Dan Kennedy said:" Whoever can spend the most to acquire a customer wins." When it comes to growing your business or following on social media, you want to be the one who can spend the most to acquire a customer. Because if that happens, no one else is able to acquire as many customers as you could. You are going to destroy your competitors. Let's talk about how you can afford acquiring more customers. ---TRANSCRIPT--- (00:00): Hey, everyone, this is Lik Foon and I hope you're doing awesome today. And today I want to talk about building up the back end of your business so that it can help to support everything you're doing around your business to bring in more customers, generate more sales and most importantly not losing money. (00:19): All right. So the topic today is specifically about the backend of your business and backend means everything that happens behind your business that is supporting your business model. And this ties back to what I talk about yesterday. So yesterday I talked about how you want to be able to have your backend, that can support you to acquire a customer for free. And I said, basically your backend is about three things. It is about your offer. It is about your funnel and traffic. (01:00): So offer is the main thing that you sell in your business that is generating most of the revenues and profits in your business. This is your main offer. And then the next thing is the funnel, the funnel that you used to sell your offer. And finally, it's about the traffic. Traffic means people, the people that you are targeting. But today our focus is on the offer part because that is the main component of your backend, because you need to have something to sell that can generate money and profits, right? For your business. I've talked a lot about how to create an irresistible offer in this podcast many episodes ago. So if you haven't already listen to those episodes, make sure you find those episodes and listen to it because that is the key to create something that people will want to buy and cant resist. (02:00): And the reason why I want to talk about this today is right now, if you have been listening to my podcast, you know that in the last one month or so, I have been focusing a lot on trying to grow my following on Instagram. And I also said that when it comes to growing your following or business, there are really only just two ways to do it. Using the two resources that we are given. It is either using your time or money. So right now, the way I grow my following on Instagram is more to using my time and my following is growing, but it is slowly and it is very time consuming. The better way to do it is actually to turn on ads, to spend money because that is going to get your results instantly. But that is not what I'm going to do right now because of what I'm going to share with you next. So yesterday, if you remember, I talked about how you want to be able to acquire customer for free. You want to make sure that for every single $1 that you spend to acquire one buyer, you are getting back at least $1 in return, meaning you are at least break even. (03:17): So when it comes to growing a following, it's the same. You want to make sure that for every $1 that you spend to acquire a follower, you want to at least breakeven, at least not losing money, right? And that all depends on your backend. It depends on if your back end can support you spending that money to acquire a follower or buyer. And for my business right now, my backend is mainly affiliate marketing. While affiliate marketing can pay you good money in commission when you are promoting someone else's product, but it is really not a long-term strategy. And, and I know that this business model will not be able to support me spending money to acquire followers. And if I was to turn on ads right now to acquire more followers, well, I know that my followers will instantly get multiplied. But if I do that, I have to pull money out of my pocket on my own, because my business model, my backend will not be able to support me doing something like that. (04:30): And that's why I'm still not going to turn on ads to build my following, because it is not about the numbers. It is not about having a big following. It is about being able to acquire a follower for free. If I spend $100 today to grow my following, and by the end of the day, I get back $100 in return. I breakeven, and I get followers for free. That's when I know that this is a sustainable business model. That's when I know that it can support me spending money to acquire more followers. And that's when I will do it all day every day. So until that happens, until I have a strong back end, until I have my core offer figured out, I'm not going to turn on ads to grow the following just for the sake of doing it. So the main focus for me in my business right now is actually to build a stronger backend. (05:31): And that's why I'm working on creating my main offer. And typically your main offers should be something that is higher in price and bringing in most of your revenues and profits. It has to be highly profitable because otherwise it will not be able to support you in doing everything around your business, to get in more customers, more sales or more profits. It will not be able to support you running ads, doing marketing campaigns, or spending money to grow your following. And that's what I want you to think about today. You need to look at your business right now, look at your backend and ask yourself if your current backend can support your entire business, if your main offer can support you doing everything around your business, to bring more customers. Let's say you are selling a $7 product as your main offer, as a back end, it will be hard for you to do a lot of things around your business to acquire more customers because the profit is so small and you might need to sell thousands and thousands of units of that product to be able to make good money that can support you and your business. (06:49): So it is important for you to set your backend, your main offer as something that is highly profitable and scalable, because that is when you can afford to acquire more customers. And like Dan Kennedy said: In business, whoever can spend the most to acquire a customer wins. If you can spend $100 to acquire a buyer and still break even, no one else can outspend you. You are going to crush them because when you have a strong back end, that is when you can go really aggressive when you are doing your market campaigns or running ads, or even to grow your following. And that is going to give you an unfair advantage. So my homework for you today is to look at your business and see if you have a strong back end. What is the main offer that you promote to someone when someone comes to you? What is the main product that you are sending people to buy? And it should be something that's highly profitable, bringing in most of the revenues for your business that can sustain your business model that can allow you to do a lot of things around your business to get more sales and customers. And that is my goal for you today. Anyway, hope you get some value today. With that said, I will talk to you again tomorrow and take care.