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What should a subscriber cost

by Ryan Sterling
5 replies
What should a subscriber cost you after your advertising efforts, whether it's PPC or buying solo ads or however you decide to build your list.
#cost #subscriber
  • Profile picture of the author WillR
    The only answer to this question.

    A subscriber should cost you less money than you will make from them over their lifetime. So you should have some idea of the average lifetime value of your leads as they go through your funnel. Once you have that figure you know that any lead you can acquire for less than that figure is going to be profitable and any lead you acquire for more than that figure will be a loss.

    The unfortunate thing is most people have no idea what their lifetime lead value is and thus when they are doing paid advertising they are just shooting in the dark.

    It's all just business basics 101. If you make more money than you spend then you are a profitable business. If you don't, then you are not.
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  • Profile picture of the author writeaway
    Based on the other threads about this topic, quite a bit since clicks themselves can be 25 cents and up per click.
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    • Profile picture of the author WillR
      Originally Posted by writeaway View Post

      Based on the other threads about this topic, quite a bit since clicks themselves can be 25 cents and up per click.
      Sorry, but throwing around figures like this means nothing.

      If you get your leads for 25 cents and over the lifetime of those leads each one is only worth 24 cents to you, well you have lost money.

      If you buy leads for $10 and the average lifetime value of those leads is $25 then you are making some serious profit.

      Numbers mean absolutely nothing unless they can be compared to other numbers in your business... otherwise you are just throwing mud at a wall and hoping some sticks.

      How can you possibly advertise effectively if you don't know what each lead in your business is worth to you?
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  • Profile picture of the author kdevarney
    as cheap as possible but depends on what you are selling and what your profit margins are. Always be good to your list and you can afford to pay a little more for the people on it as they will be life long customers
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  • Profile picture of the author stlmrk
    Originally Posted by Ryan Sterling View Post

    What should a subscriber cost you after your advertising efforts, whether it's PPC or buying solo ads or however you decide to build your list.
    You always want a constant flow of subscribers but the price your subscribers are worth is all based upon how good your sales funnel is. You can have a list of 50,000 and if your sales funnel is crap then that list may only produce 50k a year. Flip that and you can have a list of 500 people and make 50k a year off of it.

    The bad part is you cannot determine how good your sales funnel is without subscribers. With that being said I would try to acquire subscribers a cheaply as possible. If you don't have a proven strategy for a sales funnel (preferably that you have tested), then I wouldn't go out spending your retirement on subscribers in a highly competitive niche. Just my opinion.
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