Why You Need a Subscriber List to Grow Your Business

DavidJacksonDavidJackson subscriber Posts: 143 Silver Level Member
edited April 2009 in Marketing
If you`re a reader of mine, you`ve probably heard me say before that a good subscriber list is "guaranteed income." That`s because it is. Whenever I mail to my list it always brings back income - ALWAYS! But you don`t have to take my word for it. Read top marketing blogs like  ProBlogger  or  OnlineMarketingBlog,  and see how much value their readers place in their lists. Or ask any successful online marketer like Rich Sloan of StartupNation  or Adam Urbanski of  TheMarketingMentors  and they will tell you the same thing. "The money is in the list!"
Let me explain why. For the most part, visitors to your website are complete strangers. They don`t know you, therefore they don`t trust you. They drop by, window shop a bit, and then leave after a few seconds. That`s right, seconds. Don`t believe me? Check your website logs. How long is the typical visitor spending on your site?
See what you`re up against? That`s why on average, 99% of visitors to your website leave without purchasing anything. And unless you have a system in place to collect their name and e-mail address, many of those visitors will be lost forever. That`s good potential income down the drain.
There`s an old saying in marketing. "It takes seven contacts with a prospect to convert them into a customer." That means a prospect has to see your marketing message at least seven times before they`re comfortable enough to buy from you.
That`s why your subscriber list is so important. Even if they haven`t purchased anything yet, these are people who are interested in what you have to say. They are guaranteed future income.
 
Think about it. These people have taken the time and made the effort to subscribe to receive your newsletter, blog updates, whatever. This gives you the ability to have contact with these people over and over again. Eventually, these people develop enough trust in you to purchase your products and services. And if you treat them right, they`ll keep on purchasing from you. Heck, they might even bring their friends and family members with them.
Remember what I said earlier? 99% of visitors to your website will leave without purchasing anything. That means out of every one hundred visitors to your website, if you`re lucky, you may get one sale. Conversely, your subscriber list will convert at a much higher rate. My list consistently converts at around 15%. That means for every 100 people who receive my mailing, fifteen of them buy something. And I`m not talking results I get sometimes. I get these kinds of results every time I mail to my list.
Which would you rather have, one sale per hundred visitors or fifteen sales? When you compare the numbers, building a subscriber list is really a no-brainer, isn`t it?
And it`s easier than its ever been to manage your list. E-mail marketing services like Costant Contact  or  VerticalResponse  will handle everything for you - and at a reasonable cost.
So, what are you waiting for? If you haven`t started building your subscriber list, get started today!


If you have a subscriber list, I`d love to get some feedback to this topic.
David Jackson
 
DavidJackson4/13/2009 3:04 PM
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Comments

  • proactive1proactive1 subscriber Posts: 1
    I concur. I`m currently using FeedBurner (recently acquired by Google) to build my list at no cost. At some point I may decide on one of the premium services such as Constant Contact or Aweber.
    I`ve had experience using Constant Contact. A few years back, I was performing in a rock band and used Constant Contact in conjunction with our website which I managed. In under a year we built a list of a couple hundred subscribers. We weren`t selling anything except to encourage followers to attend our gigs. Since club owners often pay bands a better cut for filling up a room, the $15 a month we paid was definitely worth it. 
  • vwebworldvwebworld subscriber Posts: 40
    Many ecommerce sites use the opt-in feature of their ecommerce program to maintain a "subscriber" list.
     
    Then effectively use that to promote new products or services and stimulate sales.
     
    ~Roland
    vwebworld4/14/2009 11:07 AM
  • DavidJacksonDavidJackson subscriber Posts: 143 Silver Level Member

    Many ecommerce sites use the opt-in feature of their ecommerce program to maintain a "subscriber" list. Then efferctively use that to promote new products or services and stimulate sales.      Roland, do you have a list? If not, why? If you do, are you making money with it?  I`m trying to stress the importance of building a subscriber list. That`s the whole purpose of the article. David Jackson
  • DavidJacksonDavidJackson subscriber Posts: 143 Silver Level Member
    I concur. I`m currently using FeedBurner (recently acquired by Google) to build my list at no cost. At some point I may decide on one of the premium services such as Constant Contact or Aweber.
     
     
     
    Thank you, Chuck!
     
    It really doesn`t matter which list service you use to build your list, as long as you`re building a list. That`s the important thing. The services I mentioned in my article just make it a heck-of-a-lot easier.
     
    David Jackson
  • vwebworldvwebworld subscriber Posts: 40

    Roland, do you have a list? If not, why? If you do, are you making money with it?  I`m trying to stress the importance of building a subscriber list. That`s the whole purpose of the article. David Jackson  Thank you, I understand the purpose of your article.~Rolandvwebworld4/14/2009 11:34 AM
  • MyMarketEASEMyMarketEASE subscriber Posts: 1
    David,
    You are correct in that it costs much less to keep an existing customer than it does to get a new one.  And that relates directly to the amount of contacts you mentioned in having to convert prospects.  That`s a point that many SBO`s don`t take into consideration when calculating the amount of expense it will require to gain a new customer, vs putting in the time to create a solid retention strategy.
     
    However, I wouldn`t say that subscribers are "guaranteed future income" just because they are part of your base.  There are many factors involved such as understanding who your true high-value buyers/subscribers are vs. the browsers.  Some of your list subscribers may end up having the same (or worse) response rate to offers as a prospect, so your investment strategy could change.
     
    With my new site, we are building a subscriber list and have a rather in-depth contact management strategy planned.  When I worked in the corporate environment, I would prospect to over a million names several times/year.  But the majority of my brain power was dedicated to mining the value of my existing customer base and ensuring we got the maximum return from our investment.
  • DavidJacksonDavidJackson subscriber Posts: 143 Silver Level Member
    David,
    You are correct in that it costs much less to keep an existing customer than it does to get a new one.  And that relates directly to the amount of contacts you mentioned in having to convert prospects.  That`s a point that many SBO`s don`t take into consideration when calculating the amount of expense it will require to gain a new customer, vs putting in the time to create a solid retention strategy.    Melissa, you obviously get it!  These are the kinds of conversations that I enjoy. David JacksonDavidJackson4/14/2009 1:53 PM
  • patentandtrademarkpatentandtrademark subscriber Posts: 103
    Your competitor, Melissa Fox, is right - a subscriber list is not guaranteed future income - there is no such thing as guaranteed future income.
     
  • MyMarketEASEMyMarketEASE subscriber Posts: 1
    Hi Janie,
    I`d be happy to walk you through the site, and answer any questions you might have.  Let me know when I can contact you and how, and I`ll give you a call.
     
    In the meantime, visit MyMarketEASE.com and download the first two articles in my series, "From Dating to Marriage: How to FIND and KEEP your best customers".
     
    Speak to you soon.
  • DavidJacksonDavidJackson subscriber Posts: 143 Silver Level Member
    Good to know that the list works, I have to try it I guess to see if it really works in my case or not.
    Thanks.
     
     
     
     
    I promise you, it will work, if you`re patient and cultivate your list properly. 
     
    David Jackson
    DavidJackson4/15/2009 5:44 PM
  • DavidJacksonDavidJackson subscriber Posts: 143 Silver Level Member
    If done right, lists generate income over and over again, and a good targeted list is worth it`s weight in gold.
     
     
     
    Well, that`s one thing we can agree on.
     
    David Jackson
    DavidJackson4/15/2009 6:21 PM
  • patentandtrademarkpatentandtrademark subscriber Posts: 103

    NOTHING is guaranteed.

     
    Would you trust ANYBODY that guaranteed you income if only you would follow a particular business practice or strategy?  ANYBODY?
     
  • DavidJacksonDavidJackson subscriber Posts: 143 Silver Level Member
    I prefer people who say, *I* did it this way and I was successful. I can show you how to do it my way. It just may work for you.
     
     
     
     
    That`s what`s so great about America. We have the freedom to express ourselves anyway we like - regardless of whom it rubs the wrong way!
     
    David Jackson
    DavidJackson4/16/2009 10:50 AM
  • DavidJacksonDavidJackson subscriber Posts: 143 Silver Level Member
    I did not say anything about anyone`s communication rubbing me the wrong way.
     
     
     
    And I never said I was referring to you.
     
    David Jackson
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