The money is in the list

Posted by Michael

October 6, 2008

Update 13th Oct 2008 = 3 subscribers . Haven’t really been marketing hence the numbers

Anyone that teaches / blogs / about making money online says that the money is in the list but what does that really mean? They say that to make money online you need to build a list. Here’s the idea…..when someone signs up to your mailing list it means that they are giving permission for you to email them. This is not SPAM as they have opted into your mailing list. What you usually offer your visitor is a free gift / report of some sort in exchange for their contact details which is usually a name and email address. Now you’re free to email them.

But how do you make money? It’s been said that it takes about 7-8 emails / contacts before the subscriber is likely to make a purchase. As you send out newsletters to your subscribers what you are developing is a relationship. As you develop this relationship your prospects get to know you and like you which make it easier for them to make purchases of you or purchases recommended by you. Let’s say you’ve built your email list to 10000 subscribers and it has a conversion rate of 1% which is 100 (100 buyers), you’ve created a product related to your niche which you plan to sell for $47. You send out an email to 10000 of your subscribers which have made you 100 sales based on you conversion, this makes 100 x $47 = $4700. That’s $4700 you’ve made from a single email. I’m being conservative at saying 1%. It may be 3% depending how strong your relationship is. If your conversion was 3% your sales would be 300 which makes 300 x $47 = $14100 instant cash to you account.

That’s only half the story, true, the money is in the list but its the relationship you have with your list is what matters. It doesn’t matter if you’ve got 10000 subscribers if you don’t have a good relationship then you’re not going to get many sales. If its not targeted you’re not going to get sales. There’s no point trying to sell dog products to cat lovers it just won’t work. You’ve noticed I’m starting to build my list using my subscribe box. Aweber is supposedly the best, their features seem to be working well for me. Sign up HERE if you want to start building that list CLICKY. If you want to build an online business then you need to build that list……………Period.

Just out of interest have any of you just started online marketing and building that list ? Would be great to find out how everyone else is doing.

Michael

Internet Marketing

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