Help me crunch these numbers.

by ltd79
4 replies
Hey warriors,

I am just at the start of building an email list. I will be promoting clickbank products and using PPV/PPC for traffic to a detailed squeeze page. But I am trying to work out how it can be profitable? I know it can be VERY profitable if done right...I keep hearing 'the money is in the list'.
Anyway, this is the way I see it - these numbers are just ball park averages:
It will cost $1000 to build a list of 1000 leads.
Out of that, I get 20% open rate, that leaves me with 200 leads.
Out of 200, I get 25% CTR on my links inside my emails. That leaves 50 leads.
Out of 50, 10% purchase a $30 product, that's 5 sales totalling $150. That leaves me minus $850.
I understand these numbers can be tweaked. But even if its 50% conversion rate, thats $750.
I know I have acquired a list, but am I missing something? I hope people can shed some light Maybe my numbers are way off?

Thanks in advance.
#crunch #numbers
  • Profile picture of the author RSK3000
    Well lets say you had $1000 to spend on SoloAds.

    That would allow you to buy, say, 2000 (clicks) visitors to your squeeze page.

    If your squeeze page converted at 50% that would put 1000 new subscribers on your list.

    If 1% of them (10 subscribers) bought a product (i.e. you offer them something to buy just after they sign up) at say $100 each, you could make your $1000 back (10 x $100).

    ..............but you would now have 1,000 more people of your list, for free!

    I have heard that this kind of traffic is relatively unproductive. If you plan to monetise your list with internet marketing affilliate products I have heard earning rates of around $1 per subscriber per year. (in addition to anything purchased on sign up).

    However, it is not helpful to know this because your results may be better, or worse, than those figures above.

    In addition, bear in mind that the quality of subscriber also important. Would people join your list because they get value from your emails, or because they just want your freebie.

    I expect you could do similar calculations for any sort of paid traffic source. Just make sure that the money you earn from each subscriber exceeds the cost of getting each subscriber on your list.

    Hope that helps.
    Signature

    Blog Post: Why You Need Multiple Streams Of Income, NOW!
    For more internet marketing hints and tips follow me on Twitter - @TheIncomeSherpa

    {{ DiscussionBoard.errors[10197792].message }}
    • Profile picture of the author ltd79
      I didn't actually think about offering them something off the bat. Would it best to use a thankyou page saying to check out this offer while waiting for lead magnet to appear in email?

      Does anyone else have any input about my original post regarding conversions?

      Originally Posted by RSK3000 View Post

      Well lets say you had $1000 to spend on SoloAds.

      That would allow you to buy, say, 2000 (clicks) visitors to your squeeze page.

      If your squeeze page converted at 50% that would put 1000 new subscribers on your list.

      If 1% of them (10 subscribers) bought a product (i.e. you offer them something to buy just after they sign up) at say $100 each, you could make your $1000 back (10 x $100).

      ..............but you would now have 1,000 more people of your list, for free!

      I have heard that this kind of traffic is relatively unproductive. If you plan to monetise your list with internet marketing affilliate products I have heard earning rates of around $1 per subscriber per year. (in addition to anything purchased on sign up).

      However, it is not helpful to know this because your results may be better, or worse, than those figures above.

      In addition, bear in mind that the quality of subscriber also important. Would people join your list because they get value from your emails, or because they just want your freebie.

      I expect you could do similar calculations for any sort of paid traffic source. Just make sure that the money you earn from each subscriber exceeds the cost of getting each subscriber on your list.

      Hope that helps.
      {{ DiscussionBoard.errors[10202840].message }}
      • Profile picture of the author RSK3000
        Would it best to use a thankyou page saying to check out this offer while waiting for lead magnet to appear in email?
        Yes - a sales page saying 'buy this'. Make it complement your 'freebie'.

        Find a paid product on list building so that you can learn how to set up your sales funnel correctly (profitably). (Start your research here Episodes)

        Does anyone else have any input about my original post regarding conversions?
        Personally, I think you are wasting your time number crunching! Everyones conversion rates will be different, depending on your niche and your sales skills.

        Just do it.
        Signature

        Blog Post: Why You Need Multiple Streams Of Income, NOW!
        For more internet marketing hints and tips follow me on Twitter - @TheIncomeSherpa

        {{ DiscussionBoard.errors[10203179].message }}
  • Profile picture of the author OzDesign
    Email marketing is not a one shot thing. You can email them again and again as long as they stay subscribed.

    Find some good converting offers and mail them from time to time, and your numbers should get better!
    {{ DiscussionBoard.errors[10204560].message }}

Trending Topics