Saturday, December 16, 2006

Maximize Your Profit from Your Mailing List - by Michael Kay

Maximize Your Profit from Your Mailing List - by Michael Kay: "When you gather your email/customer list you pay heavily for the privilege.

If you use search engines you'll spend huge amounts of time and persistence building – and retaining – your position. If you use pay-per-click you'll spend from a few cents to many dollars on clicks only a small proportion of which will generate actual sales. If you use any of the ‘free' advertising systems you'll discover they are not really free, they all cost money or time. If you use Affiliates the commission could be anything from 50 to 75%. You may not have to carry risk but it does cost money.

To increase the price even further, ON AVERAGE 50 to 60% of customers will buy one thing (or have one visit) and never come back. This is an ‘iron-clad average' in the direct selling business. This may not seem to matter in cash flow terms; after all you DID sell something. But it does mean that the cost of the real, multi-purchase customers is even higher. Your email list is an expensive asset, very expensive. And it gets worse!"