List Building On A Budget pdf
The Social Power of an Email List
Email marketing is one of the most powerful and essential forms of internet marketing available. Slowly, it is being recognized as this as more and more bloggers shout about the power of email marketing.
But while it’s true that more people are waking up to the potential of list building, it’s also true that many of those same people are failing to make full use of its potential. That’s because they don’t recognize that email is not just a means for you to communicate with an audience, but also a means for them to communicate with you AND with each other!
A Quick Example of the Social Power of Email
Most email marketing broadcasts are written as newsletters. These are info dumps not intended to elicit a response.
But what if you invite your readers to respond? What if you say they can get in touch if they have any questions and then actually answer the emails they send back?
Suddenly, you are now having direct conversations with the people who love your brand and who want to hear more from you – which is an ideal way to build trust and authority. If someone feels like they know you, then they will be much more likely to buy from you – especially as they know they can get in touch if they ever have a problem!
Better yet, is that this casual conversation could easily lead to a sale of a bigger ticket item. If you are a coach for instance, then this conversation could lead to someone signing up!
You can even use a survey conducted via email in order to carry out market research! This way, you could get an idea of the kinds of things people want to see from you, such that your next product or service launch will almost be a guaranteed hit!
Finally, why not ask people to share your content if they enjoyed it? People forget how easy it is forward on an email. If you include a call to action at the bottom of your message inviting people to sign up, then those new readers could very easily become new subscribers!
Of course, this will only work if the content you provide is high enough quality, and if people think others they know will enjoy it too. This is a good incentive then to keep putting out your very best work!
What is Your Email List Worth?
If you are collecting emails for an email marketing strategy, then you might well have been attracted partly by just how affordable the process is. This is a marketing method with an extremely high ROI, meaning that you barely have to spend anything in order to start really profiting.
But exactly how much is your email list worth? Can you really get “something for nothing” in this way?
Let’s take a look!
Selling a List
If you were to sell your list, or to sell it as part of an exit strategy along with your business, then you would often be expected to charge roughly $1 per subscriber. This is a very rough average, but it is a fairly consistent and reliable method of valuing a list. That means that a list with 1,000 subscribers will usually fetch you around $1,000.
The True Value
Of course the actual value of your list is very different. For instance, a list filled with highly engaged subscribers who read every single email will be extremely valuable compared to one filled with addresses scraped from the web!
That’s why most people will want to check things like bounce rates and CTR when they consider buying your list – it’s also why list hygiene is so important.
But what’s perhaps even more important, is how much the list is worth to you at any given point.
To calculate this, you need to work out your CLV for each subscriber. This is your “customer lifetime value,” which means the amount that you will earn on average from a single person during the entire time you have their details.
How might you calculate this? Well, take a look at your list as it currently stands, and then work out how many people on that list have purchased from you. How many purchases do you get on average for every 100 subscribers? How many of those people purchase more than once?
Now ask what the average profit you get from each sale is. Get the total number based on all of your subscribers, and then divide this by the number of subscribers you have.
What you will be left with, is a number that represents the average value of each subscriber. Now, not everyone will be likely to buy from you! But based on average performance, this is what the average subscriber is “worth.” You’ll likely find it’s much higher than you thought!