We’ve all heard for a long time that the money is in the list.
If you haven’t then you probably are investing adequately in your marketing education.
Probably 80% of businesses are not even actively building theirs lists… Yes plural. A real business should have at least 3 lists and sub lists within each of those main lists as they get bigger.
16 of the remaining 20% are probably not investing adequately to see a return from their lists or they are too small or in such a state of neglect so are in effect worthless.
The rest are probably lists of significant value. Well invested in order to make a considerable return on the investment.
So here is my point on lists…
The value in a list grows as it gets bigger. So I can invest a couple of weeks to create a product and the marketing for it. Now let’s say it converts at 1 in 50. A 2% response rate.
When you have 100 people on the list you can send your marketing to that means that you’re going to get 2 sales, all things being equal.
Now that may be fine or it may not. That depends on you and your situation as well as the profits on the product.
Once your list is at 1,000, that same work yielding a 2% response rate yields 20 customers.
At 10,000 on your list the same work yields 200 customers.
The same work yields 100 times the response. If 1,10 or 10,000 people receive this email, it still takes just as long to write and to send it.
That is a big part of the leverage you can have from marketing. Rather than ‘selling,’ which I define as a 1:1 activity.
If you are actively growing your business then you can be actively growing your lists. And if you are acquiring customers then it is not too hard to be nurturing those accumulated lists in order to have a readymade asset that can make you large additional profits from in the future.
Be wise and invest as you grow your business. This is a ‘money on the table’ opportunity that a great many entrepreneurs neglect through their unwillingness to be disciplined about their business.
While a list is small, it ‘hardly seems worth it.’ When your list gets bigger it is major income source.