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Price for advertising one text message to 1000 subscribers?

by mrcouchpotato
5 replies
Let's say you're building your own text message opt-in list within a specific niche. And let's say you get 1000 consumers to opt-in. You then approach a business who sells products in that niche and offer to let them blast one text message coupon or ad to this highly targeted list.

What would be a fair price to charge?
#advertising #message #price #subscriber #text
  • Profile picture of the author myob
    I charge a flat fee of 3 cents per text msg, but it's a custom setup for each business for their existing customer base with repeated periodic blasts. It's hard to conceive how your model would even work.
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  • Profile picture of the author redlegrich
    I would say a lot depends on what you are paying for message units. Also, what sort of work are you putting into the campaign. At 3 cents a message that's $30, hardly anything to write home about. You put more than about 1 minute into the effort and you're upside down. Few hundred minimum if you are doing some collaboration, coupon design, some back and forth, reporting and follow up.
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  • Profile picture of the author robitn4
    I would think you might negotiate a percentage of what this is expected to earn the client.
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  • Profile picture of the author redlegrich
    I would not advise doing a take on the profit. Way to many opportunities for the client to cook the books. Figure out the cost of the message units, estimate your time and your rate and charge him for that. Either you are worth that or you're not, you decide. You are bringing value with your expertise to grow his business, make him pay what you are worth.
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  • Profile picture of the author Transcripts
    Mike:

    You might get an idea working through some numbers like those scotth tossed out here:
    http://www.warriorforum.com/offline-marketing-discussions/372803-mobile-coupons-creating-your-own-mini-groupon.html#post3819089

    "I agree MK. I am a optimist and just like everything else marketing changes all the time..SMS is very powerful if used correctly from setting up business owners text campaigns to monitoring the opt-ins and opt-outs...when you send someone a text message its b/c they wanted to be on the list...this is called target marketing at its best imho...open rate for text message 97% with a 4-9% response to the coupon...lest compare Groupon and other like minded flash sale sites...charge 30%-50% off the revenue generated from the deal...now we know that the business owner is wanting from this campaign is the return visits..so a restaurant does a deal with Groupon...lets just say for sh*ts and Giggles the list has 100,000...open rate for email is 32%..response to the deal is around 6%...so thats 3200 open the email at 6% respond thats 192 people visiting the restaurant price of the coupon is $25 x 192 = $4,800 50% goes to Groupon that leaves the business owner with $2,400 revenue plus maybe repeat customers..

    I have a list of 5,000 target people...the restaurant owner sends a blast out on tues at 3pm for a $25 discount when spend is $50 or more...97% open rate is 4,800 eye balls looking at that text within 5 mins of it sent...4% respond to the deal...192 people x $25 = $4,800 the cost for the blast $500 total revenue $4300 so the business owner fills up his restaurant on a slow night and probably gets new people added to his digital list b/c of point of contact which is the fastest way to build your digital list...now my math might be off a bit but you get the jest how much more profitable SMS is than email..still need to have a email list for sure...but the business owner needs a digital list also. "

    The above info was provided by Scotth.
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