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