until their cravings for your products are quinched-which may be never. And fifth, it just makes life easier. You know where your customer are going, your businesses is on autopilot, and you can use your energy to grow your business instead of keep up with business.

    Now, about those alliances. Never has anything of great worth been accomplished in this world from the efforts of one man alone. Why wouldn’t you work with other businesses and their customer lists to leverage the growth of your business. It’s cheaper, you’ll reach a highly targeted market, you will borrow credibility from the business you are in an alliance with, and accelerate your own growth. The best part is, after you grow your customer list to a modest size, you can do the same for others. It all stems from the abundance mentality. The more everyone around you has, the more you can have. If a few people come together to make the economy good, everyone benefits.

    Just some thoughts I had as I read through the Final Chapter.

    Reply
  193. Rich,

    A business will suck without a series of systemized backend offers. There are a number of reasons why. First, a systemized backend means a business owner can focus his time and energy on the front-end and bring more customers into the pool. Second, a systemized backend means a business owner can categorize his customers into differenet categories easily and give them each offers most pertinent to them. That’s one way to get more even out of your low-end customers. Third, a systemized backend means more profits all around. Fourth, you’ll have much happier customers because they are each gettting a buying experience tailored to them. They see the products they want to buy, and they can buy until their cravings for your products are quinched-which may be never. And fifth, it just makes life easier. You know where your customer are going, your businesses is on autopilot, and you can use your energy to grow your business instead of keep up with business.

    Now, about those alliances. Never has anything of great worth been accomplished in this world from the efforts of one man alone. Why wouldn’t you work with other businesses and their customer lists to leverage the growth of your business. It’s cheaper, you’ll reach a highly targeted market, you will borrow credibility from the business you are in an alliance with, and accelerate your own growth. The best part is, after you grow your customer list to a modest size, you can do the same for others. It all stems from the abundance mentality. The more everyone around you has, the more you can have. If a few people come together to make the economy good, everyone benefits.

    Just some thoughts I had as I read through the Final Chapter.

    Reply
  194. Alliances are key to a successful business because many people working together have a greater force than one. The ideal alliance is one with a shared goal. If you need to get to the other side of the river to make a sale, find three other people who also need to get to the other side of the river. Four people in a boat working together will blow by a competitor who rows alone.

    When you have achieved an initial sale, consistent back end offers are critical to increase profits and further the relationship with the customer. Handled properly back end offers will be viewed as ongoing interest in the customer’s well-being. A good back end offer will reinforce the idea that your company has valuable products and/or services, provide an opportunity for customer feedback AND increase profits. A bad back end process will make the customer sorry that they ever gave contact information to your company. Back end offers strengthen the relationship between the customer and the business, so that both sides profit.

    Reply
  195. Alliances are key to a successful business because many people working together have a greater force than one. The ideal alliance is one with a shared goal. If you need to get to the other side of the river to make a sale, find three other people who also need to get to the other side of the river. Four people in a boat working together will blow by a competitor who rows alone.

    When you have achieved an initial sale, consistent back end offers are critical to increase profits and further the relationship with the customer. Handled properly back end offers will be viewed as ongoing interest in the customer’s well-being. A good back end offer will reinforce the idea that your company has valuable products and/or services, provide an opportunity for customer feedback AND increase profits. A bad back end process will make the customer sorry that they ever gave contact information to your company. Back end offers strengthen the relationship between the customer and the business, so that both sides profit.

    Reply
  196. Hi Rich,

    I was starting up my first business on the internet and I was a complete rookie to the internet marketing scene. I was all over the place doing everything and anything at the same time. Yes, I was really taking the plunge! And my God there where so much to learn! And then by the grace of God or however (thank you for all these list I subscribed to!) I came across your Internet Business Manifesto and The Missing Chapter. Smack! I was hit hard between the eyes. Here I was, the living example of what you where writing about.
    ‘Back then’ I didn’t even now what a back end was (well except my own of course).

    It fundamentally changed my whole outlook then and there. I didn’t do anything for two days except trying to comprehend what was written in these chapters and how to use this knowledge in my business.

    I now have a mentor that helps and guides me on this exciting and rocky journey. I have totally shifted focus from having a lot of nice markets all over the place. To having a core business from which I will expand side businesses who will integrate and support the core business. What a difference some chapters can have. But don’t fool your self to think this is easy. You have to be able to take a hard look at yourself and change. And this is never easy. On the contrary it is one of the hardest things there is.

    And yes, now I know what a back end is and how important these offers are.
    And the beauty of it all is that you can use all the different back ends from your side businesses to multiply the effect on your core business. Thereby supporting both the core and themselves.

    Regarding alliances it’s really very simple that’s why it’s probably so hard.
    I could use a lot of buzz words and all the jargon in this field but I will not. I will just say this: what it comes down to is leverage.

    If I grow and my competition does not – it’s OK but it also means that our market segment is not expanding as much as it could. And consequently if my competition grows and I am stagnating the market is not growing as much as it could.
    But if I grow and they grow and we help each other grow together then you really have a win win situation for all parties.
    If this seems idyllic it’s not. You are competing as much as you can and as hard as you can.
    But that does not have to mean that you throw common business sense out the door. If there are mechanisms out there that helps me and my competition to be winners together you should use it. It would be foolish otherwise!

    Reply
  197. Hi Rich,

    I was starting up my first business on the internet and I was a complete rookie to the internet marketing scene. I was all over the place doing everything and anything at the same time. Yes, I was really taking the plunge! And my God there where so much to learn! And then by the grace of God or however (thank you for all these list I subscribed to!) I came across your Internet Business Manifesto and The Missing Chapter. Smack! I was hit hard between the eyes. Here I was, the living example of what you where writing about.
    ‘Back then’ I didn’t even now what a back end was (well except my own of course).

    It fundamentally changed my whole outlook then and there. I didn’t do anything for two days except trying to comprehend what was written in these chapters and how to use this knowledge in my business.

    I now have a mentor that helps and guides me on this exciting and rocky journey. I have totally shifted focus from having a lot of nice markets all over the place. To having a core business from which I will expand side businesses who will integrate and support the core business. What a difference some chapters can have. But don’t fool your self to think this is easy. You have to be able to take a hard look at yourself and change. And this is never easy. On the contrary it is one of the hardest things there is.

    And yes, now I know what a back end is and how important these offers are.
    And the beauty of it all is that you can use all the different back ends from your side businesses to multiply the effect on your core business. Thereby supporting both the core and themselves.

    Regarding alliances it’s really very simple that’s why it’s probably so hard.
    I could use a lot of buzz words and all the jargon in this field but I will not. I will just say this: what it comes down to is leverage.

    If I grow and my competition does not – it’s OK but it also means that our market segment is not expanding as much as it could. And consequently if my competition grows and I am stagnating the market is not growing as much as it could.
    But if I grow and they grow and we help each other grow together then you really have a win win situation for all parties.
    If this seems idyllic it’s not. You are competing as much as you can and as hard as you can.
    But that does not have to mean that you throw common business sense out the door. If there are mechanisms out there that helps me and my competition to be winners together you should use it. It would be foolish otherwise!

    Reply
  198. For the first time in a few years I feel like I’m back at the exam table. Oh well, couldn’t resist this one and I’m bored (as usual), so here’s my effort…

    I’ll take the question as it comes, so firstly the part “…why it’s critical that your business has a consistent series of back end offers…”.

    In nearly all ‘direct-response’ businesses, there’s a cost to acquire a customer – or if there isn’t a ‘cost to acquire’ then there is very little profit in actually make the first sale to a brand-new customer. The reason is simple. The ‘marketing cost’ of selling to someone who’s never heard from you is exorbitant…and probably rising (and that’s particularly so as competition increases online and offline – as Rich points out). A ‘new customer’/prospect will (probably) never have heard of you…won’t trust you as readily as someone whose business they already patronise.

    You have to ‘cull out’ the interested from the disinterested in the mass of people you’re talking to when you market to them ‘cold’. Even in direct-mail, not everyone will be interested in YOUR particular offer, particularly as niches segment (I’m getting to this – since it also relates to the second part of the question about alliances).

    Couple this with a lack of trust with an aversion to the ever-increasing number of adverts that hit us (and never-ending number of ways marketers can reach their target audience) and the fact they you’re probably fishing for ideal prospects in a sea of not-very-interested prospects…and you’ve got a prescription for a ‘cost to acquire’ a brand-new customer…

    Given the fact that it’s either a) cost us money to acquire a customer or b) not cost us money, but not made us very much either, then we need to think about making money from the customers we HAVE acquired…and we do this through back-end marketing. In other words, selling existing customers ‘something else’. Now, of course, we have a new customer who we know is a) interested, b) more likely to trust us (especially if we’ve delivered on our initial promise!) and c) we know more about, so can more closely match our offers to and – OK, one more – d) is more likely to ‘confirm’ his original purchase decision by buying something else along similar lines. Rich hinted at this with his conversation with Porter Stansberry and ‘emotional wants’ not being fulfilled.

    So, we now have a more interested audience, more willing to trust us – and, since we now ‘own’ these customers, our marketing expense to sell them an additional product is much lower than it was originally… and we can probably more precisely match our offer to our target audience. That’s why we want to hit them with a ‘consistent series of back ends…’…to take full profit advantage of what we’ve got: a customer base that trusts us, that we can sell to at a much lower marketing cost – and which will respond with much greater response in %/$ terms.

    As we ‘drill down’ into this list, our response is likely to increase even further. So, of the 150 who buy the first product, 30 may buy our next offer. Of those, if we offer an additional product (preferably at an even higher cost) then the response in terms of $/letter mailed will be even higher. Our ROI keeps increasing! Our costs are coming down…our profit % increasing…our response increasing too.

    Buy why a ‘consistent’ series of back ends? Well, not every back-end product will appeal to every customer…so we need a mix-and-match approach that takes advantages of the (still diverse, but not diverse as the original pool) wants/needs of our new customer base. So offers on different topics, at differing prices points…but still in tune with our original offer. That’s they key. Those ‘consistent’ promotions of course, can be tested…tested in terms of time (who gets what, when) and the nature (e.g try the highest priced first, then knock the price down, and down again). This is maximising the value of the customer…a necessary fact given what I said a few paragraphs…and especially important as competition increases, and the cost-to-acquire increases too.

    Of course, all this ‘back end’ marketing is great. But to get to the back end, you’ve got to start with a front-end first…

    And that brings me onto alliances.

    As Rich points out, niche sub-divide over time. And this is particularly so on the Web, since there are so many ‘micro-niches’ that can (now) be profitably sold to. Previously, it was more difficult to sell to micro-niche markets. Not so anymore. And that means there’s now something super-specific for whatever you’re interested in…

    Interested in getting better at martial arts? Well, you can learn mixed martial-arts, traditional (e.g. Karate), self-defence, reality-based self-defence…and even then you’ve got sub-divisions within those markets. To get maximum response from your overall universe, you’d need MULTIPLE front-ends to gather the most amount of customers to generate maximum sales from your ‘consistent series of back ends’ (the first point)…but you probably won’t be able to do that. You’d need about 30 front-ends to generate maximum response from this particular market, because you want to be matching exactly what you’ve got with exactly what a ‘new customer’ wants (in the previous example, maybe that’s mixed-martial arts training, fitness training for martial arts, ‘Kata’ training…or anything else!). As Rich stresses…this is the ‘problem’ of online – and also the opportunity…

    And these are the reasons why you form alliances.

    When you form an ‘alliance’, you effectively take advantage of other people’s FRONT-ENDS…and the trust they’ve already built up amongst their customer base. In effect, your alliance partners become your ‘other FRONT-ENDS’…and you become THEIR front-end, too! So let’s say you are in the ‘make money’ market: the guy with the property course becomes your partner. But you sell online opportunity. You become his partner…you sell his, he sells yours…because you know that you would never reach out to every possible prospect on your own…with your own offers…especially as we get ‘more specific in what we want’.

    In effect, you become competitive-collaborators…and as Rich points out, your universe actually expands. You both make more money, not less. Your hitting more customers you’d probably never otherwise reach. It works very well.

    (Additionally, although it’s not a strict ‘alliance’, if competitors of yours simply rent their own mailing lists, then this makes things a lot easier. I call this a ‘semi-alliance’. Why? Because you’ve got an audience you can talk to…interested parties that you know will be interested in your offer. In my own business, it’s far easier to market one line of our products than it is another line (and I won’t reveal the exact divisions) – because one side has a universe of mailable names…and plenty of alliance partners. The other ‘division’ has no mailing lists, and a couple of potential alliance partners. As such, we have had to rely on space advertising to build a database – which is the longer way.)

    One more thing…

    I seriously considered forming an ‘alliance’ of my own for THIS ‘project’. In other words, get a friend of mine to compile HIS best answer too…and then we’d both submit answers, and split the prize (if allowed). The reason is simple. Two potential ‘front-ends’ are more likely to get a hook into the judge of this competition…just as two front-ends in any marketing/sales environment are almost certainly better than one…because the more you have, the more likely you are to hook a customer – or, in this case, a marketing guru.

    Alas, he’s almost certainly too busy to write…so this solo response (my one) will have to do.

    (Enjoyed writing it actually – could have carried on, but thought this was more than enough waffle!)

    Reply
  199. For the first time in a few years I feel like I’m back at the exam table. Oh well, couldn’t resist this one and I’m bored (as usual), so here’s my effort…

    I’ll take the question as it comes, so firstly the part “…why it’s critical that your business has a consistent series of back end offers…”.

    In nearly all ‘direct-response’ businesses, there’s a cost to acquire a customer – or if there isn’t a ‘cost to acquire’ then there is very little profit in actually make the first sale to a brand-new customer. The reason is simple. The ‘marketing cost’ of selling to someone who’s never heard from you is exorbitant…and probably rising (and that’s particularly so as competition increases online and offline – as Rich points out). A ‘new customer’/prospect will (probably) never have heard of you…won’t trust you as readily as someone whose business they already patronise.

    You have to ‘cull out’ the interested from the disinterested in the mass of people you’re talking to when you market to them ‘cold’. Even in direct-mail, not everyone will be interested in YOUR particular offer, particularly as niches segment (I’m getting to this – since it also relates to the second part of the question about alliances).

    Couple this with a lack of trust with an aversion to the ever-increasing number of adverts that hit us (and never-ending number of ways marketers can reach their target audience) and the fact they you’re probably fishing for ideal prospects in a sea of not-very-interested prospects…and you’ve got a prescription for a ‘cost to acquire’ a brand-new customer…

    Given the fact that it’s either a) cost us money to acquire a customer or b) not cost us money, but not made us very much either, then we need to think about making money from the customers we HAVE acquired…and we do this through back-end marketing. In other words, selling existing customers ‘something else’. Now, of course, we have a new customer who we know is a) interested, b) more likely to trust us (especially if we’ve delivered on our initial promise!) and c) we know more about, so can more closely match our offers to and – OK, one more – d) is more likely to ‘confirm’ his original purchase decision by buying something else along similar lines. Rich hinted at this with his conversation with Porter Stansberry and ‘emotional wants’ not being fulfilled.

    So, we now have a more interested audience, more willing to trust us – and, since we now ‘own’ these customers, our marketing expense to sell them an additional product is much lower than it was originally… and we can probably more precisely match our offer to our target audience. That’s why we want to hit them with a ‘consistent series of back ends…’…to take full profit advantage of what we’ve got: a customer base that trusts us, that we can sell to at a much lower marketing cost – and which will respond with much greater response in %/$ terms.

    As we ‘drill down’ into this list, our response is likely to increase even further. So, of the 150 who buy the first product, 30 may buy our next offer. Of those, if we offer an additional product (preferably at an even higher cost) then the response in terms of $/letter mailed will be even higher. Our ROI keeps increasing! Our costs are coming down…our profit % increasing…our response increasing too.

    Buy why a ‘consistent’ series of back ends? Well, not every back-end product will appeal to every customer…so we need a mix-and-match approach that takes advantages of the (still diverse, but not diverse as the original pool) wants/needs of our new customer base. So offers on different topics, at differing prices points…but still in tune with our original offer. That’s they key. Those ‘consistent’ promotions of course, can be tested…tested in terms of time (who gets what, when) and the nature (e.g try the highest priced first, then knock the price down, and down again). This is maximising the value of the customer…a necessary fact given what I said a few paragraphs…and especially important as competition increases, and the cost-to-acquire increases too.

    Of course, all this ‘back end’ marketing is great. But to get to the back end, you’ve got to start with a front-end first…

    And that brings me onto alliances.

    As Rich points out, niche sub-divide over time. And this is particularly so on the Web, since there are so many ‘micro-niches’ that can (now) be profitably sold to. Previously, it was more difficult to sell to micro-niche markets. Not so anymore. And that means there’s now something super-specific for whatever you’re interested in…

    Interested in getting better at martial arts? Well, you can learn mixed martial-arts, traditional (e.g. Karate), self-defence, reality-based self-defence…and even then you’ve got sub-divisions within those markets. To get maximum response from your overall universe, you’d need MULTIPLE front-ends to gather the most amount of customers to generate maximum sales from your ‘consistent series of back ends’ (the first point)…but you probably won’t be able to do that. You’d need about 30 front-ends to generate maximum response from this particular market, because you want to be matching exactly what you’ve got with exactly what a ‘new customer’ wants (in the previous example, maybe that’s mixed-martial arts training, fitness training for martial arts, ‘Kata’ training…or anything else!). As Rich stresses…this is the ‘problem’ of online – and also the opportunity…

    And these are the reasons why you form alliances.

    When you form an ‘alliance’, you effectively take advantage of other people’s FRONT-ENDS…and the trust they’ve already built up amongst their customer base. In effect, your alliance partners become your ‘other FRONT-ENDS’…and you become THEIR front-end, too! So let’s say you are in the ‘make money’ market: the guy with the property course becomes your partner. But you sell online opportunity. You become his partner…you sell his, he sells yours…because you know that you would never reach out to every possible prospect on your own…with your own offers…especially as we get ‘more specific in what we want’.

    In effect, you become competitive-collaborators…and as Rich points out, your universe actually expands. You both make more money, not less. Your hitting more customers you’d probably never otherwise reach. It works very well.

    (Additionally, although it’s not a strict ‘alliance’, if competitors of yours simply rent their own mailing lists, then this makes things a lot easier. I call this a ‘semi-alliance’. Why? Because you’ve got an audience you can talk to…interested parties that you know will be interested in your offer. In my own business, it’s far easier to market one line of our products than it is another line (and I won’t reveal the exact divisions) – because one side has a universe of mailable names…and plenty of alliance partners. The other ‘division’ has no mailing lists, and a couple of potential alliance partners. As such, we have had to rely on space advertising to build a database – which is the longer way.)

    One more thing…

    I seriously considered forming an ‘alliance’ of my own for THIS ‘project’. In other words, get a friend of mine to compile HIS best answer too…and then we’d both submit answers, and split the prize (if allowed). The reason is simple. Two potential ‘front-ends’ are more likely to get a hook into the judge of this competition…just as two front-ends in any marketing/sales environment are almost certainly better than one…because the more you have, the more likely you are to hook a customer – or, in this case, a marketing guru.

    Alas, he’s almost certainly too busy to write…so this solo response (my one) will have to do.

    (Enjoyed writing it actually – could have carried on, but thought this was more than enough waffle!)

    Reply
  200. Having a consistent series of back end offers:

    People are something like stray cats. They’ll instinctively find the house with kind people who willingly leave a little bowl of milk or a few scraps of food. Then, with a certain amount of trepidation, they approach the house, wary of any suspicious movement. The slightest breeze will send them scurrying away into the bushes. But, once they lap up a few drops of milk or chow down on the free meal, you can be pretty certain that they’ll return.

    But what if you don’t put out a fresh bowl of milk or bits of food? Well, they’ll go to the next house, or the house down the street. Worse, they’ll go into the woods to fend for themselves against wandering coyote. You wouldn’t wish that fate upon a poor little kitty, would you?

    Unfortunately, we do this to our customers all the time (I’m as guilty as anyone, as this report has been my little 2×4 wakeup call).

    We give them a dribble of nourishment, and when they come back for more (which they will), all we have is the original offer! Yikes! Like the cat, when you feed him enough good meals, he’s your friend for life. He’ll even sit on your lap if you let him. None of this will happen, however, if you don’t keep the food (back end products and services) coming. The moment you stop the flow, you lose the customer (cat) to your neighbor.

    On the importance of building alliances:

    Back to the cat analogy for a moment… Too many entrepreneurs play the lone Tomcat (me included). We’ll fight anyone who comes near our home turf. The result is that we come away bloodied and even more territorial. Cats generally don’t do well for long on the street, and barely last a night in the woods because of their solo nature. Contrast this with a pack of dogs. Somehow they know that by joining together they stand a much better chance of survival than alone.

    We can learn a lot by observing nature, and even bad TV shows. The Lone Ranger only got his man because of Tonto. Remember how many times his trusty sidekick bailed him out of sticky situations? Now, what would have happened if the Lone Ranger had teamed up with others? Heck, he would have captured hundreds of bad guys in a single episode instead of one. Who are those masked men and women, anyway?

    The point is this: you can’t be friends with everyone. Some people will like you, and some won’t. Those who like and trust you will buy from you – and they’ll buy from your buddy if you provide a strong recommendation. The same rule applies to your alliances. They are trusted by their customers (who may not know or trust you), and will often buy simply because the person they trust makes the recommendation. In this world of ever-narrowing niches, alliances are critical for growing a business. You can widen your reach (the front end of your business) exponentially by establishing and using great alliances. These alliances can be in a variation of your niche market, or even in an entirely different niche market. For example, if I’ve got an info product on self-publishing, and you’ve got an info product on pet grooming, don’t for a moment think that the two shouldn’t mix. How many of my customers have pets? How many of yours would love to have a book with stories and photos about their beloved pets? Such is the power of alliances.

    Reply
  201. Having a consistent series of back end offers:

    People are something like stray cats. They’ll instinctively find the house with kind people who willingly leave a little bowl of milk or a few scraps of food. Then, with a certain amount of trepidation, they approach the house, wary of any suspicious movement. The slightest breeze will send them scurrying away into the bushes. But, once they lap up a few drops of milk or chow down on the free meal, you can be pretty certain that they’ll return.

    But what if you don’t put out a fresh bowl of milk or bits of food? Well, they’ll go to the next house, or the house down the street. Worse, they’ll go into the woods to fend for themselves against wandering coyote. You wouldn’t wish that fate upon a poor little kitty, would you?

    Unfortunately, we do this to our customers all the time (I’m as guilty as anyone, as this report has been my little 2×4 wakeup call).

    We give them a dribble of nourishment, and when they come back for more (which they will), all we have is the original offer! Yikes! Like the cat, when you feed him enough good meals, he’s your friend for life. He’ll even sit on your lap if you let him. None of this will happen, however, if you don’t keep the food (back end products and services) coming. The moment you stop the flow, you lose the customer (cat) to your neighbor.

    On the importance of building alliances:

    Back to the cat analogy for a moment… Too many entrepreneurs play the lone Tomcat (me included). We’ll fight anyone who comes near our home turf. The result is that we come away bloodied and even more territorial. Cats generally don’t do well for long on the street, and barely last a night in the woods because of their solo nature. Contrast this with a pack of dogs. Somehow they know that by joining together they stand a much better chance of survival than alone.

    We can learn a lot by observing nature, and even bad TV shows. The Lone Ranger only got his man because of Tonto. Remember how many times his trusty sidekick bailed him out of sticky situations? Now, what would have happened if the Lone Ranger had teamed up with others? Heck, he would have captured hundreds of bad guys in a single episode instead of one. Who are those masked men and women, anyway?

    The point is this: you can’t be friends with everyone. Some people will like you, and some won’t. Those who like and trust you will buy from you – and they’ll buy from your buddy if you provide a strong recommendation. The same rule applies to your alliances. They are trusted by their customers (who may not know or trust you), and will often buy simply because the person they trust makes the recommendation. In this world of ever-narrowing niches, alliances are critical for growing a business. You can widen your reach (the front end of your business) exponentially by establishing and using great alliances. These alliances can be in a variation of your niche market, or even in an entirely different niche market. For example, if I’ve got an info product on self-publishing, and you’ve got an info product on pet grooming, don’t for a moment think that the two shouldn’t mix. How many of my customers have pets? How many of yours would love to have a book with stories and photos about their beloved pets? Such is the power of alliances.

    Reply
  202. Just a qucik note about yesterdays teleconference. I thought it was outstanding. Thank you for you interview with Michael Masterson, the last half hour regarding front end and back end building was a great conversation. Keep up all you are doing.

    Nick

    Reply
  203. Just a qucik note about yesterdays teleconference. I thought it was outstanding. Thank you for you interview with Michael Masterson, the last half hour regarding front end and back end building was a great conversation. Keep up all you are doing.

    Nick

    Reply
  204. Great question, Rich!

    “Why is it critical that your business has a consistent series of back end offers and why is it important that you build alliances within your marketplace?”

    Well, well, well! If you don’t, you’re like one fisherman (no alliances) fishing with just one bait (product) in your own aquarium (market)

    If you form alliances, work very hard on your front end and automate your back end you’ll constantly expand your market place. Which menas:

    Many fishermen (you & your alliances) will go fishing with many different baits (front end & back ends) in all kind of waters (markets) [yours, theirs and competitors]

    However, you will not use every fishermen and all their
    baits for all waters. (opportunity seeker)

    You will test the waters before you jump in, so to speak!

    You’ll make sure it has the right conditions and you want to find out who else is fishing there ( Front end & competitive intelligence) to see if it’s even worth fishing there to begin with. Afterall, who wants to fish in a DEAD SEA?

    Unfortunately this is NOT ENOUGH though!

    Because once you’ve found your sea (market) you must create the “Perfect HOOK.” Without this hook you’ll be unable to attach the right bait (product) and you’ll have a hard time attracting fish (clients) even though your sea is full of it.

    Everything begins and ends with “the HOOK” simply known
    as a USP (unique selling proposition)

    It will “hook” the fish (client) to your bait (offers & products) and it will hook you to the sea (market).

    Your “HOOK” will attract everything you’ll ever need. The right clients, alliance partners and products. It will “hook” you to be more BUSINESS ORIENTED and less OPPORTUNISTIC. You’ll grow with your market!

    You’ll be able to create and invent more and better bait (products) around your hook (USP) and your fish (client) will become hungrier and hungrier for more.

    You and your market will become ONE, but you can’t do it ALONE.

    Rich, thanks from ALL of us for teaching us how to fish and not just throwing us a fish.

    Eternally grateful,

    Ewald
    PS: Michael Masterson is a completely different fisherman
    alltogether. He’s not only fishing, he’s raising his own. Just like a trout farmer, he’s cultivating fish in his own pond and once he releases them into the wild he controls entire streams.

    Reply
  205. Great question, Rich!

    “Why is it critical that your business has a consistent series of back end offers and why is it important that you build alliances within your marketplace?”

    Well, well, well! If you don’t, you’re like one fisherman (no alliances) fishing with just one bait (product) in your own aquarium (market)

    If you form alliances, work very hard on your front end and automate your back end you’ll constantly expand your market place. Which menas:

    Many fishermen (you & your alliances) will go fishing with many different baits (front end & back ends) in all kind of waters (markets) [yours, theirs and competitors]

    However, you will not use every fishermen and all their
    baits for all waters. (opportunity seeker)

    You will test the waters before you jump in, so to speak!

    You’ll make sure it has the right conditions and you want to find out who else is fishing there ( Front end & competitive intelligence) to see if it’s even worth fishing there to begin with. Afterall, who wants to fish in a DEAD SEA?

    Unfortunately this is NOT ENOUGH though!

    Because once you’ve found your sea (market) you must create the “Perfect HOOK.” Without this hook you’ll be unable to attach the right bait (product) and you’ll have a hard time attracting fish (clients) even though your sea is full of it.

    Everything begins and ends with “the HOOK” simply known
    as a USP (unique selling proposition)

    It will “hook” the fish (client) to your bait (offers & products) and it will hook you to the sea (market).

    Your “HOOK” will attract everything you’ll ever need. The right clients, alliance partners and products. It will “hook” you to be more BUSINESS ORIENTED and less OPPORTUNISTIC. You’ll grow with your market!

    You’ll be able to create and invent more and better bait (products) around your hook (USP) and your fish (client) will become hungrier and hungrier for more.

    You and your market will become ONE, but you can’t do it ALONE.

    Rich, thanks from ALL of us for teaching us how to fish and not just throwing us a fish.

    Eternally grateful,

    Ewald
    PS: Michael Masterson is a completely different fisherman
    alltogether. He’s not only fishing, he’s raising his own. Just like a trout farmer, he’s cultivating fish in his own pond and once he releases them into the wild he controls entire streams.

    Reply
  206. Three rules of business growth are:
    1. Increase your customer base.
    2. Increase how much each client spends with you.
    3. Increase how often they buy from you.
    We spend money to get a new client. That marketing effort fulfils the first rule.
    That money is wasted if we have only one product to sell them though. If we target our client base with multiple purchasing options then we can satisfy rule two by getting them to buy more than one product. The products have to be congruent with the original offering however; therefore it has to be a “consistent series of backend products”.
    Having developed this series, we can then market to our client base on a regular and on-going basis. However you can’t just keep sending them the same offers. Therefore we need multiple income streams and these come from producing new back end products to add to the series.
    However there are only so many of these you can create yourself. By developing JVs you get access to additional products and to additional client lists. If you do it smart, these products will be congruent with your own and the client base will also be a match.
    You may earn less from each individual product, but you had no development costs and it is money that would not otherwise have flowed into your business. In addition, because you are offering “fresh” products there is less likelihood of your customer opting out of your list, or treating your marketing as spam
    This will allow you to fulfil rule three by creating continuous repeat business.
    It’s the way Walmart does it. First get them through the door. Second tempt them with other goodies that they never came in for. Third make them feel so good about the purchase they come back for more. And as far as I am aware, Walmart sells much more than just Walmart produced goods.
    To speed up the process, do the bit that you are good at and create JVs with companies that are great at the other bits.

    Reply
  207. Three rules of business growth are:
    1. Increase your customer base.
    2. Increase how much each client spends with you.
    3. Increase how often they buy from you.
    We spend money to get a new client. That marketing effort fulfils the first rule.
    That money is wasted if we have only one product to sell them though. If we target our client base with multiple purchasing options then we can satisfy rule two by getting them to buy more than one product. The products have to be congruent with the original offering however; therefore it has to be a “consistent series of backend products”.
    Having developed this series, we can then market to our client base on a regular and on-going basis. However you can’t just keep sending them the same offers. Therefore we need multiple income streams and these come from producing new back end products to add to the series.
    However there are only so many of these you can create yourself. By developing JVs you get access to additional products and to additional client lists. If you do it smart, these products will be congruent with your own and the client base will also be a match.
    You may earn less from each individual product, but you had no development costs and it is money that would not otherwise have flowed into your business. In addition, because you are offering “fresh” products there is less likelihood of your customer opting out of your list, or treating your marketing as spam
    This will allow you to fulfil rule three by creating continuous repeat business.
    It’s the way Walmart does it. First get them through the door. Second tempt them with other goodies that they never came in for. Third make them feel so good about the purchase they come back for more. And as far as I am aware, Walmart sells much more than just Walmart produced goods.
    To speed up the process, do the bit that you are good at and create JVs with companies that are great at the other bits.

    Reply
  208. Backend
    1. Diagnose your Business – Tells you what kind of customers you have the most of, what they like, their latency from initial contact to first purchase & how often they’ll buy after that.
    2. Personalize – Gives your customers access to you and your inner circle at varying price points helping you differentiate the hyper & in heat buyer without pushing either in ways they’re not prepared to buy.
    3. Money – Grows your bottom line with minimal effort on your part and creates endless residual income possibilities while you make the front door look more inviting and keep inviting people in.

    3. Identifies Subdividing Niches – They’ll tell you what’s hot next. If you don’t have a backend to monitor, you’ll never see the tide shift.

    Alliances
    1. Time is money- Meet the top guy & make friends with everyone he knows. I’m sacrificing $100/hr to earn an afternoon with Rich. This will grow my business faster than I can alone. It’s time and money well spent. I’d lose money spending the same time developing an opt-in ad or website, than in attempting to secure the rolodex of Rich, Mr. Masterson & everyone they know…
    (For anyone that has rewritten their submission 400 times. Keep at it. Your busy work can wait or be delgated. This is a $100M lottery & you’ve got all the numbers in “The Final Chapter”. You can do this.)
    2. Align Yourself with Greatness – You become who you associate with and gain credibility by the company you keep.
    3. Theory of Compound Interest – Einstein said it’s the greatest force in the universe. Apply it to your business marketing plan & you’re set for life. Meet 100 people that know
    1 person each & you have a list of 200. Meet 100 people that know 1M people, you have a “real” business. It’s that simple.
    4. Up, Out & Down – Alliances work in all ways. They bring you up by providing resources from the top dog. They expand your reach through JV & they help all those little guys just starting out.

    I have my own theories but you asked for a summary of your book, not mine…

    Good luck everyone.

    Reply
  209. Backend
    1. Diagnose your Business – Tells you what kind of customers you have the most of, what they like, their latency from initial contact to first purchase & how often they’ll buy after that.
    2. Personalize – Gives your customers access to you and your inner circle at varying price points helping you differentiate the hyper & in heat buyer without pushing either in ways they’re not prepared to buy.
    3. Money – Grows your bottom line with minimal effort on your part and creates endless residual income possibilities while you make the front door look more inviting and keep inviting people in.

    3. Identifies Subdividing Niches – They’ll tell you what’s hot next. If you don’t have a backend to monitor, you’ll never see the tide shift.

    Alliances
    1. Time is money- Meet the top guy & make friends with everyone he knows. I’m sacrificing $100/hr to earn an afternoon with Rich. This will grow my business faster than I can alone. It’s time and money well spent. I’d lose money spending the same time developing an opt-in ad or website, than in attempting to secure the rolodex of Rich, Mr. Masterson & everyone they know…
    (For anyone that has rewritten their submission 400 times. Keep at it. Your busy work can wait or be delgated. This is a $100M lottery & you’ve got all the numbers in “The Final Chapter”. You can do this.)
    2. Align Yourself with Greatness – You become who you associate with and gain credibility by the company you keep.
    3. Theory of Compound Interest – Einstein said it’s the greatest force in the universe. Apply it to your business marketing plan & you’re set for life. Meet 100 people that know
    1 person each & you have a list of 200. Meet 100 people that know 1M people, you have a “real” business. It’s that simple.
    4. Up, Out & Down – Alliances work in all ways. They bring you up by providing resources from the top dog. They expand your reach through JV & they help all those little guys just starting out.

    I have my own theories but you asked for a summary of your book, not mine…

    Good luck everyone.

    Reply
  210. BACK END OFFERS AND ALLIANCES CREATE NEW BUSINESS! BOTH SYSTEMS KEEP YOU IN THE GAME OF OBTAINING NEW CLIENTS. BACK END MARKETING SHARPENS FRONT END CAPTURING. ALLIANCES GIVE YOU A LIST OF CLIENTS THAT LIKE TO BUY! BOTH SYSTEMS CONTINUALLY HONE IN ON THE BIGGEST INTERNET SECRET-FULLFILLING THE DESIRE!!!

    Reply
  211. BACK END OFFERS AND ALLIANCES CREATE NEW BUSINESS! BOTH SYSTEMS KEEP YOU IN THE GAME OF OBTAINING NEW CLIENTS. BACK END MARKETING SHARPENS FRONT END CAPTURING. ALLIANCES GIVE YOU A LIST OF CLIENTS THAT LIKE TO BUY! BOTH SYSTEMS CONTINUALLY HONE IN ON THE BIGGEST INTERNET SECRET-FULLFILLING THE DESIRE!!!

    Reply
  212. First of all let’s define the back-end versus the front-end.
    The front-end consists of a product/service offering to bring in new customers into your business. The back-end consists of (a series of) products/services that you sell to customer after they’ve taken your front-end offer.
    Based on this comparative definition, without a consistent back-end series big profits will stall because Front-end profit is limited by the cost of acquiring new customers…Furthermore, one can even choose a strategy to dominate a market place by choosing to lose money at the front-end and maximize profit at back-end series!
    Building alliances allows the expansion off one’s customer base. It also reduces the cost of acquiring new customers. So to recap, the back-end series allows any business to maximum their profit with existing customers and alliances allows to increase your market place hence increase your new customer base to which you then expose to the back-end.

    Onother way to see it, alliances allow for (new)customer base expansion and the back-end is a profit multiplier!

    Thank you so much Rich. This exercise really makes me want to succeed even with a shoe string budget.

    Thanks a million.
    Francis

    Reply
  213. First of all let’s define the back-end versus the front-end.
    The front-end consists of a product/service offering to bring in new customers into your business. The back-end consists of (a series of) products/services that you sell to customer after they’ve taken your front-end offer.
    Based on this comparative definition, without a consistent back-end series big profits will stall because Front-end profit is limited by the cost of acquiring new customers…Furthermore, one can even choose a strategy to dominate a market place by choosing to lose money at the front-end and maximize profit at back-end series!
    Building alliances allows the expansion off one’s customer base. It also reduces the cost of acquiring new customers. So to recap, the back-end series allows any business to maximum their profit with existing customers and alliances allows to increase your market place hence increase your new customer base to which you then expose to the back-end.

    Onother way to see it, alliances allow for (new)customer base expansion and the back-end is a profit multiplier!

    Thank you so much Rich. This exercise really makes me want to succeed even with a shoe string budget.

    Thanks a million.
    Francis

    Reply
  214. Rich – what a great final chapter! Epiphantastic!!! I’ve been in some kind of a zone since I read it (3 times!) this weekend. Cool, man. By the way, all my friends and my girlfriend Sarah have been getting an earful too, heh 🙂
    Enough already. You asked 2 questions:
    Why is it critical that my business has a consistent series of back end offers?
    As you point out, it has to do with the Paretto Principle and the 80/20 customer pyramid i.e. 20% of my customers MUST account for 80% of my profits in order for my business to reach its full potential. IF my business DOES NOT show this disparity, it means that I DO NOT have sufficient back-end offers in place, I’m NOT maximizing my business profits and far, far worse – I’m in real danger of losing my best and highest -spending customers by NOT extending our relationship with them. At some point they WILL want more than I have to offer and go to a competitor instead. Answer your question?
    Part 2: Why is it important that I build alliances within my marketplace?
    You quote your business hero Mr. Masterson (whose AWAI Accelerated Program for Six-Figure Copywriting will soon acquire a new member, yours truly!) – A natural force of business is to continually subdivide as the niche gets larger…as you point out, in our faster-is-better attention-deficit society, people are looking for experts to help them make decisions more easily. As sub-niches proliferate, so do experts in them over time. As it is humanly impossible for any one person to keep on top on every sub-niche, it is best to form alliances else you run the risk of becoming obsolete as customers look for more and more specialized knowledge. Also the number of customers in each sub-niche becomes smaller and smaller, so its not a smart idea to overly focus on one sub-niche.
    To quote your Epiphany back at you – Strategic Alliances provide marketers and business owners a way to compensate for the reduction in the available customer universe.
    Hope this does it!

    Cheers & good health
    Suresh

    Reply
  215. Rich – what a great final chapter! Epiphantastic!!! I’ve been in some kind of a zone since I read it (3 times!) this weekend. Cool, man. By the way, all my friends and my girlfriend Sarah have been getting an earful too, heh 🙂
    Enough already. You asked 2 questions:
    Why is it critical that my business has a consistent series of back end offers?
    As you point out, it has to do with the Paretto Principle and the 80/20 customer pyramid i.e. 20% of my customers MUST account for 80% of my profits in order for my business to reach its full potential. IF my business DOES NOT show this disparity, it means that I DO NOT have sufficient back-end offers in place, I’m NOT maximizing my business profits and far, far worse – I’m in real danger of losing my best and highest -spending customers by NOT extending our relationship with them. At some point they WILL want more than I have to offer and go to a competitor instead. Answer your question?
    Part 2: Why is it important that I build alliances within my marketplace?
    You quote your business hero Mr. Masterson (whose AWAI Accelerated Program for Six-Figure Copywriting will soon acquire a new member, yours truly!) – A natural force of business is to continually subdivide as the niche gets larger…as you point out, in our faster-is-better attention-deficit society, people are looking for experts to help them make decisions more easily. As sub-niches proliferate, so do experts in them over time. As it is humanly impossible for any one person to keep on top on every sub-niche, it is best to form alliances else you run the risk of becoming obsolete as customers look for more and more specialized knowledge. Also the number of customers in each sub-niche becomes smaller and smaller, so its not a smart idea to overly focus on one sub-niche.
    To quote your Epiphany back at you – Strategic Alliances provide marketers and business owners a way to compensate for the reduction in the available customer universe.
    Hope this does it!

    Cheers & good health
    Suresh

    Reply
  216. Competitive Intelligence performs 2 vital functions:

    CI identifies key features of your market and your competition:

    First, CI identifies what your competition is doing to attract prospective customers to their front-end offer. This allows you to outsell them, both in offer and value, and to direct the best qualified prospects to your front-end, ahead of your competitors.
    (It targets better value to better defined people – hotter prospects.)

    Second, CI identifies the best potential JV partners who can contribute to the most
    comprehensive back-end system for your business.

    The money is in the back-end for two reasons: it is deeper and broader than the front-end.

    First, it is deeper because it qualifies prospects into their responsiveness, then directs
    them down the path where they are most likely to become long-term customers.

    The deeper the paths, the longer they remain a customer. The longer they remain a customer, the better the return on the cost of acquisition.

    Second, if a customer chooses not to buy a specific back-end offer, then they can (must) be directed to a JV partner who has a complementary (or more suitable) offer.

    You cannot dominate all the complementary and associated products and offers, but you can JV with someone who can.

    Thus the customer remains within your back-end flow, even though they bought from a JV partner.

    Thus, in this case, the customer is moving across the breadth of your back-end system, before they move deeper into it.

    In conclusion, you have a strategy to dominate your market at both front-end and back-end, and encompassing both customers and JV partners.

    A competitor one day (front-end), a JV partner the next (back-end).

    Thanks Rich, I appreciate the course, and what you’re giving to us.

    Reply
  217. Competitive Intelligence performs 2 vital functions:

    CI identifies key features of your market and your competition:

    First, CI identifies what your competition is doing to attract prospective customers to their front-end offer. This allows you to outsell them, both in offer and value, and to direct the best qualified prospects to your front-end, ahead of your competitors.
    (It targets better value to better defined people – hotter prospects.)

    Second, CI identifies the best potential JV partners who can contribute to the most
    comprehensive back-end system for your business.

    The money is in the back-end for two reasons: it is deeper and broader than the front-end.

    First, it is deeper because it qualifies prospects into their responsiveness, then directs
    them down the path where they are most likely to become long-term customers.

    The deeper the paths, the longer they remain a customer. The longer they remain a customer, the better the return on the cost of acquisition.

    Second, if a customer chooses not to buy a specific back-end offer, then they can (must) be directed to a JV partner who has a complementary (or more suitable) offer.

    You cannot dominate all the complementary and associated products and offers, but you can JV with someone who can.

    Thus the customer remains within your back-end flow, even though they bought from a JV partner.

    Thus, in this case, the customer is moving across the breadth of your back-end system, before they move deeper into it.

    In conclusion, you have a strategy to dominate your market at both front-end and back-end, and encompassing both customers and JV partners.

    A competitor one day (front-end), a JV partner the next (back-end).

    Thanks Rich, I appreciate the course, and what you’re giving to us.

    Reply
  218. I’ve tried to contribute several times (last night and this morning), but it never appeared. Is my text perhaps caught in a screening cache?

    Reply
  219. I’ve tried to contribute several times (last night and this morning), but it never appeared. Is my text perhaps caught in a screening cache?

    Reply
  220. 1. It is critical that every business have a consistent series of back end offers to offer their customers for the important purpose of leveraging costs incurred converting any prospect or “shopper” into a life-time customer.

    2. It is always important for you to build personal alliances within your specific marketplace to maximize your career opportunities, gain credibility by participating in market events, learning first-hand knowledge of contemporary changes and new technologies, and maybe most importantly being able to elicit free consulting from your peers.

    Reply
  221. 1. It is critical that every business have a consistent series of back end offers to offer their customers for the important purpose of leveraging costs incurred converting any prospect or “shopper” into a life-time customer.

    2. It is always important for you to build personal alliances within your specific marketplace to maximize your career opportunities, gain credibility by participating in market events, learning first-hand knowledge of contemporary changes and new technologies, and maybe most importantly being able to elicit free consulting from your peers.

    Reply
  222. Has your spouse ever had an affair?

    Know someone – I mean really know someone – who has had a cheating spouse?

    If you have, you know the anguish, angst and debilitating power of D Day (Day of Discovery.)

    You want help. No, more accurately you want IMMEDIATE RELIEF from the stabbing pain.

    You visit my site: break-free-from-the-affair.com and your pain-o-meter drops a couple notches.

    Your finger trembles as it clicks the button to my E-book: Break Free From the Affair.

    You devour it one sitting and discover there are 7 unique kinds of affairs, that your responses and reactions are very typical – no, predictable – and you can incredibly predict with a high degree of accuracy how long their affair will last and how it will end!

    But here’s the real kicker. Your heart feels lighter and the knot in your stomach loosens when you discover that you are not defective! You actually may be a good lover. His/her decision was merely a moment of temporary insanity.

    And you begin to understand from the hard-hitting, practical E-book that his/her unwanted, never-dreamed-it-would-happen-to-me affair is the greatest opportunity the unrelenting universe has ever presented you.

    Yes! You can and will (and Dr. H will show you exactly what you must do) completely redesign and reconfigure your life and relationship.

    And you are even stirred when you hear him say it will take 2-4 years. Now 2-4 years of an exciting, no-holds-barred, the-sky-is-the-limit makeover for yourself and your spouse gets the juices flowing.

    Creating what you really wanted and never had? Hmmmmmmmmmmm

    Yes! And Dr. H will provide all the information, all the ebooks, all the products, all the latest and greatest tools for you and your spouse to leap into a new chapter of richness, joy, exhilarating communication and yes, maybe even wall-banging sex!

    (At this point, Dr. H is thinking about the tools and resources a growth hungry couple will be craving for the next 2-4 years. Books. Ebooks. Workshops. Seminars, Cruises. Week-end get-aways. Physical fitness products. Health care products. Anything that will enhance the quality of their life. And, Dr. H begins to think of those he can work with to make this happen. Ca-ching! Ca-ching! Ca-ching!)

    Reply
  223. Has your spouse ever had an affair?

    Know someone – I mean really know someone – who has had a cheating spouse?

    If you have, you know the anguish, angst and debilitating power of D Day (Day of Discovery.)

    You want help. No, more accurately you want IMMEDIATE RELIEF from the stabbing pain.

    You visit my site: break-free-from-the-affair.com and your pain-o-meter drops a couple notches.

    Your finger trembles as it clicks the button to my E-book: Break Free From the Affair.

    You devour it one sitting and discover there are 7 unique kinds of affairs, that your responses and reactions are very typical – no, predictable – and you can incredibly predict with a high degree of accuracy how long their affair will last and how it will end!

    But here’s the real kicker. Your heart feels lighter and the knot in your stomach loosens when you discover that you are not defective! You actually may be a good lover. His/her decision was merely a moment of temporary insanity.

    And you begin to understand from the hard-hitting, practical E-book that his/her unwanted, never-dreamed-it-would-happen-to-me affair is the greatest opportunity the unrelenting universe has ever presented you.

    Yes! You can and will (and Dr. H will show you exactly what you must do) completely redesign and reconfigure your life and relationship.

    And you are even stirred when you hear him say it will take 2-4 years. Now 2-4 years of an exciting, no-holds-barred, the-sky-is-the-limit makeover for yourself and your spouse gets the juices flowing.

    Creating what you really wanted and never had? Hmmmmmmmmmmm

    Yes! And Dr. H will provide all the information, all the ebooks, all the products, all the latest and greatest tools for you and your spouse to leap into a new chapter of richness, joy, exhilarating communication and yes, maybe even wall-banging sex!

    (At this point, Dr. H is thinking about the tools and resources a growth hungry couple will be craving for the next 2-4 years. Books. Ebooks. Workshops. Seminars, Cruises. Week-end get-aways. Physical fitness products. Health care products. Anything that will enhance the quality of their life. And, Dr. H begins to think of those he can work with to make this happen. Ca-ching! Ca-ching! Ca-ching!)

    Reply
  224. The hardest thing you’ll ever do is making the first sale on the front end. When you finally establish a relationship with an individual by making that first sale, you should have a series of back end offers laid out well in advance to maximize that relationship. As your relationship with your customers grow, it’s far easier to get them interested in your other offers.

    Due to the subdividing of niches it is virtually impossible for one person or company to have access to all the leads in that market. That’s why it’s crucial for your company’s success to have alliance partners that help you get a wider spread.

    Reply
  225. The hardest thing you’ll ever do is making the first sale on the front end. When you finally establish a relationship with an individual by making that first sale, you should have a series of back end offers laid out well in advance to maximize that relationship. As your relationship with your customers grow, it’s far easier to get them interested in your other offers.

    Due to the subdividing of niches it is virtually impossible for one person or company to have access to all the leads in that market. That’s why it’s crucial for your company’s success to have alliance partners that help you get a wider spread.

    Reply
  226. Rich, I want to thank you for the phenomenal material you’ve so generously made available to us all. By doing so you have effectively demonstrated the power of back-end consistency and alliance-building strategies, all in one fell swoop. Both are key to reinforcing USP and growing relationships, thus fulfilling Purpose.

    **Back-End Offers** “You’re a hard habit to break”
    It’s critical that our businesses have a consistent series of back-end offers because…

    1. It gives your customer the opportunity to improve his or her life or business through consistent exposure to your expertise
    2. It gives you the opportunity to endear the customer to you over a lifetime, ideally building a trusting, evolving and mutually beneficially relationship. Strong relationships employ effective communication, which reveals wants and needs. Met wants and needs yield huge rewards, both tangible and intangible. And as a bonus, you gain fodder for future offers.
    3. As the relationships deepen, so increase the customers’ reliance, calling for more specialized and high value offerings
    4. It can create strategic partners of the future, who in time, can effectively increase your reach and scope

    **Building Alliances** – “United we stand, divided we fall”
    It’s important that you build alliances within your marketplace because…

    1. It can accelerate all of your processes by learning from others’ failures and successes and by leveraging shared resources
    2. Placing emphasis on the front-end by dramatically increasing your reach and scope in this way can help you increase our funnel effect exponentially.
    3. Creating master mind relationships can vastly increase your relevant and peripheral knowledge base
    4. It can dramatically improve profitability through joint ventures

    Reply
  227. Rich, I want to thank you for the phenomenal material you’ve so generously made available to us all. By doing so you have effectively demonstrated the power of back-end consistency and alliance-building strategies, all in one fell swoop. Both are key to reinforcing USP and growing relationships, thus fulfilling Purpose.

    **Back-End Offers** “You’re a hard habit to break”
    It’s critical that our businesses have a consistent series of back-end offers because…

    1. It gives your customer the opportunity to improve his or her life or business through consistent exposure to your expertise
    2. It gives you the opportunity to endear the customer to you over a lifetime, ideally building a trusting, evolving and mutually beneficially relationship. Strong relationships employ effective communication, which reveals wants and needs. Met wants and needs yield huge rewards, both tangible and intangible. And as a bonus, you gain fodder for future offers.
    3. As the relationships deepen, so increase the customers’ reliance, calling for more specialized and high value offerings
    4. It can create strategic partners of the future, who in time, can effectively increase your reach and scope

    **Building Alliances** – “United we stand, divided we fall”
    It’s important that you build alliances within your marketplace because…

    1. It can accelerate all of your processes by learning from others’ failures and successes and by leveraging shared resources
    2. Placing emphasis on the front-end by dramatically increasing your reach and scope in this way can help you increase our funnel effect exponentially.
    3. Creating master mind relationships can vastly increase your relevant and peripheral knowledge base
    4. It can dramatically improve profitability through joint ventures

    Reply
  228. Please, let me tell you a a bit about my dearest neighbors in my building, Ms Frontenda, Mrs Backendo , and Dr. Al Liance.

    Ms. Frontenda is a slender and fashionably attractive young lady, who lives in the downstairs unit. Her balcony door is always welcoming open, and when you peek inside you can catch a glimpse of her modern interior, sparsely decorated with art and artistic furniture. She’s a trend setter with her friends who come over regularly to discuss the latest and newest. That’s also when I’m tempted to drop by for a hello. On those days I sometimes wait for the local store to close, and then I start to cook a recipe for which I know I don’t have all the ingredients. When I’m pressing for some spices or herbs, or even essentials like milk or an egg, I know she will help me out.

    Next is Mrs Backendo. Please read on…

    Reply
  229. Please, let me tell you a a bit about my dearest neighbors in my building, Ms Frontenda, Mrs Backendo , and Dr. Al Liance.

    Ms. Frontenda is a slender and fashionably attractive young lady, who lives in the downstairs unit. Her balcony door is always welcoming open, and when you peek inside you can catch a glimpse of her modern interior, sparsely decorated with art and artistic furniture. She’s a trend setter with her friends who come over regularly to discuss the latest and newest. That’s also when I’m tempted to drop by for a hello. On those days I sometimes wait for the local store to close, and then I start to cook a recipe for which I know I don’t have all the ingredients. When I’m pressing for some spices or herbs, or even essentials like milk or an egg, I know she will help me out.

    Next is Mrs Backendo. Please read on…

    Reply
  230. Mrs. Backendo lives in the large unit behind Ms. Frontenda and they’re good friends. Mrs Backendo is a stay-at-home mom, and she takes care of 3 kids. Sometimes I can hear her baby daughter scream all the way in my unit, but fortunately she’s an alert mother and she alway has a bottle handy, and even a second one for those hungry days. Actually, come to think of it, they’re all a hungry family. It seems as though Mrs. Backndo is always cooking for the two older boys and her husband. She buys, she cooks, and they eat it all up. It’s nice to see that the family always comes home for a welcoming dinner, no matter how late the younger one is done with school and the older one with his evening job. She knows their schedule, and you bet they know her cooking! I’m often invited over, and occasionally I do indulge. Must be quite a task to nurture those kids all the way to adolescence. Quite rewarding too for her, I believe.

    And then there is Dr. Al Liance. Please read on…

    Reply
  231. Mrs. Backendo lives in the large unit behind Ms. Frontenda and they’re good friends. Mrs Backendo is a stay-at-home mom, and she takes care of 3 kids. Sometimes I can hear her baby daughter scream all the way in my unit, but fortunately she’s an alert mother and she alway has a bottle handy, and even a second one for those hungry days. Actually, come to think of it, they’re all a hungry family. It seems as though Mrs. Backndo is always cooking for the two older boys and her husband. She buys, she cooks, and they eat it all up. It’s nice to see that the family always comes home for a welcoming dinner, no matter how late the younger one is done with school and the older one with his evening job. She knows their schedule, and you bet they know her cooking! I’m often invited over, and occasionally I do indulge. Must be quite a task to nurture those kids all the way to adolescence. Quite rewarding too for her, I believe.

    And then there is Dr. Al Liance. Please read on…

    Reply
  232. No one likes to do business with someone they feel they cannot trust. Trust is not gained unless it is earned and it can not be earned if people are in doubt. In other words back end offers should give people a sense of faith in the business. Faith will in the long run overcome any problems they can create along the way such as fear or anxiety most likely caused by envy and greed. As long as they believe they can somehow build up a sense of trust in the form of an alliance they have reason for doubt. Establishing the trust will take patience but that will only ensure that the faithfullness will become as strong as possible. Honesty in terms of establishing truthful back end offers will eliminate an speculation as to whether the business is genuine or not. Satisfaction in the market place comes from a form of energy that does not leave room for any sort of hatred what so ever. Allowing people the means to love everything about the business can only create a positive atmosphere which people will want to be a part of. In a world based on deception and uncertainty a sense of security must be apparent in order to help eliminate all negative possibilities. What better way to do that then to build a trustworthy and faithful approach for business relationships.

    Reply
  233. No one likes to do business with someone they feel they cannot trust. Trust is not gained unless it is earned and it can not be earned if people are in doubt. In other words back end offers should give people a sense of faith in the business. Faith will in the long run overcome any problems they can create along the way such as fear or anxiety most likely caused by envy and greed. As long as they believe they can somehow build up a sense of trust in the form of an alliance they have reason for doubt. Establishing the trust will take patience but that will only ensure that the faithfullness will become as strong as possible. Honesty in terms of establishing truthful back end offers will eliminate an speculation as to whether the business is genuine or not. Satisfaction in the market place comes from a form of energy that does not leave room for any sort of hatred what so ever. Allowing people the means to love everything about the business can only create a positive atmosphere which people will want to be a part of. In a world based on deception and uncertainty a sense of security must be apparent in order to help eliminate all negative possibilities. What better way to do that then to build a trustworthy and faithful approach for business relationships.

    Reply
  234. Above me lives Dr. Al Liance. He’s a tall and slender man, probably well into his forties. Seems quite smart too. I haven’t really been introduced, but sometimes I see his mail at the front door. He must be a medical specialist of some sort, because he’s got lots of letters after his name. He recently told me about his new practice, where he joined with other specialists. Together they can afford an upscale space and even an assistance. The patients love it too, because Dr. Liance is world-renknown for his specialised skills, and it’s easy to get referred to the other specialists as needed. On the personal side, I think he’s single, because I regularly see him at the trendy soirees at Ms. Frontenda’s.
    Living here is quite the lifestyle.

    Reply
  235. Above me lives Dr. Al Liance. He’s a tall and slender man, probably well into his forties. Seems quite smart too. I haven’t really been introduced, but sometimes I see his mail at the front door. He must be a medical specialist of some sort, because he’s got lots of letters after his name. He recently told me about his new practice, where he joined with other specialists. Together they can afford an upscale space and even an assistance. The patients love it too, because Dr. Liance is world-renknown for his specialised skills, and it’s easy to get referred to the other specialists as needed. On the personal side, I think he’s single, because I regularly see him at the trendy soirees at Ms. Frontenda’s.
    Living here is quite the lifestyle.

    Reply
  236. No one likes to do business with someone they feel they cannot trust. Trust is not gained unless it is earned and it can not be earned if people have doubt. In other words back end offers should give people a sense of faith in the business. Faith will in the long run overcome any problems they can create along the way such as fear or anxiety that things will not work out they way they want them to. Most likely caused by their envy and greed and the lack of control. As long as they believe they can somehow build up a sense of trust in the form of an alliance a family if you will they will have no reason for doubt and nothing to be afraid of because everything will work out in the end. Establishing the trust will take patience but that will only ensure that the faithfullness will become as strong as possible. Honesty in terms of establishing truthful back end offers will eliminate an speculation as to whether the business is genuine. Satisfaction in the market place comes from a form of energy that does not leave room for any sort of hatred or anger what so ever. Allowing people the means to love and be happy with everything concerning the business can only create a positive atmosphere which people will want to be a part of and encourage other to do the same. In a world based on deception and uncertainty a sense of aid and security must be apparent in order to help eliminate all negative possibilities under any circumstances. What better way to do that then to build a courageous, trustworthy and faithful approach for business relationships as a main purpose.

    Reply
  237. No one likes to do business with someone they feel they cannot trust. Trust is not gained unless it is earned and it can not be earned if people have doubt. In other words back end offers should give people a sense of faith in the business. Faith will in the long run overcome any problems they can create along the way such as fear or anxiety that things will not work out they way they want them to. Most likely caused by their envy and greed and the lack of control. As long as they believe they can somehow build up a sense of trust in the form of an alliance a family if you will they will have no reason for doubt and nothing to be afraid of because everything will work out in the end. Establishing the trust will take patience but that will only ensure that the faithfullness will become as strong as possible. Honesty in terms of establishing truthful back end offers will eliminate an speculation as to whether the business is genuine. Satisfaction in the market place comes from a form of energy that does not leave room for any sort of hatred or anger what so ever. Allowing people the means to love and be happy with everything concerning the business can only create a positive atmosphere which people will want to be a part of and encourage other to do the same. In a world based on deception and uncertainty a sense of aid and security must be apparent in order to help eliminate all negative possibilities under any circumstances. What better way to do that then to build a courageous, trustworthy and faithful approach for business relationships as a main purpose.

    Reply
  238. Rich,

    I can’t summarize SO MUCH INCREDIBLY USEFUL CONTENT into a paragraph or two. Otherwise, you’ll think I missed it. You spent a lot of time thinking this through, so I’m going to spend a bit of time summarizing. Bear with me. I really want to see you at the airport wearing a little chauffer hat and holding up a sign with my name on it! 🙂

    OK, first: Why it’s critical that your business has a consistent series of back end offers:

    1. “The only way to keep a customer is to keep them buying and that’s what we call the backend.”

    2. It’s the most profitable part of your entire business.

    3. It’s the only way to determine who’s still a customer and who’s not (and know how many customers the company has.)

    4. It’s the only way to tell if your customer base is growing or shrinking.

    5. It’s the only accurate way to determine the ultimate lifetime value of a customer.

    6. It’s the only way to continue to track and monitor the latency period among customers.

    7. Given the definition of a customer as “someone who has purchased from you already, that you expect to be buying again,” you need a series of backend offers so buyers can continue to qualify as customers.

    8. It increases the value of your business’ biggest asset: your customer list.

    9. It allows you to actively manage and measure the list to reduce fallout.

    10. 20% of your customers should account for 80% of your profits. That can’t happen if you don’t have a consistent series of back end offers in place.

    11. Without it, you fail to tap into “the next level of higher price points that you could.”

    12. Without it, you fail to extend the customer relationship and put your business in jeopardy.

    13. If you don’t offer it, someone else might and you can end up driving your best clients to a competitor who offers what you don’t.

    14. There’s a market inside your customer base that is willing to spend more to get more.

    15. Our job is to give them what they want, so they don’t go elsewhere.

    16. A wider selection of backend products allows “porcupines in heat” to buy more while they’re hot.

    17. The Theory of Constraints says focus on the bottleneck. For most people, the bottleneck is the backend. So focus on that (okay, it didn’t actually say that in the Final Chapter, but it’s true!)

    17. The backend has allowed Agora to grow more than 10 times in the past 20 or so years.

    18. Those who have made two purchases are usually twice as likely to buy from you again.

    19. My personal favorite: People buy things for emotional needs and those needs are never filled. HUGELY profound.

    20. Without a backend, there can be no hyper-responsives.

    21. Without a backend, you can’t identify the hottest buyers (’cause there’s nothing else for them to buy.)

    21. WITH a formalized backend, you can be much more aggressive on customer acquisition.

    Okay, second:

    Why it’s important that you build alliances within your marketplace:

    1. Access to world class talent.

    2. Share valuable resources on a quid pro quo basis.

    3. As markets expand and niches subdivide, the customer universe for each sub-niche becomes more limited. Alliances provide a way to compensate.

    4. Alliances help you to figure out where the next division is going to be and get in front of it.

    5. Alliances allow you to profit from sales from other sub-niches.

    6. Alliances allow you to grow your list (and that of your alliance partners).

    7. Without alliances, the only way your customer universe expands is through your own client acquisition techniques (a fraction of what’s possible leveraging the acquisition techniques of others in your market.)

    I may have missed a thing or two, but if so, you can chastize me in the car on the way to our power lunch!

    I look forward to PICKING YOUR BRAIN CLEAN!

    Thanks for the opportunity.

    David Blaise

    PS I’ll ship my luggage ahead to save room in the Porsche for your milk jugs!

    Reply
  239. Rich,

    I can’t summarize SO MUCH INCREDIBLY USEFUL CONTENT into a paragraph or two. Otherwise, you’ll think I missed it. You spent a lot of time thinking this through, so I’m going to spend a bit of time summarizing. Bear with me. I really want to see you at the airport wearing a little chauffer hat and holding up a sign with my name on it! 🙂

    OK, first: Why it’s critical that your business has a consistent series of back end offers:

    1. “The only way to keep a customer is to keep them buying and that’s what we call the backend.”

    2. It’s the most profitable part of your entire business.

    3. It’s the only way to determine who’s still a customer and who’s not (and know how many customers the company has.)

    4. It’s the only way to tell if your customer base is growing or shrinking.

    5. It’s the only accurate way to determine the ultimate lifetime value of a customer.

    6. It’s the only way to continue to track and monitor the latency period among customers.

    7. Given the definition of a customer as “someone who has purchased from you already, that you expect to be buying again,” you need a series of backend offers so buyers can continue to qualify as customers.

    8. It increases the value of your business’ biggest asset: your customer list.

    9. It allows you to actively manage and measure the list to reduce fallout.

    10. 20% of your customers should account for 80% of your profits. That can’t happen if you don’t have a consistent series of back end offers in place.

    11. Without it, you fail to tap into “the next level of higher price points that you could.”

    12. Without it, you fail to extend the customer relationship and put your business in jeopardy.

    13. If you don’t offer it, someone else might and you can end up driving your best clients to a competitor who offers what you don’t.

    14. There’s a market inside your customer base that is willing to spend more to get more.

    15. Our job is to give them what they want, so they don’t go elsewhere.

    16. A wider selection of backend products allows “porcupines in heat” to buy more while they’re hot.

    17. The Theory of Constraints says focus on the bottleneck. For most people, the bottleneck is the backend. So focus on that (okay, it didn’t actually say that in the Final Chapter, but it’s true!)

    17. The backend has allowed Agora to grow more than 10 times in the past 20 or so years.

    18. Those who have made two purchases are usually twice as likely to buy from you again.

    19. My personal favorite: People buy things for emotional needs and those needs are never filled. HUGELY profound.

    20. Without a backend, there can be no hyper-responsives.

    21. Without a backend, you can’t identify the hottest buyers (’cause there’s nothing else for them to buy.)

    21. WITH a formalized backend, you can be much more aggressive on customer acquisition.

    Okay, second:

    Why it’s important that you build alliances within your marketplace:

    1. Access to world class talent.

    2. Share valuable resources on a quid pro quo basis.

    3. As markets expand and niches subdivide, the customer universe for each sub-niche becomes more limited. Alliances provide a way to compensate.

    4. Alliances help you to figure out where the next division is going to be and get in front of it.

    5. Alliances allow you to profit from sales from other sub-niches.

    6. Alliances allow you to grow your list (and that of your alliance partners).

    7. Without alliances, the only way your customer universe expands is through your own client acquisition techniques (a fraction of what’s possible leveraging the acquisition techniques of others in your market.)

    I may have missed a thing or two, but if so, you can chastize me in the car on the way to our power lunch!

    I look forward to PICKING YOUR BRAIN CLEAN!

    Thanks for the opportunity.

    David Blaise

    PS I’ll ship my luggage ahead to save room in the Porsche for your milk jugs!

    Reply
  240. WARNING: We ALL have this in common:

    We (Internet Marketers) move and live with the motto of: “I-am-simply-the-BEST-and-I-will-never-need-you-or-anyone-else”!

    Even worse…

    We believe that life, work and financial freedom depend ONLY on:

    1. My “above the average” brain
    2. My “best in the world” laptop
    3. My “simply-amazing-because-I-made-it” product

    Well, the truth is that this single belief is the TOP reason why 99.17% of “Netpreneurs” will lose this never-ending-battle…

    Not even the Pareto Rule will apply in this case!

    What about the other 00.84% of “virtual-warriors”?

    Well…They will succeed because they will understand the basic rule for success in business…

    This simple rule is: Synergy-of-Multiple-Partners-Multiple-Products-One-Market

    (Let’s call it “S-MP-MP-OM”, why not? – If you are able to pronounce it, then building a successful business will be the easiest task for you!)

    As simple as this:

    Synergy-(S) of:

    – Multiple Partners-(MP) – The ONLY way we will survive in this “virtual battle” when the “Big Boys” arrive will be to: use the power of LEVERAGE by having access to my Partners´ core Marketing and Distribution Resources (let’s call it MDR)

    – Multiple Products-(MP) – Once we have access to our Partners´ MDR – we need to create Multiple Powerful Products (yes, this one will be called MPP) that we can offer after the initial sale (backend sales). Here’s where the “magic” of the internet starts to help us grow…

    – One Market-(OM)- Finally: 100% Focus! Put “all-the-eggs-in-the-right-basket”!

    Bottom line: Choose the right market-(OM), find the right partners-(MP), and then you will sell them backend products-(MP) forever!

    Reply
  241. WARNING: We ALL have this in common:

    We (Internet Marketers) move and live with the motto of: “I-am-simply-the-BEST-and-I-will-never-need-you-or-anyone-else”!

    Even worse…

    We believe that life, work and financial freedom depend ONLY on:

    1. My “above the average” brain
    2. My “best in the world” laptop
    3. My “simply-amazing-because-I-made-it” product

    Well, the truth is that this single belief is the TOP reason why 99.17% of “Netpreneurs” will lose this never-ending-battle…

    Not even the Pareto Rule will apply in this case!

    What about the other 00.84% of “virtual-warriors”?

    Well…They will succeed because they will understand the basic rule for success in business…

    This simple rule is: Synergy-of-Multiple-Partners-Multiple-Products-One-Market

    (Let’s call it “S-MP-MP-OM”, why not? – If you are able to pronounce it, then building a successful business will be the easiest task for you!)

    As simple as this:

    Synergy-(S) of:

    – Multiple Partners-(MP) – The ONLY way we will survive in this “virtual battle” when the “Big Boys” arrive will be to: use the power of LEVERAGE by having access to my Partners´ core Marketing and Distribution Resources (let’s call it MDR)

    – Multiple Products-(MP) – Once we have access to our Partners´ MDR – we need to create Multiple Powerful Products (yes, this one will be called MPP) that we can offer after the initial sale (backend sales). Here’s where the “magic” of the internet starts to help us grow…

    – One Market-(OM)- Finally: 100% Focus! Put “all-the-eggs-in-the-right-basket”!

    Bottom line: Choose the right market-(OM), find the right partners-(MP), and then you will sell them backend products-(MP) forever!

    Reply
  242. (cont’d) Sometimes I find his mail at the front door. He must be a specialist of some sort, because he has lots of letters after his name. (more…)

    Reply
  243. (cont’d) Sometimes I find his mail at the front door. He must be a specialist of some sort, because he has lots of letters after his name. (more…)

    Reply
  244. He recently told me about his new practice, where he joined with some other specialists. Together they can afford an upscale space and even an assistant. The patients like it too, because Dr. Liance is world-renknown for his skills. It’s easy for his clients to get referred to the other specialists as needed. I occasionally see him over at Ms. Frontenda’s partys. He loves the hip crowd, I guess.

    Reply
  245. He recently told me about his new practice, where he joined with some other specialists. Together they can afford an upscale space and even an assistant. The patients like it too, because Dr. Liance is world-renknown for his skills. It’s easy for his clients to get referred to the other specialists as needed. I occasionally see him over at Ms. Frontenda’s partys. He loves the hip crowd, I guess.

    Reply
  246. He recently told me about his new practice, where he joined with some other doctors. Together they can afford an upscale space and even an assistant. The patients like it too, because Dr. Liance is world-renknown for his skills. It’s easy for his clients to get referred to the other docs as needed. I occasionally see him over at Ms. Frontenda’s partys. He loves the hip crowd, I guess.

    Reply
  247. He recently told me about his new practice, where he joined with some other doctors. Together they can afford an upscale space and even an assistant. The patients like it too, because Dr. Liance is world-renknown for his skills. It’s easy for his clients to get referred to the other docs as needed. I occasionally see him over at Ms. Frontenda’s partys. He loves the hip crowd, I guess.

    Reply
  248. (cont’d) As you can see, I am quite fortunate to have the three of them, Ms Frontenda, Mrs Backendo, and Dr. Al Liance as my neighbours. Living here is really a lifestyle choice.

    (and thank you, readers, for your patience, this blog apparently does not like my synonym for “doctor”, the one that starts with “special” and ends with “ist”)

    Reply
  249. (cont’d) As you can see, I am quite fortunate to have the three of them, Ms Frontenda, Mrs Backendo, and Dr. Al Liance as my neighbours. Living here is really a lifestyle choice.

    (and thank you, readers, for your patience, this blog apparently does not like my synonym for “doctor”, the one that starts with “special” and ends with “ist”)

    Reply
  250. Back-end offers are crucial to a business to maximize the potential sales to each customer. Once a customer has entered into a purchase, at least part of their buying habit is known, for the majority. The provision of back-end offers will result in a much higher return rate on the sale since there are minimal costs involved. Offers tailored to the original purchase in terms of contents will immediately stimulate the customer to buy, since for a percentage of customers the same emotional need is evidenced. Products surrounding the subject of the original purchase may also be successful. Since most back-end offers are generated by automated delivery and monitoring systems, a further increase in profit margins is seen.

    The importance of alliances revolves around the fact that here is more force or energy behind a group of people than individuals. Indeed this process, well established in many areas of life, is synergetic. The energy generated by an alliance can reach people and markets which could otherwise not be touched by the sum of the individuals alone. This provides a business with a much greater reach into the larger marketplace. It also reduces the cost of customer acquisition, since this is spread across all affiliates rather than being carried by the individual.

    The overall effect of these two aspects of marketing is to help promote a strong front-end presence through alliances while maximizing sales on a per customer basis.

    Reply
  251. Back-end offers are crucial to a business to maximize the potential sales to each customer. Once a customer has entered into a purchase, at least part of their buying habit is known, for the majority. The provision of back-end offers will result in a much higher return rate on the sale since there are minimal costs involved. Offers tailored to the original purchase in terms of contents will immediately stimulate the customer to buy, since for a percentage of customers the same emotional need is evidenced. Products surrounding the subject of the original purchase may also be successful. Since most back-end offers are generated by automated delivery and monitoring systems, a further increase in profit margins is seen.

    The importance of alliances revolves around the fact that here is more force or energy behind a group of people than individuals. Indeed this process, well established in many areas of life, is synergetic. The energy generated by an alliance can reach people and markets which could otherwise not be touched by the sum of the individuals alone. This provides a business with a much greater reach into the larger marketplace. It also reduces the cost of customer acquisition, since this is spread across all affiliates rather than being carried by the individual.

    The overall effect of these two aspects of marketing is to help promote a strong front-end presence through alliances while maximizing sales on a per customer basis.

    Reply
  252. As the Masked Editor, my back end is my front end. My goal is to have everyone’s advertising follow the rules of grammar and punctuation.

    In following my goals with writers, I have taught them the rules and they seem to no longer need me.

    On those off chances where I see signs in windows or faux paus in web pages, I rarely get a nibble – even though I offer assistance for free – the first time.

    Heck! I need help on the front end and the back end.

    I only win what I don’t need so this and the Lotto are out of the question.

    I do live in Florida, though, and would only need a rental car and four hours to be where I need to be. (I drive slow.)

    Reply
  253. As the Masked Editor, my back end is my front end. My goal is to have everyone’s advertising follow the rules of grammar and punctuation.

    In following my goals with writers, I have taught them the rules and they seem to no longer need me.

    On those off chances where I see signs in windows or faux paus in web pages, I rarely get a nibble – even though I offer assistance for free – the first time.

    Heck! I need help on the front end and the back end.

    I only win what I don’t need so this and the Lotto are out of the question.

    I do live in Florida, though, and would only need a rental car and four hours to be where I need to be. (I drive slow.)

    Reply
  254. I have a business in translation services. I would love to expand to serve a more diverse clientele, and, in my business, word of mouth is essential. A good translator will get a lot of work, a bad one, a bad rep. So I need to be able to develop those relationships so that no matter how I advertise, I get business.

    Reply
  255. I have a business in translation services. I would love to expand to serve a more diverse clientele, and, in my business, word of mouth is essential. A good translator will get a lot of work, a bad one, a bad rep. So I need to be able to develop those relationships so that no matter how I advertise, I get business.

    Reply
  256. I’m a little concerned because I don’t see my comment. Could it have been automatically rejected because it was too long? In essence, here’s my reply to your question. It’s singular, to the point, a winning suggestion, and a call to action:

    Q: What is the one question that you absolutely need to have answered, in order for this program to be THE best investment of your life?

    A: For the many thousands of us who can’t afford your main coaching program currently, will you establish a second-tier ‘Shefren Associate Student’ program, possibly coached by those top direct students who would like hands on practice modelling your coaching style under your regular supervision? I believe this is the single biggest thing you could do to achieve your stated vision of systematising your coaching program to run automatically. Can you imagine how many people would sign up for an e-book or course with a price point between $50-$100?, with some support from students you are training? It’s win-win, Rich, helps you achieve your vision, and provides an additional revenue stream to you (which you could split with your student coaches, or provide remuneration by coaching) and is good for those people who can’t currently afford the main program. This way you begin to build your organisation hierarchically, MLM style, because as you realise, you just can’t physically coach everyone who wants and needs it. This puts it on the way to global growth, with the potential for further levels below, closely monitored by you and your direct students using your famous process maps.

    As I believe you’re on the level about this competition, I’ll be applying for my passport tomorrow, or as we say over here, ‘I’ll get me coat’ 🙂

    That is, of course, unless anyone comes up with a genuinely better and actionable answer 🙂

    Reply
  257. I’m a little concerned because I don’t see my comment. Could it have been automatically rejected because it was too long? In essence, here’s my reply to your question. It’s singular, to the point, a winning suggestion, and a call to action:

    Q: What is the one question that you absolutely need to have answered, in order for this program to be THE best investment of your life?

    A: For the many thousands of us who can’t afford your main coaching program currently, will you establish a second-tier ‘Shefren Associate Student’ program, possibly coached by those top direct students who would like hands on practice modelling your coaching style under your regular supervision? I believe this is the single biggest thing you could do to achieve your stated vision of systematising your coaching program to run automatically. Can you imagine how many people would sign up for an e-book or course with a price point between $50-$100?, with some support from students you are training? It’s win-win, Rich, helps you achieve your vision, and provides an additional revenue stream to you (which you could split with your student coaches, or provide remuneration by coaching) and is good for those people who can’t currently afford the main program. This way you begin to build your organisation hierarchically, MLM style, because as you realise, you just can’t physically coach everyone who wants and needs it. This puts it on the way to global growth, with the potential for further levels below, closely monitored by you and your direct students using your famous process maps.

    As I believe you’re on the level about this competition, I’ll be applying for my passport tomorrow, or as we say over here, ‘I’ll get me coat’ 🙂

    That is, of course, unless anyone comes up with a genuinely better and actionable answer 🙂

    Reply
  258. 1. If you don’t have customers, you don’t have a business – you’re running an endless campaign.
    2. If you don’t have backend products to buy, your customers have just walked into an empty shop, and are going to walk straight back out again, ie they won’t (actually CAN’T) continue to be customers.
    3. Unless you want to chain yourself into continually producing more products for your backend, AS WELL AS seeking out more customers, strategic alliances free you up on both fronts – and allow you to start extricating yourself from the chaotic ‘do it all yourself’ slide out of the Manifesto.

    Of course there’s more benefits to systematising your backend, and forming alliances, but for those you’ll just have to download and read a copy of the final chapter for yourself 😉

    Crystal

    Reply
  259. 1. If you don’t have customers, you don’t have a business – you’re running an endless campaign.
    2. If you don’t have backend products to buy, your customers have just walked into an empty shop, and are going to walk straight back out again, ie they won’t (actually CAN’T) continue to be customers.
    3. Unless you want to chain yourself into continually producing more products for your backend, AS WELL AS seeking out more customers, strategic alliances free you up on both fronts – and allow you to start extricating yourself from the chaotic ‘do it all yourself’ slide out of the Manifesto.

    Of course there’s more benefits to systematising your backend, and forming alliances, but for those you’ll just have to download and read a copy of the final chapter for yourself 😉

    Crystal

    Reply
  260. I worked out that my post could have been blocked, not due to length -judging from a couple above, but because of a couple of links i provided for your information. So I’ve fiddled around with them a little, so lets try the comprehensive expansion of my answer again. I think it’ll work (told you I was bright 🙂 :-

    Rich, first of all, let me say I stand in strong appreciation of what you say, and what you are trying to accomplish. I see that you see the bigger picture, and in addition to achieving personal success and success for a limited number of high-fee paying clients, you have been kind enough to make your manifesto trilogy available free, publicly to those of us who are not currently in a position to become your clients.

    The reason for that, in my case, is that I had to give up employment with the UK health service, where I worked as a psychologist in 1990, and suffered a long-term abdominal illness for 13 years. I have two first class honours degrees, in English and Psychology, but as I have pretty much always worked in the public and voluntary sectors before, your knowledge and skill base is exactly what I need to help me secure a financial future for our family of seven.

    I too am a missionary. You can see the initial 32 page project which dates from 1986 and I guess constitutes my ‘manifesto’, from here:

    coalesce.jxta.o r g/files/documents/404/200/CreativeSynergy.pdf

    I have had the difficulty, over the years, of getting people to actually understand the breadth of my vision, of what people have actually accomplished in terms of turbocharging their creativity and achievement in the historical examples I have studied, and how it could be applied by closely interacting communities today. You may have suffered something of the same problem, but I guess you have had less trouble attracting support for your ideas because they are specifically oriented to helping people achieve financial success.

    During the recent ‘Stompernet’ launch, I had a couple of email exchanges with Andy Jenkins, and I think he could appreciate the parallel I drew between what they were accomplishing with Stompernet, kind of getting a group of people to ‘hoist themselves by their own bootstraps’ above the general level of internet business success. I see it is very similar to the model you are proposing, and the general principle, which I call creative synergy or social synergy, is encapsulated in a diagram on the first page of chapter 3 of my project, page 13, I think. I know that you are a big fan of mindmaps and diagrams. I am too. It is true that ‘a picture is worth a thousand words’, more actually.

    So it is clear to me, from my viewpoint, that you have are, what I call ‘planing’ (you know, like a hydrofoil) You are a missionary, have what my coach used to call ‘a bit of a blurred vision of a better world’ in that its best to not overspecify too much, but let circumstances and serendipitous occurrences – such as this post, maybe? 🙂 – feed into and help shape your action, very taoistic, very zen, actually, which I think is very wise and thoroughly approve of. It also keeps things exciting and fresh, doesn’t it? – which you clearly comes across in all you write, by the way.

    So I feel like we are standing on two high hills, our outlooks have been somewhat different throughout our lives, but if you read my project – and anyone else interested is welcome to, too – you will see that I also have a global vision for using the same kind of synergising methods you are advocating to change not just the business climate, since that has never until now been my focus, but the global social climate, and of course the internet is the most brilliant tool for doing that.

    But if you skim to the conclusion of my project, you will see that in order to effect widespread change in the social climate (in your own case specifically the business climate)it would be good to provide resources to those potential achievers and knowledge and skills resources that do not have them due to accident of birth, illness as in my case, or other reason. That is what many net companies have been doing, from mozilla and netscape through hotmail, and it is of course in line with the original ethos of the net pioneers.

    I see that you are already doing that to a great extent, through your 3-part manifesto, your blog and your google video, which is the first time I saw you, and really enjoyed and took on board.

    I am currently gearing up to promote two products, an extraordinary book written by my wife which has been 13 years in preparation, and a range of electronic music CDs composed and produced by my 18 year old son. The link I provided is to his website homepage, which is not yet public.

    SO (sorry to say so much, Andy Jenkins was kind enough to comment that I *am* ‘to the point’, I just have a lot to say 🙂 – to answer your question, which prompted this post:

    Q: What is the one question that you absolutely need to have answered, in order for this program to be THE best investment of your life?

    A: I would absolutely LOVE to be part of your program. I do consider you my business coach, since you are the best one I have found. But, as in the case of many in every other way eminently suitable people, who would actually contribute insights to your mix (I *love* dialogue, its the most helpful thing, as my project shows) I I feel, to some extent ‘locked out’ by the realities of my limited finances, resulting from my previously long-term ill-health, from which I have recovered fairly recently, due to surgery. What I would request, and urge you to do, is be kind enough to at least skim my project, and continue to provide a kind of ‘bread crumb trail’ that those of us with intelligence and the other necessary qualities, but not currently the ‘cash’ 🙂 can link in to, follow and learn from. I see that the emphasis you put on requesting feedback here as payment for your manifesto, and through your emails, shows that like me, you are completely aware of the crucial part that feedback and two-way interaction play in giving you wide-ranging and timely intelligence to feed into your creative ‘psycho-cybernetic’ decision-making and success seeking subconsious process. I was started on the path to business success by a little dialogue I had in a teleseminar with Stuart Lichtman (a n y t h i n g – f a s t. kom) who, if you know much about him, I don’t think you would be insulted if I called you the Lichtman of Generation X 🙂 I was astounded to learn from him that he made a successful pitch to Margaret Thatcher and came over here to England to teach his cybernetic transposition success method to the captains of British industry. It is interesting to speculate how much of a part that played in the clear rejuvenation of British business from a pretty dire state in the seventies. But re: Mike’s ‘Butterfly effect’ take, it could have been a crucial. He’s 67 now, but like you, he’s a ‘thoroughly nice bloke’, and was pretty much unknown due to having spent his career consulting to the corporate sector until he went online with an e-book co-written with Joe Vitale, due to his prose being academic (he started at MIT with Norbert Wiener, no less).

    Anyway, I just mention that to show that, although they are rare, there are a few absolutely first-class, top-notch resources and predecessors around, but I see, as does every other intelligent person who comes across you, that what you are doing is absolutely ‘on the money’, and naturally I would like to learn from you, and collaborate with you, to whatever extent you can make available for people in my position who can’t currently afford a high-level coaching program. As I did with Stompernet, I am going to advocate some kind of ‘Shefren associate’ or second-tier membership for people who just haven’t got big bucks to spend on a coaching program, even if it is worth every penny, which of course I know it is, and more. It’s just the hard realities of life and people’s family responsibilities or other contingencies. Off the top of my head, I would suggest a pricing level of around $50, although you could edge towards £100, for that kind of associate program, which would provide an additional revenue stream, and have the additional very important function of allowing people who can’t easily afford more to be part of your program, have some access to resources, maybe through secondary level coaches – I’m guessing this is what you had in mind by systematising your coaching progam. I know this is a good suggestion – not only for me 🙂 It’s win-win, Rich, and how many people do you think would buy in to a Shefren associate student program priced between $50-$100. It would be interesting to see, wouldn’t it?

    I’ll close now. Just to re-iterate, I stand in absolute appreciation of all you are doing, your ongoing learning process and mission, and especially appreciate that you are making it publicly available. Thanks for reading, and more power to you, man. 🙂

    Reply
  261. I worked out that my post could have been blocked, not due to length -judging from a couple above, but because of a couple of links i provided for your information. So I’ve fiddled around with them a little, so lets try the comprehensive expansion of my answer again. I think it’ll work (told you I was bright 🙂 :-

    Rich, first of all, let me say I stand in strong appreciation of what you say, and what you are trying to accomplish. I see that you see the bigger picture, and in addition to achieving personal success and success for a limited number of high-fee paying clients, you have been kind enough to make your manifesto trilogy available free, publicly to those of us who are not currently in a position to become your clients.

    The reason for that, in my case, is that I had to give up employment with the UK health service, where I worked as a psychologist in 1990, and suffered a long-term abdominal illness for 13 years. I have two first class honours degrees, in English and Psychology, but as I have pretty much always worked in the public and voluntary sectors before, your knowledge and skill base is exactly what I need to help me secure a financial future for our family of seven.

    I too am a missionary. You can see the initial 32 page project which dates from 1986 and I guess constitutes my ‘manifesto’, from here:

    coalesce.jxta.o r g/files/documents/404/200/CreativeSynergy.pdf

    I have had the difficulty, over the years, of getting people to actually understand the breadth of my vision, of what people have actually accomplished in terms of turbocharging their creativity and achievement in the historical examples I have studied, and how it could be applied by closely interacting communities today. You may have suffered something of the same problem, but I guess you have had less trouble attracting support for your ideas because they are specifically oriented to helping people achieve financial success.

    During the recent ‘Stompernet’ launch, I had a couple of email exchanges with Andy Jenkins, and I think he could appreciate the parallel I drew between what they were accomplishing with Stompernet, kind of getting a group of people to ‘hoist themselves by their own bootstraps’ above the general level of internet business success. I see it is very similar to the model you are proposing, and the general principle, which I call creative synergy or social synergy, is encapsulated in a diagram on the first page of chapter 3 of my project, page 13, I think. I know that you are a big fan of mindmaps and diagrams. I am too. It is true that ‘a picture is worth a thousand words’, more actually.

    So it is clear to me, from my viewpoint, that you have are, what I call ‘planing’ (you know, like a hydrofoil) You are a missionary, have what my coach used to call ‘a bit of a blurred vision of a better world’ in that its best to not overspecify too much, but let circumstances and serendipitous occurrences – such as this post, maybe? 🙂 – feed into and help shape your action, very taoistic, very zen, actually, which I think is very wise and thoroughly approve of. It also keeps things exciting and fresh, doesn’t it? – which you clearly comes across in all you write, by the way.

    So I feel like we are standing on two high hills, our outlooks have been somewhat different throughout our lives, but if you read my project – and anyone else interested is welcome to, too – you will see that I also have a global vision for using the same kind of synergising methods you are advocating to change not just the business climate, since that has never until now been my focus, but the global social climate, and of course the internet is the most brilliant tool for doing that.

    But if you skim to the conclusion of my project, you will see that in order to effect widespread change in the social climate (in your own case specifically the business climate)it would be good to provide resources to those potential achievers and knowledge and skills resources that do not have them due to accident of birth, illness as in my case, or other reason. That is what many net companies have been doing, from mozilla and netscape through hotmail, and it is of course in line with the original ethos of the net pioneers.

    I see that you are already doing that to a great extent, through your 3-part manifesto, your blog and your google video, which is the first time I saw you, and really enjoyed and took on board.

    I am currently gearing up to promote two products, an extraordinary book written by my wife which has been 13 years in preparation, and a range of electronic music CDs composed and produced by my 18 year old son. The link I provided is to his website homepage, which is not yet public.

    SO (sorry to say so much, Andy Jenkins was kind enough to comment that I *am* ‘to the point’, I just have a lot to say 🙂 – to answer your question, which prompted this post:

    Q: What is the one question that you absolutely need to have answered, in order for this program to be THE best investment of your life?

    A: I would absolutely LOVE to be part of your program. I do consider you my business coach, since you are the best one I have found. But, as in the case of many in every other way eminently suitable people, who would actually contribute insights to your mix (I *love* dialogue, its the most helpful thing, as my project shows) I I feel, to some extent ‘locked out’ by the realities of my limited finances, resulting from my previously long-term ill-health, from which I have recovered fairly recently, due to surgery. What I would request, and urge you to do, is be kind enough to at least skim my project, and continue to provide a kind of ‘bread crumb trail’ that those of us with intelligence and the other necessary qualities, but not currently the ‘cash’ 🙂 can link in to, follow and learn from. I see that the emphasis you put on requesting feedback here as payment for your manifesto, and through your emails, shows that like me, you are completely aware of the crucial part that feedback and two-way interaction play in giving you wide-ranging and timely intelligence to feed into your creative ‘psycho-cybernetic’ decision-making and success seeking subconsious process. I was started on the path to business success by a little dialogue I had in a teleseminar with Stuart Lichtman (a n y t h i n g – f a s t. kom) who, if you know much about him, I don’t think you would be insulted if I called you the Lichtman of Generation X 🙂 I was astounded to learn from him that he made a successful pitch to Margaret Thatcher and came over here to England to teach his cybernetic transposition success method to the captains of British industry. It is interesting to speculate how much of a part that played in the clear rejuvenation of British business from a pretty dire state in the seventies. But re: Mike’s ‘Butterfly effect’ take, it could have been a crucial. He’s 67 now, but like you, he’s a ‘thoroughly nice bloke’, and was pretty much unknown due to having spent his career consulting to the corporate sector until he went online with an e-book co-written with Joe Vitale, due to his prose being academic (he started at MIT with Norbert Wiener, no less).

    Anyway, I just mention that to show that, although they are rare, there are a few absolutely first-class, top-notch resources and predecessors around, but I see, as does every other intelligent person who comes across you, that what you are doing is absolutely ‘on the money’, and naturally I would like to learn from you, and collaborate with you, to whatever extent you can make available for people in my position who can’t currently afford a high-level coaching program. As I did with Stompernet, I am going to advocate some kind of ‘Shefren associate’ or second-tier membership for people who just haven’t got big bucks to spend on a coaching program, even if it is worth every penny, which of course I know it is, and more. It’s just the hard realities of life and people’s family responsibilities or other contingencies. Off the top of my head, I would suggest a pricing level of around $50, although you could edge towards £100, for that kind of associate program, which would provide an additional revenue stream, and have the additional very important function of allowing people who can’t easily afford more to be part of your program, have some access to resources, maybe through secondary level coaches – I’m guessing this is what you had in mind by systematising your coaching progam. I know this is a good suggestion – not only for me 🙂 It’s win-win, Rich, and how many people do you think would buy in to a Shefren associate student program priced between $50-$100. It would be interesting to see, wouldn’t it?

    I’ll close now. Just to re-iterate, I stand in absolute appreciation of all you are doing, your ongoing learning process and mission, and especially appreciate that you are making it publicly available. Thanks for reading, and more power to you, man. 🙂

    Reply
  262. I will summarize with an analogy that backend offers are like oil wells.

    You spend large amounts of capitol researching and drilling to find the oil. When you hit a gusher, who in their right mind would not incur the small additional expense and effort of installing an oil well to pump up the remaining 99.9% of the proven reserves that did not flow up with the initial gush (sale)? I would guess – no one! Backend offers are simply pumping up the oil you already know is there.

    As for building alliances, it enables you to geometrically increase your amount of customers through multiple companies. Without alliances, customer increases are directly proportional and limited to the effort of your single company.

    Reply
  263. I will summarize with an analogy that backend offers are like oil wells.

    You spend large amounts of capitol researching and drilling to find the oil. When you hit a gusher, who in their right mind would not incur the small additional expense and effort of installing an oil well to pump up the remaining 99.9% of the proven reserves that did not flow up with the initial gush (sale)? I would guess – no one! Backend offers are simply pumping up the oil you already know is there.

    As for building alliances, it enables you to geometrically increase your amount of customers through multiple companies. Without alliances, customer increases are directly proportional and limited to the effort of your single company.

    Reply
  264. We shouldn’t really need Rich to tell us that the old “Wild West” style of online business is dying.

    That truth is all around us. The problem is that we so WANT to believe that we can start out blindly, go it alone, and still end up with the business of our dreams.

    It ain’t gonna happen.

    And that’s where Rich’s message of viable systems with effective back ends, competitive intelligence, careful strategy, an strategic alliances is so necessary for us to hear.

    I loved the original Manifesto and Missing Chapter. Everything made such sense. Everything seemed so obvious (once Rich pulled back the curtain of denial of obvious truths).

    But The Final Chapter had my head spinning. Seeing how a $300 million business operates and how haphazard mine looks in comparison simply blew my mind.

    Let’s face it. Those who build a viable system with carefully planned back ends, who operate with consistent and well-thought-out strategies, and who leverage other business’ assets with alliances are the only ones that have a chance to succeed as business on the Internet matures.

    Those who remain Lone Rangers will, at best, be just scraping by. We’ll be running businesses that are nothing more than glorified jobs with none of the security or benefits of a job and all of the risks of a shaky business.

    Big businesses, like Agora, are moving into the Internet neighborhood. Their leverage and know-how will have the same effect on the small businesses around them that a Wal-Mart has on its neighborhood wherever one opens.

    There is no survival without taking this changing landscape into consideration. I want my business to survive and grow.

    And that won’t happen without building a real “big boys” business that Rich describes.

    Reply
  265. We shouldn’t really need Rich to tell us that the old “Wild West” style of online business is dying.

    That truth is all around us. The problem is that we so WANT to believe that we can start out blindly, go it alone, and still end up with the business of our dreams.

    It ain’t gonna happen.

    And that’s where Rich’s message of viable systems with effective back ends, competitive intelligence, careful strategy, an strategic alliances is so necessary for us to hear.

    I loved the original Manifesto and Missing Chapter. Everything made such sense. Everything seemed so obvious (once Rich pulled back the curtain of denial of obvious truths).

    But The Final Chapter had my head spinning. Seeing how a $300 million business operates and how haphazard mine looks in comparison simply blew my mind.

    Let’s face it. Those who build a viable system with carefully planned back ends, who operate with consistent and well-thought-out strategies, and who leverage other business’ assets with alliances are the only ones that have a chance to succeed as business on the Internet matures.

    Those who remain Lone Rangers will, at best, be just scraping by. We’ll be running businesses that are nothing more than glorified jobs with none of the security or benefits of a job and all of the risks of a shaky business.

    Big businesses, like Agora, are moving into the Internet neighborhood. Their leverage and know-how will have the same effect on the small businesses around them that a Wal-Mart has on its neighborhood wherever one opens.

    There is no survival without taking this changing landscape into consideration. I want my business to survive and grow.

    And that won’t happen without building a real “big boys” business that Rich describes.

    Reply
  266. A consistent series of quality back end offers along with several strong alliances within your chosen marketplace is the secret to success in any business because it aligns your individual strengths with the unique strengths of others and the combination is much more powerful than the individual parts. This “alignment” opens up new paths for your company and your partners to a larger and growing group of potential customers who are hungry for great products and services. There really isn’t such a thing as “too much advertising” when it comes to providing the best back end offers that fill the needs and wants of your customers. The whole world of big business is made up of aligned partners and now it’s time for smaller companies to learn this lesson.

    Reply
  267. A consistent series of quality back end offers along with several strong alliances within your chosen marketplace is the secret to success in any business because it aligns your individual strengths with the unique strengths of others and the combination is much more powerful than the individual parts. This “alignment” opens up new paths for your company and your partners to a larger and growing group of potential customers who are hungry for great products and services. There really isn’t such a thing as “too much advertising” when it comes to providing the best back end offers that fill the needs and wants of your customers. The whole world of big business is made up of aligned partners and now it’s time for smaller companies to learn this lesson.

    Reply
  268. Hey Rich,
    I read the whole Final Chapter; and took notes. Why do we need a consistent back end and and list alliances? The answer is simple. Both are tools which feed the number one goal- Uncommon Success. Strategic marketing tactics such as a viable back end keep us in the role of Boss instead of ’employee’ in our own business. And, alliance mailing lists elevate us to the realm of marketing as opposed to just selling. I like your busimess diagrams – especially the new slide which incorporates vision, strength,passion, resources, affiliate partners, powerful tactics, and an action plan to lead to success. That pretty much covers it. The other one shows how I often feel as a small business owner and entrepreneur -like a scrambled egg all over the place. I like the slide better. Thank you. Maya White

    Reply
  269. Hey Rich,
    I read the whole Final Chapter; and took notes. Why do we need a consistent back end and and list alliances? The answer is simple. Both are tools which feed the number one goal- Uncommon Success. Strategic marketing tactics such as a viable back end keep us in the role of Boss instead of ’employee’ in our own business. And, alliance mailing lists elevate us to the realm of marketing as opposed to just selling. I like your busimess diagrams – especially the new slide which incorporates vision, strength,passion, resources, affiliate partners, powerful tactics, and an action plan to lead to success. That pretty much covers it. The other one shows how I often feel as a small business owner and entrepreneur -like a scrambled egg all over the place. I like the slide better. Thank you. Maya White

    Reply
  270. Consistent back end offers are critical to your business because they:

    *Provide additional income
    *Keep your company services and products in the eyes of your customers
    *Create opportunities to share Customer lists with Affiliates
    Reduce attrition of your customer base by continuous offers
    *Discover potential Front End products/services from selling them as Back End offers
    *Help to evaluate and find opportunities and other strategies to maintain your customers and service them
    *Track patterns to know what offers to make to your customers
    *Give ways to share clients with other Affiliates so that the customer base grows
    *Funnel possibly higher priced products
    *Offer special bonus and discounts to your customers that make them happy
    *Are tools to measure your client activities and know if they “are” still your customer and what to do if they have lapsed or paused for awhile
    *Support you to become a known expert in your industry by positioning more often with services and products

    Affiliates are important because they:

    *Expand your customer base so you can sell more products/services
    *Provide continuous service and products to sell
    *Further identify your niche different from the others while sharing the resources
    *Create opportunities through synergy of others
    *Develop relationships you can trust or know not to waste time on
    *Share similar visions in an industry to keep the message out front for the customers to see
    *Test products you didn’t have to invest in the production and creation of but might want to adopt for the future
    *Help in the research of the industry, exposure to copywriting, being a part of many launches, knowing your competition, etc.

    Reply
  271. Consistent back end offers are critical to your business because they:

    *Provide additional income
    *Keep your company services and products in the eyes of your customers
    *Create opportunities to share Customer lists with Affiliates
    Reduce attrition of your customer base by continuous offers
    *Discover potential Front End products/services from selling them as Back End offers
    *Help to evaluate and find opportunities and other strategies to maintain your customers and service them
    *Track patterns to know what offers to make to your customers
    *Give ways to share clients with other Affiliates so that the customer base grows
    *Funnel possibly higher priced products
    *Offer special bonus and discounts to your customers that make them happy
    *Are tools to measure your client activities and know if they “are” still your customer and what to do if they have lapsed or paused for awhile
    *Support you to become a known expert in your industry by positioning more often with services and products

    Affiliates are important because they:

    *Expand your customer base so you can sell more products/services
    *Provide continuous service and products to sell
    *Further identify your niche different from the others while sharing the resources
    *Create opportunities through synergy of others
    *Develop relationships you can trust or know not to waste time on
    *Share similar visions in an industry to keep the message out front for the customers to see
    *Test products you didn’t have to invest in the production and creation of but might want to adopt for the future
    *Help in the research of the industry, exposure to copywriting, being a part of many launches, knowing your competition, etc.

    Reply
  272. looks like I am going to have to split my definitive answer into two posts. I can see no reason other than size why the filter is rejecting the whole post. Hope this is okay.

    Okay, so I reached this feedback page from your recent email, and ended up finding the competition, but answering your emailed question :

    But I can still ‘pull the iron out of the fire’ because my two posts above are directly relevant to the other question you have posed, which I now see is:

    “Summarize why it’s critical that your business has a consistent series of back end offers and why it’s important that you build alliances within your marketplace.”

    Now, I’m going to ‘fess up that I am actually only half way through ‘the final chapter’. I was pointed in the direction of your long presentation video on Google by a friend, only about a month ago Rich, so as soon as ‘the final chapter’ came out, I printed out and had bound all three chapters, so I’ve been following your advice and reading the first two parts first, which means I haven’t quite reached the last half of ‘the final chapter’, which I gather from your question and the other answers above, has a lot to do with the importance of backends and alliances.

    But you, know, I see not having read that section as a strength? You know why? Because both you and I can be sure that I’m not just parroting or paraphrasing what you have written, so this answer will have an original ‘take’ on the question, in that its coming right from me.

    Now, there’s no reason why I shouldn’t start by answering the second half of the question, first, is there? Because that is more obvious to me. I have made the study of ‘strategic alliances’, or, taking our cue from the intelligent and very true post about the importance of ‘trust’ above, lets call them ‘friends’, yes? Why not. To back up my answer I will reference my study of communities of creative achievers in history, who have ‘bootstrapped’ themselves into creative achievement way, way, above the general norm – for statistical evidence of this see the diagram in my project ‘CreativeSynergy.pdf’ which you can download from here:

    coalesce.jxta.o r g/files/documents/404/200/CreativeSynergy.pdf

    (after closing up the spaces I had to put in to get past the ad filter)

    If you look at the diagram in the post at the top of page 15 of CreativeSynergy.pdf, it shows a huge peak of creative achievement statistically determined from entries in about 50 encyclopaedias and histories of art and science, measured by the column inches devoted to each achiever. These are the people who virtually invented the disciplines which make up our modern world, both arts and sciences, that peak includes people who invented, yes *invented* philosophy, astronomy, geometry, democracy, oratory, dramatic performance of tragedy and comedy as we know it, and classical western architecture and sculpture which still stands on the Acropolis, gave a model to the Romans, and through them to us. Their influence is in every western city, every building or home with neo-classical columns, and in every school or university, heck, the whole ‘academic’ world was modelled on Plato’s original Academy at Athens. And you know what I found out, which is absolutely stunning, and absolutely relevant to the part of this question about why strategic alliances are important? Get this:

    Around 51% of those eminent achievers, whose creative work, success and innovation pretty much created what we all take for granted as the pattern and make up of our western civilisation, *knew each other*. They lived together at the same time, in the same city, Athens, and saw each other for a chat in the (original) Agora – the market square of Athens – on most days. They had collonades on three sides of the square, called ‘stoas’ – something like monastic cloisters, which were modelled on them – so that they could shelter while they chatted to each other if the weather was unusually inclement, windy or raining.

    Now – my studies, which are detailed in that project, show that the greatest achievements in Western civilsation, and the civilisation of greece and rome which is our direct cultural ancestor, were produced by a small number of individuals and their students who had, in the terms of this question, ‘strategic alliances’. Someone else referred on a comment to Rich’s previous post, that there seems to be an elite ‘in crowd’, and if you can join them, you are pretty much made. I have only been studying internet marketing seriously since this July, but already I have identified such a group, Rich, of course, Jeff Walker, Mike Filsaime, Gary Ambrose, and I recently received a great little DVD from Keith Wellman, in which Gary interviews Keith about how he came to kind of, ‘link in’ to this group. Around ten months before the time of the interview Keith was in the same position as most internet marketers, a small amount of revenue, but nothing to write home about. Then bingo! he’s suddenly mixing with Gary and Mike’s group, and making impressive amounts of profit on his product launches. Basically, as I read it, that DVD explains in a very open and easy to understand way how Keith came to do that, how he came to make strategic alliances with Gary and Mike, come under their tutelage, and consequently join the ‘elite’ who are experiencing success way above that most aspiring internet entrepreneurs seem to manage.

    And you know what, as a psychologist, I thought was the crucial factor? Keith is quite obviously a nice guy. He has humility, and I see the same qualities in Mike and Gary. So its important to forge strategic alliances (friendships with business partners you can trust) because you will then, like the ancient Athenians, be able to rely on them for many things, you will be able to model them, you will be able to cross-promote and leverage each others lists. They will also, on a personal basis, tip you off if they see you doing something wrong, like putting the wrong message across in your list newsletters, or making a mess of things by going wrong in some way that they know from experience.

    The importance of ‘strategic alliances’ goes much further than an impersonal business practice which helps you maximise profits. These guys, as Mike – who I find refreshingly candid – says, are not, actually ‘all about the money’, and if you come across like that, or try to pitch a JV promotion to them, especially in person, on the basis that it will make them a lot of money, are not likely to be too impressed. I have now watched a couple of their DVDs, and listened to some audio interviews, and I am beginning to ‘get’ it. Of course the guys at the top of the heap, who are successful, are going to be popular, the internet business version of celebrities. But they still want to be able to live a normal life, have a drink with their mates, without being beseiged with people attempting to get ‘in’ with them. There is a kind of unspoken protocol. Yes, they want to help other people be successful, and expand their own contacts and circle of influence, but it is best to approach them tentatively at first, through email, and if you can get some rapport with someone with a big list, for example, who you think would make a good strategic business ally, by email, you can progress to getting their IM, then maybe speaking on the phone, so that when you meet them at a conference it will be more natural. So not only are ‘strategic alliances’ important, for all the many reasons I detail above, both personal and financial, but how you should go about forging them is important, too. Especially if you are dealing with highly successful, high profile individuals, who have to be selective in their partnerships. It’s kind of like courtship, I would advise against approaching cold in person, because what are they going to say? But if you follow the kind of protocol I suggest, which members of this group recommend, you have more of a chance of success. And I think that applies with all approaches to strategic partners. So they are crucial because you can cross-promote to each others lists, cross-affiliate link, and leverage each others resources in every way. Stompernet is built on just this principle, which I will coin as ‘mutual bootstrapping’.

    As far as the importance of back end products, I will return to my suggestion to Rich, which I posted as a reply to his email request for comments, above, by mistake.

    Lets say you are Rich, promoting your personal coaching program, and you can manage a group of around 500, at a push, which Rich has. It’s still limited, isn’t it? My suggestion, which I think is the ‘back end product to end all back end products’, was that, when Rich launches his latest coaching program on 1st November, he also provides an option for those who cannot afford, or who lose out in the race to enrol on his premier coaching program. Yes it sounds great, absolutely ideal, but as previously, it is simply a fact that he will only be able to coach a limited number in person.

    But if Rich sets up a second-tier, ‘Rich Shefren Associate Student’ program, for those who can’t afford to join, or miss out on, his premier coaching program, he stands to make, I believe, even more money from that than he will from his limited number of premier coaching clients. I’ll ask the question again: Of the people who either can’t afford, or miss enrolling on Rich’s premier coaching program on 1st November, how many of them would pay a smaller sum to be part of a second-tier associate coaching program, coached by Rich’s top students, under his supervision?

    I venture to suggest that, of the potential successful internet entrepreneurs who have

    a) had the good instincts to find this site, and

    b) had the perseverance to wade through all three parts of the manifesto and the intelligence to understand its import, and the kind of business success coaching Rich, and now his alliance with Michael Masterson at Agora, also, offers,

    how many, if for one of the reasons above they do not get onto the premier coaching program, would apply to a more modestly priced associate program?

    I’d have to check Rich’s posts as to how many times the manifesto parts have been downloaded, but I know its in the high tens of thousands. And all those are Rich’s – to give the hottest example of the moment with which everyone will be familiar – potential ‘back end’ sales.

    Its 4.09 am here in England, now, and funnily enough I was going to go to bed after a hard and successful days work, ending with my two posts above.

    But while eating a late night snack, my brain, as it has a way of doing, told me that I needed to do something, add something to my answer. So I came upstairs and switched the computer back on, and found that I had answered the wrong question, to win the trip to meet Rich and Agora. So my intuition was right 🙂 It also told me that I had got my pricing suggestion for Rich’s back end ‘Shefren Associate’ program wrong, when I suggested $50-$100. I’m in England, you see, and we are used to thinking in pounds. My ‘little voice’ tells me it should be more in the region of $100-$200 (£50-£100), which nearly everyone – including me 🙂 will find affordable, and (seeing as its Rich 🙂 an ‘irresistible offer’.

    So there you go, I’ve doubled your potential profits, and given a concrete illustration of the importance of back end products. They should generally be priced lower than the premier product, starting at around half, and a good idea is to have three tiers, actually, so if your premier product is $997-£1997 (psychologically more attractive than one and two thousand), your first back end could be pitched at , say $297-$497, somewhere between that, and your third offer for those who can’t afford that, could go down to $47-$97. For products that start lower, at $197 or $97, your second and third tiers can go as low as $47 to $29 or even $19.

    Just last night I cancelled a trial subscription to a product which was going to be around $40 a month. Customer services came back to me with an offer of *the same service* for only $9.99 a month. Since newsletters and electronic media cost very little, only the bandwidth for downloading e-books, mp3s, etc., this seemingly amazing value is actually a good strategy. It would be hard to say no, wouldn’t it? Like the $1 offers I have seen starting to appear, which go in the opposite direction, upselling. Its hard for anyone with a credit card to pass up even a simple interview recording, e-book or software program they actually want, if they only have to pay a dollar… and bingo, the marketer has another person on their customer list. Success University have done this brilliantly with a $2 14 day trial which they donate to a charity. They get their business, and they have been the number one personal development site on the net in number of hits, from the monthly membership and upgrades to premium ‘double commission’ membership of a percentage of their trial members. I was with them a couple of months, right after a coaching session with Stuart Lichtman, and I think their Wednesday night faculty calls with all the big names – Mikes been on, Gary Ryan Blair, really good people – are worth the monthly membership alone.

    But when I watched Rich’s video on google, it put Success U in a different perspective. If someone can ‘terminate’ you, on whatever grounds, as an MLM company can, then you are not an entrepreneur, you are a rep, even if you are working on a self-employed, commission only basis. (continued below)

    Reply
  273. looks like I am going to have to split my definitive answer into two posts. I can see no reason other than size why the filter is rejecting the whole post. Hope this is okay.

    Okay, so I reached this feedback page from your recent email, and ended up finding the competition, but answering your emailed question :

    But I can still ‘pull the iron out of the fire’ because my two posts above are directly relevant to the other question you have posed, which I now see is:

    “Summarize why it’s critical that your business has a consistent series of back end offers and why it’s important that you build alliances within your marketplace.”

    Now, I’m going to ‘fess up that I am actually only half way through ‘the final chapter’. I was pointed in the direction of your long presentation video on Google by a friend, only about a month ago Rich, so as soon as ‘the final chapter’ came out, I printed out and had bound all three chapters, so I’ve been following your advice and reading the first two parts first, which means I haven’t quite reached the last half of ‘the final chapter’, which I gather from your question and the other answers above, has a lot to do with the importance of backends and alliances.

    But you, know, I see not having read that section as a strength? You know why? Because both you and I can be sure that I’m not just parroting or paraphrasing what you have written, so this answer will have an original ‘take’ on the question, in that its coming right from me.

    Now, there’s no reason why I shouldn’t start by answering the second half of the question, first, is there? Because that is more obvious to me. I have made the study of ‘strategic alliances’, or, taking our cue from the intelligent and very true post about the importance of ‘trust’ above, lets call them ‘friends’, yes? Why not. To back up my answer I will reference my study of communities of creative achievers in history, who have ‘bootstrapped’ themselves into creative achievement way, way, above the general norm – for statistical evidence of this see the diagram in my project ‘CreativeSynergy.pdf’ which you can download from here:

    coalesce.jxta.o r g/files/documents/404/200/CreativeSynergy.pdf

    (after closing up the spaces I had to put in to get past the ad filter)

    If you look at the diagram in the post at the top of page 15 of CreativeSynergy.pdf, it shows a huge peak of creative achievement statistically determined from entries in about 50 encyclopaedias and histories of art and science, measured by the column inches devoted to each achiever. These are the people who virtually invented the disciplines which make up our modern world, both arts and sciences, that peak includes people who invented, yes *invented* philosophy, astronomy, geometry, democracy, oratory, dramatic performance of tragedy and comedy as we know it, and classical western architecture and sculpture which still stands on the Acropolis, gave a model to the Romans, and through them to us. Their influence is in every western city, every building or home with neo-classical columns, and in every school or university, heck, the whole ‘academic’ world was modelled on Plato’s original Academy at Athens. And you know what I found out, which is absolutely stunning, and absolutely relevant to the part of this question about why strategic alliances are important? Get this:

    Around 51% of those eminent achievers, whose creative work, success and innovation pretty much created what we all take for granted as the pattern and make up of our western civilisation, *knew each other*. They lived together at the same time, in the same city, Athens, and saw each other for a chat in the (original) Agora – the market square of Athens – on most days. They had collonades on three sides of the square, called ‘stoas’ – something like monastic cloisters, which were modelled on them – so that they could shelter while they chatted to each other if the weather was unusually inclement, windy or raining.

    Now – my studies, which are detailed in that project, show that the greatest achievements in Western civilsation, and the civilisation of greece and rome which is our direct cultural ancestor, were produced by a small number of individuals and their students who had, in the terms of this question, ‘strategic alliances’. Someone else referred on a comment to Rich’s previous post, that there seems to be an elite ‘in crowd’, and if you can join them, you are pretty much made. I have only been studying internet marketing seriously since this July, but already I have identified such a group, Rich, of course, Jeff Walker, Mike Filsaime, Gary Ambrose, and I recently received a great little DVD from Keith Wellman, in which Gary interviews Keith about how he came to kind of, ‘link in’ to this group. Around ten months before the time of the interview Keith was in the same position as most internet marketers, a small amount of revenue, but nothing to write home about. Then bingo! he’s suddenly mixing with Gary and Mike’s group, and making impressive amounts of profit on his product launches. Basically, as I read it, that DVD explains in a very open and easy to understand way how Keith came to do that, how he came to make strategic alliances with Gary and Mike, come under their tutelage, and consequently join the ‘elite’ who are experiencing success way above that most aspiring internet entrepreneurs seem to manage.

    And you know what, as a psychologist, I thought was the crucial factor? Keith is quite obviously a nice guy. He has humility, and I see the same qualities in Mike and Gary. So its important to forge strategic alliances (friendships with business partners you can trust) because you will then, like the ancient Athenians, be able to rely on them for many things, you will be able to model them, you will be able to cross-promote and leverage each others lists. They will also, on a personal basis, tip you off if they see you doing something wrong, like putting the wrong message across in your list newsletters, or making a mess of things by going wrong in some way that they know from experience.

    The importance of ‘strategic alliances’ goes much further than an impersonal business practice which helps you maximise profits. These guys, as Mike – who I find refreshingly candid – says, are not, actually ‘all about the money’, and if you come across like that, or try to pitch a JV promotion to them, especially in person, on the basis that it will make them a lot of money, are not likely to be too impressed. I have now watched a couple of their DVDs, and listened to some audio interviews, and I am beginning to ‘get’ it. Of course the guys at the top of the heap, who are successful, are going to be popular, the internet business version of celebrities. But they still want to be able to live a normal life, have a drink with their mates, without being beseiged with people attempting to get ‘in’ with them. There is a kind of unspoken protocol. Yes, they want to help other people be successful, and expand their own contacts and circle of influence, but it is best to approach them tentatively at first, through email, and if you can get some rapport with someone with a big list, for example, who you think would make a good strategic business ally, by email, you can progress to getting their IM, then maybe speaking on the phone, so that when you meet them at a conference it will be more natural. So not only are ‘strategic alliances’ important, for all the many reasons I detail above, both personal and financial, but how you should go about forging them is important, too. Especially if you are dealing with highly successful, high profile individuals, who have to be selective in their partnerships. It’s kind of like courtship, I would advise against approaching cold in person, because what are they going to say? But if you follow the kind of protocol I suggest, which members of this group recommend, you have more of a chance of success. And I think that applies with all approaches to strategic partners. So they are crucial because you can cross-promote to each others lists, cross-affiliate link, and leverage each others resources in every way. Stompernet is built on just this principle, which I will coin as ‘mutual bootstrapping’.

    As far as the importance of back end products, I will return to my suggestion to Rich, which I posted as a reply to his email request for comments, above, by mistake.

    Lets say you are Rich, promoting your personal coaching program, and you can manage a group of around 500, at a push, which Rich has. It’s still limited, isn’t it? My suggestion, which I think is the ‘back end product to end all back end products’, was that, when Rich launches his latest coaching program on 1st November, he also provides an option for those who cannot afford, or who lose out in the race to enrol on his premier coaching program. Yes it sounds great, absolutely ideal, but as previously, it is simply a fact that he will only be able to coach a limited number in person.

    But if Rich sets up a second-tier, ‘Rich Shefren Associate Student’ program, for those who can’t afford to join, or miss out on, his premier coaching program, he stands to make, I believe, even more money from that than he will from his limited number of premier coaching clients. I’ll ask the question again: Of the people who either can’t afford, or miss enrolling on Rich’s premier coaching program on 1st November, how many of them would pay a smaller sum to be part of a second-tier associate coaching program, coached by Rich’s top students, under his supervision?

    I venture to suggest that, of the potential successful internet entrepreneurs who have

    a) had the good instincts to find this site, and

    b) had the perseverance to wade through all three parts of the manifesto and the intelligence to understand its import, and the kind of business success coaching Rich, and now his alliance with Michael Masterson at Agora, also, offers,

    how many, if for one of the reasons above they do not get onto the premier coaching program, would apply to a more modestly priced associate program?

    I’d have to check Rich’s posts as to how many times the manifesto parts have been downloaded, but I know its in the high tens of thousands. And all those are Rich’s – to give the hottest example of the moment with which everyone will be familiar – potential ‘back end’ sales.

    Its 4.09 am here in England, now, and funnily enough I was going to go to bed after a hard and successful days work, ending with my two posts above.

    But while eating a late night snack, my brain, as it has a way of doing, told me that I needed to do something, add something to my answer. So I came upstairs and switched the computer back on, and found that I had answered the wrong question, to win the trip to meet Rich and Agora. So my intuition was right 🙂 It also told me that I had got my pricing suggestion for Rich’s back end ‘Shefren Associate’ program wrong, when I suggested $50-$100. I’m in England, you see, and we are used to thinking in pounds. My ‘little voice’ tells me it should be more in the region of $100-$200 (£50-£100), which nearly everyone – including me 🙂 will find affordable, and (seeing as its Rich 🙂 an ‘irresistible offer’.

    So there you go, I’ve doubled your potential profits, and given a concrete illustration of the importance of back end products. They should generally be priced lower than the premier product, starting at around half, and a good idea is to have three tiers, actually, so if your premier product is $997-£1997 (psychologically more attractive than one and two thousand), your first back end could be pitched at , say $297-$497, somewhere between that, and your third offer for those who can’t afford that, could go down to $47-$97. For products that start lower, at $197 or $97, your second and third tiers can go as low as $47 to $29 or even $19.

    Just last night I cancelled a trial subscription to a product which was going to be around $40 a month. Customer services came back to me with an offer of *the same service* for only $9.99 a month. Since newsletters and electronic media cost very little, only the bandwidth for downloading e-books, mp3s, etc., this seemingly amazing value is actually a good strategy. It would be hard to say no, wouldn’t it? Like the $1 offers I have seen starting to appear, which go in the opposite direction, upselling. Its hard for anyone with a credit card to pass up even a simple interview recording, e-book or software program they actually want, if they only have to pay a dollar… and bingo, the marketer has another person on their customer list. Success University have done this brilliantly with a $2 14 day trial which they donate to a charity. They get their business, and they have been the number one personal development site on the net in number of hits, from the monthly membership and upgrades to premium ‘double commission’ membership of a percentage of their trial members. I was with them a couple of months, right after a coaching session with Stuart Lichtman, and I think their Wednesday night faculty calls with all the big names – Mikes been on, Gary Ryan Blair, really good people – are worth the monthly membership alone.

    But when I watched Rich’s video on google, it put Success U in a different perspective. If someone can ‘terminate’ you, on whatever grounds, as an MLM company can, then you are not an entrepreneur, you are a rep, even if you are working on a self-employed, commission only basis. (continued below)

    Reply
  274. Okay, so I reached this feedback page from your recent email, and ended up finding the competition, but I answered your emailed question instead of :

    “Summarize why it’s critical that your business has a consistent series of back end offers and why it’s important that you build alliances within your marketplace.”

    So now I’ll answer it.

    Now, there’s no reason why I shouldn’t start by answering the second half of the question, first, is there? Because that is more obvious to me. I have made the study of ‘strategic alliances’, or, taking our cue from the intelligent and very true post about the importance of ‘trust’ above, lets call them ‘friends’, yes? Why not. To back up my answer I will reference my study of communities of creative achievers in history, who have ‘bootstrapped’ themselves into creative achievement way, way, above the general norm – for statistical evidence of this see the diagram in my project ‘CreativeSynergy.pdf’ which you can download from here:

    coalesce.jxta.o r g/files/documents/404/200/CreativeSynergy.pdf

    (after closing up the spaces I had to put in to get past the ad filter)

    If you look at the diagram in the post at the top of page 15 of CreativeSynergy.pdf, it shows a huge peak of creative achievement statistically determined from entries in about 50 encyclopaedias and histories of art and science, measured by the column inches devoted to each achiever. These are the people who virtually invented the disciplines which make up our modern world, both arts and sciences, that peak includes people who invented, yes *invented* philosophy, astronomy, geometry, democracy, oratory, dramatic performance of tragedy and comedy as we know it, and classical western architecture and sculpture which still stands on the Acropolis, gave a model to the Romans, and through them to us. Their influence is in every western city, every building or home with neo-classical columns, and in every school or university, heck, the whole ‘academic’ world was modelled on Plato’s original Academy at Athens. And you know what I found out, which is absolutely stunning, and absolutely relevant to the part of this question about why strategic alliances are important? Get this:

    Around 51% of those eminent achievers, whose creative work, success and innovation pretty much created what we all take for granted as the pattern and make up of our western civilisation, *knew each other*. They lived together at the same time, in the same city, Athens, and saw each other for a chat in the (original) Agora – the market square of Athens – on most days. They had collonades on three sides of the square, called ‘stoas’ – something like monastic cloisters, which were modelled on them – so that they could shelter while they chatted to each other if the weather was unusually inclement, windy or raining.

    Now – my studies, which are detailed in that project, show that the greatest achievements in Western civilsation, and the civilisation of greece and rome which is our direct cultural ancestor, were produced by a small number of individuals and their students who had, in the terms of this question, ‘strategic alliances’. Someone else referred on a comment to Rich’s previous post, that there seems to be an elite ‘in crowd’, and if you can join them, you are pretty much made. I have only been studying internet marketing seriously since this July, but already I have identified such a group, Rich, of course, Jeff Walker, Mike Filsaime, Gary Ambrose, and I recently received a great little DVD from Keith Wellman, in which Gary interviews Keith about how he came to kind of, ‘link in’ to this group. Around ten months before the time of the interview Keith was in the same position as most internet marketers, a small amount of revenue, but nothing to write home about. Then bingo! he’s suddenly mixing with Gary and Mike’s group, and making impressive amounts of profit on his product launches. Basically, as I read it, that DVD explains in a very open and easy to understand way how Keith came to do that, how he came to make strategic alliances with Gary and Mike, come under their tutelage, and consequently join the ‘elite’ who are experiencing success way above that most aspiring internet entrepreneurs seem to manage.

    And you know what, as a psychologist, I thought was the crucial factor? Keith is quite obviously a nice guy. He has humility, and I see the same qualities in Mike and Gary. So its important to forge strategic alliances (friendships with business partners you can trust) because you will then, like the ancient Athenians, be able to rely on them for many things, you will be able to model them, you will be able to cross-promote and leverage each others lists. They will also, on a personal basis, tip you off if they see you doing something wrong, like putting the wrong message across in your list newsletters, or making a mess of things by going wrong in some way that they know from experience.

    The importance of ‘strategic alliances’ goes much further than an impersonal business practice which helps you maximise profits. These guys, as Mike – who I find refreshingly candid – says, are not, actually ‘all about the money’, and if you come across like that, or try to pitch a JV promotion to them, especially in person, on the basis that it will make them a lot of money, are not likely to be too impressed. I have now watched a couple of their DVDs, and listened to some audio interviews, and I am beginning to ‘get’ it. Of course the guys at the top of the heap, who are successful, are going to be popular, the internet business version of celebrities. But they still want to be able to live a normal life, have a drink with their mates, without being beseiged with people attempting to get ‘in’ with them. There is a kind of unspoken protocol. Yes, they want to help other people be successful, and expand their own contacts and circle of influence, but it is best to approach them tentatively at first, through email, and if you can get some rapport with someone with a big list, for example, who you think would make a good strategic business ally, by email, you can progress to getting their IM, then maybe speaking on the phone, so that when you meet them at a conference it will be more natural. So not only are ‘strategic alliances’ important, for all the many reasons I detail above, both personal and financial, but how you should go about forging them is important, too. Especially if you are dealing with highly successful, high profile individuals, who have to be selective in their partnerships. It’s kind of like courtship, I would advise against approaching cold in person, because what are they going to say? But if you follow the kind of protocol I suggest, which members of this group recommend, you have more of a chance of success. And I think that applies with all approaches to strategic partners. So they are crucial because you can cross-promote to each others lists, cross-affiliate link, and leverage each others resources in every way. Stompernet is built on just this principle, which I will coin as ‘mutual bootstrapping’.

    As far as the importance of back end products, I will return to my suggestion to Rich, which I posted as a reply to his email request for comments, above, by mistake.

    Lets say you are Rich, promoting your personal coaching program, and you can manage a group of around 500, at a push, which Rich has. It’s still limited, isn’t it? My suggestion, which I think is the ‘back end product to end all back end products’, was that, when Rich launches his latest coaching program on 1st November, he also provides an option for those who cannot afford, or who lose out in the race to enrol on his premier coaching program. Yes it sounds great, absolutely ideal, but as previously, it is simply a fact that he will only be able to coach a limited number in person.

    But if Rich sets up a second-tier, ‘Rich Shefren Associate Student’ program, for those who can’t afford to join, or miss out on, his premier coaching program, he stands to make, I believe, even more money from that than he will from his limited number of premier coaching clients. I’ll ask the question again: Of the people who either can’t afford, or miss enrolling on Rich’s premier coaching program on 1st November, how many of them would pay a smaller sum to be part of a second-tier associate coaching program, coached by Rich’s top students, under his supervision?

    I venture to suggest that, of the potential successful internet entrepreneurs who have

    a) had the good instincts to find this site, and

    b) had the perseverance to wade through all three parts of the manifesto and the intelligence to understand its import, and the kind of business success coaching Rich, and now his alliance with Michael Masterson at Agora, also, offers,

    how many, if for one of the reasons above they do not get onto the premier coaching program, would apply to a more modestly priced associate program?

    I’d have to check Rich’s posts as to how many times the manifesto parts have been downloaded, but I know its in the high tens of thousands. And all those are Rich’s – to give the hottest example of the moment with which everyone will be familiar – potential ‘back end’ sales.

    Its 4.09 am here in England, now, and funnily enough I was going to go to bed after a hard and successful days work, ending with my two posts above.

    But while eating a late night snack, my brain, as it has a way of doing, told me that I needed to do something, add something to my answer. So I came upstairs and switched the computer back on, and found that I had answered the wrong question, to win the trip to meet Rich and Agora. So my intuition was right 🙂 It also told me that I had got my pricing suggestion for Rich’s back end ‘Shefren Associate’ program wrong, when I suggested $50-$100. I’m in England, you see, and we are used to thinking in pounds. My ‘little voice’ tells me it should be more in the region of $100-$200 (£50-£100), which nearly everyone – including me 🙂 will find affordable, and (seeing as its Rich 🙂 an ‘irresistible offer’.

    So there you go, I’ve doubled your potential profits, and given a concrete illustration of the importance of back end products. They should generally be priced lower than the premier product, starting at around half, and a good idea is to have three tiers, actually, so if your premier product is $997-£1997 (psychologically more attractive than one and two thousand), your first back end could be pitched at , say $297-$497, somewhere between that, and your third offer for those who can’t afford that, could go down to $47-$97. For products that start lower, at $197 or $97, your second and third tiers can go as low as $47 to $29 or even $19.

    Just last night I cancelled a trial subscription to a product which was going to be around $40 a month. Customer services came back to me with an offer of *the same service* for only $9.99 a month. Since newsletters and electronic media cost very little, only the bandwidth for downloading e-books, mp3s, etc., this seemingly amazing value is actually a good strategy. It would be hard to say no, wouldn’t it? Like the $1 offers I have seen starting to appear, which go in the opposite direction, upselling. Its hard for anyone with a credit card to pass up even a simple interview recording, e-book or software program they actually want, if they only have to pay a dollar… and bingo, the marketer has another person on their customer list. Success University have done this brilliantly with a $2 14 day trial which they donate to a charity. They get their business, and they have been the number one personal development site on the net in number of hits, from the monthly membership and upgrades to premium ‘double commission’ membership of a percentage of their trial members. I was with them a couple of months, right after a coaching session with Stuart Lichtman, and I think their Wednesday night faculty calls with all the big names – Mikes been on, Gary Ryan Blair, really good people – are worth the monthly membership alone.

    But when I watched Rich’s video on google, it put Success U in a different perspective. If someone can ‘terminate’ you, on whatever grounds, as an MLM company can, then you are not an entrepreneur, you are a rep, even if you are working on a self-employed, commission only basis.

    I moved on from them to Bern Moses, who you will find at his .c o m of that name. This old timer had some kind of epiphany – about the time I was born! – and moved up from 900th place out of a sales force of 1500 to first place, in about 90 days. So he obviously had an important insight. Now, MLM has such a bad rep, a ‘bad rap’, doesn’t it? And yet Bern Moses believes that MLM is ‘the most noble system for making a living known to man’. And you know what? When I listened to him extolling *his* version of MLM, it sounded almost exactly like Rich’s program for systematising a business. Bern puts it very simply. No ‘churn’, you don’t need huge numbers. That is what has given MLM a bad name, the idea, based on what he calls the ‘corporate model’, that its a ‘numbers game’. Because wherever you recruit huge numbers, inevitably you are not going to be able to give detailed support and advice to all of them, and without that, the majority will fall by th e wayside, or move on, as I have. Not to say I might not use them as one affiliate link amongst many on my own business websites.

    What you should do, says Bern – and he could be Rich talking – is get just a couple of people and show them everything, how you run your business, your sales methods, business processes, even ‘do it for them’, model selling and administering – all your business processes in front of them, until they really get it. This relates to NLP modelling, which acknowledges that when you model a successful person you are absorbing many tacit and unconscious aspects of their performance that even they may not be consciously aware of or be able to articulate. Then, when they have really, *really* ‘got it’, can ‘do as you do’, – as Rich does, for instance – they can go out and build their own business, the ideal model, in my opinion, being one where it *is* their business – a business that draws on the individual’s strengths, as Rich says – but the coach gets a cut, an ongoing coaching or business consulting fee, you might call it. My own personal development coach, Leo, who I first met in 1975 in London, was way ahead of his time, teaching the ‘become what you think about’ success principles that ‘The Secret’ group are promoting.

    Have you noticed, how things are ‘coming together’..? I can make a post like this, confident that quite a high percentage of readers, and Rich especially, will be clued in to most of what I’m talking about. So it shows that things are disseminating, with like attracting like, at a high rate due to the handy facility of the Net. Given that i only started to take an interest in business and marketing this July, how much have I learned in 4 months?!? I could never have ‘followed my nose’ from teacher to teacher like this so fast, without the net. Chances are I’d never have heard of them.

    Getting back to my personal development coach, he was actually using the term personal development from 1975 onwards, and it was largely due to following his success methods, which had a lot in common with psycho-cybernetics, that I attribute getting not just one, but two first class honours degrees, graduating first from a course of 118 students on the first course. So mindset teaching is pretty important. In that respect I would say that Gary Ryan Blair, who also emphasises strategic planning, compliments your teaching, Rich, I would say he is your peer, which is pretty rare, with Stuart Lichtman falling somewhere in between, since his background was entrepreneurial but he now mainly teaches general, rather than specifically business success. What you add to the mix, for me especially, is your specific focus on *business* success, which is exactly what i need, since its a new field for me.

    Well, I’ve rambled on enough. Sometimes you teach things, or learn things, incidentally, from the stream-of-consciousness telling of a story, which I know you do Rich. There is a kind of immediacy about relating what you, a specific individual, are doing and thinking on an every day basis, which people immediately relate to. Kind of the business Tom Sawyer, or maybe Huck Finn 🙂

    I just have to add, to make my answer complete, as well as comprehensive, that the reason its important to have an ongoing stream of backend products is that, once you pull people in, and have a customer base, you are going to need, and have the opportunity to derive, an ongoing income from that customer base. Yes, its nice to have a million dollar product launch, like Mike, wouldn’t we all like to have one, but you’re not going to retire on it, are you? I don’t know what its like in the states, but three bedroomed flats in Kensington and Chelsea now *average* £1,000,000 market value ($1,875,000 US) and even where I live out in East Anglia a decent house is about a fifth of that. So you need a constant stream of backend products, because you need a constant stream of income! Until you ‘retire’, at least. To me, ‘retirement’ is simply to have enough capital that I can live where I want, go where I want and do what I want. Given that I’m already 51, and have five kids, my own realistic personal wealth target is £8,000,000 ($15,000,000 US). If I were younger, it would be considerably more than that. As Rich points out, time is our most scarce resource, and I’ve already found his timekeeping advice valuable, I know I have increased productivity and focus just this week. My own strengths are coaching, which have resulted in my wife producing a huge work which I believe, and critical opinion has supported this, is likely to go down as one of the most significant works of literature of the twenty-first century, and my eldest son has produced over 30 hours of original electronic music so far. But as I had never been in business, I started learning all this stuff in order to market their creative work. In addition to coaching, my other strengths are writing and especially public speaking. Although I have only spoken impromptu to 4,000 people at the most, I absolutely know that I could do so to any size audience with full confidence. That fearlessness in front of any audience, actually enjoying it, is something I was born with, and emerged before the age of 5, as Rich suggests innate talents do. And the great thing about Rich’s process map method, and systematising well, is that, like the staff or manager of a Starbucks and MacDonalds, I or anyone else could, with a little preparation, do a coaching session like the one posted on google video, and people would attend, if they knew they were going to see the same slides, and hear exactly the same material – with perhaps a few little personal wrinkles to allow the student coach’s personality to come through – that they would have done if Rich had been there in person. THAT’S what you are driving at, isn’t it Rich? And this answer or comment, if read and re-read, in my comments about Bern Moses version of MLM especially, but all through, makes, I hope, a contribution of some value towards the implementation of your vision, as well as comprehensively answering your question. 🙂

    Reply
  275. Okay, so I reached this feedback page from your recent email, and ended up finding the competition, but I answered your emailed question instead of :

    “Summarize why it’s critical that your business has a consistent series of back end offers and why it’s important that you build alliances within your marketplace.”

    So now I’ll answer it.

    Now, there’s no reason why I shouldn’t start by answering the second half of the question, first, is there? Because that is more obvious to me. I have made the study of ‘strategic alliances’, or, taking our cue from the intelligent and very true post about the importance of ‘trust’ above, lets call them ‘friends’, yes? Why not. To back up my answer I will reference my study of communities of creative achievers in history, who have ‘bootstrapped’ themselves into creative achievement way, way, above the general norm – for statistical evidence of this see the diagram in my project ‘CreativeSynergy.pdf’ which you can download from here:

    coalesce.jxta.o r g/files/documents/404/200/CreativeSynergy.pdf

    (after closing up the spaces I had to put in to get past the ad filter)

    If you look at the diagram in the post at the top of page 15 of CreativeSynergy.pdf, it shows a huge peak of creative achievement statistically determined from entries in about 50 encyclopaedias and histories of art and science, measured by the column inches devoted to each achiever. These are the people who virtually invented the disciplines which make up our modern world, both arts and sciences, that peak includes people who invented, yes *invented* philosophy, astronomy, geometry, democracy, oratory, dramatic performance of tragedy and comedy as we know it, and classical western architecture and sculpture which still stands on the Acropolis, gave a model to the Romans, and through them to us. Their influence is in every western city, every building or home with neo-classical columns, and in every school or university, heck, the whole ‘academic’ world was modelled on Plato’s original Academy at Athens. And you know what I found out, which is absolutely stunning, and absolutely relevant to the part of this question about why strategic alliances are important? Get this:

    Around 51% of those eminent achievers, whose creative work, success and innovation pretty much created what we all take for granted as the pattern and make up of our western civilisation, *knew each other*. They lived together at the same time, in the same city, Athens, and saw each other for a chat in the (original) Agora – the market square of Athens – on most days. They had collonades on three sides of the square, called ‘stoas’ – something like monastic cloisters, which were modelled on them – so that they could shelter while they chatted to each other if the weather was unusually inclement, windy or raining.

    Now – my studies, which are detailed in that project, show that the greatest achievements in Western civilsation, and the civilisation of greece and rome which is our direct cultural ancestor, were produced by a small number of individuals and their students who had, in the terms of this question, ‘strategic alliances’. Someone else referred on a comment to Rich’s previous post, that there seems to be an elite ‘in crowd’, and if you can join them, you are pretty much made. I have only been studying internet marketing seriously since this July, but already I have identified such a group, Rich, of course, Jeff Walker, Mike Filsaime, Gary Ambrose, and I recently received a great little DVD from Keith Wellman, in which Gary interviews Keith about how he came to kind of, ‘link in’ to this group. Around ten months before the time of the interview Keith was in the same position as most internet marketers, a small amount of revenue, but nothing to write home about. Then bingo! he’s suddenly mixing with Gary and Mike’s group, and making impressive amounts of profit on his product launches. Basically, as I read it, that DVD explains in a very open and easy to understand way how Keith came to do that, how he came to make strategic alliances with Gary and Mike, come under their tutelage, and consequently join the ‘elite’ who are experiencing success way above that most aspiring internet entrepreneurs seem to manage.

    And you know what, as a psychologist, I thought was the crucial factor? Keith is quite obviously a nice guy. He has humility, and I see the same qualities in Mike and Gary. So its important to forge strategic alliances (friendships with business partners you can trust) because you will then, like the ancient Athenians, be able to rely on them for many things, you will be able to model them, you will be able to cross-promote and leverage each others lists. They will also, on a personal basis, tip you off if they see you doing something wrong, like putting the wrong message across in your list newsletters, or making a mess of things by going wrong in some way that they know from experience.

    The importance of ‘strategic alliances’ goes much further than an impersonal business practice which helps you maximise profits. These guys, as Mike – who I find refreshingly candid – says, are not, actually ‘all about the money’, and if you come across like that, or try to pitch a JV promotion to them, especially in person, on the basis that it will make them a lot of money, are not likely to be too impressed. I have now watched a couple of their DVDs, and listened to some audio interviews, and I am beginning to ‘get’ it. Of course the guys at the top of the heap, who are successful, are going to be popular, the internet business version of celebrities. But they still want to be able to live a normal life, have a drink with their mates, without being beseiged with people attempting to get ‘in’ with them. There is a kind of unspoken protocol. Yes, they want to help other people be successful, and expand their own contacts and circle of influence, but it is best to approach them tentatively at first, through email, and if you can get some rapport with someone with a big list, for example, who you think would make a good strategic business ally, by email, you can progress to getting their IM, then maybe speaking on the phone, so that when you meet them at a conference it will be more natural. So not only are ‘strategic alliances’ important, for all the many reasons I detail above, both personal and financial, but how you should go about forging them is important, too. Especially if you are dealing with highly successful, high profile individuals, who have to be selective in their partnerships. It’s kind of like courtship, I would advise against approaching cold in person, because what are they going to say? But if you follow the kind of protocol I suggest, which members of this group recommend, you have more of a chance of success. And I think that applies with all approaches to strategic partners. So they are crucial because you can cross-promote to each others lists, cross-affiliate link, and leverage each others resources in every way. Stompernet is built on just this principle, which I will coin as ‘mutual bootstrapping’.

    As far as the importance of back end products, I will return to my suggestion to Rich, which I posted as a reply to his email request for comments, above, by mistake.

    Lets say you are Rich, promoting your personal coaching program, and you can manage a group of around 500, at a push, which Rich has. It’s still limited, isn’t it? My suggestion, which I think is the ‘back end product to end all back end products’, was that, when Rich launches his latest coaching program on 1st November, he also provides an option for those who cannot afford, or who lose out in the race to enrol on his premier coaching program. Yes it sounds great, absolutely ideal, but as previously, it is simply a fact that he will only be able to coach a limited number in person.

    But if Rich sets up a second-tier, ‘Rich Shefren Associate Student’ program, for those who can’t afford to join, or miss out on, his premier coaching program, he stands to make, I believe, even more money from that than he will from his limited number of premier coaching clients. I’ll ask the question again: Of the people who either can’t afford, or miss enrolling on Rich’s premier coaching program on 1st November, how many of them would pay a smaller sum to be part of a second-tier associate coaching program, coached by Rich’s top students, under his supervision?

    I venture to suggest that, of the potential successful internet entrepreneurs who have

    a) had the good instincts to find this site, and

    b) had the perseverance to wade through all three parts of the manifesto and the intelligence to understand its import, and the kind of business success coaching Rich, and now his alliance with Michael Masterson at Agora, also, offers,

    how many, if for one of the reasons above they do not get onto the premier coaching program, would apply to a more modestly priced associate program?

    I’d have to check Rich’s posts as to how many times the manifesto parts have been downloaded, but I know its in the high tens of thousands. And all those are Rich’s – to give the hottest example of the moment with which everyone will be familiar – potential ‘back end’ sales.

    Its 4.09 am here in England, now, and funnily enough I was going to go to bed after a hard and successful days work, ending with my two posts above.

    But while eating a late night snack, my brain, as it has a way of doing, told me that I needed to do something, add something to my answer. So I came upstairs and switched the computer back on, and found that I had answered the wrong question, to win the trip to meet Rich and Agora. So my intuition was right 🙂 It also told me that I had got my pricing suggestion for Rich’s back end ‘Shefren Associate’ program wrong, when I suggested $50-$100. I’m in England, you see, and we are used to thinking in pounds. My ‘little voice’ tells me it should be more in the region of $100-$200 (£50-£100), which nearly everyone – including me 🙂 will find affordable, and (seeing as its Rich 🙂 an ‘irresistible offer’.

    So there you go, I’ve doubled your potential profits, and given a concrete illustration of the importance of back end products. They should generally be priced lower than the premier product, starting at around half, and a good idea is to have three tiers, actually, so if your premier product is $997-£1997 (psychologically more attractive than one and two thousand), your first back end could be pitched at , say $297-$497, somewhere between that, and your third offer for those who can’t afford that, could go down to $47-$97. For products that start lower, at $197 or $97, your second and third tiers can go as low as $47 to $29 or even $19.

    Just last night I cancelled a trial subscription to a product which was going to be around $40 a month. Customer services came back to me with an offer of *the same service* for only $9.99 a month. Since newsletters and electronic media cost very little, only the bandwidth for downloading e-books, mp3s, etc., this seemingly amazing value is actually a good strategy. It would be hard to say no, wouldn’t it? Like the $1 offers I have seen starting to appear, which go in the opposite direction, upselling. Its hard for anyone with a credit card to pass up even a simple interview recording, e-book or software program they actually want, if they only have to pay a dollar… and bingo, the marketer has another person on their customer list. Success University have done this brilliantly with a $2 14 day trial which they donate to a charity. They get their business, and they have been the number one personal development site on the net in number of hits, from the monthly membership and upgrades to premium ‘double commission’ membership of a percentage of their trial members. I was with them a couple of months, right after a coaching session with Stuart Lichtman, and I think their Wednesday night faculty calls with all the big names – Mikes been on, Gary Ryan Blair, really good people – are worth the monthly membership alone.

    But when I watched Rich’s video on google, it put Success U in a different perspective. If someone can ‘terminate’ you, on whatever grounds, as an MLM company can, then you are not an entrepreneur, you are a rep, even if you are working on a self-employed, commission only basis.

    I moved on from them to Bern Moses, who you will find at his .c o m of that name. This old timer had some kind of epiphany – about the time I was born! – and moved up from 900th place out of a sales force of 1500 to first place, in about 90 days. So he obviously had an important insight. Now, MLM has such a bad rep, a ‘bad rap’, doesn’t it? And yet Bern Moses believes that MLM is ‘the most noble system for making a living known to man’. And you know what? When I listened to him extolling *his* version of MLM, it sounded almost exactly like Rich’s program for systematising a business. Bern puts it very simply. No ‘churn’, you don’t need huge numbers. That is what has given MLM a bad name, the idea, based on what he calls the ‘corporate model’, that its a ‘numbers game’. Because wherever you recruit huge numbers, inevitably you are not going to be able to give detailed support and advice to all of them, and without that, the majority will fall by th e wayside, or move on, as I have. Not to say I might not use them as one affiliate link amongst many on my own business websites.

    What you should do, says Bern – and he could be Rich talking – is get just a couple of people and show them everything, how you run your business, your sales methods, business processes, even ‘do it for them’, model selling and administering – all your business processes in front of them, until they really get it. This relates to NLP modelling, which acknowledges that when you model a successful person you are absorbing many tacit and unconscious aspects of their performance that even they may not be consciously aware of or be able to articulate. Then, when they have really, *really* ‘got it’, can ‘do as you do’, – as Rich does, for instance – they can go out and build their own business, the ideal model, in my opinion, being one where it *is* their business – a business that draws on the individual’s strengths, as Rich says – but the coach gets a cut, an ongoing coaching or business consulting fee, you might call it. My own personal development coach, Leo, who I first met in 1975 in London, was way ahead of his time, teaching the ‘become what you think about’ success principles that ‘The Secret’ group are promoting.

    Have you noticed, how things are ‘coming together’..? I can make a post like this, confident that quite a high percentage of readers, and Rich especially, will be clued in to most of what I’m talking about. So it shows that things are disseminating, with like attracting like, at a high rate due to the handy facility of the Net. Given that i only started to take an interest in business and marketing this July, how much have I learned in 4 months?!? I could never have ‘followed my nose’ from teacher to teacher like this so fast, without the net. Chances are I’d never have heard of them.

    Getting back to my personal development coach, he was actually using the term personal development from 1975 onwards, and it was largely due to following his success methods, which had a lot in common with psycho-cybernetics, that I attribute getting not just one, but two first class honours degrees, graduating first from a course of 118 students on the first course. So mindset teaching is pretty important. In that respect I would say that Gary Ryan Blair, who also emphasises strategic planning, compliments your teaching, Rich, I would say he is your peer, which is pretty rare, with Stuart Lichtman falling somewhere in between, since his background was entrepreneurial but he now mainly teaches general, rather than specifically business success. What you add to the mix, for me especially, is your specific focus on *business* success, which is exactly what i need, since its a new field for me.

    Well, I’ve rambled on enough. Sometimes you teach things, or learn things, incidentally, from the stream-of-consciousness telling of a story, which I know you do Rich. There is a kind of immediacy about relating what you, a specific individual, are doing and thinking on an every day basis, which people immediately relate to. Kind of the business Tom Sawyer, or maybe Huck Finn 🙂

    I just have to add, to make my answer complete, as well as comprehensive, that the reason its important to have an ongoing stream of backend products is that, once you pull people in, and have a customer base, you are going to need, and have the opportunity to derive, an ongoing income from that customer base. Yes, its nice to have a million dollar product launch, like Mike, wouldn’t we all like to have one, but you’re not going to retire on it, are you? I don’t know what its like in the states, but three bedroomed flats in Kensington and Chelsea now *average* £1,000,000 market value ($1,875,000 US) and even where I live out in East Anglia a decent house is about a fifth of that. So you need a constant stream of backend products, because you need a constant stream of income! Until you ‘retire’, at least. To me, ‘retirement’ is simply to have enough capital that I can live where I want, go where I want and do what I want. Given that I’m already 51, and have five kids, my own realistic personal wealth target is £8,000,000 ($15,000,000 US). If I were younger, it would be considerably more than that. As Rich points out, time is our most scarce resource, and I’ve already found his timekeeping advice valuable, I know I have increased productivity and focus just this week. My own strengths are coaching, which have resulted in my wife producing a huge work which I believe, and critical opinion has supported this, is likely to go down as one of the most significant works of literature of the twenty-first century, and my eldest son has produced over 30 hours of original electronic music so far. But as I had never been in business, I started learning all this stuff in order to market their creative work. In addition to coaching, my other strengths are writing and especially public speaking. Although I have only spoken impromptu to 4,000 people at the most, I absolutely know that I could do so to any size audience with full confidence. That fearlessness in front of any audience, actually enjoying it, is something I was born with, and emerged before the age of 5, as Rich suggests innate talents do. And the great thing about Rich’s process map method, and systematising well, is that, like the staff or manager of a Starbucks and MacDonalds, I or anyone else could, with a little preparation, do a coaching session like the one posted on google video, and people would attend, if they knew they were going to see the same slides, and hear exactly the same material – with perhaps a few little personal wrinkles to allow the student coach’s personality to come through – that they would have done if Rich had been there in person. THAT’S what you are driving at, isn’t it Rich? And this answer or comment, if read and re-read, in my comments about Bern Moses version of MLM especially, but all through, makes, I hope, a contribution of some value towards the implementation of your vision, as well as comprehensively answering your question. 🙂

    Reply
  276. “The Secrets To Creating A $270 Million Dollar Business…Why Back End Offers And Alliances Are CRUCIAL To Your Business Success”

    10 ‘No-Brainer’ Reasons Why You MUST Have Back End Offers On A Consistent Basis In Your Business

    Back end offers:

    1. Are the lowest risk and most profitable thing you can do

    2. Increase the lifetime customer value

    3. Strengthen the bond and relationship with your customers

    4. Create stability and growth

    5. Decrease customer attrition

    6. Are a highly productive use of your time

    7. Are more profitable than first time offers because the cost per acquisition is lower

    8. Have higher conversion rates

    9. Can be systematized and automated

    10. Are the most profitable part of your business

    A first time sale is where the journey begins…not where it ends. Without back end offers on a consistent basis, you risk mediocrity or failure in your business.

    7 Reasons Why You Should Be Spanked And Sent To Your Room Without Dinner For Not Creating Alliances In Your Business

    Alliances:

    1. Increase your scale and leverage

    2. Create explosive growth and profits

    3. Eliminate the dependency on front end sales

    4. Dramatically expands your marketplace

    5. Bring in more high quality customers at a faster rate

    6. Allow your business to enter into subdivided niches

    7. Are the difference between a $30 million dollar company and a $270 million dollar company

    Alliances have been PROVEN to dramatically increase profits and success. There is no reason or excuse why you should not immediately take action to create alliances and consistent back end offers in your business.

    Reply
  277. “The Secrets To Creating A $270 Million Dollar Business…Why Back End Offers And Alliances Are CRUCIAL To Your Business Success”

    10 ‘No-Brainer’ Reasons Why You MUST Have Back End Offers On A Consistent Basis In Your Business

    Back end offers:

    1. Are the lowest risk and most profitable thing you can do

    2. Increase the lifetime customer value

    3. Strengthen the bond and relationship with your customers

    4. Create stability and growth

    5. Decrease customer attrition

    6. Are a highly productive use of your time

    7. Are more profitable than first time offers because the cost per acquisition is lower

    8. Have higher conversion rates

    9. Can be systematized and automated

    10. Are the most profitable part of your business

    A first time sale is where the journey begins…not where it ends. Without back end offers on a consistent basis, you risk mediocrity or failure in your business.

    7 Reasons Why You Should Be Spanked And Sent To Your Room Without Dinner For Not Creating Alliances In Your Business

    Alliances:

    1. Increase your scale and leverage

    2. Create explosive growth and profits

    3. Eliminate the dependency on front end sales

    4. Dramatically expands your marketplace

    5. Bring in more high quality customers at a faster rate

    6. Allow your business to enter into subdivided niches

    7. Are the difference between a $30 million dollar company and a $270 million dollar company

    Alliances have been PROVEN to dramatically increase profits and success. There is no reason or excuse why you should not immediately take action to create alliances and consistent back end offers in your business.

    Reply
  278. It’s critical to have a consistent series of back end offers because that will greatly INCREASE the “lifetime customer value”. Building alliances within the marketplace will greatly DECREASE the “cost per acquisition” and let you acquire leads much easier and at a cheaper rate.

    These two indicators (lifetime customer value and cost per acquisition) are the two most important… no CRITICAL… indicators in your business.

    So, securing these two things will guarantee business success!

    Reply
  279. It’s critical to have a consistent series of back end offers because that will greatly INCREASE the “lifetime customer value”. Building alliances within the marketplace will greatly DECREASE the “cost per acquisition” and let you acquire leads much easier and at a cheaper rate.

    These two indicators (lifetime customer value and cost per acquisition) are the two most important… no CRITICAL… indicators in your business.

    So, securing these two things will guarantee business success!

    Reply
  280. I realised that, having reached the blog from a link in Rich’s email, I answered his email question instead of the one about back end sales and strategic alliances. But now its blocking my definitive answer, and I can’t figure out why. So this is a test post to see if its blocking any new post from me. I’m guessing it may be on a timer, to prevent multiple posting or spamming. If so I’ll try again in a few hours.

    Reply
  281. I realised that, having reached the blog from a link in Rich’s email, I answered his email question instead of the one about back end sales and strategic alliances. But now its blocking my definitive answer, and I can’t figure out why. So this is a test post to see if its blocking any new post from me. I’m guessing it may be on a timer, to prevent multiple posting or spamming. If so I’ll try again in a few hours.

    Reply
  282. Okay, so it looks like its length, having failed to post it in two halves, I’ll have to try four parts. So here it is:

    Okay, so I reached this feedback page from your recent email, and ended up finding the competition, but I answered your emailed question instead of :

    “Summarize why it’s critical that your business has a consistent series of back end offers and why it’s important that you build alliances within your marketplace.”

    So now I’ll answer it.

    Now, there’s no reason why I shouldn’t start by answering the second half of the question, first, is there? Because that is more obvious to me. I have made the study of ‘strategic alliances’, or, taking our cue from the intelligent and very true post about the importance of ‘trust’ above, lets call them ‘friends’, yes? Why not. To back up my answer I will reference my study of communities of creative achievers in history, who have ‘bootstrapped’ themselves into creative achievement way, way, above the general norm – for statistical evidence of this see the diagram in my project ‘CreativeSynergy.pdf’ which you can download from here:

    coalesce.jxta.o r g/files/documents/404/200/CreativeSynergy.pdf

    (after closing up the spaces I had to put in to get past the ad filter)

    If you look at the diagram in the post at the top of page 15 of CreativeSynergy.pdf, it shows a huge peak of creative achievement statistically determined from entries in about 50 encyclopaedias and histories of art and science, measured by the column inches devoted to each achiever. These are the people who virtually invented the disciplines which make up our modern world, both arts and sciences, that peak includes people who invented, yes *invented* philosophy, astronomy, geometry, democracy, oratory, dramatic performance of tragedy and comedy as we know it, and classical western architecture and sculpture which still stands on the Acropolis, gave a model to the Romans, and through them to us. Their influence is in every western city, every building or home with neo-classical columns, and in every school or university, heck, the whole ‘academic’ world was modelled on Plato’s original Academy at Athens. And you know what I found out, which is absolutely stunning, and absolutely relevant to the part of this question about why strategic alliances are important? Get this:

    Around 51% of those eminent achievers, whose creative work, success and innovation pretty much created what we all take for granted as the pattern and make up of our western civilisation, *knew each other*. They lived together at the same time, in the same city, Athens, and saw each other for a chat in the (original) Agora – the market square of Athens – on most days. They had collonades on three sides of the square, called ‘stoas’ – something like monastic cloisters, which were modelled on them – so that they could shelter while they chatted to each other if the weather was unusually inclement, windy or raining.

    Now – my studies, which are detailed in that project, show that the greatest achievements in Western civilsation, and the civilisation of greece and rome which is our direct cultural ancestor, were produced by a small number of individuals and their students who had, in the terms of this question, ‘strategic alliances’. Someone else referred on a comment to Rich’s previous post, that there seems to be an elite ‘in crowd’, and if you can join them, you are pretty much made. I have only been studying internet marketing seriously since this July, but already I have identified such a group, Rich, of course, Jeff Walker, Mike Filsaime, Gary Ambrose, and I recently received a great little DVD from Keith Wellman, in which Gary interviews Keith about how he came to kind of, ‘link in’ to this group. Around ten months before the time of the interview Keith was in the same position as most internet marketers, a small amount of revenue, but nothing to write home about. Then bingo! he’s suddenly mixing with Gary and Mike’s group, and making impressive amounts of profit on his product launches. Basically, as I read it, that DVD explains in a very open and easy to understand way how Keith came to do that, how he came to make strategic alliances with Gary and Mike, come under their tutelage, and consequently join the ‘elite’ who are experiencing success way above that most aspiring internet entrepreneurs seem to manage.
    (part 1 – continued below)

    Reply
  283. Okay, so it looks like its length, having failed to post it in two halves, I’ll have to try four parts. So here it is:

    Okay, so I reached this feedback page from your recent email, and ended up finding the competition, but I answered your emailed question instead of :

    “Summarize why it’s critical that your business has a consistent series of back end offers and why it’s important that you build alliances within your marketplace.”

    So now I’ll answer it.

    Now, there’s no reason why I shouldn’t start by answering the second half of the question, first, is there? Because that is more obvious to me. I have made the study of ‘strategic alliances’, or, taking our cue from the intelligent and very true post about the importance of ‘trust’ above, lets call them ‘friends’, yes? Why not. To back up my answer I will reference my study of communities of creative achievers in history, who have ‘bootstrapped’ themselves into creative achievement way, way, above the general norm – for statistical evidence of this see the diagram in my project ‘CreativeSynergy.pdf’ which you can download from here:

    coalesce.jxta.o r g/files/documents/404/200/CreativeSynergy.pdf

    (after closing up the spaces I had to put in to get past the ad filter)

    If you look at the diagram in the post at the top of page 15 of CreativeSynergy.pdf, it shows a huge peak of creative achievement statistically determined from entries in about 50 encyclopaedias and histories of art and science, measured by the column inches devoted to each achiever. These are the people who virtually invented the disciplines which make up our modern world, both arts and sciences, that peak includes people who invented, yes *invented* philosophy, astronomy, geometry, democracy, oratory, dramatic performance of tragedy and comedy as we know it, and classical western architecture and sculpture which still stands on the Acropolis, gave a model to the Romans, and through them to us. Their influence is in every western city, every building or home with neo-classical columns, and in every school or university, heck, the whole ‘academic’ world was modelled on Plato’s original Academy at Athens. And you know what I found out, which is absolutely stunning, and absolutely relevant to the part of this question about why strategic alliances are important? Get this:

    Around 51% of those eminent achievers, whose creative work, success and innovation pretty much created what we all take for granted as the pattern and make up of our western civilisation, *knew each other*. They lived together at the same time, in the same city, Athens, and saw each other for a chat in the (original) Agora – the market square of Athens – on most days. They had collonades on three sides of the square, called ‘stoas’ – something like monastic cloisters, which were modelled on them – so that they could shelter while they chatted to each other if the weather was unusually inclement, windy or raining.

    Now – my studies, which are detailed in that project, show that the greatest achievements in Western civilsation, and the civilisation of greece and rome which is our direct cultural ancestor, were produced by a small number of individuals and their students who had, in the terms of this question, ‘strategic alliances’. Someone else referred on a comment to Rich’s previous post, that there seems to be an elite ‘in crowd’, and if you can join them, you are pretty much made. I have only been studying internet marketing seriously since this July, but already I have identified such a group, Rich, of course, Jeff Walker, Mike Filsaime, Gary Ambrose, and I recently received a great little DVD from Keith Wellman, in which Gary interviews Keith about how he came to kind of, ‘link in’ to this group. Around ten months before the time of the interview Keith was in the same position as most internet marketers, a small amount of revenue, but nothing to write home about. Then bingo! he’s suddenly mixing with Gary and Mike’s group, and making impressive amounts of profit on his product launches. Basically, as I read it, that DVD explains in a very open and easy to understand way how Keith came to do that, how he came to make strategic alliances with Gary and Mike, come under their tutelage, and consequently join the ‘elite’ who are experiencing success way above that most aspiring internet entrepreneurs seem to manage.
    (part 1 – continued below)

    Reply
  284. (continued)

    And you know what, as a psychologist, I thought was the crucial factor? Keith is quite obviously a nice guy. He has humility, and I see the same qualities in Mike and Gary. So its important to forge strategic alliances (friendships with business partners you can trust) because you will then, like the ancient Athenians, be able to rely on them for many things, you will be able to model them, you will be able to cross-promote and leverage each others lists. They will also, on a personal basis, tip you off if they see you doing something wrong, like putting the wrong message across in your list newsletters, or making a mess of things by going wrong in some way that they know from experience.

    The importance of ‘strategic alliances’ goes much further than an impersonal business practice which helps you maximise profits. These guys, as Mike – who I find refreshingly candid – says, are not, actually ‘all about the money’, and if you come across like that, or try to pitch a JV promotion to them, especially in person, on the basis that it will make them a lot of money, are not likely to be too impressed. I have now watched a couple of their DVDs, and listened to some audio interviews, and I am beginning to ‘get’ it. Of course the guys at the top of the heap, who are successful, are going to be popular, the internet business version of celebrities. But they still want to be able to live a normal life, have a drink with their mates, without being beseiged with people attempting to get ‘in’ with them. There is a kind of unspoken protocol. Yes, they want to help other people be successful, and expand their own contacts and circle of influence, but it is best to approach them tentatively at first, through email, and if you can get some rapport with someone with a big list, for example, who you think would make a good strategic business ally, by email, you can progress to getting their IM, then maybe speaking on the phone, so that when you meet them at a conference it will be more natural. So not only are ‘strategic alliances’ important, for all the many reasons I detail above, both personal and financial, but how you should go about forging them is important, too. Especially if you are dealing with highly successful, high profile individuals, who have to be selective in their partnerships. It’s kind of like courtship, I would advise against approaching cold in person, because what are they going to say? But if you follow the kind of protocol I suggest, which members of this group recommend, you have more of a chance of success. And I think that applies with all approaches to strategic partners. So they are crucial because you can cross-promote to each others lists, cross-affiliate link, and leverage each others resources in every way. Stompernet is built on just this principle, which I will coin as ‘mutual bootstrapping’.

    As far as the importance of back end products, I will return to my suggestion to Rich, which I posted as a reply to his email request for comments, above, by mistake.

    Lets say you are Rich, promoting your personal coaching program, and you can manage a group of around 500, at a push, which Rich has. It’s still limited, isn’t it? My suggestion, which I think is the ‘back end product to end all back end products’, was that, when Rich launches his latest coaching program on 1st November, he also provides an option for those who cannot afford, or who lose out in the race to enrol on his premier coaching program. Yes it sounds great, absolutely ideal, but as previously, it is simply a fact that he will only be able to coach a limited number in person.

    But if Rich sets up a second-tier, ‘Rich Shefren Associate Student’ program, for those who can’t afford to join, or miss out on, his premier coaching program, he stands to make, I believe, even more money from that than he will from his limited number of premier coaching clients. I’ll ask the question again: Of the people who either can’t afford, or miss enrolling on Rich’s premier coaching program on 1st November, how many of them would pay a smaller sum to be part of a second-tier associate coaching program, coached by Rich’s top students, under his supervision?

    I venture to suggest that, of the potential successful internet entrepreneurs who have

    a) had the good instincts to find this site, and

    b) had the perseverance to wade through all three parts of the manifesto and the intelligence to understand its import, and the kind of business success coaching Rich, and now his alliance with Michael Masterson at Agora, also, offers,

    how many, if for one of the reasons above they do not get onto the premier coaching program, would apply to a more modestly priced associate program?

    I’d have to check Rich’s posts as to how many times the manifesto parts have been downloaded, but I know its in the high tens of thousands. And all those are Rich’s – to give the hottest example of the moment with which everyone will be familiar – potential ‘back end’ sales.

    Its 4.09 am here in England, now, and funnily enough I was going to go to bed after a hard and successful days work, ending with my two posts above.

    But while eating a late night snack, my brain, as it has a way of doing, told me that I needed to do something, add something to my answer. So I came upstairs and switched the computer back on, and found that I had answered the wrong question, to win the trip to meet Rich and Agora. So my intuition was right 🙂 It also told me that I had got my pricing suggestion for Rich’s back end ‘Shefren Associate’ program wrong, when I suggested $50-$100. I’m in England, you see, and we are used to thinking in pounds. My ‘little voice’ tells me it should be more in the region of $100-$200 (£50-£100), which nearly everyone – including me 🙂 will find affordable, and (seeing as its Rich 🙂 an ‘irresistible offer’.

    So there you go, I’ve doubled your potential profits, and given a concrete illustration of the importance of back end products. They should generally be priced lower than the premier product, starting at around half, and a good idea is to have three tiers, actually, so if your premier product is $997-£1997 (psychologically more attractive than one and two thousand), your first back end could be pitched at , say $297-$497, somewhere between that, and your third offer for those who can’t afford that, could go down to $47-$97. For products that start lower, at $197 or $97, your second and third tiers can go as low as $47 to $29 or even $19.

    (part 2 continued below)

    Reply
  285. (continued)

    And you know what, as a psychologist, I thought was the crucial factor? Keith is quite obviously a nice guy. He has humility, and I see the same qualities in Mike and Gary. So its important to forge strategic alliances (friendships with business partners you can trust) because you will then, like the ancient Athenians, be able to rely on them for many things, you will be able to model them, you will be able to cross-promote and leverage each others lists. They will also, on a personal basis, tip you off if they see you doing something wrong, like putting the wrong message across in your list newsletters, or making a mess of things by going wrong in some way that they know from experience.

    The importance of ‘strategic alliances’ goes much further than an impersonal business practice which helps you maximise profits. These guys, as Mike – who I find refreshingly candid – says, are not, actually ‘all about the money’, and if you come across like that, or try to pitch a JV promotion to them, especially in person, on the basis that it will make them a lot of money, are not likely to be too impressed. I have now watched a couple of their DVDs, and listened to some audio interviews, and I am beginning to ‘get’ it. Of course the guys at the top of the heap, who are successful, are going to be popular, the internet business version of celebrities. But they still want to be able to live a normal life, have a drink with their mates, without being beseiged with people attempting to get ‘in’ with them. There is a kind of unspoken protocol. Yes, they want to help other people be successful, and expand their own contacts and circle of influence, but it is best to approach them tentatively at first, through email, and if you can get some rapport with someone with a big list, for example, who you think would make a good strategic business ally, by email, you can progress to getting their IM, then maybe speaking on the phone, so that when you meet them at a conference it will be more natural. So not only are ‘strategic alliances’ important, for all the many reasons I detail above, both personal and financial, but how you should go about forging them is important, too. Especially if you are dealing with highly successful, high profile individuals, who have to be selective in their partnerships. It’s kind of like courtship, I would advise against approaching cold in person, because what are they going to say? But if you follow the kind of protocol I suggest, which members of this group recommend, you have more of a chance of success. And I think that applies with all approaches to strategic partners. So they are crucial because you can cross-promote to each others lists, cross-affiliate link, and leverage each others resources in every way. Stompernet is built on just this principle, which I will coin as ‘mutual bootstrapping’.

    As far as the importance of back end products, I will return to my suggestion to Rich, which I posted as a reply to his email request for comments, above, by mistake.

    Lets say you are Rich, promoting your personal coaching program, and you can manage a group of around 500, at a push, which Rich has. It’s still limited, isn’t it? My suggestion, which I think is the ‘back end product to end all back end products’, was that, when Rich launches his latest coaching program on 1st November, he also provides an option for those who cannot afford, or who lose out in the race to enrol on his premier coaching program. Yes it sounds great, absolutely ideal, but as previously, it is simply a fact that he will only be able to coach a limited number in person.

    But if Rich sets up a second-tier, ‘Rich Shefren Associate Student’ program, for those who can’t afford to join, or miss out on, his premier coaching program, he stands to make, I believe, even more money from that than he will from his limited number of premier coaching clients. I’ll ask the question again: Of the people who either can’t afford, or miss enrolling on Rich’s premier coaching program on 1st November, how many of them would pay a smaller sum to be part of a second-tier associate coaching program, coached by Rich’s top students, under his supervision?

    I venture to suggest that, of the potential successful internet entrepreneurs who have

    a) had the good instincts to find this site, and

    b) had the perseverance to wade through all three parts of the manifesto and the intelligence to understand its import, and the kind of business success coaching Rich, and now his alliance with Michael Masterson at Agora, also, offers,

    how many, if for one of the reasons above they do not get onto the premier coaching program, would apply to a more modestly priced associate program?

    I’d have to check Rich’s posts as to how many times the manifesto parts have been downloaded, but I know its in the high tens of thousands. And all those are Rich’s – to give the hottest example of the moment with which everyone will be familiar – potential ‘back end’ sales.

    Its 4.09 am here in England, now, and funnily enough I was going to go to bed after a hard and successful days work, ending with my two posts above.

    But while eating a late night snack, my brain, as it has a way of doing, told me that I needed to do something, add something to my answer. So I came upstairs and switched the computer back on, and found that I had answered the wrong question, to win the trip to meet Rich and Agora. So my intuition was right 🙂 It also told me that I had got my pricing suggestion for Rich’s back end ‘Shefren Associate’ program wrong, when I suggested $50-$100. I’m in England, you see, and we are used to thinking in pounds. My ‘little voice’ tells me it should be more in the region of $100-$200 (£50-£100), which nearly everyone – including me 🙂 will find affordable, and (seeing as its Rich 🙂 an ‘irresistible offer’.

    So there you go, I’ve doubled your potential profits, and given a concrete illustration of the importance of back end products. They should generally be priced lower than the premier product, starting at around half, and a good idea is to have three tiers, actually, so if your premier product is $997-£1997 (psychologically more attractive than one and two thousand), your first back end could be pitched at , say $297-$497, somewhere between that, and your third offer for those who can’t afford that, could go down to $47-$97. For products that start lower, at $197 or $97, your second and third tiers can go as low as $47 to $29 or even $19.

    (part 2 continued below)

    Reply
  286. (continued) Part 2 – [looks like it was the fact I put in some example prices, with dollar and pound signs. I’ve done a bulk replacement with the word equivalent. Sorry if that reads awkwardly.]

    And you know what, as a psychologist, I thought was the crucial factor? Keith is quite obviously a nice guy. He has humility, and I see the same qualities in Mike and Gary. So its important to forge strategic alliances (friendships with business partners you can trust) because you will then, like the ancient Athenians, be able to rely on them for many things, you will be able to model them, you will be able to cross-promote and leverage each others lists. They will also, on a personal basis, tip you off if they see you doing something wrong, like putting the wrong message across in your list newsletters, or making a mess of things by going wrong in some way that they know from experience.

    The importance of ‘strategic alliances’ goes much further than an impersonal business practice which helps you maximise profits. These guys, as Mike – who I find refreshingly candid – says, are not, actually ‘all about the money’, and if you come across like that, or try to pitch a JV promotion to them, especially in person, on the basis that it will make them a lot of money, are not likely to be too impressed. I have now watched a couple of their DVDs, and listened to some audio interviews, and I am beginning to ‘get’ it. Of course the guys at the top of the heap, who are successful, are going to be popular, the internet business version of celebrities. But they still want to be able to live a normal life, have a drink with their mates, without being beseiged with people attempting to get ‘in’ with them. There is a kind of unspoken protocol. Yes, they want to help other people be successful, and expand their own contacts and circle of influence, but it is best to approach them tentatively at first, through email, and if you can get some rapport with someone with a big list, for example, who you think would make a good strategic business ally, by email, you can progress to getting their IM, then maybe speaking on the phone, so that when you meet them at a conference it will be more natural. So not only are ‘strategic alliances’ important, for all the many reasons I detail above, both personal and financial, but how you should go about forging them is important, too. Especially if you are dealing with highly successful, high profile individuals, who have to be selective in their partnerships. It’s kind of like courtship, I would advise against approaching cold in person, because what are they going to say? But if you follow the kind of protocol I suggest, which members of this group recommend, you have more of a chance of success. And I think that applies with all approaches to strategic partners. So they are crucial because you can cross-promote to each others lists, cross-affiliate link, and leverage each others resources in every way. Stompernet is built on just this principle, which I will coin as ‘mutual bootstrapping’.

    As far as the importance of back end products, I will return to my suggestion to Rich, which I posted as a reply to his email request for comments, above, by mistake.

    Lets say you are Rich, promoting your personal coaching program, and you can manage a group of around 500, at a push, which Rich has. It’s still limited, isn’t it? My suggestion, which I think is the ‘back end product to end all back end products’, was that, when Rich launches his latest coaching program on 1st November, he also provides an option for those who cannot afford, or who lose out in the race to enrol on his premier coaching program. Yes it sounds great, absolutely ideal, but as previously, it is simply a fact that he will only be able to coach a limited number in person.

    But if Rich sets up a second-tier, ‘Rich Shefren Associate Student’ program, for those who can’t afford to join, or miss out on, his premier coaching program, he stands to make, I believe, even more money from that than he will from his limited number of premier coaching clients. I’ll ask the question again: Of the people who either can’t afford, or miss enrolling on Rich’s premier coaching program on 1st November, how many of them would pay a smaller sum to be part of a second-tier associate coaching program, coached by Rich’s top students, under his supervision?

    I venture to suggest that, of the potential successful internet entrepreneurs who have

    a) had the good instincts to find this site, and

    b) had the perseverance to wade through all three parts of the manifesto and the intelligence to understand its import, and the kind of business success coaching Rich, and now his alliance with Michael Masterson at Agora, also, offers,

    how many, if for one of the reasons above they do not get onto the premier coaching program, would apply to a more modestly priced associate program?

    I’d have to check Rich’s posts as to how many times the manifesto parts have been downloaded, but I know its in the high tens of thousands. And all those are Rich’s – to give the hottest example of the moment with which everyone will be familiar – potential ‘back end’ sales.

    Its 4.09 am here in England, now, and funnily enough I was going to go to bed after a hard and successful days work, ending with my two posts above.

    But while eating a late night snack, my brain, as it has a way of doing, told me that I needed to do something, add something to my answer. So I came upstairs and switched the computer back on, and found that I had answered the wrong question, to win the trip to meet Rich and Agora. So my intuition was right 🙂 It also told me that I had got my pricing suggestion for Rich’s back end ‘Shefren Associate’ program wrong, when I suggested dollars50-dollars100. I’m in England, you see, and we are used to thinking in pounds. My ‘little voice’ tells me it should be more in the region of dollars100-dollars200 (pounds50-pounds100), which nearly everyone – including me 🙂 will find affordable, and (seeing as its Rich 🙂 an ‘irresistible offer’.

    So there you go, I’ve doubled your potential profits, and given a concrete illustration of the importance of back end products. They should generally be priced lower than the premier product, starting at around half, and a good idea is to have three tiers, actually, so if your premier product is dollars997-pounds1997 (psychologically more attractive than one and two thousand), your first back end could be pitched at , say dollars297-dollars497, somewhere between that, and your third offer for those who can’t afford that, could go down to dollars47-dollars97. For products that start lower, at dollars197 or dollars97, your second and third tiers can go as low as dollars47 to dollars29 or even dollars19.

    Just last night I cancelled a trial subscription to a product which was going to be around dollars40 a month. Customer services came back to me with an offer of *the same service* for only dollars9.99 a month. Since newsletters and electronic media cost very little, only the bandwidth for downloading e-books, mp3s, etc., this seemingly amazing value is actually a good strategy. It would be hard to say no, wouldn’t it? Like the dollars1 offers I have seen starting to appear, which go in the opposite direction, upselling. Its hard for anyone with a credit card to pass up even a simple interview recording, e-book or software program they actually want, if they only have to pay a dollar… and bingo, the marketer has another person on their customer list. Success University have done this brilliantly with a dollars2 14 day trial which they donate to a charity. They get their business, and they have been the number one personal development site on the net in number of hits, from the monthly membership and upgrades to premium ‘double commission’ membership of a percentage of their trial members. I was with them a couple of months, right after a coaching session with Stuart Lichtman, and I think their Wednesday night faculty calls with all the big names – Mikes been on, Gary Ryan Blair, really good people – are worth the monthly membership alone.

    But when I watched Rich’s video on google, it put Success U in a different perspective. If someone can ‘terminate’ you, on whatever grounds, as an MLM company can, then you are not an entrepreneur, you are a rep, even if you are working on a self-employed, commission only basis.

    I moved on from them to Bern Moses, who you will find at his .c o m of that name. This old timer had some kind of epiphany – about the time I was born! – and moved up from 900th place out of a sales force of 1500 to first place, in about 90 days. So he obviously had an important insight. Now, MLM has such a bad rep, a ‘bad rap’, doesn’t it? And yet Bern Moses believes that MLM is ‘the most noble system for making a living known to man’. And you know what? When I listened to him extolling *his* version of MLM, it sounded almost exactly like Rich’s program for systematising a business. Bern puts it very simply. No ‘churn’, you don’t need huge numbers. That is what has given MLM a bad name, the idea, based on what he calls the ‘corporate model’, that its a ‘numbers game’. Because wherever you recruit huge numbers, inevitably you are not going to be able to give detailed support and advice to all of them, and without that, the majority will fall by th e wayside, or move on, as I have. Not to say I might not use them as one affiliate link amongst many on my own business websites.

    What you should do, says Bern – and he could be Rich talking – is get just a couple of people and show them everything, how you run your business, your sales methods, business processes, even ‘do it for them’, model selling and administering – all your business processes in front of them, until they really get it. This relates to NLP modelling, which acknowledges that when you model a successful person you are absorbing many tacit and unconscious aspects of their performance that even they may not be consciously aware of or be able to articulate. Then, when they have really, *really* ‘got it’, can ‘do as you do’, – as Rich does, for instance – they can go out and build their own business, the ideal model, in my opinion, being one where it *is* their business – a business that draws on the individual’s strengths, as Rich says – but the coach gets a cut, an ongoing coaching or business consulting fee, you might call it. My own personal development coach, Leo, who I first met in 1975 in London, was way ahead of his time, teaching the ‘become what you think about’ success principles that ‘The Secret’ group are promoting.

    Have you noticed, how things are ‘coming together’..? I can make a post like this, confident that quite a high percentage of readers, and Rich especially, will be clued in to most of what I’m talking about. So it shows that things are disseminating, with like attracting like, at a high rate due to the handy facility of the Net. Given that i only started to take an interest in business and marketing this July, how much have I learned in 4 months?!? I could never have ‘followed my nose’ from teacher to teacher like this so fast, without the net. Chances are I’d never have heard of them.

    Getting back to my personal development coach, he was actually using the term personal development from 1975 onwards, and it was largely due to following his success methods, which had a lot in common with psycho-cybernetics, that I attribute getting not just one, but two first class honours degrees, graduating first from a course of 118 students on the first course. So mindset teaching is pretty important. In that respect I would say that Gary Ryan Blair, who also emphasises strategic planning, compliments your teaching, Rich, I would say he is your peer, which is pretty rare, with Stuart Lichtman falling somewhere in between, since his background was entrepreneurial but he now mainly teaches general, rather than specifically business success. What you add to the mix, for me especially, is your specific focus on *business* success, which is exactly what i need, since its a new field for me.

    Well, I’ve rambled on enough. Sometimes you teach things, or learn things, incidentally, from the stream-of-consciousness telling of a story, which I know you do Rich. There is a kind of immediacy about relating what you, a specific individual, are doing and thinking on an every day basis, which people immediately relate to. Kind of the business Tom Sawyer, or maybe Huck Finn 🙂

    I just have to add, to make my answer complete, as well as comprehensive, that the reason its important to have an ongoing stream of backend products is that, once you pull people in, and have a customer base, you are going to need, and have the opportunity to derive, an ongoing income from that customer base. Yes, its nice to have a million dollar product launch, like Mike, wouldn’t we all like to have one, but you’re not going to retire on it, are you? I don’t know what its like in the states, but three bedroomed flats in Kensington and Chelsea now *average* pounds1,000,000 market value (dollars1,875,000 US) and even where I live out in East Anglia a decent house is about a fifth of that. So you need a constant stream of backend products, because you need a constant stream of income! Until you ‘retire’, at least. To me, ‘retirement’ is simply to have enough capital that I can live where I want, go where I want and do what I want. Given that I’m already 51, and have five kids, my own realistic personal wealth target is pounds8,000,000 (dollars15,000,000 US). If I were younger, it would be considerably more than that. As Rich points out, time is our most scarce resource, and I’ve already found his timekeeping advice valuable, I know I have increased productivity and focus just this week. My own strengths are coaching, which have resulted in my wife producing a huge work which I believe, and critical opinion has supported this, is likely to go down as one of the most significant works of literature of the twenty-first century, and my eldest son has produced over 30 hours of original electronic music so far. But as I had never been in business, I started learning all this stuff in order to market their creative work. In addition to coaching, my other strengths are writing and especially public speaking. Although I have only spoken impromptu to 4,000 people at the most, I absolutely know that I could do so to any size audience with full confidence. That fearlessness in front of any audience, actually enjoying it, is something I was born with, and emerged before the age of 5, as Rich suggests innate talents do. And the great thing about Rich’s process map method, and systematising well, is that, like the staff or manager of a Starbucks and MacDonalds, I or anyone else could, with a little preparation, do a coaching session like the one posted on google video, and people would attend, if they knew they were going to see the same slides, and hear exactly the same material – with perhaps a few little personal wrinkles to allow the student coach’s personality to come through – that they would have done if Rich had been there in person. THAT’S what you are driving at, isn’t it Rich? And this answer or comment, if read and re-read, in my comments about Bern Moses version of MLM especially, but all through, makes, I hope, a contribution of some value towards the implementation of your vision, as well as comprehensively answering your question. 🙂

    Reply
  287. (continued) Part 2 – [looks like it was the fact I put in some example prices, with dollar and pound signs. I’ve done a bulk replacement with the word equivalent. Sorry if that reads awkwardly.]

    And you know what, as a psychologist, I thought was the crucial factor? Keith is quite obviously a nice guy. He has humility, and I see the same qualities in Mike and Gary. So its important to forge strategic alliances (friendships with business partners you can trust) because you will then, like the ancient Athenians, be able to rely on them for many things, you will be able to model them, you will be able to cross-promote and leverage each others lists. They will also, on a personal basis, tip you off if they see you doing something wrong, like putting the wrong message across in your list newsletters, or making a mess of things by going wrong in some way that they know from experience.

    The importance of ‘strategic alliances’ goes much further than an impersonal business practice which helps you maximise profits. These guys, as Mike – who I find refreshingly candid – says, are not, actually ‘all about the money’, and if you come across like that, or try to pitch a JV promotion to them, especially in person, on the basis that it will make them a lot of money, are not likely to be too impressed. I have now watched a couple of their DVDs, and listened to some audio interviews, and I am beginning to ‘get’ it. Of course the guys at the top of the heap, who are successful, are going to be popular, the internet business version of celebrities. But they still want to be able to live a normal life, have a drink with their mates, without being beseiged with people attempting to get ‘in’ with them. There is a kind of unspoken protocol. Yes, they want to help other people be successful, and expand their own contacts and circle of influence, but it is best to approach them tentatively at first, through email, and if you can get some rapport with someone with a big list, for example, who you think would make a good strategic business ally, by email, you can progress to getting their IM, then maybe speaking on the phone, so that when you meet them at a conference it will be more natural. So not only are ‘strategic alliances’ important, for all the many reasons I detail above, both personal and financial, but how you should go about forging them is important, too. Especially if you are dealing with highly successful, high profile individuals, who have to be selective in their partnerships. It’s kind of like courtship, I would advise against approaching cold in person, because what are they going to say? But if you follow the kind of protocol I suggest, which members of this group recommend, you have more of a chance of success. And I think that applies with all approaches to strategic partners. So they are crucial because you can cross-promote to each others lists, cross-affiliate link, and leverage each others resources in every way. Stompernet is built on just this principle, which I will coin as ‘mutual bootstrapping’.

    As far as the importance of back end products, I will return to my suggestion to Rich, which I posted as a reply to his email request for comments, above, by mistake.

    Lets say you are Rich, promoting your personal coaching program, and you can manage a group of around 500, at a push, which Rich has. It’s still limited, isn’t it? My suggestion, which I think is the ‘back end product to end all back end products’, was that, when Rich launches his latest coaching program on 1st November, he also provides an option for those who cannot afford, or who lose out in the race to enrol on his premier coaching program. Yes it sounds great, absolutely ideal, but as previously, it is simply a fact that he will only be able to coach a limited number in person.

    But if Rich sets up a second-tier, ‘Rich Shefren Associate Student’ program, for those who can’t afford to join, or miss out on, his premier coaching program, he stands to make, I believe, even more money from that than he will from his limited number of premier coaching clients. I’ll ask the question again: Of the people who either can’t afford, or miss enrolling on Rich’s premier coaching program on 1st November, how many of them would pay a smaller sum to be part of a second-tier associate coaching program, coached by Rich’s top students, under his supervision?

    I venture to suggest that, of the potential successful internet entrepreneurs who have

    a) had the good instincts to find this site, and

    b) had the perseverance to wade through all three parts of the manifesto and the intelligence to understand its import, and the kind of business success coaching Rich, and now his alliance with Michael Masterson at Agora, also, offers,

    how many, if for one of the reasons above they do not get onto the premier coaching program, would apply to a more modestly priced associate program?

    I’d have to check Rich’s posts as to how many times the manifesto parts have been downloaded, but I know its in the high tens of thousands. And all those are Rich’s – to give the hottest example of the moment with which everyone will be familiar – potential ‘back end’ sales.

    Its 4.09 am here in England, now, and funnily enough I was going to go to bed after a hard and successful days work, ending with my two posts above.

    But while eating a late night snack, my brain, as it has a way of doing, told me that I needed to do something, add something to my answer. So I came upstairs and switched the computer back on, and found that I had answered the wrong question, to win the trip to meet Rich and Agora. So my intuition was right 🙂 It also told me that I had got my pricing suggestion for Rich’s back end ‘Shefren Associate’ program wrong, when I suggested dollars50-dollars100. I’m in England, you see, and we are used to thinking in pounds. My ‘little voice’ tells me it should be more in the region of dollars100-dollars200 (pounds50-pounds100), which nearly everyone – including me 🙂 will find affordable, and (seeing as its Rich 🙂 an ‘irresistible offer’.

    So there you go, I’ve doubled your potential profits, and given a concrete illustration of the importance of back end products. They should generally be priced lower than the premier product, starting at around half, and a good idea is to have three tiers, actually, so if your premier product is dollars997-pounds1997 (psychologically more attractive than one and two thousand), your first back end could be pitched at , say dollars297-dollars497, somewhere between that, and your third offer for those who can’t afford that, could go down to dollars47-dollars97. For products that start lower, at dollars197 or dollars97, your second and third tiers can go as low as dollars47 to dollars29 or even dollars19.

    Just last night I cancelled a trial subscription to a product which was going to be around dollars40 a month. Customer services came back to me with an offer of *the same service* for only dollars9.99 a month. Since newsletters and electronic media cost very little, only the bandwidth for downloading e-books, mp3s, etc., this seemingly amazing value is actually a good strategy. It would be hard to say no, wouldn’t it? Like the dollars1 offers I have seen starting to appear, which go in the opposite direction, upselling. Its hard for anyone with a credit card to pass up even a simple interview recording, e-book or software program they actually want, if they only have to pay a dollar… and bingo, the marketer has another person on their customer list. Success University have done this brilliantly with a dollars2 14 day trial which they donate to a charity. They get their business, and they have been the number one personal development site on the net in number of hits, from the monthly membership and upgrades to premium ‘double commission’ membership of a percentage of their trial members. I was with them a couple of months, right after a coaching session with Stuart Lichtman, and I think their Wednesday night faculty calls with all the big names – Mikes been on, Gary Ryan Blair, really good people – are worth the monthly membership alone.

    But when I watched Rich’s video on google, it put Success U in a different perspective. If someone can ‘terminate’ you, on whatever grounds, as an MLM company can, then you are not an entrepreneur, you are a rep, even if you are working on a self-employed, commission only basis.

    I moved on from them to Bern Moses, who you will find at his .c o m of that name. This old timer had some kind of epiphany – about the time I was born! – and moved up from 900th place out of a sales force of 1500 to first place, in about 90 days. So he obviously had an important insight. Now, MLM has such a bad rep, a ‘bad rap’, doesn’t it? And yet Bern Moses believes that MLM is ‘the most noble system for making a living known to man’. And you know what? When I listened to him extolling *his* version of MLM, it sounded almost exactly like Rich’s program for systematising a business. Bern puts it very simply. No ‘churn’, you don’t need huge numbers. That is what has given MLM a bad name, the idea, based on what he calls the ‘corporate model’, that its a ‘numbers game’. Because wherever you recruit huge numbers, inevitably you are not going to be able to give detailed support and advice to all of them, and without that, the majority will fall by th e wayside, or move on, as I have. Not to say I might not use them as one affiliate link amongst many on my own business websites.

    What you should do, says Bern – and he could be Rich talking – is get just a couple of people and show them everything, how you run your business, your sales methods, business processes, even ‘do it for them’, model selling and administering – all your business processes in front of them, until they really get it. This relates to NLP modelling, which acknowledges that when you model a successful person you are absorbing many tacit and unconscious aspects of their performance that even they may not be consciously aware of or be able to articulate. Then, when they have really, *really* ‘got it’, can ‘do as you do’, – as Rich does, for instance – they can go out and build their own business, the ideal model, in my opinion, being one where it *is* their business – a business that draws on the individual’s strengths, as Rich says – but the coach gets a cut, an ongoing coaching or business consulting fee, you might call it. My own personal development coach, Leo, who I first met in 1975 in London, was way ahead of his time, teaching the ‘become what you think about’ success principles that ‘The Secret’ group are promoting.

    Have you noticed, how things are ‘coming together’..? I can make a post like this, confident that quite a high percentage of readers, and Rich especially, will be clued in to most of what I’m talking about. So it shows that things are disseminating, with like attracting like, at a high rate due to the handy facility of the Net. Given that i only started to take an interest in business and marketing this July, how much have I learned in 4 months?!? I could never have ‘followed my nose’ from teacher to teacher like this so fast, without the net. Chances are I’d never have heard of them.

    Getting back to my personal development coach, he was actually using the term personal development from 1975 onwards, and it was largely due to following his success methods, which had a lot in common with psycho-cybernetics, that I attribute getting not just one, but two first class honours degrees, graduating first from a course of 118 students on the first course. So mindset teaching is pretty important. In that respect I would say that Gary Ryan Blair, who also emphasises strategic planning, compliments your teaching, Rich, I would say he is your peer, which is pretty rare, with Stuart Lichtman falling somewhere in between, since his background was entrepreneurial but he now mainly teaches general, rather than specifically business success. What you add to the mix, for me especially, is your specific focus on *business* success, which is exactly what i need, since its a new field for me.

    Well, I’ve rambled on enough. Sometimes you teach things, or learn things, incidentally, from the stream-of-consciousness telling of a story, which I know you do Rich. There is a kind of immediacy about relating what you, a specific individual, are doing and thinking on an every day basis, which people immediately relate to. Kind of the business Tom Sawyer, or maybe Huck Finn 🙂

    I just have to add, to make my answer complete, as well as comprehensive, that the reason its important to have an ongoing stream of backend products is that, once you pull people in, and have a customer base, you are going to need, and have the opportunity to derive, an ongoing income from that customer base. Yes, its nice to have a million dollar product launch, like Mike, wouldn’t we all like to have one, but you’re not going to retire on it, are you? I don’t know what its like in the states, but three bedroomed flats in Kensington and Chelsea now *average* pounds1,000,000 market value (dollars1,875,000 US) and even where I live out in East Anglia a decent house is about a fifth of that. So you need a constant stream of backend products, because you need a constant stream of income! Until you ‘retire’, at least. To me, ‘retirement’ is simply to have enough capital that I can live where I want, go where I want and do what I want. Given that I’m already 51, and have five kids, my own realistic personal wealth target is pounds8,000,000 (dollars15,000,000 US). If I were younger, it would be considerably more than that. As Rich points out, time is our most scarce resource, and I’ve already found his timekeeping advice valuable, I know I have increased productivity and focus just this week. My own strengths are coaching, which have resulted in my wife producing a huge work which I believe, and critical opinion has supported this, is likely to go down as one of the most significant works of literature of the twenty-first century, and my eldest son has produced over 30 hours of original electronic music so far. But as I had never been in business, I started learning all this stuff in order to market their creative work. In addition to coaching, my other strengths are writing and especially public speaking. Although I have only spoken impromptu to 4,000 people at the most, I absolutely know that I could do so to any size audience with full confidence. That fearlessness in front of any audience, actually enjoying it, is something I was born with, and emerged before the age of 5, as Rich suggests innate talents do. And the great thing about Rich’s process map method, and systematising well, is that, like the staff or manager of a Starbucks and MacDonalds, I or anyone else could, with a little preparation, do a coaching session like the one posted on google video, and people would attend, if they knew they were going to see the same slides, and hear exactly the same material – with perhaps a few little personal wrinkles to allow the student coach’s personality to come through – that they would have done if Rich had been there in person. THAT’S what you are driving at, isn’t it Rich? And this answer or comment, if read and re-read, in my comments about Bern Moses version of MLM especially, but all through, makes, I hope, a contribution of some value towards the implementation of your vision, as well as comprehensively answering your question. 🙂

    Reply
  288. Hello Rich,

    Question: Why is it critical that your business have a consistent series of back end offers and why is it important to build alliances within your marketplace?

    We must first establish the fact that the value is in our list (clients) and our relationship with that list…the entry point to the client list being the marketing (acquisition) funnel.

    Every aspect of our marketing message must be thought out so that it continually builds a relationship of trust and credibility throughout the entire client life cycle; and in effect you become their most trusted advisor in that niche.

    It is crucial to groom and nurture clientele through relevant consumption channels, providing for and meeting their needs throughout the maturation process. Maturity to attrition or maturity to retention.

    Back Ends:

    The purpose for having consistent back ends can be explained in this simple example; back ends are like ores of gold that we provide for the client. The more gold ore we have for them to mine the more profitable it becomes for all. The client is profitable from the products/services provided (spiritually, physically, mentally, financially, etc.). As a business we have profited monetarily, however, because we have a relational business model as our core foundation, we are enriched from the relationships themselves. In other words, your business model will not work if we truly are not interested helping others.

    Back ends are also a critical part of the grooming process…the more successful the client becomes the better positioned they are to become “hyper-responsive” to future offers.

    However, when the gold ore vein runs dry (no more future back ends)…perhaps due to lack of R&D innovation…the hyper-responsive client begins to move on. This is an important reason to develop strong alliances.

    Strong Alliances:

    Developing strong alliances helps foster a healthy sustainable market niche for future profits and exponential or geometric business growth. We can also help one another create stronger back ends and sustain greater client retention. As well as develop and enter into untapped market segments.

    Alliance’s in our niche marketplace bring expertise and fresh perspectives that could not be arrived at on our own. As you alluded to in your paper, alliances can help your business grow rapidly and cut down the learning curve by two thirds. To quote myself, “no one has exclusive rights to thinking and/or new ideas.”

    In Summary:

    There is an intersect between back ends and alliances and to build the level of business the Final Chapter alludes to requires not only strategic formulation, but strategic alliances. This type of business model is legacy thinking…something built that outlives us and impacts humanity for decades after we have gone on.

    Respectfully,

    Carl

    Carl Sarfi – CEO/Founder
    The Gabriel Corporation, Inc.

    P.S. Rich, it would be a privilege to meet with you and Agora to listen, learn and observe.