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Why is building a list so expensive?

Discussion in 'Making Money' started by gvncerri, Aug 24, 2013.

  1. gvncerri

    gvncerri Regular Member

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    Alex Berezowsky says: "if you buy traffic, don't send it directly to your salespage. Send it to a squeeze page and build your list"
    Sounds correct, but why is building a list so expensive?

    I don't think that a 10'000 subscribers list is very big, but it costs $65 per month with Getresponse, $75 with Mailchimp and I suppose a similar price with Aweber.

    And may be half of those subscribers use secondary email addresses that never check...

    Do you guys think it's worth it?
     
  2. lakim0

    lakim0 BANNED BANNED

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    If 10k subscribers cost $75, it's shit for sure.

    Actually, 10k emails is a big deal, can be made a LOT of money.
     
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  3. gvncerri

    gvncerri Regular Member

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    Probably it depends on the niche and how targeted are those subscribers, but 10k doesn't seem to be very big to me. what email marketing platform do you use?

     
  4. bertbaby

    bertbaby Elite Member

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    A good targeted list will cost between $20 to $200 CPM. Why? Because they have to be scrubbed and maintained for compliance purposes and reducing bounce rates.
     
  5. gvncerri

    gvncerri Regular Member

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    CPM means cost per month?

     
  6. Akoula

    Akoula Newbie

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    You can make $5k - $20k/month with a list of 10k people, so who cares about 75 bucks :D
     
  7. satyr85

    satyr85 Power Member

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    You have 10k subscribers interested in seo, very good targeted. You send them info about new linkbulding software similar to senuke, price $100, aff commision 30%. 0.5% buy, $1500 in your bank account so please dont tell us 75$ a month is alot.

    List dont have to be big. List have to be targeted.
     
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  8. HelloInsomnia

    HelloInsomnia Jr. Executive VIP Jr. VIP Premium Member

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    I wouldn't be worried about the cost of the list, the cost of the traffic is going to be more.

    If you're buying traffic its all about trying to break even as fast as possible. You build up a list for long term profits so if you can break even on your first offer that you display then you are golden.

    What I mean by that is you send them to a squeeze page and get them on the list - lets say your cost to acquire a new subscriber is 65 cents. You now need to make back that 65 cents to break even. So you need to send them to an offer fairly quickly.

    The cost of the list itself can pale in comparison to the cost of the traffic if your not breaking even quickly. A 10k list at 65 cents per subscriber is going to cost you $6,500. Your cost per subscriber may be more or less than that but my point is $65-75 is really just going to be added on top of that and represent a much smaller cost.
     
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  9. alexp3412

    alexp3412 Registered Member

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    I'm not sure I agree with this, or atleast the 'send them to an offer quickly' portion. I think that's a mistake too many people make and it jeopardizes the long term value of the list.

    Building a list is essentially about building relationships and trust. Making money should never be your sole focus for the first few interactions or your subscribers will smell it on you. Long term, yes you will make money...but the key is having faith that when you start promoting products you have gained enough confidence and helped enough people that they feel the products your promoting will help them as well.

    Sweating the number early can get you in trouble. Over deliver with content and value early is how you see big $ being made with small lists.
     
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  10. noseo

    noseo Regular Member

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    Amazon Web Services and software called "sendly" is an alternative to the Mailchimp-like providers.
     
  11. HelloInsomnia

    HelloInsomnia Jr. Executive VIP Jr. VIP Premium Member

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    I know people understand the core concepts of list building but trust me on this one you have to monetize them at some point and its better to do it fairly quickly. I am not saying spam them, always offer good content and lots of value and they will trust you. But it also wont hurt to hit them with an offer fairly early on. It doesn't have to be the first email or even the 5th. But don't wait forever to do it either.

    The reason I say fairly quickly is because I am referring to the cost to acquire the subscriber in my above post. You need to get that money back. And even if you don't pay anything to get the subscriber there is always going to be attrition as well. The longer a subscriber stays on the more likely they are to either unsubscribe or change their email address or die or whatever it is that makes them not open your emails anymore. If you don't monetize these people they will eventually leave. At least when they are fairly fresh and you're giving them great content they are opening your emails at first. You will get those loyal subscribers who stay with you forever - no doubt about that - but most won't.
     
  12. skinnyboi

    skinnyboi Regular Member

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    Having a targeted quality long term list is going to be expensive because of quality quality quality.
     
  13. DBMEDIALLC

    DBMEDIALLC Junior Member

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    $75 with MailChimp for 10,000 isn't bad at all. If you send out just one email a month and get a single $75 sale, you've already made back your monthly maintenance price. As long as your list is legitimate, you should be profiting plenty over what they are charging.