How list building is profitable?

21 replies
Hi there,

I have one inquiry regarding list building.

This is the first time I build a list and I have put the following numbers as per what I read over the internet.
1) You can reasonably expect $1/month for each subscriber on your list.

2) Open rate is 20%

3) Out of those 10% will click on the affiliate offer that you have.

Based on these calculations, if I have a list of 1000 subscribers, following is what I expect to make when I send a mail.

1) 200 will open my email (1000*20%)

2) Out of these 20 will click on my affiliate link (10%)

3) 1 person will buy the product (if the affiliate sales page converted at 5%)

4) If I make $25 for each sale. That means for every promotional email I will make $25 per 1000 subscriber.

5) If I send 4 promotional emails a month that is a total of $100 per 1000 subscriber. (the number of promotional emails is determined as ¼ of total emails sent, i.e. 3 value emails leading to a fourth promotional email). Sending rate is 3 to 4 emails a week.

Please correct my numbers.
#building #list #profitable
  • Profile picture of the author Max Anderson
    They are completly wrong

    It starts with the estimation of $1 per sub/month and goes on with the open rates...

    There are so many factors involved that it is impossible to guess your revenue in advance. You have to try it and then split test to improve your numbers.
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    • Profile picture of the author Farouseh
      Thank you Max.

      But isn't there any basic figures that one can take as reasonable targets?
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      • Profile picture of the author jamescanz
        Originally Posted by Farouseh View Post

        But isn't there any basic figures that one can take as reasonable targets?
        Not really, there are a gazillion variables to affect reasonable numbers

        You are better off gathering your own data...

        And strive to increase your numbers over time
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  • Profile picture of the author Kerryrus
    I agree with Max!

    There are so many different factors that determine the value of your list. And it's not always about the numbers. It's about the relationship you have with your list. People will only buy from you if they like and trust you.

    Building your list is the easy part, gaining their trust isn't that easy if all you think about is money. Focus on HOW you can deliver value to them and the sales will naturally happen with time.

    Hope that helps!
    Kerry
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    • Profile picture of the author Farouseh
      Well said Kerry, thanks.

      I just needed a base where I can base my ROI on.
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    • Profile picture of the author illusioztan
      Originally Posted by Kerryrus View Post

      I agree with Max!

      There are so many different factors that determine the value of your list. And it's not always about the numbers. It's about the relationship you have with your list. People will only buy from you if they like and trust you.

      Building your list is the easy part, gaining their trust isn't that easy if all you think about is money. Focus on HOW you can deliver value to them and the sales will naturally happen with time.

      Hope that helps!
      Kerry
      Hi Kerry,

      What you said is really true....I guess more effort should be put into the follow up email to your subscriber in order to build up their trust on you..
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      Discover The Way to Earn $500/day from Affiliate Marketing
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  • Profile picture of the author Daniel Szalok
    You have to understand that out of 1000 subscribers about 30-40% will ever open even your welcome email. So this $1 revenue / month / subscriber is totally BS.

    - Open rate is 5-12% (subject field is really important)
    - Out of those 0-50% will click on the link (totally up to your copywriting skills)
    - Out of those 0-30% will buy the product (totally up to the product itself and its price)

    So based on this calculation, no-one can ever calculate the exact revenue / month
    But please don't send 4 promotional emails per month - send AT LEAST 4 each week.
    Be funny. Be yourself. Add value. Give them your own style.
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  • Profile picture of the author Melissahoster
    Banned
    Originally Posted by Farouseh View Post

    Hi there,

    I have one inquiry regarding list building.

    This is the first time I build a list and I have put the following numbers as per what I read over the internet.
    1) You can reasonably expect $1/month for each subscriber on your list.

    2) Open rate is 20%

    3) Out of those 10% will click on the affiliate offer that you have.

    Based on these calculations, if I have a list of 1000 subscribers, following is what I expect to make when I send a mail.

    1) 200 will open my email (1000*20%)

    2) Out of these 20 will click on my affiliate link (10%)

    3) 1 person will buy the product (if the affiliate sales page converted at 5%)

    4) If I make $25 for each sale. That means for every promotional email I will make $25 per 1000 subscriber.

    5) If I send 4 promotional emails a month that is a total of $100 per 1000 subscriber. (the number of promotional emails is determined as ¼ of total emails sent, i.e. 3 value emails leading to a fourth promotional email). Sending rate is 3 to 4 emails a week.

    Please correct my numbers.
    Those numbers are kinda text book numbers. Not to discourage you, but the list source, the niche, the product prices, OTOs, inbox hit rates and above all the relationship with your list would determine your earnings. Don't focus on ROI calculations - go for quality and relationship first. The money will follow.
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  • Profile picture of the author cheehien
    Number is number. is just for reference. But we need to growth our list in order to maintain the income...
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  • Profile picture of the author Stuart Walker
    Those numbers are pulled out of thin air and are different for everyone.

    It depends on tons of factors including the way you build your list (blog or squeeze page), whether a relationship is built with your subscribers BEFORE they opt in, what you send them, if you set expectations and stick to them, how much value / good content you send to them ETC ETC ETC.

    You have to understand that out of 1000 subscribers about 30-40% will ever open even your welcome email.
    30-40% open rate on the opening email? For me that's seriously low and I wouldn't be happy with that.

    Aweber is down atm so I can't log into check but I'm sure my opening email rate for my newest blog is 69%.

    Open rate is 5-12% (subject field is really important)
    Again that's VERY low.

    I'm currently averaging around 40%.

    Subject field IS important but not nearly as important as having built trust and a relationship with your subscribers BEFORE they opt in, having them opt in because they REALLY want to receive emails from you and not just to get some freebie they were forced to enter (their often secondary) email to get.

    My open rate increases when I improve headlines but not by that much.
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  • Profile picture of the author gcbmark20
    Hi,

    IT'S all pure SPECULATION!

    Yeah it feels good to run estimate numbers and get a feel for what is
    possible.

    But until you go out and test your funnel yourself then you won't know
    what your numbers are going to be.

    1. Do you have an irresistible offer?

    2. Do you know where the people who NEED your products and services hang out?

    3. Are you building an email list and asking your subscribers what their NEEDS &
    DESIRES are so you can give them EXACTLY what they want and see better
    conversions that way?

    Sorry to burst your bubble and I'm not trying to put you off here.

    What I am saying is that theory is that until you go out and TEST your
    first campaign yourself.
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  • Profile picture of the author AyeshaK
    I wish I had a list, but it seems so tough to build a list.
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    • Profile picture of the author Stuart Walker
      Originally Posted by AyeshaK View Post

      I wish I had a list, but it seems so tough to build a list.
      It's tough to run an online business WITHOUT a list.

      If you're not building a list then you don't really have a business.

      There's not a single successful business, online or offline, that doesn't have a customer list.

      If you want to actually run an online business as opposed to just playing around online then you build a list.

      It's not tough.

      You get an Aweber account for less than $20 a month.

      You urge your prospects / customers to sign up to your list so you can keep them updated of new developments / blog updates / new products / offers.

      You send them a lot of value - useful information / help and advice / new blog posts / ways to get more out of their product / whatever.

      Sometimes you send them product launch information / promos / something that makes you money.
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    • Profile picture of the author illusioztan
      Originally Posted by AyeshaK View Post

      I wish I had a list, but it seems so tough to build a list.
      Hi AyeshaK,

      You may try start build up your list by buying solo ads from a quality solo ads seller. I personally try it and although the result is not as impressive as i initially thought,but it is really motivating when there are few hundreds subscriber added to your list in two to three days time.

      Hope this help...
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      Illusioz Tan
      http://noworkgotmoney.com
      Discover The Way to Earn $500/day from Affiliate Marketing
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  • Profile picture of the author talfighel
    Everyone's figures will be totally different from others.

    While one person can get an open rate of 10%. others will have a hard time getting 0.5% open rate.

    It also depends on your traffic and where you are getting your leads from. From my own research, pay per click traffic to build your list is far better then solo ads and the leads you get from there.
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  • Profile picture of the author Sarevok
    Someone (probably a guru hehe) mentioned the whole $1 per subscriber per month thing.

    And it stuck ever since.

    This isn't really the case, because each list has a MILLION VARIABLES that determine its worth. (including YOU).

    So, the only statistics you should EVER believe, are the statistics that you determine and develop on your own.

    All other statistics are unreliable at best, and do more harm than good at worst.

    :]
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  • Profile picture of the author Stuart Walker
    You may try start build up your list by buying solo ads from a quality solo ads seller. I personally try it and although the result is not as impressive as i initially thought,but it is really motivating when there are few hundreds subscriber added to your list in two to three days time.
    Most people find that lists built via sold ads were not too impressive (to put it lightly).

    Adding a few hundred subs to your list in 3 days is a complete waste a time when only 3% of them are opening and 1% are clicking and no matter what changes you make to your headlines and calls to action, what time of day you send, how often you leave between messages, the amount of 'value' you deliver in emails nothing changes.

    The majority of people making money through solo ads are the ones selling them.

    I'd rather add 10 RESPONSIVE subscribers to my list a day who REALLY want emails from me over several hundred that come from solo ads or other low quality traffic.

    Quick is rarely better when it comes to list building.

    Small lists of highly targeted and quality subscribers (from a blog for example) will regularly out perform bigger lists in terms of opens, clicks, action and sales built through solos.
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  • Profile picture of the author Frankalex
    I have a very small list (488 subscribers) and when I send an email with an offer only 7% open the email. From that 7% only 6% bother to click on the link. Sales, I only make occasionally.

    That said, my list sucks and need to add more subscribers.
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  • Profile picture of the author ErinWalsh
    I agree with making sure your offer is compelling enough. You also need to know how to engage your email list and make sure they want to be on it. These at this point are more important and numbers.
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  • Profile picture of the author absolutelee
    You're over thinking this. You need to do the following...

    1. Build a list

    2. Promote stuff

    3. See what YOUR numbers are

    4. Rinse and repeat
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  • Profile picture of the author Alice12345
    I think you need to try to do it then you will see it how.

    Just promote a product. Buy Solo. Make product. Testing again. Profit. Rise and repeat.
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