Many people talk about the importance of having a “back end” to your business, and that’s where the real money is made. But yet, how many people actually implement a back end into their own business?
Over the last few months, I’ve been preparing and implementing my very own back end process for my business. The first time I went through the process I was shocked to realize how much money I was leaving on the table! It totally convinced me that creating the back end was the most important long term activity for me to engage in. So, I’ve made it my focus for the first half of 2011.
In today’s video, I talk about the the actual process I have gone through for creating the back end of my own business. Once you go through the same process, I am sure your eyes will be opened to the wonderful potential that a business back end can have.
Don’t forget to leave your comment below… you know how much I like them!
Congratulations to Sue Carney! You’ve won the iPod Nano that I offered inside my previous video. I’ll get in touch with you via Facebook to grab your delivery details!
Transcript Of Today’s Video
Hi and welcome to another video. Of course my name is Gideon Shalwick and inside this video I want to talk about two main things. The first thing is I want to announce the winner for this little IPod Nano. There’s one lucky person who won it because they left a lovely comment on my blog. I’ll announce towards the end of this video who was the lucky winner.
The other thing that I want to talk about is something that I’ve been working on for the last three months. I’ve been developing the Back End of my business. Now there are 2 sides to your business. There’s the Front End and there’s the Back End and you need both to be successful.
The Front End is really where you focus on generating traffic, generating more leads and maybe having one product, one entry little product. But then your Back End is where you have all your other products and that’s where you make most of your money.
So I’m in the process now of setting up the full Back End. I’m currently at phase one of three phases. And I want to share with you the steps that I’m going through to achieve that. I want to talk about the kind of things you can expect for your own business if you build on your own Back End.
Basically, you don’t need much traffic to be able to make a significant portion of income. And the bottom line here is to automate the whole process so that you can have passive income coming into your bank account month after month.
So I will switch over to my computer screen now and draw some pretty pictures for you to show how I’m doing it in the plan or process that I’m going through for setting all these up.
I hope you enjoy this and remember to leave a comment below this video if you’ve liked what you’ve seen. And join in the discussion. Maybe, add your ideas and add to the knowledge of this whole process.
Talk to you soon.
Next up, I want to give you a quick overview of the process that I use for setting up the Back End of my business. There are five stages in this process and I will go through each one of them briefly, just so that you have an idea of a similar process you can create for yourself.
The first step, the first part of the process is to become very clear on your goals for what you want to achieve with this exercise. And for this I recommend you think about these particular goals: how much money you want to make from this? And from that you can figure out, how many sales you need to make of your product to be able to achieve that? And from sales, you can be even more advanced and figure, how many optins you need for your email newsletter to be able to get those number of sales? And from that, you can figure out how much traffic you want to get. Now this becomes the backbone of the rest of the process that drives everything else in terms of setting up your Back End. But that’s the first thing; become very clear on that because that will drive everything else.
The second thing you need to do is to create a funnel, a business funnel for your Back End. And basically, it simply looks like something like this where you have the World and maybe your Market—to be a little bit more specific than just the World—all the potential people who could come into your business and you have this funnel where you try and drive people through your funnel further and further as time goes by.
And over here you might have some free stuff that you’re giving away to attract people into your business. As soon as they get into your business, you might offer them a $97 product; and further down you might have a $247 product; maybe a $997 product; maybe a $5,000 product; and maybe a $15,000 product. This is just an example of a typical type of funnel that you can set up for your business. But I really encourage you to draw something out like this and make it visual so that you can be very clear on how the funnel works for your business.
The next stage in the process—No. 3 is to create a process or shall I say a flow chart of this funnel and how you want to implement it in your business. And all this really looks like is something like this where you have a starting point, you have these decision points, and you might have an ending point here, and you might have another decision point over here and another thing here.
Basically, I don’t want to go into too much detail here. Otherwise this video will get very long. But this could be, for example, your entry point into your business where you have the free stuff. This might be a $97 offer; and this might be your $247 offer—something like that—and maybe end it there. And you can be very creative with this process.
But the idea is that you become very clear on the kind of process that you want for your funnel. You know, how do you want to implement your funnel using this process?
And perhaps I can create another video at some other stage where it goes into more details with this process because this gets a little bit advanced. But the idea is that once you have this process figured out, you can look at different conversion rates in your business. Say for example, 1% of people here who optin for your free report or free stuff, they go for your $97 product. And maybe, say 10% of those people, go for your upsell over here.
Now once you have numbers here, say, if you know the numbers of traffic, you know the numbers of people opting in—you know, you can figure out how many one-time offer sales you’ll get. And you can figure out how many of these sales you can get if you work using this sort of percentages. And it’s very valuable once you have a chart like this to figure out the profitability of your business once you have this set up and running. And the beauty of this is that it’s automated. Once you have a process like this set-up, it’s all automatic and you can get that money coming in in a very passive sense.
Now I will just wipe this page because Stage 4 is—let me just go back to black again. The fourth stage is to create what I call a Web Representation. I will just write Web Rep there of your process. And you know, this will be just basically all the different pages that you need to create to be able to implement that process and you might have something like this. And this is really just actually physically drawn out all these different pages to represent that process that you designed.
So this here might be your Free Report that you’re giving away. And then they optin for that. They go to this next page. They confirm the email address. They get sent an email maybe. You know, you just draw that all out. Once they get the email, they get sent to the Free Report page with the One-Time Offer, for example. However you want to implement this.
But the idea is that you become very clear on each specific page that you need inside your website and so as the Back End to be able to implement this. And I’m using a technology called FusionHQ to help me do this, to set up the sales process. FusionHQ. I might have a link for it below this video. They mostly close because they are very cautious with how many people they accept so that they can make sure they look after their customers really well.
But that’s the fourth stage. You really draw out the whole process each and every single page and how it all would work together once it’s all set up. And you do this after you’ve created that process diagram in Step 3.
Then Step 5 is basically to create a Task List to implement this whole thing. And so the idea here is that you create a bunch of tasks so that you can implement all of this stuff here and at the end of it have the whole Back End set up.
And what I recommend you do here is brainstorm all these tasks, write them all out and once you’re done with it, prioritize them. Prioritize. And what’s cool about doing something like this, running out all the tasks, having a map of the whole thing, and having a process like I did in Step 3, you can then get other people involved to help you implement the Back End. And that’s in fact, what I’ve done and you know implementing it as—I’m recording this at this stage.
But I wanted to share this process with you. So let’s just quickly go over that again.
Step 1 is to become very clear in your goals for what you want to achieve. Start with how much money you want to make and then work backwards and try to figure out how much traffic you want.
Step 2 is to create your funnel of how you want your business funnel to look.
Step 3 is to create the Flow Chart of how that will be implemented. And it’s just a really nice way to visually represent the flow of information.
Step 4 is a step closer to implementation which is the Web Representation where you just draw out each and every single page that will be used to implement the process.
And Step 5, of course, is to create your Task List.
And once you have that, you’ve got a really, really nice blueprint for setting up your own Back End. Now this is a really, really quick video. And because this is on YouTube, I don’t want to go into much detail. But if you like this kind of stuff, let me know and if you got any questions, let me know by leaving a comment below. I would love to hear from you and I may create a longer, more detailed video about this whole process so that you get a much better idea of implementing this yourself too.
So what did you think? I hope you enjoyed that and I hope you can see the value in creating your own Back End process for your own business. It’s extremely valuable so that all the big gurus talk about—you need to have your Back End set up for your business. That’s where most of your money is for your business. If you don’t have a back end yet you’re leaving a lot of money on the table.
Okay, now to the winner. Well, if you want to find out who won this little IPod Nano, it will be in an annotation on this video right here. Ok so annotation right here of who won this and I’ll get in touch with you either through email or Facebook so that we can grab your contact details.
Also on my blog, if you want to see who the winner is, it will be at GideonShalwick.com under the post where this video is or below this video also maybe in the description area on YouTube if you’re watching this on YouTube. Please remember to subscribe to my YouTube channel. The subscription link will be just here once again. Click on that and subscribe to my YouTube channel so that you can automatically get updated for my videos.
Thanks again for watching. I look forward to creating some really awesome videos. And by the way, I’ve just moved into a new house. So the background you see here is all new and there’s a lot more space here. The previous house we had was very small, very tight. So I’m looking forward to creating some great videos for you in the future. Remember to leave your comment as well. I would love to hear from you. Talk to you soon.