The Perfect Business Plan Made Simple Front end vs Back End



The Perfect Business Plan Made Simple Front end vs Back End
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So we have front end and back end. The front end, this is where you’re attracting your customers. So we’re going to have Facebook, we’re going to have content marketing, we’re going to have YouTube, we’re going to have Instragram and then we’re going to have paid traffic. And then from there, obviously, we’re all funneling them towards your website, and your website should have a lead magnet.

So if you don’t know what a lead magnet is, basically, you’re offering an amazing gift in exchange for an e-mail, whether that is a free e-book, a free checklist, a free video course, an audio course, whatever it may be, as long as you’re solving the problems of your potential leads and clients.

So they exchange, tit-for-tat. We give them the LM, lead magnet, and they give us the e-mail. We’ll put down here e-mail. That’s the first step.

However, Facebook, content marketing, YouTube, Instagram, paid traffic, whether that is sweat equity or finances, at the end of the day, it’s actually costing you money. There’s no such thing as free traffic or just even doing free content. It’s money at the end of the day. So big dollar sign.

Well, this dollar sign adds up. And at the end of the day, you should be quantifying and tracking every single metrics, every single penny of your business.

So what we do is something we’d call an OTO, a one-time offer. So, for example, if it’s costing you roughly, say, $3 to acquire one e-mail, write down one e-mail here, so $3 require one e-mail, we want to try to make that $3 back ASAP with the OTO.

So a one-time offer can be as soon as they opt-in on the thank you page, we can offer them, say, a $3 to $7 product. It can be anything. It can be a physical product. We’ll P for product. It could be a physical product, it can be an e-book, it can be a course, whatever it may be. The whole point of the one-time offer is we want to recoup the $3 that we used in traffic.

So I’m just bringing up $3. In our business, we have $10, $20, whatever it may be. You want to recoup your advertising cost. I want to stress again, your advertisement cost is also sweat equity. Calculate the time it takes to do a YouTube video. Calculate the time it takes for you to write a 2000-word blog. I guarantee you, it’s more than $3 a lead. You’re probably spending 20 hours on a proper blog. And I guarantee, your time is worth more than $3 an hour.

So your job is then to make up that $3. And with the OTO – we’ll bring up a number, say 100 people see the OTO. If only 5% (which is a pretty good conversion), say if 5% to 10% converts – so let’s do the math. So 10%, it’s 10 people. Say, we do it seven. Ten times seven, that is seventy. So 10 times 7, that equals $70. So you’re getting $70 for every 10 people that enter or that go through your OTO.
This is fantastic because what this means is you’re recouping that cost. Therefore, on the back end, these customers, whatever they purchase, is a net positive return. Your responsibility on the front end is to completely recoup all your marketing costs. You shouldn’t be in the negative over here. It should be positive. So whether they buy something that’s $1 or whether they buy something that’s $1000, it’s a profit towards your business.

If you look at your business, if your business doesn’t have a front end like this and a back end, then go back to the drawing board because I see a lot of times out there, people are just spending money on Facebook ads, $500 here, $1000 there. Well, at the end of the day, they don’t actually have a system. They think it’s all about getting e-mails and getting – that’s not how you actually build a proper machine as Ryan Deiss would say.

So I want you to use this. I want you to figure out exactly first how much it costs you would pay traffic and content marketing, break down the hours, then figure out what can you offer in the OTO. Calculate the conversion rates and also create your sales pages. Figure out exactly what you’re making, and then hopefully, you’re going to be at zero net, neutral, which is awesome. Or even better, you’re actually pulling a profit over here, then in the back end, with your sales funnel, it’s all good, baby.

I hope you enjoy this video. Have a great night.

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6 thoughts on “The Perfect Business Plan Made Simple Front end vs Back End”

  1. I just can't get into the online sales stuff.  I wish i could but it's not my personality.  I initially bought the Inbox Blueprint program but got my money back because i'm just not excited about that kind of thing.  Writing blogs to attract customers, tracking sales, etc.

    I agree offering a service and helping others should be top priority.  Selling good products and selling your own products is even better.  But really that isn't my forte.

    However i need to get out of my 9-5 job like everybody else and the negative people around me too.  We're all programmed to be mean to each other it seems.  I don't understand and just want to unplug for this toxic cycle of life. 

    Just venting, not expecting any advice.

  2. Hi Ameer, First of all thank you for your always awesome videos. They are my main inspiration for business and mindset. I have an online business "ready to go" but now that is ready I feel kind of stuck. Is there a way to hire you for advice or do you know any company that could help me with marketing, SEO, and basically for getting me out there strong? I have a 9-5 job that is usually more like 8-7 and I´m quite stressed with my little free time so I need some help to get my business going. Thank you

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