Is List Building Very Profitable?
Say I'm using Bing Ads PPC and my avg CPC is 0.50. I spend $200 and get 400 clicks to my landing (squeeze page). Let's say 45% of those clicks subscribe to my list which would give a total of 180 list subscribers for $200.
Let's say I'm promoting a Clickbank product that pays $29/per sale and I get 1 sale upfront for every 100 clicks. So after 400 clicks, I make $116 total from sales made right away.
So far without list email marketing (just immediate sales):
$200 spent on PPC
$116 in affiliate sales
Now let's say only 1 in 30 list subscribers ever makes me a $29/sale purchase. Out of 180 list subscribers, that would only make me $174.
So now after immediate sale + list driven sales:
Spent in PPC: $200
Affiliate $ earned: $290
That doesn't seem too profitable to me. I mean I guess I could spend $2,000 and make $2,900. & then $50,000 to make $72,500. But my list would need to be astronomically huge to make that kind of money.
Not to mention, a good portion of this list will opt-out or whatever.
Can someone explain to me how list building can be as profitable as everyone claims?
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