by Laura Bastion // January 19 // 0 Comments

Ever wonder why people say the money is in the list?

What value does an email subscriber mean to your business?

Why should you focus on building your email list more than just building out programs and services?

Because with an email list…you can actually calculate on average how much money you earn per email subscriber.

Why do you care?

Well, you might care to try to figure out approximately how much money you are going to make this coming year.

But more importantly, this will help you know how much you should invest in building your email list; for instance, if you know you are making $5 per $1 invested in your email list, it makes sense to increase your list because that is a GREAT ROI.

Knowing the approx value of your email subscribers will also help you when you are getting ready to spend time and money in developing new products and services.

Email marketing is VERY powerful because you really can calculate the ROI pretty easily. By knowing this ROI, you can make faster decisions to grow your business.

But before I go any further…

I want to hit this point.
Unsubscribes are not a bad thing!

If they unsubscribe, they are not meant to work with you…
And guess what?
That is ok!

It cost money for them to waste space on your email list.

Ok, enough of my rant:

Let's figure out your email subscriber's value to your bottom line!

How many people are on your email list?

You might say that it is an easy number. I logged into my email provider, and I have a list of 2400.

Ok…that is the overall view of your email list.

But to get an accurate picture of the value of your email list, you first need to clean it up! 

It's common sense…remove those who have bounced emails and unsubscribes.

Now you might have 1950 people on your email list.

But how many of those people have not opened your email in the 90 days? I look at 90-Days on Average because that is 1/4 of the year) Only count the active subscribers on your email list. If 875 read your email on a regular basis..that is the actual number of your email list.

How much money did your email list bring in?

If your business is new…you probably can't figure this out just yet.

I suggest you look at your numbers each quarter, or every 90 days at the very minimum.

So for this exercise, how much money did your email list bring in over the last 90 days?

Just estimate this amount, so if you made $5000 dollars during the last 90 days from emails, write down this amount. Do not count sales that happened from other sources (paid ads, referrals, etc.)

Now It's Time for Math 

Here is how you calculate your subscribers value:  Revenue (over the 90 Days from above) divided by the number of active subscribers (over the last 90 Days). = Average Value of Your Email Subscriber

So in the above example; I would divide $5000/ 875 (active subscribers); your value per subscriber is $5.71 every 90 days, and if you divide that number by 3 (3 months), your value per subscriber per month on average is $1.90

That means each month, you will earn approx $1.90 per subscriber on your email list. This is a good average!

On average each email subscriber should be bringing in at the minimum of $1 per month, now for those with high coaching programs that amount will be different.

So what does that mean to you? 

In this example, an email list of 875 people would mean you are, on average, earning a little over $1600 a month.

Let's say your goal is to earn $5000 per month from your email list; how many subscribers would you need to reach that goal? 

Formula : Divide Your Goal Income by the average dollar value of your subscribers

So $5000/1.90 = 2,631

You will need Approx 2,631 active subscribers on your email list to reach your monthly income goal!

Can you see how this information will help you grow your business faster and make smart choices on where you should invest your time and money?

You will know where to invest your money in marketing.

You will know how much to budget for product creation.

Plus, you will start to understand why it is so important to keep growing your email list. You will also understand when you need to send more emails or improve your email marketing funnels so that you can get a higher conversion rate.

Ok, it's your turn what is your average subscriber's value?

Virtually Yours,

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Laura Bastion started her online business in 2000 when she was bedridden with her 3rd daughter out of necessity to keep the lights on. She has since helped launched 6 and 7-figure businesses around the world.

Laura is passionate about helping women build businesses online. She loves to help others bring their passions online by teaching them how to market and GROW their business to be successful with online marketing, so they can create a business they LOVE and IMPACT the world

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