I’d like to show you five secret strategies to extract profits hidden in your Internet business. Pay particular attention because any of these can boost bottom line revenue fast.

Upsells

Upsells are additional sales made at initial purchase. McDonald’s does it when they ask to super size your order. When you sell an ebook for $30, you can add an upsell to order form. The upsell offers an expanded version of ebook with an extra bonus for $10 dollars more. This increases your initial transaction size. Done properly, at least 20% to 50% of your customers will buy higher priced item.

Lifetime Value of Customers

Lifetime Value refers to how much a customer is worth. Customers tend to buy more than once. Say you sell vitamins online. It costs you $50 to bring in every customer. But they buy from you for six months at $30 per month. Even if you lost $20 on first sale you profit $160 per customer over six months. Knowing this, you can break even or lose a little money upfront to get a new customer and profit from repeat sales.

Back End Sales

The place you need to start with your home business is with pen and paper or word processing software and a PC. One thing I learned about starting businesses is there are so many variables involved it is not possible to “keep it simple” if you try to run entire business without some type of plan. Not knowing or not being able to prioritize your needs with your business can result in bad money management and eventually failure.

Writing down what your business is about helps put your business into perspective and helps you define your immediate needs and hold off on spending on items you don’t need right away. Most recommend you write a business plan. You can buy software to write a plan and go through a set of questions to write one. You could always research how to write a business plan online.

Whether you use software or not to write a business plan you could always ask yourself basic questions. Getting to basics means a lot to me. It provides a foundation to your ever evolving business plan.

If you are starting your own home business, try asking yourself these questions. They may help you in same manner as they help me:

1. What is your business name?

2. Is your business registered as a “Doing Business As” (DBA) or Corporation? – This is very important for tax purposes and banking.

2. Explain what you business does in one short paragraph. – Describing your business in a few sentences helps define main focus of your business.