Copyright 2006 Vince Galbraith
How Much Should I Put into Building a List?
Questions like this always boil down to one factor: How
much is your mailing list worth to your business. Each
industry has its own use for a mailing list, and not all of
them will gain subscribers the same way. Lets go
through a few different industries, how they use a mailing
list, and the best way for them to gain subscribers. Let’s
start with a group that relies very little on online
marketing. High priced products…let’s say some sort of
manufacturing equipment. We’ll even boil that down to
conveyers and conveyer systems.
Mailing Lists and High Priced Items (Business to Business)
A factory manager might consider buying a new conveyer
system for years before actually making a decision. During
that time, companies rely heavily on the continued efforts
of their salespeople. So they put very little consideration
into online marketing and mailing lists Some would say
that this industry is very under-developed in the way of
e-commerce. And a mailing list could have a lot of
potential…mainly because so few companies use them. I
t’s true that the salesperson will still have to sell
themselves before finalizing anything. But the client also
needs to perceive the company on a whole as trustworthy. No
matter how great a job the salesperson does, if the client
doesn’t see the company as a professional and competent
backdrop, the sale will not go through. A newsletter
creates and strengthens this image…as long as the
newsletter delivers information that’s important to the
subscribers. If the newsletter is full of junk (or ads)
that’s how the prospect will see the company. So each
subscriber could turn into a very profitable sale, and the
newsletter could (if properly executed) substantially
increase the salesperson’s chances for the sale. I would
say that such subscribers are pretty valuable. Be ready to
pay for them. Offer a physical gift to subscribers…how
expensive the gift will depend on how much your product
costs…but offer something. This way you’ll get an actual
address (so you know you’re mailings or emails go to an
actual person), and the subscribers will remember who you
are when they see your newsletter.
Mailing Lists and Low Priced Items (Business to Consumer)
The business to consumer industries, however, use a very
different approach. Especially when the product line is
less expensive. They make more direct sales from their
mailing lists than high priced products. But then again,
they make less money on each sale. Statistics show that
web surfers are NOT loyal customers. In fact, more of them
fall under the ‘impulsive buyers’ label. They need a
constant reminder that you’re there and that you have new
products that they can’t live without. If you send it
too frequently, it’s quickly recognized as spam. If you
don’t send it often enough, they have no idea who you are.
Two or three times a month is usually sufficient. But
how do you get subscribers to your mailing list? The first
place to start is with your customers. Have you been
offering them a subscription to your mailing list when they
buy products? Have you offered a subscription or gift
certificate for their subscription? If not, then you
should send an email to every customer within the past two
years inviting them to your mailing list. After that,
try advertising in someone else’s newsletter. A small gift
for subscription is sometimes appropriate…depending on your
profit margins. A street address to go along with the email
is something you can use if you decide to go with direct
mail.
Mailing Lists and Affiliates
Affiliate marketing is much different, and can make much
more money from a mailing list…provided there are enough
subscribers. Unlike product sales, affiliate markets don’t
always rely on conversions. For this reason, you want
your mailing list subscribers to receive your newsletter in
HTML format. That way, your click through rate will come
directly from the newsletter. Otherwise, they would have to
take two steps (first going to your site and then clicking
on your links) before you begin to earn anything.
Again, affiliate marketing relies heavily on numbers. Big
mailings mean big profits in small increments. And the key
to this is networking. Swap advertisements with other
affiliate marketers. Both on their websites and in their
mailings. Most affiliate sites offer a free
informational gift or some other kind of download in
exchange for mailing list subscribers. The profit you make
from each subscriber is small and doesn’t warrant a
physical gift. It’s much easier to automate a download.
On a side note, affiliate sites have a big reputation for
spam. So it’s best to break away from the ‘affiliate look’.
Stay away from Google ads when sending something to your
mailing list.
Mailing Lists and Service Providers
A service provider has a much harder time measuring the
effectiveness of their mailing lists. You wouldn’t use it
to make a direct sale, but to strengthen your image as an
expert in your field. For example, an e-commerce
consultant might give weekly tips for website
administration. A plumber might give DIY tips for taking
care of common drainage problems. The focus is on
reinforcing the subscriber’s idea of them as the go-to man
in that particular industry. Obviously, the first place
to find subscribers is through clients. Referrals can go a
long way. You might offer a percentage off your services to
anyone who refers ten or more subscribers. You aren’t as
reliant on mass mailings, so there’s nothing wrong with
refining your list and weeding out some of the email
addresses. Actually, many service providers build
mailing lists by limiting the number of subscribers. If
people think that only a selected few will be allowed to
receive your newsletter, they’d be more inclined to
subscribe. It’s even more inviting when they realize that
you only accept referrals (the same way gmail is beginning
to take over yahoo’s email monopoly).
Mailing Lists and Information Sellers
If you sell information, you have a unique advantage when
trying to gain subscribers to your mailing list. The very
thing you’re selling is easy to give in portions. If you’re
selling an ebook, you attract subscribers with a ‘free
report’…just a condensed version of the book. Like
affiliate marketers, you’ll benefit most from networking.
You’ll need to find people in related (but not competing)
industries. Offer to swap articles and ads with them.
In Closing
As you work through different mailing list strategies, take
note of what works and what doesn’t. No need to beat a dead
horse. Concentrate on whatever brings the highest return.
And remember not to abuse your mailing list. Allow people
to easily unsubscribe, and never sell (or lend) their
addresses to anyone.
About the Author:
Author writes on subjects concerning business in both the
online and offline world.
http://InternationalWealthBuilding.com
