Over the years, I’ve partnered with many digital entrepreneurs in the six-to-eight-figure range to help them with their growth challenges. As a result, I noticed an interesting trend.
Despite each being unique with companies of different sizes, when it comes to growing a business, everyone typically faces the same problems. Why? Because, as you’ll soon find out, growth leaks are very predictable.
In this article, I’ll walk you through these growth leaks and show you how to overcome them so that you can collect millions from your existing business structure.
What problems do most digital creators face today?
One common problem I see often is that most digital entrepreneurs focus on social presence and sales (front-end), while they completely neglect existing buyers (back-end). Let me explain because this is critical. In marketing, you have two major focus areas: Front-end and back-end.
The front-end is everything you do to capture the attention of non-buyers and convert them into buyers. The back-end is everything you do to keep these new buyers and get them to buy more from you.
Although this is easy to understand, successfully combining the front-end and the back-end in your daily marketing efforts is a tricky task. That’s exactly where most entrepreneurs leave value behind.
This value is not just in the form of sales. It’s mostly in the form of impact on their audience — impact these people want and need. And this is where the growth problems begin.
Related: 5 Ways to Make a Strong Impression With Every Audience
Your front-end is not your profit center
Many entrepreneurs believe that the initial sale should drive profits. Unfortunately, that’s not the goal of your front-end efforts.
Your front-end has two main objectives: Acquire relationships and create awareness.
As you can see, the front-end is not about making money. That’s why I didn’t mention “getting customers.” Your front-end is about building relationships and creating awareness about yourself, your values and your business. The front-end exists so that people know more about you and understand how you can help them.
The digital entrepreneur who can risk attracting people at a cost, and who is not going after immediate front-end profits, is the one who understands what the back-end stands for.
The front-end is about lending money (not making money)
The front-end is not about making profits, it’s about acquiring relationships and creating awareness. But you’re an entrepreneur, right? If you don’t make money, you’re just running a charity. This is exactly where the back-end becomes relevant.
You acquire someone on your front-end and move them to your back-end where you’ll convert them into higher-value offers. That’s how to repeatedly make money. You can afford to acquire buyers at a loss as if you’re lending them money — this is your cost per acquisition.
But you get that money back in droves once they engage with you on the back-end and get impacted by your higher-value offers. This is how every successful business is set up, and it is how you maximize your profits and secure the longevity of your company. That said, let’s see how you can implement or optimize this strategy in your business.
Related: Maximize Profits by Using These 3 P’s
The perfect business model for maximum impact and profits
Whether you want to have a successful digital or brick-and-mortar business, the perfect business model for maximum impact and profits always consists of two phases.
- Phase 1: Acquisition. In this phase, you combine building relationships with creating awareness about your business and what it stands for (lending).
- Phase 2: Profits. In this phase, you build trust by capitalizing on those initial relationships (collecting).
When my team and I work with our partners, we find most of their growth opportunities where the front-end merges with the back-end. This convergence point is where you can acquire relationships at a loss, knowing that you have the systems ready to collect that money back multiple times across time.
Once the relationship is in place, you can tap into sales opportunities whenever you want. Why? Because people trust you. They trust that you can help them. They trust that you can deliver. And they trust that you have their best interest at heart. This is where infinite value comes from.
As an entrepreneur, don’t ever forget that you want to build relationships and awareness first. You want to nurture those relationships to continuously sell your back-end products and services.
Related: 7 Amazing Ways to Build Long-Term Relationships With Your Customers
In our experience working with digital entrepreneurs, this is where my team and I see so many business owners leaving money on the table. Money that was there, waiting to be captured without any significant changes to their business structures.
We’re talking about situations where we managed to collect an extra $1,000,000 in two months for one partner. Or where we helped another make $109,000 in two weeks (his best year ever was $350,000). We managed to collect these amounts from their existing business structures because we implemented exactly what I shared with you in this article.
Related: How to Craft the Right Organizational Structure for Your Business
The bottom Line
The formula to generate more sales is this simple, three-step approach:
- Build the relationships and create awareness (front-end).
- Provide a wealth of value (frontier between front-end and back-end).
- Drive deeper impact (back-end).
When you improve in any of these three areas, you can drive consistent growth to your business. That’s it. Nothing fancy or complicated. Just a surefire way to collect millions from your existing customer base without making any significant changes, investing a lot of money in ads or wasting a lot of time.
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