should be able to afford to acquire an email subscriber for accurate cleaned numbers list from frist database $4.50 if his business is self-funded and for $10.50 if it is funded.
The story gets better with email marketing for ecommerce once you know the value of each email subscriber
Ok, let’s say Jim’s company is self-funded. That means he can afford $4.50 to acquire an email subscriber. However, that’s only part of the story.
Let’s say Jim is able to buy traffic at $1.00 per click. This means he would need 1 in 4.5 visitors to sign up for his email list. This is very high and probably not possible. However, this should also be added to completed purchases.
Let’s also assume that Jim spends $100.
And let’s say Jim gets 8 email signups from the 100 visitors that come to his site.
8 x 3 months x $1.50 = $36.
But 2 people also purchased flowers from those Instagram is testing new profile cards for creators 100 visitors for an average of $100 per order.
If Jim doesn’t consider the value of the email subscribers he gets, Jim will calculate that he has sold two orders. At $50 per order after the cost of goods, this means that Jim has spent $100 to earn $100. Therefore, Jim decides to stop this marketing effort.
3 months later, Jim’s revenue is the same because fresh list he hasn’t found a growth channel. However, in those 3 months, Jim’s actual sales could have been $100 + $36 (email). This means that his business could have grown during this time.
How You Can Optimize the Value of Each of Your Email Subscribers
So, we’ve established that you need to know the value of each of your email subscribers. But, once you know the value of each of your email subscribers, your goal is to grow that value.
If Jim currently has email subscribers worth $1.50 per month in net revenue to him, then his goal should be to grow that average value. So, Jim sets a goal to get to $2.00 per month. Jim hires a new email marketing person and gives her two goals: