So, let’s do these calculations.
Jim sells $15,000 worth of flowers online a month.
.
This means that Jim earns $3.00 per month in gross revenue from each of his newsletter subscribers.
But Jim only keeps 50% of it.
So, Jim actually earns $1.50 a month from each of phone number list his newsletter subscribers.
How to Determine How Much You Can Spend to Acquire an Email Subscriber for Your Ecommerce Email Marketing
At the simplest level, it seems like you can spend $1.50 to acquire an email subscriber for your email ecommerce efforts. That would make sense, but my freelancing journey and the role something is missing. It’s missing:
1) How long do your newsletter subscribers stay on your list;
2) How quickly you need to be reimbursed.
Let’s start with the first one…how long do your email subscribers stay on your list? Some of your email subscribers will drop off. This is because some people will unsubscribe and some may delete their emails altogether. Therefore, it is important to understand how many people are dropping off your email list each month.
Let’s say 5 percent of your newsletter subscribers fresh list drop off each month.
This means that all your subscribers will cease within 20 months.
Therefore, your email subscriber LTV can be estimated at $1.50 per email subscriber x 20 months = $30.
But most companies can’t sit around for 20 months waiting to recoup their marketing expenses. So, you need to figure out how quickly you’ll get paid back. There are a number of factors to consider. But the most important factor is that if you have a lot of money, you can afford a longer period than if you have very little money.