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By Jay Abraham
How many times the repurchase, and what and how much the repurchase each time, has a lot of impact on how prosperous your business or profession makes you. Getting customers who used to come back once a year to start coming back once a quarter, or once a month, can multiply your profits enormously.
Getting customers who used to purchase just one or two products to start buying additional products in an ongoing way can add tremendously to your bottom line.
It costs you a small fortune to acquire a customer in the first place, because you might have to pay to run a full-page ad that reaches a one-half million unqualified people just to find the five or 10 qualified people you end up selling to. Or you may have to pay a salesperson to call on 100 prospects to close two sales. But the cost of reselling a customer once they've done business with you is only the cost of a phone call, a sales letter or a personal visit.
The first sale you do with a customer or client may be profitless. You could even lose money on the first sale. But every subsequent repurchase is tremendously profitable.
So what does this all mean to you? Plenty. It means you need to start focusing on better ways of getting your customers to buy more often. They may buy the same product, a related item, or a totally unrelated product or service.
Once you understand why your purpose has be to help your customers get the maximum benefit and advantage you are capable of giving them, you'll see why better development of your back end is critical.
The back end comes into play in a different way also. Many enterprises, on their own, are marginal operations that will never produce massive profits for their owner. And yet, if you redefine your business as being the "front end" for a different back-end business, all of a sudden your enterprise gets transformed into a lead generator, which is very exciting.
A solid "back end" takes most of the burden of generating profit off your shoulders and allows you to reap residual income from other people's sales. Let me illustrate this:
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